A recent webinar organised by law firm Taylor Wessing Hungary explored how Hungary’s new government and its constitutional majority could reshape the country’s legal and economic environment for foreign investors. Speakers examined key issues including FDI screening, retail regulation, housing, intellectual property, short-term rentals and digital regulation, with a recurring focus on restoring transparency, predictability and investor confidence.
Experts say transparency and predictability will define future policy
Partner Dániel Ódor argued that the new government’s priority will be to improve transparency and competition in order to unlock EU funds and attract international capital. He highlighted the planned shift in housing policy toward strengthening the private rental sector (PRS), which should include possible tenancy law reform, tax incentives and support for longer leases. In his view, Hungary’s legal framework is already familiar to continental investors due to its German roots, but rebuilding trust and predictability will be essential.
Dual FDI screening system under scrutiny
Partner Ákos Mátés Lányi explained that Hungary currently operates two parallel FDI screening regimes, one aligned with EU security concerns and another much broader domestic system covering strategic sectors. He noted that the rules can affect transaction timelines and even intra-group restructurings. Looking ahead, he suggested reforms focused on narrowing the scope to genuinely sensitive assets, introducing exemptions for low-risk transactions and increasing transparency around decision-making.
Retail sector faces calls for more stable EU-aligned rules
Managing Partner Torsten Braner reviewed years of state intervention in Hungary’s retail sector, including progressive retail taxes, price caps and restrictive permitting rules. He argued that many measures disproportionately affected multinational retailers and created uncertainty for investors. According to him, a more predictable, EU-aligned regulatory framework and the gradual removal of direct market interventions would be key to restoring confidence in the sector.
“Plázastop” and short-term rental rules raise investor concerns
Senior Associate Kinga Harza discussed the impact of Hungary’s “plázastop” regulation, which requires special permits for retail developments above 400 sqm and, from 17 September 2025, also for the commencement of daily consumer goods retail use following ownership and tenant changes. She warned that the expanding scope of the rules increases regulatory risk for investors and landlords. Kinga also addressed Budapest’s short-term rental moratorium, which freezes new Airbnb-style registrations until 2027 and may shift demand toward hotels and serviced apartments.
Partner Zoltán Novák focused on intellectual property and Hungary’s position regarding the Unified Patent Court (UPC). While Hungary has signed but not ratified the UPC agreement, he noted that the new government’s constitutional majority could reopen the issue. Joining the system, he argued, would give investors greater flexibility in patent enforcement and strengthen Hungary’s attractiveness for innovation-driven industries.
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Hungary has the foundations to attract international investors
Counsel János Kopasz examined Hungary’s role in the data-driven economy and EU digital regulation. While core rules such as GDPR and NIS2 come from the EU level, he stressed that investors care most about predictable implementation and practical guidance. Hungary’s industrial base and large shared service centre sector, he said, create strong foundations for AI, cybersecurity and digital investment if regulation becomes more transparent and stable.
The webinar concluded that Hungary has the legal and economic foundations to attract sophisticated international investors, but future success will depend on whether the new government can deliver a more transparent, competition-friendly and predictable regulatory environment aligned with EU standards.
What’s next? Foreign capital poised to return to Hungary’s property market
Featured image: illustration, depositphotos.com
