CHINA Edition
Hungarian Edition
Budapest Reporter’s contributor, Andi Lustak sat down with five prominent industry figures to discuss the current hurdles facing international service production (or commissioned film productions, as defined by the film law) and how Hungary plans to secure its competitive edge in the second half of 2026 and beyond.
Simplicity and Predictability – Restoring the Core Foundations
For over two decades, Hungary’s 30% tax incentive system has been heralded as the gold standard of film incentives. However, recent administrative friction and cash-flow bottlenecks of the past 12 months have created an unusual sense of hesitation among international productions hoping to continue shooting in Hungary.
Daniel Kresmery, co-founder and producer of Hero Squared, observed that while Hungary has enjoyed immense structural film industry support since the passing of the landmark 2004 film law, administrative roadblocks over the past year temporarily disrupted the pipeline.
“We have a great rebate system… it’s really what we call a bankable, trusted rebate which is rare, and we just need to keep it on track… With any rebate, it’s only great until it’s working, and the moment it stops, all the business goes elsewhere. So that’s job number one of everybody.”
Addressing international discussions regarding higher rebate numbers popping up elsewhere in Europe, Kresmery dismissed them as unsustainable marketing tools, strongly defending Hungary’s current 30% baseline.
“I run a lot of budgets in Hungary; Hungary always nets very competitively so I think the percentages right now in Hungary are fine… There’s a level which makes sense for a country, for an industry, for an economy, and I think Hungary’s really hit that sweet spot.”
One of the major revelations at Eurocine 2026 came during the Hungarian Film Reform whitepaper launch on 8 May, that announced several new local film industry alliances uniting the local film industry like never before. Kresmery, representing the new Hungarian Film Industry Alliance during the Hungarian Film Reform launch on stage, this newly formed coalition unites the largest production companies, film studios and service players in the country, effectively commanding “85 to 90% of the film business here.”
Looking forward, Kresmery indicated that the next challenge for the Alliance and the ministry will be revitalizing co-productions and funding for creative, native-language films alongside the booming service sector.
Institutional Trust and Investor Safety
With changes occurring at the regulatory level, domestic stakeholders are working to reassure international partners that Hungary remains a safe, predictable, and reliable environment for high-budget filmmaking.
Academy Award-winning producer Gábor Sipos (Son of Saul) from Laokoon Filmgroup addressed the current anxieties echoing through the industry regarding foreign investor confidence. He emphasized that regulatory stability and institutional transparency are absolutely non-negotiable for productions hoping to shoot in the country.
“Well, for sure, there should be safety first of all, and there should be trust towards the Hungarian system.”
Sipos argues that the new government leadership should focus on continuous institutional dialogue to maintain a highly predictable environment for incoming films.
Sipos also represented the recently formed Alliance of Hungarian Producers at the launch of the Hungarian Film Reform white paper. He serves on the board alongside fellow producer Claudia Sümeghy and emerging producer Marcell Szy. Together, they have been working to bring together Hungarian producers across generations, with the aim of supporting the new Cultural Government through industry recommendations focused on what local producers need to thrive, while also drawing a clearer distinction between domestic content producers and service-production companies.
Károly Radnai, Managing Partner of Andersen in Hungary, also stressed that the historic success of the rebate lies in its lack of restriction.
“The key for the success has been always the simplicity… There’s no limitation of minimum, maximum kind of production length. When the whole thing started 20 years ago, a lot of jurisdictions didn’t allow television productions to enter; Hungary has never had this kind of restriction.”
However, Radnai points out that the current challenge isn’t the tax framework itself, but the transparency of its execution.
“The problem is when they have to start production without knowing exactly if the rebate would be available. That’s the problem.”
A discussion on Hungary’s service industry
EuroCine also organised a session on Hungary’s film service industry in the afternoon of the first day where panelists Ildikó Kemény from Pioneer Stillking, Viktória Petrányi from Proton Cinema, Gábor Rajna from Astra Filmland and Eszter Galambos cinematographer representing the Hungarian Cinematographers Association (HCA) and moderator, Gábor Palotás from CrewCall reflected on why the country has become one of Europe’s most important filmmaking hubs. The conversation moved from infrastructure and crew development to education, international collaborations, and the evolving role of Hungarian professionals in large-scale productions.
The overarching message was clear: Hungary’s appeal is no longer based solely on tax incentives or studio space. Increasingly, producers and filmmakers highlighted the adaptability and expertise of local crews as one of the country’s greatest assets.
For years, Hungary built its international reputation through major studio productions and service work. Today, the panelists argued that the ecosystem has matured into something broader and more sophisticated — one that can support both large-scale international productions and smaller, creatively flexible projects. One recurring theme throughout the discussion was the importance of flexibility.
“It’s very easy to put together a small, super-flexible crew..for a lower budget, and it’s obviously possible to be a full community, with experienced professionals as well. Tell us what is needed and we just keep it flexible it has to be working for a purpose.”
said Viktória Petrányi, Lead Producer at Proton Cinema.
Years ago, many foreign productions arriving in Budapest brought not only department heads but also large numbers of supporting crew members from abroad. Hungarian professionals often worked in secondary roles. According to participants, that dynamic has changed considerably. Today, local crews increasingly occupy leadership positions, and foreign productions are beginning to seek out Hungarian department heads rather than importing entire teams.
Ildikó Kemény, Lead Producer at Pioneer Stillking enthusiasticlly told the audience:
“I am the proudest, when actually we manage to crew up even the HODs from Hungarian crew. For example set decorator, Zsuzsa Mihalek who won the Academy Award for Poor Things.. what she created on that is just completely unheard of…so every time we have a new production coming in, they are asking so where are these wonderful set decorators? We don’t need to bring in our own one. We can actually look around in Hungary.. and not just in set decoration, on every level.“
Infrastructure, Virtual Tech, and Sustainability Milestones
While a tax incentive provides the financial rationale for choosing a country, the ultimate deciding factor for filmmakers on the ground is also the standard of the local crew and technical infrastructure.
Gábor Rajna detailed the recent evolution of Astra Filmland to reflect a transition toward fully localized, comprehensive digital services.
“Our goal is to create a complex service to offer to foreign productions… so that the production doesn’t have to move from the studio and can find everything they need.”
Rajna highlighted the launch of the Astra Digital Hub, bringing cutting-edge post-production and virtual LED volume solutions directly on-site. Furthermore, Astra Filmland has set a domestic milestone by securing a high-tier BAFTA Albert sustainability rating.
“If between two studios they are in competition with each other and both are good, then it is very conceivable that this kind of certification or a commitment to sustainability could be the deciding factor.”
Treating Cinema as a Global Business
As regional competition intensifies, experts argue that Hungary can no longer rely solely on a passive financial incentive. The global market requires aggressive marketing and an entrepreneurial mindset from day one.
Viktor Dudás, film expert and former international sales manager at the National Film Institute (NFI), notes that the global visual landscape has dramatically shifted.
“The film is not the art form anymore primarily, it’s more like the business industry… and there is a very, very big fight on the market for the attention. How you can catch the viewers.”
Dudás maintains that the upcoming legislative adjustments must protect what already works while addressing the speed of the tax administration pipeline.
“Nowadays it is very hard to predict when the money will get back to their account after the administrative process. So if we have to fine-tune this tax rebate system, I think this is the only part we have to focus on.”
Aiming for the Top Tier
Despite the transitional turbulence that has marked the first half of the year, Hungarian film industry veterans remain fundamentally optimistic about Budapest’s future. If the incoming administration follows through on its collaborative promises to clear administrative backlogs and reinforce the tax rebate, the future landscape looks incredibly competitive. As Gábor Rajna optimistically concludes: “In the future, the question will practically be whether London is a better fit, or Budapest… If this happens, it will be a huge win for everyone.”
Video interviews produced and edited by Kornel Tanczos.
