The government has opened a bill on law-enforcement matters to public consultation. From 2027, it would add a new and narrower filing scenario to the way Hungary reviews foreign investments. The security-oriented screening system established by Act LVII of 2018 would stay as it is.
The new rule would catch only investors based outside the EU, the EEA and Switzerland. A filing would be required where such an investor takes direct control of a majority stake in a company seated in Hungary, and that company’s principal business falls into one of six listed industries: coking and petroleum refining, manufacture of chemicals and chemical products, pharmaceuticals, manufacture of basic metals and fabricated metal products, and the supply of electricity, gas and steam. In addition, at least one of the following two conditions would have to be met:
- the target’s net sales for its most recent closed financial year reach HUF 180 billion; or
- the value of the transaction reaches HUF 10 billion.
The bill provides that the procedure itself would follow the rules already in force.
At the same moment, the far broader temporary system under Act L of 2025 would lapse, so the two screening tracks running side by side would be phased out from 2027.
In practice, some transactions that have so far been screened may fall outside the net. Where the conditions could be met, it is advisable to check the target’s main-activity classification, as well as the revenue and deal-value thresholds, before signing. The new framework may reduce uncertainty and, for such deals, shorten the waiting period.
Public consultation is still under way, the legislative process has not been completed, and the final rules may yet change.