Hungary removes cap on registrations for its film production incentive
Hungary's National Film Office has resumed accepting applications for the country's film production incentive without any limit the amount of the production budget that can be registered.
This is good news for producers. New film projects can now register at any time and for any budget size, and no longer need compete for limited space under a cap.
The change lifts a restriction introduced by the outgoing administration, which had paused the processing of applications once a threshold was reached. The current Tisza government under Prime Minister Peter Magyar has fully reopened registrations.
Background
On 23 December 2025, the Fidesz government under Viktor Orban issued a decree that set a semi-annual cap of HUF 140 billion on the total budget of productions registrable in the first half of 2026, leaving the rules for the second half of the year unclear.
The current government has now clarified that the cap only applied to the first half of 2026, and no registration ceiling applies going forward. Applications submitted after 1 July 2026 will no longer have their processing suspended.
The National Film Office has accumulated a case backlog over recent months, but encouragingly, current expectations are that the National Film Office will clear this backlog. Producers planning ahead can look forward to a smoother process as the year progresses.
The reopening of unrestricted registration is welcome news for international producers and investors, and it reinforces Hungary's established position as one of the most competitive and rewarding production bases in the world.
The new State Secretary for Culture emphasised the Tisza government's commitment to supporting the sector, noting the multiplying effect the film-industry incentive is understood to generate within the broader economy and the extent to which Hungarian crews and creative talent now feature in high-profile international productions.
Hungary offers a 30% incentive on eligible production expenditure with the possibility of an extension to 37.5% where non-Hungarian costs are included up to a 7.5% threshold.
For more information on structuring and registering a production in Hungary or on doing business in the Hungarian film and entertainment industry, contact you CMS client partner or the CMS experts who contributed to this article.
The article was co-authored by Júlia Bokor.
