NEWSROOM

Changes in the Intra-Group Transactions: New Transfer Pricing Decree

On 23 December 2025, the Ministry of National Economy published a new decree that reforms the current transfer pricing system with companies of common ownership and it shall be applicable for the 2026 tax year, with some of the legal provisions regarding certain local documents applicable for 2025.

Tax and Financing Relief Measures in the Hospitality Sector – The ‘5+1 Action Plan

In February 2026, the Hungarian Government adopted a 5+1 point action plan affecting the hospitality sector, introducing several tax and financing relief measures for market participants.

EU Commission renews UK data protection adequacy

In a significant development for cross-border data flows, the European Commission has renewed its adequacy decisions with the United Kingdom, ensuring that personal data can continue to move freely and securely between the EU and the UK without additional transfer safeguards until 27 December 2031.

Significant Changes of the Development Tax Regulations

On 8 December 2025, a draft amendment to the Government decreeon the development tax allowance was published for public consultation, proposing significant changes. The public consultation period closed on 16 December 2025 without any substantive comments, and the amendments entered into force in January 2026.

EU Court: Hungary Infringed the Freedom of Establishment by Introducing Additional Mining Fees

In January 2026, the Court of Justice of the European Union (CJEU) ruled that Hungarian legislation that has introduced additional mining fee obligations violates the principle of freedom of establishment.

Pay Later or Regulated Credit? Hungary Redraws the BNPL Line

Buy Now, Pay Later (BNPL) is a short-term deferred payment solution that allows consumers to receive goods or services immediately and pay later, typically interest-free if payment is made on time.

Hungary Adopts New Rules on Global Minimum Tax and Tax Transparency

In November 2025, the Hungarian Parliament adopted an act introducing further amendments to the legal framework governing international tax cooperation and transparency.

Challenges facing the Eastern European electricity market

From 1 January 2026, the EU’s Carbon Border Adjustment Mechanism (CBAM) took full effect. Despite debates, there is no postponement. Most electricity generation companies in the Western Balkans will be heavily affected, as their exports to the EU become dramatically less attractive overnight.

The new council dealing with artificial intelligence: the Hungarian AI Council

A new body responsible for the domestic implementation of the EU’s AI regulation has been established, and it held its inaugural meeting on 15 December 2025 at the Ministry of Energy.

Amendments to the Code of Administrative Court Procedure applicable from December 31, 2025

The amendments to the Act on the Code of Administrative Court Procedure (“Kp.” in Hungarian), applicable as of 31 December 2025, primarily seek to improve the efficiency of administrative litigation, address dilatory litigation practices, and accelerate the proceedings of the Curia of Hungary.