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Hungarian Edition
Despite recent headlines regarding Hungary’s temporary halt in new rebate registrations, the country’s film industry remains fully open and competitive for international productions. In a formal press release issued this week, the Motion Picture Division of the Budapest Chamber of Commerce and Industry (MODIV) reassured global partners that registration of international productions remains seamless, and that Hungary’s production infrastructure and incentive framework continue to meet the highest international standards.
The response comes after a Budapest Reporter article detailed the Hungarian government’s decision to pause new tax rebate registrations due to an unprecedented volume of applications in early 2025. The move triggered concerns among industry stakeholders about accessibility and reliability. MODIV’s communiqué, however, presents a clear message: Hungary remains open for business.
Key highlights from MODIV’s communiqué:
- Hungary remains open to international film productions despite a temporary pause in new rebate registrations.
- Registration for international projects remains seamless, with no disruption to ongoing or new foreign productions.
- Tax rebate cap increased by 18%; eligible production costs raised by over 40%.
- Hungary’s production infrastructure is globally competitive, with top-tier studios and support services.
- MODIV urges continued collaboration with the government and reaffirms the country’s commitment to the global screen industry.
“Seamless International Registration” Remains the Norm
The MODIV communiqué directly addresses concerns, stating:
“Registration of international productions remains seamless, while Hungary’s production infrastructure and incentive framework continue to be globally competitive.”
This assurance highlights that the recent administrative cap affects only new domestic registrations within a fixed budget, not the broader international pipeline. Productions already in progress or registered prior to June 5, 2025, continue uninterrupted, and the infrastructure to welcome new international projects is fully operational.
Strategic Growth Backed by the Government
In the same communiqué, MODIV emphasizes that Hungary’s film sector enjoys strategic status, now officially recognized by Parliament. This designation ensures that industry operations receive high-level policymaking attention, and that international productions benefit from predictable cooperation and stable support. Government Decree 134/2025 (VI. 5.) increased the refundable tax incentive cap by 18%, while also raising the threshold for eligible direct production costs by over 40%. These moves reflect a long-term commitment to sustainable growth and global competitiveness.
MODIV underlines the multiplier effect of the screen sector, noting that it contributes up to five times the original investment to Hungary’s economy — through tourism, hospitality, logistics, and more.
Ruzsinszki: “We Cannot Settle for Mediocrity”
Ádám Ruzsinszki, head of MODIV and production director at ORIGO Film Studio, reinforced the message of continuity and ambition:
“We agree with Prime Minister Orbán, who said the film industry is both art and industry. MODIV considers it a core principle that we cannot settle for mediocrity. We must remain consistent, competitive, and internationally relevant.”
He also stressed that MODIV is committed to a professional, transparent, and collaborative approach to policy shaping, ensuring Hungary remains a reliable destination for foreign producers.
Hungary’s Advantage: Stability and Predictability
MODIV’s position is clear: Hungary’s film tax rebate system continues to operate smoothly, underpinned by the national budget. With one of Europe’s most developed studio infrastructures — including ORIGO and the newly opened Fót complex — Hungary offers both technical excellence and financial reliability to global productions.
The organization also announced the launch of a strategic communication campaign to reaffirm Hungary’s reputation on the international stage and to clarify the scope of the recent regulatory adjustments.
