Hungary stiffens "Plaza Stop" regime regulations, but new rules to affect supermarkets only

On 18 August 2025, the Hungarian government issued an amendment to Government Decree No. 143/2018. (VIII. 13.), further tightening the regulatory framework governing the "Plaza Stop" regime for retail establishments that trade in daily consumer goods, such as super- and hypermarkets. The amended decree is scheduled to come into force on 17 September 2025.

A draft version of the decree was released for public consultation in June 2025. The initial proposal required a change-of-function permit for virtually any change of ownership or new lease involving retail premises exceeding 400 square metres. This attracted significant criticism from professional associations and investors who argued that such measures would constitute undue governmental interference in private contractual arrangements and could have a detrimental impact on the Hungarian real estate market.

In response, the government significantly narrowed the scope of the final decree compared to the initial draft.

Key provisions of the amendment

Under the revised amendment, a change-of-function permit is now required for any transfer of title or lease that is intended to establish a retail store for the sale of daily consumer goods. This requirement applies to:

• commercial buildings with a floor area exceeding 400 square metres; or
• whole or part of an independent retail unit or sales area within a building, provided that the relevant area exceeds 400 square metres.

The new permit requirement, however, is limited to transactions involving the establishment of retail stores selling daily consumer goods (i.e. supermarkets). Under the legal definition, daily consumer goods include food, cosmetics, drugstore items, household cleaning products, chemical goods and hygiene paper products – items typically consumed or replaced within one year. Stores whose sales are primarily based on such goods fall under the scope of the new rule.

The sale or lease of real estate for other types of retail operations (i.e. not focused on daily consumer goods) remains outside the scope of the decree.

Clarification of "alteration"

The amendment also provides greater clarity regarding what constitutes an "alteration" of a sales area. Specifically, any division or separation of a sales area using elements fixed to structural components, where such works result in the creation of a new, contiguous section for the operation of a retail store selling daily consumer goods, will be classified as an alteration and will require a permit.

Implications for the retail and real estate sectors

The new legislation is expected to further restrict the establishment of new supermarkets and other daily consumer goods outlets. For real estate investors, the narrower scope of the new regulations may offer some relief compared to the initial proposals. The restrictions still present notable challenges and could dampen investor interest in the retail sector.

For more information on regulations governing Hungary’s retail sector, contact your CMS client partner or these CMS experts:

The article was co-authored by Andras Rezsnyak.