After six months of uncertainty, Hungary’s film industry finally has its answer.
On December 23, 2025, the Hungarian government officially published its long-awaited decree confirming continued funding for the country’s internationally renowned film tax rebate system. The decision secures the 30% rebate for international productions and brings legislative clarity after a prolonged registration freeze that had left studios, producers, and service companies in limbo since early summer.
For an industry that thrives on predictability, the announcement lands as both a relief and a reminder: Hungary remains open for business — but not without caveats.
A Long Wait Ends — Just in Time
The decree sets the financial framework for film incentive support in 2026, aligning with the European Union’s prior approval of Hungary’s rebate system through 2030. Crucially, it confirms that international productions can once again rely on the familiar structure that helped turn Budapest into one of Europe’s most dependable production hubs.
The timing, however, is no accident.
2026 will be an election year in Hungary, and the government opted for a cautious approach: the newly announced cap applies only to the first half of the year, with funding for the second half to be determined after the elections — by either the current administration or a new one.
While politically pragmatic, the split-year structure is unusual for an industry that plans productions 12 to 24 months in advance.
What the Decree Actually Changes
According to the published regulation, the government has:
Reconfirmed the 30% film tax rebate
Set a maximum cap of HUF 70 billion payable from the designated escrow account in 2026
Established a HUF 140 billion cap on eligible direct production costs for the first half of 2026
Left the second-half framework open, pending post-election decisions
In practical terms, this reopens the door to new registrations — something the industry has been waiting for since June 2025, when the previous cap was reached and the National Film Office stopped accepting new projects.
The Freeze That Shook Confidence
The registration halt sparked widespread concern within Hungary’s film community.
As industry sources told us earlier this year, the inability to register new projects raised fears that international productions might lose confidence in Hungary’s reliability — a cornerstone of its success over the past two decades.
The Ministry of Culture and Innovation and the National Film Institute responded at the time by emphasizing that the changes were designed to improve the predictability of support planning, not to dismantle the system.
Still, predictability cuts both ways.
As one Hungarian producer noted during the pause:
“The industry isn’t losing faith — it’s waiting. The moment registration resumes, productions will be back. But predictability is our most powerful currency in attracting studios.”
A Proven Powerhouse
There is little debate about Hungary’s value proposition.
With approximately 24,000 film professionals working across production, post-production, and support services, Hungary has built one of the deepest crew bases in Europe. Hungarian names appear in the end credits of Hollywood’s biggest titles — from sci-fi epics to franchise blockbusters and premium streaming series.
Studios like Warner Bros., Paramount, Netflix, and Disney have relied on Hungary’s infrastructure, including ORIGO Studios, Korda Studios, and Mafilm, as well as the country’s flexible rebate structure, which allows up to 25% of qualifying spend outside Hungary.
That flexibility has long been a strategic edge in Europe’s increasingly competitive incentive landscape.
Europe’s Incentive Arms Race
The December decision arrives at a critical moment.
Across Europe, governments are aggressively refining their production incentives:
The UK’s AVEC system now effectively reaches 40%
Ireland’s uplift has narrowed the gap with British incentives
Germany is moving toward a federally backed 30% rebate
The Czech Republic continues to raise its caps
In this environment, Hungary’s challenge is not generosity — it’s consistency.
Studios accustomed to Budapest’s reliability are watching closely to see whether the half-year cap becomes a one-off election-year compromise or a recurring structural risk.
As one production service executive previously told us:
“A blockbuster doesn’t just employ film crews — it fills hotels, keeps restaurants busy, and brings a ripple effect that sustains local economies. Everyone from the set painter to the hotel manager is part of the same ecosystem.”
Why This Matters Beyond Film
The Hungarian film industry is no longer a niche cultural sector. It is a major export industry, drawing billions in foreign investment and supporting tourism, hospitality, transportation, and skilled labor at scale.
Beyond economics, it functions as soft power — showcasing Hungary on a global stage while training a workforce that operates at international standards.
That is why, across political lines and successive governments, the system has survived and expanded. As insiders quietly note, every administration that has come into power has recognized the same truth: the film industry works.
Stability Is the Next Test
The December decree ends the immediate uncertainty — but it does not fully resolve the structural question facing Hungary’s film sector.
Can the system maintain the level of predictability international producers now expect, especially in an election cycle? Or will short-term political considerations continue to shape long-term production planning?
For now, the industry is cautiously optimistic.
Hungary’s rebate remains intact. EU approval runs through 2030. Registrations are expected to resume. And the fundamentals — crews, infrastructure, know-how — are as strong as ever.
But in a hyper-competitive European market, stability is no longer a given. It must be actively maintained.
The door is open again…
This moment is a stress test for one of Europe’s most successful film incentive models. How Hungary manages the transition from pause to continuity will determine whether it retains its position as a first-call destination for global productions — or becomes just one option among many.
The door is open again. Now the industry is watching to see how firmly it stays that way.