From 24 June 2025, the FDI Decree in force – Most important points to know
From 24 June 2025, the FDI Decree in force – Most important points to know
Government Decree No. 163/2025. (VI. 23.) (hereinafter: the "Decree") has entered into force, which serves to amend the so-called FDI regulation in Hungary, including, for example, when a foreign acquisition of ownership would affect a strategic company as defined by the law.
Below we summarize the most important changes prescribed by the Decree:
- Change of administrative deadline:
The deadline for the assessment of the relevant notifications increases from the previous 30 working days to 45 working days. The minister may extend the investigation on three further occasions, for up to 30 working days each time, if clarification of the facts so requires.
- State pre-emption right after prohibitive decision:
If the procedure ends with a prohibitive decision, the Hungarian State – under the conditions set out in the procedure – may exercise a pre-emption right through the Hungarian National Asset Management Inc. or any other designated organization, within 90 days of delivery of the decision. An essential condition is that the new rules must also be applied to notifications already in progress at the time of the entry into force of the Decree. We draw your attention to the fact that the Decree is already in force from the day following its promulgation, that is, from 24 June 2025.
What does this mean for companies?
The aim of the amendment is to provide a longer deadline for conducting the investigations in the procedures, as well as to ensure the exercise of the pre-emption right in the event of a state interest. If you or your company is affected by the obligation to make this type of notification, please pay special attention to the new regulation.
Should you have any further questions, we are at your disposal!