Care homes in Hungary

1. Which laws apply to opening care homes?

In Hungary, there is a substantial difference between a care home (idősek otthona) and a retirement home (nyugdíjasház). Care homes are strictly regulated, while retirement homes are free from any state control.

The difference between the two types is that only those people who need health care are entitled to a place in a care home, as confirmed by the relevant authority), while a retirement home can be used by any elderly person who uses the apartments under a lease or use right.

Establishing and operating retirement homes can be a profitable business, while the strictly controlled care homes rarely operate profitably, even if they have a state subsidy.

Therefore, in this analysis we focus on retirement homes. The lease of apartments in a retirement home is governed by the Act on Leases (LXXVII of 1993).

2. Is the care home operator required to have a presence in the local jurisdiction?

No, there no special rules for operators of retirement houses.

Not for retirement houses.

(For care homes, it must comply with the conditions of a ‘social institution’.)

4. How are the governing bodies of the care home regulated? 

There are no special rules for retirement houses.

5. Is a concession or approval by any regulatory authority required to open a care home?

No. It is typical that certain medical services are provided within the retirement house, which are subject to a license, but the retirement house itself is not.

(For care homes, operation permit is obligatory.)

6. Is a care home restricted in the performance of activities on the local market?

There are no restrictions on retirement houses.

7. Are there any restrictions on how care homes may use their profits?

The owner/operator of a retirement home is not restricted using the profit.

8. Does the government provide any type of subsidy?

The customers of retirement homes are not subsidised by the state.

State subsidies can only be given to care homes on a social basis.

9. Is there a supervisory authority in relation to the activities of the care home?

No, retirement houses have no supervisory authority, only certain medical services which might be offered in it.

(Care homes are strictly regulated and inspected annually.)

10. What is the number of inhabitants?

~9.773m (source: World Bank)

11. What is the number of inhabitants older than 65 (in %)?

19.15% (source: World Bank)

12. What is the number of care homes?

There are no reliable statistics.

13. Is there a waiting list?

There are no reliable statistics; waiting time varies subject to the size and location of the retirement home.

Portrait of Gábor Czike
Gábor Czike
Partner
Budapest
Portrait of József Várady
József Várady
Partner
Budapest