Hungary 🇭🇺

Hungary offers a highly competitive film incentive program designed to attract both domestic and international film and television productions. Below is a detailed breakdown of the incentives:

1. Hungary Filming Incentives - Tax Rebate Program

Tax Rebate:

Hungary provides a tax rebate of up to 30% on eligible production expenditures incurred within the country.

2. Film Incentives Breakdown

Tax Rebate:

Rebate Percentage:

• 30% of qualifying Hungarian production expenses.

Eligible Productions:

• Feature films, short films, documentaries, animations, music videos, and television films or series with original scripts (excluding soap operas).
• Post-production and video games.

Qualifying Expenses:

1. Hungarian Spend:
   • Direct expenses paid to Hungarian tax-registered subcontractors.
   • Includes local wages, rental costs, set construction, travel, accommodation, catering, and post-production services.
2. Foreign Spend:
   • Expenses incurred outside Hungary can qualify up to 25% of the eligible Hungarian spend.
   • This effectively increases the rebate to 37.5% of the Hungarian budget.

3. Filming Incentives Terms and Conditions

Cultural Test:

• Productions must pass a cultural test assessing factors like cultural content, contribution, location, and personnel.
• A minimum of 16 out of 32 points is required, with at least 2 points from cultural criteria.

Registration Requirements:

• The film and the Hungarian production company must be registered with the National Film Office (NFO) at least 30 days before the start of shooting.
• Required documents include:
  • Script (with Hungarian translation),
  • Production schedule,
  • Financing plan,
  • Other relevant materials.

Financial Obligations:

• A 2.5% fee of the rebate amount is charged by the Hungarian National Film Fund for administering the rebate.
• Certain costs, such as producer fees and royalties, are capped at 4% of the Hungarian budget.

4. Governing Bodies for the Incentive

National Film Office (NFO):

• Oversees the registration, qualification, and audit processes for the tax rebate.

Hungarian National Film Fund:

• Administers the rebate payments and charges a fee for their services.

5. Filming Incentive Application Process

1. Registration:

• Register the Hungarian production company and the film with the NFO at least 30 days before shooting.
• Submit necessary documents, including the script, production schedule, financing plan, and cultural test.

2. Production:

• Ensure compliance with qualifying expense criteria during production.
• Maintain detailed records of all expenditures.

3. Application for Tax Certificate:

• After production or periodically (monthly or quarterly), submit an application for a Tax Certificate to the NFO.
• Include ledgers, contracts, bank statements, and other supporting documents.

4. Audit and Rebate Payment:

• The NFO audits the submitted documentation to confirm eligible expenses.
• Upon approval, the Tax Certificate is issued, and the rebate is paid, typically within 50–90 days.

For detailed guidelines and application forms, applicants should consult the official Hungarian National Film Fund and National Film Office websites or contact them directly for assistance.