ARCHIVES

Hungarian Government extends reduced VAT rate for new homes

Finance Minister Mihály Varga announced on 4 May 2024 that the Government will prolong the preferential VAT regime for new homes for an additional two years. This means that until 31 December 2026, newly built apartments (up to 150 square metres) and family houses (up to 300 square metres) will be subject to a VAT rate of 5% (instead of a general rate of 27%). Furthermore, in practice, the reduced rate can be applied up to the end of 2030 for properties for which the building permit or building notification has been issued by the end of 2026.

2024-06-28

Amendment to the ESG Act

The amendment to the ESG Act was published in the Hungarian Official Gazette of 17 April 2024 and entered into force in May 2024. According to the official reasoning of the amendment, the scope of the Act has been clarified, new definitions have been introduced and previously inserted concepts have been specified. The amendment also serves to strengthen the coherence with the sustainability report implemented in the Hungarian Accounting Act in accordance with the CSRD by amending the provisions on the obligation to submit ESG reports.

2024-06-26

KCG Partners advises Corvinus on the landmark acquisition of Budapest Airport

We are proud to announce that KCG Partners have advised Corvinus Zrt., the Hungarian state-owned investment fund in the strategic acquisition of majority interest of Budapest Liszt Ferenc International Airport.

2024-06-25

Deposit Refund System is on the horizon

The grace period until 30 June 2024 is slowly expiring for manufacturers to market products that do not yet comply with the Deposit Refund System (DRS) rules. The essence of the DSR rules is that certain products, described below, are subject to mandatory refunds and therefore the manufacturer increases the price of the product by a certain amount of money to facilitate recycling. The legislator hopes that this will lead to a much higher proportion of consumers returning these products in order to encourage recycling.

2024-06-24

Dr. Dénes Glavatity, Attorney at Law

An important moment in the life of our colleague, Dr. Dénes Glavatity, who took his oath as a lawyer today, which fills our office with great pride!

2024-06-20

Europe’s Battle to Boost Work Hours Amid Changing Trends

Across Europe, employees are clocking fewer hours at work, creating a conundrum for policymakers. Efforts to encourage part-timers to increase their hours and full-timers to take on overtime are proving difficult amid shifting work habits. Historically, rising prosperity has allowed for fewer working hours, as higher productivity and wages have facilitated more leisure time. Since 2010, average annual working hours in OECD countries have declined by 50 hours. Contributing factors include higher education levels among young people, increased workforce participation by mothers, phased retirements, and a shift from manufacturing to more flexible service jobs.

2024-06-20

KCG Partners - 10th Anniversary

10 Years – is it a LONG or a SHORT period? 10 years ago, four excellent, ambitious and unique lawyers combined their knowledge, experience, and skills to establish KCG Partners Law Firm. As of today, we have grown into a 20-person law firm with an international presence, earning increasing recognition.

2024-06-18

EU Parliament adopts reform of the EU electricity market

Energy prices have been rising since mid-2021, initially in the context of the post-COVID-19 economic recovery. Energy prices rose steeply due to gas supply problems since they are linked together under the merit order system, where the most expensive (usually fossil fuel-based) energy source sets the overall electricity price. In light of these, the European Parliament (EP) voted on 11 April 2024 in favour of legislation to reform the EU's electricity market.

2024-06-14

The European Parliament has decided on mandatory solar installations in Member States

In March 2024, legislation requiring EU Member States to install solar PV systems in new and renovated buildings moved a step closer to being implemented, with the approval of the European Parliament. Members of the European Parliament (“MEPs”) voted 370 in favour, 199 against and 46 abstentions on the directive, which is currently awaiting approval by the Council of Ministers.

2024-06-12

New EU Regulation on Packaging and Packaging Waste

The European Parliament (EP) adopted the Proposal for a Regulation regarding Packaging and Packaging Waste (hereinafter ’PPWR’) on 4 March 2024. The law will enter into force after the Council’s final approval. As far as EU regulations have direct effect, they are binding to every EU citizen and legal person, that is why experts think PPWR will lead to significant changes in the packaging industry. The Proposal requires Member States to set out national waste reduction goals, in particular regarding plastic packaging waste. By 2030, the use of unnecessary packaging shall be reduced by 5%, by 2035 10% and by 2040 15%.

2024-06-10

Member State authorities cannot withdraw residence permits without giving reasons even if the reason is “TOP SECRET”

The Court of Justice of the European Union has decided in two cases concerning Hungary in its judgments in joined cases C-420/22 and C-528/22, published on 25 April 2024.

2024-06-07

EU bans products made with forced labor from the single market

The persistence of forced labor in global production remains a pressing issue, necessitating unified international regulations for effective resolution. As defined by the International Labour Organization (ILO), forced labor encompasses all forms of work or service extracted from individuals under threat of penalty, devoid of voluntary consent. This includes instances where coercion is exerted through violence, intimidation, or subtler tactics like debt bondage, confiscation of identity documents, or threats to involve immigration authorities.

2024-06-05

Further steps to the digital state

At the end of 2023, the Hungarian Parliament adopted the Act on the Digital State and Certain Rules for the Provision of Digital Services (“Digital State Act”), the majority provisions of which will enter into force on 1 July 2024. This act opens a new era in the digitalization of public services, serving the 21st-century administrative needs of the Hungarian people and economic operators.

2024-06-03