European Foundation
for the Improvement of
Living and Working Conditions

The tripartite EU agency providing knowledge to assist
in the development of better social, employment and
work-related policies

EU PolicyWatch

Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure HU-2020-12/706 Updated – measures in Hungary

Rent freeze and contract termination ban for businesses in specific sectors

Nem lakás céljára szolgáló helyiségbérleti díjak befagyasztása, bérleti szerződés felmondásának tiltása érintett ágazatokban

Country Hungary , applies nationwide
Time period Temporary, 19 March 2020 – 31 December 2022
Context COVID-19
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial) or damage compensation
Author Nóra Krokovay (KOPINT-Tárki) and Eurofound
Measure added 16 April 2020 (updated 19 June 2023)

Background information

Under Section 3 of the government decree 47/2020, businesses in the sectors of catering, entertainment, tourism and passenger transport will receive protection from a rent increase and termination of rental contracts until at least the end of June, after which the ban can be extended. Rental leases for these companies cannot be terminated in this period so tenants cannot be evicted. It is not clear if this means on any grounds at all or whether landlords can exercise some of their rights to terminate.

Content of measure

Under Section 3 of government decree 47/2020, the sectors selected as one most affected by the COVID-19 crisis will receive protection from rent increase or rental contract termination. The measure applies to sectors where businesses typically rent rather than own their premises and where the economic impacts of COVID-19 have caused financial strains. Although the measure does not specify if rental contracts are banned from termination, even if no rent is paid by the tenant at all, experts agree that with the eviction ban in place tenants are likely to get away with not paying at all during the 'state of emergency' period while their business is likely to be closed down.


The following updates to this measure have been made after it came into effect.

02 January 2022

Under Act 99/2021 the ban on rent terminations and raises on property owned by the state or a local government was extended until 31 December 2022. In addition the owner must consider a rent decrease if the tenant requests it to apply until 31 December 2022. These measures apply to rental contracts signed before 18 December 2020.

08 February 2021

Under govt decree 52/2021 rents payable to an entity majority owned by the central or local government will be waived for the months of February to June 2021. The rent waiver does not apply to restaurants or bars if they are a workplace cafeteria, found at a hotel or accommodation or linked to a public education or health-care institution. The waiver applies to rental property operated by businesses in 25 sectors, among them retail, repairs and personal services, live performance, gambling and “other” education. Under 58/2021 on temporary measures for a pandemic emergency, rental contracts cannot be terminated until June 2021 and rental contracts that end during the state of danger will be automatically extended by up to 90 days after the end of the state of danger.

Use of measure

The measure could affect about 50,000 companies, mainly SMEs in sectors vulnerable to the impacts of the pandemic. The rule overrides any rent increases stipulated in the rental contract. Legal experts say that if tenants do not pay rent at all, landlords are likely to seek agreement on special terms rather than lose clients on a shrinking property rental market. Analysts argue that the effectiveness of this measure in supporting businesses is very low, since under the current circumstances property owners were not likely to raise rents.

Target groups

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
Does not apply to citizens

Actors and funding

Actors Funding
National government
Company / Companies
Local / regional government
Local funds
National funds
No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement as case not in social partner domain No involvement as case not in social partner domain
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: Unknown



Views and reactions

There was no social partner involvement in the drafting of this measure.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      G - Wholesale And Retail Trade; Repair Of Motor Vehicles And Motorcycles G47 Retail trade, except of motor vehicles and motorcycles
      H - Transportation And Storage H49 Land transport and transport via pipelines
      I - Accommodation And Food Service Activities I55 Accommodation
      I56 Food and beverage service activities
      P - Education P85 Education
      R - Arts, Entertainment And Recreation R90 Creative, arts and entertainment activities
      R92 Gambling and betting activities

This case is not occupation-specific.


  • 18 March 2020: Government decree 47/2020 (EN)
  • 19 March 2020: Orban lets caterers not pay any rent? (
  • 08 February 2021: Govt decree 52/2021 on rent waivers (English)
  • 02 January 2022: Govt decree 99/2021


Eurofound (2020), Rent freeze and contract termination ban for businesses in specific sectors, measure HU-2020-12/706 (measures in Hungary), EU PolicyWatch, Dublin,


Eurofound publications based on EU PolicyWatch

30 January 2023


Measures to lessen the impact of the inflation and energy crisis on citizens

Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.


12 September 2022


First responses to cushion the impact of inflation on citizens

Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.


12 September 2022


Policies to support EU companies affected by the war in Ukraine

This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.


5 July 2022


Policies to support refugees from Ukraine

This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.


Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.