Amended FDI Rules In Hungary

On 23 December 2022, the Hungarian government adopted a new decree3 (the "New FDI Government Decree") amending certain rules of the New FDI Regime set forth in Act LVIII of 2020 and in some other laws. 4 The New FDI Government Decree is applicable during the emergency situation declared in Hungary relating to the war in Ukraine, i.e., until approximately the end of May 2023, although the Hungarian government may prolong the emergency situation if its conditions remain. From the legal perspective, this means that the previous rules of the New FDI Regime remain in effect, but as long as the New FDI Government Decree is in force, its provisions prevail over the general rules and must be applied to transactions covered by the New FDI Regime. The New FDI Government Decree did not change the Old FDI Regime, but it is important to note that until 1 June 2023, investors from the EU, the EEA and from the Swiss Confederation also qualify as foreign investors under the Old