Country Note Hungary 2024

CELIS Country Note on Hungary, 2024
by Csongor István Nagy and Bálint Kovács, CELIS Country Reporter for Hungary

The framework for investment screening in Hungary is dual. There is a screening mechanism established in force since 2019, focused on the risks posed by foreign direct investment (FDI) to national security. The second mechanism was adopted due to the emergency situation brought about by the pandemic in 2020 and is focused on protecting Hungary’s economic interests in strategic sectors. A foreign investor may find that it falls within the purview of both mechanisms, as both are still in force.

This country note includes a short presentation of Hungary’s attitude towards FDI, and the main features of the two investment screening mechanisms. This includes the conditions for triggering review under these mechanisms, the investors and economic activities that are covered under both, the competent authorities and a brief outline of the screening procedure.