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
|Country||Hungary , applies nationwide|
|Time period||Temporary, 19 March 2020 – 31 December 2022|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Direct subsidies (full or partial)
|Author||Nóra Krokovay (KOPINT-Tárki) and Eurofound|
|Measure added||16 April 2020 (updated 15 June 2022)|
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, either, so tenants cannot be evicted, although it is not clear if this means on any grounds at all or whether landlords can exercise some of their rights to terminate.
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 govt decree 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.
The measure could affect about 50,000 companies, mainly SMEs in the COVID-vulnerable sectors. 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 anyway, if anything, rents are dropping on current market conditions.
|Does not apply to workers||
Sector specific set of companies
||Does not apply to citizens|
Company / Companies
Local / regional government
No special funding required
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:
There was no social partner involvement in the drafting of this measure.
This case is sector-specific (only private sector)
|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.
Eurofound (2020), Rent freeze and contract termination ban for businesses in specific sectors, measure HU-2020-12/706 (measures in Hungary), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/HU-2020-12_706.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.