NEWSROOM

Hungarian Minister proposes legislation to enhance transparency in state-funded projects

On 7 April 2025, Mr. János Lázár, Hungary’s Minister of Construction and Transport announced via social media his intention to introduce a major legislative initiative designed to overhaul the oversight of public investments. The proposed law would grant the Government the authority to examine the entire chain of contractors involved in public investments, extending down to the actual subcontractors executing the work.

The Government has decided on changes to facilitate the use of cash

In March 2025, the Hungarian Government decided to significantly strengthen Hungarian citizens’ right to use cash. In this context, the Fundamental Law has been amended, so that the possibility to pay in cash will become a fundamental right. According to the explanatory memorandum, this is necessary to avoid the economy becoming completely vulnerable to electronic financial systems.

Transfer pricing ’task force’ in Hungary

As of 2025, the Hungarian Tax Authority (NAV) has established specialized transfer pricing expert departments, indicating an increased focus and scrutiny on transactions between affiliated companies. The three new departments are located in Budapest and in the eastern and western parts of Hungary (one in each region) and have special competence regarding the complex transaction between affiliated parties within Hungary or cross-border alike.

Driving Europe’s EV Future: EU to Boost Demand and Build Battery Independence

The European Commission was set to announce an automotive action plan on 5 March 2025 to boost electric vehicle (EV) demand and enhance local battery production within the EU. Key initiatives include encouraging the electrification of corporate car fleets, which comprise around 60% of all new vehicle registrations across the EU, and proposing exemptions from road charges for zero-emission heavy vehicles.

Facial recognition and minor offences: new Hungarian law raises EU compliance questions

In March 2025, the Hungarian Parliament enacted legislation expanding the use of facial recognition technologies in minor offence procedures. The law is a part of broader efforts aimed at enhancing child protection measures, but has sparked considerable legal debate due to potential conflicts with European data protection laws, including the General Data Protection Regulation (GDPR) and the forthcoming EU Artificial Intelligence Act.

Will the Hungarian ESG Act be amended once again?

The Hungarian Ministry of National Economy published a bill to amend the ESG Act on 21 March 2025, simultaneously launching a public debate on the proposal.

Tax audit of dividend claims placed in a trust

On 11 March 2025, the Ministry of National Economy and the National Tax and Customs Administration of Hungary published an opinion regarding the taxation of assigning dividend claims into a trust structure.

The golden age of Shein and Temu might come to an end in the European Union

On 5 February 2025, new charges on imported e-commerce parcels were introduced to regulate the influx of non-compliant trade from China, following an announcement by the European Commission.

Hungarian Government introducing new restrictions to curb pollution

The Hungarian Government is committed to reducing environmentally harmful activities and protecting the environment. However, fines imposed by environmental authorities for violations related to environmental permits, noise pollution and air quality have remained unchanged for 15–20 years.

EU presents the Clean Industrial Deal

The European Commission’s Clean Industrial Deal (CID), announced on 26 February 2025, aims to boost EU industry competitiveness while accelerating decarbonization.