Accountancy is one of the fields that stands to be significantly impacted by widespread automation. Given the pace of change, the profession had better start looking for a way out, if there is one. 10
Global Pressures, Geopolitical Worries and Digitalization: Tax in 2025
We asked several of the leading taxation specialists based in Budapest to mark our card for what to look for this year. In short, prepare for change, some of it planned (global minimum tax), some of it dynamic (Trump tariffs). 18
Voyaging Into Underground Music on the A38 Ship
Over the last weekend of February, Noir Voyage: Black Ship Sessions on the A38 Ship promises festivalgoers “a journey where the boundaries of musical genres are blurred, leaving only what is truly raw, bold and original.” David Holzer sets sail on a journey of discovery. 22
Digital Tech Meets Medical Innovation
Inflation Surge Dampens Mall Mood
Two days before this paper went to press and not a week after news that inflation in January had rebounded to 5.5%, a quick survey of shoppers in Buda’s MOM Park mall uncovered a mood of public pessimism. The numbers certainly surprised analysts, whose predictions had averaged a mere 4.9%. 3
Colette Matz, country president of Novartis Hungary, discusses key milestones from 2024, her hopes for this year, and where she believes the innovative pharma firm can make a difference to Hungarian healthcare. 6
Business leaders and IT professionals attending the Microsoft AI Tour in Budapest learned firsthand how AI is transforming workplaces, daily life, and cybersecurity. 7
EDITOR-IN-CHIEF: Robin Marshall
EDITORIAL CONTRIBUTORS: Luca Albert, Balázs Barabás, Zsófia Czifra, Kester Eddy, Bence Gaál, Gergely Herpai, David Holzer, Levente Hörömpöli-Tóth, Gary J. Morrell, Nicholas Pongratz.
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• Independence. The BBJ’s journalism is dedicated to reporting fact, not politics, and isn’t reliant on advertising from the government of the day, whoever that might be.
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For more information visit budapestbusinessjournal.com IMPRESSUM
THE EDITOR SAYS
EXPAT CEO AND CEO COMMUNITY AWARD SHORTLISTS ANNOUNCED
A select group of business and diplomatic leaders from Budapest and beyond (we had at least one guest join us from Szeged) were given an exclusive sneak-peak on Tuesday morning (Feb. 18) of the shortlisted candidates for the Expat CEO and CEO Community awards, to be presented by the Budapest Business Journal and our official event partner the Hungarian Investment Promotion Agency at the CEO Gala on Friday, March 21.
The guests at the Budapest Business Journal ’s CEO Boardroom Meeting, hosted by the Matild Palace, A Luxury Collection Hotel Budapest, were told that this year’s Expat CEO Award will be contested by Byung Kim , lead country manager and lead controller at ExxonMobil Hungary Kft. (an American of Korean heritage), Ana Maria Vargas, country director at J&J Innovative Medicine Hungary (originally from Columbia), and Guntram Würzberg, chairman and CEO at E.ON Hungária (who continues a long tradition of having at least one German candidate in contention for the prize).
The Expat CEO Award isn’t the only title up for grabs on March 21. The CEO Community Award, introduced in its current form in 2023, honors those who support community building alongside their day job. This year’s shortlist comprises Zsófia Beck, managing director at Boston Consulting Group; Nikolett Blaskó, the founder, co-owner and CEO of the Advanced Communication Group; and Róbert Keszte, head of global operations at Continental.
The final decisions on the winners for both awards will be made by their separate expert juries (who were also responsible for whittling down the longlist of potential candidates to arrive at the candidates in contention) in the minutes before the CEO Gala starts at the Corinthia Hotel Budapest and are announced in the Grand Ball Room of the hotel as the highlight of the evening. Who will win? You’ll find out if you are a guest at our invitation-only Black Tie event, but we’ll be sure to tell you in the following print issue of the Budapest Business Journal and even sooner than that online.
Meanwhile, back at the CEO Boardroom Meeting, our guests were also treated to a roundtable discussion, part of our ongoing series examining the critical factors driving the markets and the Hungarian economy in the months ahead. The themes covered this time include the potential impact of “Trump Tariffs” on global, and, therefore, European and Hungarian trade, the GDP outlook for Hungary, any potential peace dividend from an end to Russia’s war in Ukraine, putative timetables for Hungary joining the euro, and the significance of ESG reporting becoming mandatory for large listed companies this year. Look out for a podcast soon of what was a fascinating conversation. We are very grateful to our two panelists for sharing their expertise and knowledge with us: Rezső Rózsai, CEO of KPMG Hungary, and Barnabás Virág, deputy governor of the National Bank of Hungary.
Robin Marshall Editor-in-chief
THEN & NOW
The black and white photo, dating from 1905 and taken from the Fortepan public archive, the building of the Austro-Hungarian Bank, later home to the Hungarian National Bank (MNB), stands prominently by Szabadság tér in Budapest. The modern color image from state-owned news wire MTI, taken on Feb. 17, shows the renewed Szabadság tér headquarters of MNB on the day of its unveiling to the Hungarian press.
Photo by Budapest City Archives / Fortepan
Photo by Róbert Hegedüs / MTI
1News
• macroscope
January Inflation Surge Dampens Budapest Mall Shopper Moods
Two days before this paper went to press and not a week after news that inflation in January had rebounded to 5.5%, a quick survey of shoppers in Buda’s MOM Park mall uncovered a mood of public pessimism.
Inflation Trends in Hungary, 1991-January 2025 Change compared to the same period of the previous year, %
Except for the extremely high inflation (partly exacerbated by the energy crisis) in 2022 and, especially, 2023, inflation is now at its highest point since it hit 5.7% in 2012.
Source: Jan
‘Immense Doubts’
The January inflation figure also increases the risk of a budget deficit overrun. Török had already expressed “immense doubts” that the target deficit of 3.7% of GDP could be hit after the December inflation figures.
“The inflation upside surprise makes it even more difficult to meet the target this year; I think the deficit will be only marginally lower than it was in 2024 [at a preliminary estimate of 4.8% of GDP],” he said.
In near-perfect step with his Raiffeisen colleague, Péter Virovácz, senior analyst at ING Bank, raised his inflation prognosis for 2025
to 5.1%, noting in addition that it “poses a downside risk” to both this year’s economic growth, which he puts at a “moderate” 2%, and consumption outlooks, estimated in a range of 4-5%, and itself a key element of the expected increase in growth.
However, as the proverb goes, every cloud has a silver lining; in the case of January’s CPI number, this proved true regarding the foreign exchange markets, with the Hungarian currency appreciating a little against both the euro and U.S. dollar since players, including Török and Virovácz, reasoned the central bank would no longer be in a position to cut interest rates later this year.
“I don’t want to talk about the economy because it’s awful,” retorted a young man in his early 20s, the first approached. Kornel, a 75-year-old retired agricultural engineer, was more forthcoming.
“From our point of view, as pensioners, inflation is higher. Maybe it is 5.5% in general, except I don’t buy ski gear every day because I don’t take trips abroad, but basic food inflation is very high. Sadly, I can see it [going] up and up,” he said.
Two others in their late 20s expressed gloom about the economy’s future, while a follow-up check on the Central Statistical Office’s data largely vindicated the retiree’s observations.
True, the official figure for average annual food inflation in January was “just” 6%, but within this, some basic products, such as flour, had soared by 43.2%, while milk and eggs jumped by 25% and 23.8%, respectively.
The numbers certainly surprised analysts, whose predictions for the month, according to an earlier Portfolio survey, had averaged a mere 4.9%. The reality, which followed a 4.6% rise in the consumer price index in December, meant a sharp deviation
from the central bank’s 3% target, a figure briefly achieved in September last year. It also gave weight to Minister for National Economy Márton Nagy’s words one day previously that the government might re-introduce price caps on staple food items to reduce the burden on the public. Meanwhile, analysts quickly revised their targets for the remainder of this year.
Zoltán Török, Senior Analyst at Raiffeisen Bank, told the Budapest Business Journal his estimate for average inflation had risen from “a little above 4% to around 5%.”
In addition, he no longer expects any cuts in the base rate during 2025.
TI warns of ‘Vicious Circle’ Linking corruption With Weak Economic Performance
Tuesday, Feb. 11, was not a good news day for the Hungarian Government: In addition to the unexpectedly high inflation rate announced by the statistical office, Transparency International released its annual “Corruption Perspective Index,” which rated Hungary as the most corrupt country in the European Union for the third consecutive year. Moreover, the anti-corruption NGO’s 2024 report, published by its Berlin headquarters, revealed that Hungary had achieved 41 points on a scale from 0 (most corrupt) to 100 (least corrupt) in 2024. It was thus one point lower compared to its 2023 score in the global rankings, slipping from 76th to joint 82nd
place, equal to countries such as Burkina Faso, South Africa and Cuba.
As TI’s Hungary office wrote in its executive summary of the report: “In 2012, Hungary was ranked 46th with 55 points, which means that in the last 12 years, Hungary has slipped 36 places and 14 points in the world corruption ranking.”
This performance means Hungary’s score has fallen the most among EU Member States in that period, overtaking Greece and Italy, which have fallen 13 and 12 points, respectively.
EUR 1 bln ‘Loss’
But what has all this got to do with the economy? Quite a lot, in TI’s assessment. First, there has been a direct impact in the form of EU
funding cuts. As József Péter Martin, TI Hungary’s executive director, stated to domestic news outlets when releasing the report, “For the first time ever in the history of the EU, Hungary, because of systemic corruption and rule of law problems, irrevocably lost EUR 1 billion in cohesion policy funding in 2024.”
Worse still, the country is also at risk of losing EUR 10.4 billion, its share of the EU’s post-COVID-19 Recovery and Resilience Facility, unless it fulfills all 27 “super milestones” established by the European Commission as prerequisites for accessing this money.
Then there is what Martin termed the “vicious circle” of indirect effects caused by the debilitating impact of corruption on economic performance,
The appreciation continued over the next week as markets factored in hopes of an end to the Ukraine conflict. The forint, which was trading around HUF 404.7 to the common currency early on Feb. 11, gained almost 1% to HUF 400.8 as this issue of the BBJ was being prepared for press a week later.
Yet, for all the recent strengthening of the forint (it has gained some 2.5% against the euro since the new year), both analysts consulted were predicting a value of around HUF 420 for the currency come the year-end.
“Based on the recent upbeat market sentiment that a peace deal could be reached in Ukraine, [emerging markets’ currencies], including [the] HUF, are stronger. But I don’t think this strength will remain with us for a long time,” Virovácz told the BBJ However, illustrating the uncertainties, he stressed that “an actual peace in Ukraine” could change this story, should it transpire.
which itself leads to more corruption, as documented by Nobel prizewinning economist Daron Acemoglu.
In Martin’s assessment, recent social and economic indicators, including health, education and productivity measurements, “clearly indicate that the Orbán regime has entered a vicious circle since the COVID-19 pandemic, with corruption undermining economic performance,” he said.
In response to the TI report, the Government Information Center wrote: “It has now become clear: [U.S. financier George] Soros and the [U.S.] Democrats jointly fund a network to fabricate lies about their opponents. Transparency International is also a member of this network, financed from rolling dollars. In addition, they also lie about Hungary, according to orders,” ATV reported.
KESTER EDDY
CEE Industrial Still Attractive Despite Development Downturn Real Estate Matters
The CEE industrial market has grown on the back of increasing demand for industrial space to meet foreign direct investment, notably in the electric vehicle and EV-related industries in Hungary and other parts of the region.
Essentially, nearshoring has made CEE an attractive industrial and logistics destination; however, new supply has been moderating since the peak of 2022, according to consultancy CBRE. Across Europe, Garbe Industrial Real Estate has traced moderating industrial rental growth and an overall vacancy rate of just below 6%.
“When taken into account collectively, CEE, SEE and the Baltics markets take second spot among European markets’ supply after Germany, amounting to 73.4 million sqm, 61.6 million sqm [of which is] in the CEE-5 [the Czech Republic, Hungary, Poland, Romania, and Slovakia] which corresponds to 10% growth year-on-year,” CBRE comments, looking at the figures as of mid-2024.
Hungary has a total industrial stock of more than five million sqm, with almost
500,000 sqm
under construction and due to be delivered in 2025 or 2026, with a pre-lease rate of 30%, according to Cushman & Wakefield.
“While the growth of industrial stock will continue, it is expected to occur at a slower pace,” the consultancy comments.
The largest recent Hungarian delivery is the new 100,000 sqm Tesco warehouse on a 60-hectare site at CTPark Sziget. In Poland, CTP is developing three new logistics parks in Lodz, Czestochowa and Bydgoszcz, totaling 215,000 sqm.
Multiple Complexes
The leading CEE industrial developer has 10 complexes across Poland at various stages of development in addition to a land bank of 2.5 million sqm. The company owns and operates more than six million sqm of space across CEE, it says.
A biweekly look at real estate issues in Hungary and the region
CBRE recorded more than 33 million sqm of stock across several logistics and industrial hubs in Poland and 1.9 million sqm under construction in 2024, representing a significant fall in volume of around 50%. From a development strategy perspective, the speculative option constitutes less than 50% of this. The Wroclaw region was the leading development hub, with more than 570,000 sqm of industrial space under construction.
“While dynamics have modified, Poland remains one of the fastest growing countries in Europe’s logistics and industrial market, ranking fifth in terms of total stock supply within the European regions,” says CBRE.
For the Czech Republic, industrial development for 2025
looks positive, with 870,300 sqm of space currently scheduled for completion and a further 384,700 sqm in shell & core status, potentially available within 3-6 months.
There are currently 2.7 million sqm of projects whose permitting process has been completed and, in addition, 3.2 million sqm of potential projects in various permitting stages. The total potential planned area, therefore, stands at around 5.9 million sqm at the moment, says Josef Stanko,
ARM Processors relocate to Millennium Gardens
Revetas Capital and developer TriGranit have confirmed that ARM Processors, a global leader in semiconductor and computing solutions, will establish its new Budapest headquarters in Millennium Gardens, occupying more than 3,400 sqm of space on upper floors overlooking the Danube.
“The relocation of ARM Processors to Millennium Gardens is a fantastic example of how premium assets remain highly attractive in today’s market. Leading tech companies with strong growth potential continue to seek high-quality office spaces, and Millennium Gardens offers exactly that: modern, sustainable, and future-ready workspaces,” comments Károly Dömötör Makk, leasing director of TriGranit.
With the new letting, the 37,000 sqm Breeam “Excellent” Millennium Gardens is now 50% let and is expected to be fully leased by 2027, according to TriGranit. The North Tower, completed in 2022, is almost fully occupied. The South Tower, delivered in the second quarter of 2024, is close to 30% occupied.
Revetas Group bought TriGranit in 2018 from TPG Real Estate but disposed of the developer in August 2024 to DRFG Investment Group. Revetas retained ownership of Millennium Gardens, however.
Total office stock in the Budapest office market stands at 4.45 million sqm, with vacancy rising to 14%, according to Cushman & Wakefield.
director of market research at Colliers. The stock has risen to more than 12 million sqm with vacancy of around 3%.
Growing Stock
According to Colliers, Romania’s industrial and logistics stock continued to grow in 2024, bringing the total to 7.4 million sqm, with a further 650,000 sqm under construction in industrial hubs across the country.
“Expanding to 11-12 million sqm by the end of the decade is a realistic goal. In the short term, however, economic and political uncertainties may impact the pace of expansion, but large-scale transactions could bring positive surprises and support market activity,” says Victor Coșconel, head of leasing for office and industrial at Colliers.
Poland and Hungary have the highest vacancy rates at around 8%,
although these are expected to fall as speculative pipelines are more restrained. The lowest vacancy rates are in the Czech Republic at around 3% and SEE (Bulgaria, Croatia, Serbia, and Slovenia) with an estimated 2% overall.
In general, vacancy rates in the CEE logistics and industrial markets tend to be increasing. Cushman & Wakefield say average vacancy across the region is in the single-digit range, indicating very tight supply markets with low availability of quality industrial and logistics space.
“Stabilizing construction costs are enabling new industrial developments, though demand varies regionally. Prime locations and transport corridors in Hungary and Poland attract the most interest, with growing attention from Asian companies in logistics and manufacturing,” Colliers concludes.
Millennium Gardens was developed by TriGranit. Revetas Capital is the owner.
“Looking ahead, the speculative office pipeline is slowing, with only 113,000 sqm of new speculative office space scheduled for delivery through to 2027.” The transaction was facilitated with the support of CBRE, who represented Revetas Capital. iO Partners acted as tenant representatives for ARM Processors and will be project managers up to the handover.
GARY J. MORRELL
The largest recent Hungarian industrial and logistics delivery is a 100,000 sqm Tesco warehouse on a 60-hectare site at CTPark Sziget.
Hungary Taunts EU ‘Losers’ as Trump Brings Putin in From the Cold Roundup Crisis
Breaking with three years of U.S.-led efforts to isolate Russia, President Donald Trump spoke with Russian President Vladimir Putin for 90 minutes on Feb. 12, signaling the former’s intent to begin negotiating an end to the war in Ukraine, a step which drew acclaim from Hungarian leadership.
“Hallelujah! This is what we were hankering for,” Prime Minister Viktor Orbán told Kossuth Rádió on Feb. 14. “This is what we have built our Hungarian strategy on: the war should not drag on, a new American president would come, he would cut the Gordian knot [...] and forge peace.”
Emphasizing the benefits to Hungary, Orbán expressed the hope that peace talks would eventually lead to the end of sanctions against Russia, which he said had cost Hungary EUR 6.5 billion each year, totaling EUR 20 bln.
“If the U.S. president steps in and establishes peace and a deal is made, I believe Russia will be reintegrated into the world economy, the European security system, and even the European economic and energy system. That would give a huge boost to the Hungarian economy,” Orbán said. “We will benefit greatly from a peace deal,” he added.
Minister of Defense Kristóf Szalay-Bobrovniczky also welcomed the change in America’s stance at the Ukraine Defense Contact Group meeting on Feb. 12.
“We share the view that the bloodshed must end as soon as possible, and rather than steps that escalate the situation, efforts should focus on bringing the war to a close,” he stated from Brussels.
Minister of Foreign Affairs and Trade Péter Szijjártó also applauded the phone conversation between Trump and Putin, calling it a “significant step” toward the hope of ending the war in Ukraine.
Shadow of War
“For three years, we have lived under the shadow of war, hoping for its end,” Szijjártó said. “With [the] call between Donald Trump and Vladimir Putin, we have moved closer to realizing this hope.”
Direct consultation between the United States and Russia soon followed, with U.S. Secretary of State Marco Rubio meeting with his Russian counterpart Sergei Lavrov in Riyadh, Saudi Arabia, on Feb. 18. Szijjártó commended the meeting, which he said could help relaunch cooperation between Russia and the United States while also working toward ending the war in Ukraine. He emphasized that “good U.S.-Russia relations always benefit world security. If there is Russia-U.S. cooperation based on mutual respect that both sides find effective, it makes the world a safer place,” he added. However, representatives from Ukraine and European allies were noticeably absent from these
conversations, prompting French President Emmanuel Macron to call an emergency summit of leading European military powers, including the United Kingdom, in Paris on Feb. 17.
“If the U.S. president steps in and establishes peace and a deal is made, I believe Russia will be reintegrated into the world economy, the European security system, and even the European economic and energy system. That would give a huge boost to the Hungarian economy.”
Szijjártó slammed those in attendance as being “pro-war, antiTrump and frustrated,” a group who “want to prevent a Ukraine peace agreement from being reached. Unlike them, we support Donald Trump’s aspirations,” he said.
“Unlike them, we support the U.S.Russian negotiations; unlike them, we want peace in Ukraine.”
Meanwhile, the prime minister’s political director, Balázs Orbán, called the “Paris rendezvous” initiated by the French president “a meeting of losers.” He said that Macron had convened the summit in Paris to discuss “how European leaders, who have been prowar so far, should react to the peace talks initiated by the U.S. in the face of protests from the European Union.”
The political director added that the prime minister had earlier warned European leaders to draft an independent peace strategy lest Europe lose out on the war once Trump was elected president.
In order to bolster European defense spending, discussions emerged during the Paris summit over a potential joint borrowing mechanism to strengthen European militaries while distributing the fiscal burden, drawing inspiration from the EUR 650 billion Recovery and Resilience Facility established in 2021 to support EU economies post-COVID. However, applying a similar model to defense spending could prove challenging, as some EU member states with closer ties to Russia, notably Hungary and Slovakia, could resist such a scheme.
NICHOLAS PONGRATZ
Photo by Tamás Vasvári / MTI
From left on the dais, NATO Deputy Secretary General Radmila Shekerinska, Minister of Defense Kristóf Szalay-Bobrovniczky, Slovak Minister of Defense Robert Kalinák, and Croatian Defense Ministry State Secretary Tomislav Galic take the salute as Hungarian troops march past at a ceremony marking the achievement of the full operational capability of the Central European Multi-National Command in Székesfehérvár, Hungary, on Feb. 10, 2025.
2 Business Digital Technology and Medical Innovation = Better Patient Outcomes.
Colette Matz, country president and general manager of Novartis Hungary, talks to the Budapest Business Journal about key milestones in 2024, hope for this year, and where the innovative pharma firm can make a difference in Hungarian healthcare.
in the life sciences sector translates to economic growth, as healthcare is a vital competitive industry that contributes to GDP improvement.
BBJ: How important is company culture in driving these initiatives?
BBJ: 2024 was an eventful year for Novartis Hungary. What were some of the key achievements?
Colette Matz: It was an incredible year for Novartis Hungary, and I am proud of the accomplishments of the entire organization. We are particularly proud of maintaining our #1 position in the innovative pharma sector in Hungary. We launched new groundbreaking therapies for Hungarian citizens in oncology, cardiology, and neurology that are already significantly impacting patient outcomes. Our commitment to innovation is also reflected in the 15% increase in our R&D investments locally. Additionally, I’m proud of our partnerships to improve the efficiency and effectiveness of treatment in Hungary. For example, the launch of the Lipid Management Center in collaboration with Semmelweis University is a pioneering initiative aimed at transforming cardiovascular health in Hungary. This center serves as a beacon of hope for countless Hungarians at risk of or suffering from cardiovascular diseases.
BBJ: Can you elaborate on your focus on innovation and digital transformation and how these initiatives have impacted your operations?
CM: Digital health and data have become integral to our daily operations. For example, our multi-stakeholder dialogue with the Hungarian Government, including Deputy Secretary for Health Judit Bidló and Deputy Secretary for Innovation László Bódis, in Basel last summer, was particularly enriching. We discussed how AI is reshaping patient support and clinical trials. We’re also thrilled about our partnership with the SzEFA Foundation to develop “Dr. BetMen,” a digital patient journey management tool to improve care pathways and outcomes, especially concerning women’s health. These efforts highlight our commitment to integrating digital
technologies into healthcare, ensuring we stay at the forefront of medical innovation while providing better patient outcomes.
BBJ: Looking ahead to this year, what are your key priorities and goals?
CM: Our priorities for 2025 revolve around several key areas. One significant focus is the implementation of the European cardiovascular legislation. We look forward to its adoption in Hungary, which will significantly enhance cardiovascular health standards nationwide. This legislation will support our mission of improving patient outcomes in cardiovascular health. Moreover, we will continue our disease awareness initiatives, particularly in helping Hungarian citizens know and understand their health numbers by supporting health screening events, which are crucial for the early detection and prevention of diseases. Women’s health remains a big priority area. We’re committed to enhancing the patient journey, creating awareness about the importance of regular screenings, and supporting the prevention of relapse for patients who have battled breast cancer. This is not just a professional mandate for me but a personal one. As a mother, I understand the unique challenges women face in managing their health, and we’re dedicated to making this journey easier and more informed.
BBJ: How do you approach partnerships, especially in critical areas like oncology?
CM: Collaboration is certainly at the heart of our strategy. For example, partnerships with patient organizations and multistakeholder collaborations have been pivotal in advancing awareness, treatment,
and support structures in oncology. The tireless work of patient organizations, along with the efforts of healthcare providers, researchers, and our team, has been instrumental in making progress against diseases like breast cancer. Through collaboration and partnerships, we have a significantly better opportunity to drive meaningful improvement in outcomes and broaden access to care for people in Hungary. By working together, we can ensure that women receive the support they need throughout their health journey.
BBJ: What role does Novartis see itself playing in preserving the competitiveness of the European life sciences sector?
CM: This is a crucial issue. At Novartis, we believe it hinges on fostering an open dialogue between the industry and the government. Ensuring that the right discussions are taking place and making strategic investments in Europe are key components of our approach. We’re committed to advocating for smart, balanced regulations that support innovation without overburdening the sector. Additionally, we recognize the value of clinical research; it’s essential for advancing medical knowledge and improving patient care. In Hungary, we aim to leverage our excellent pool of Hungarian scientists, top-notch clinical centers, and strong medical training programs to increase our competitiveness. Our collaboration with Semmelweis University and its rector, Béla Merkely, showcases the strength of our local foundations. Moreover, we understand that investment
CM: Company culture is absolutely one of the most crucial elements required to drive innovation in healthcare. We emphasize fostering a culture of empowerment and accountability, encouraging leadership at all levels. By building strong cross-functional teams, we ensure that innovation is driven collaboratively. Our culture is externally focused, aiming to deeply understand the needs of our stakeholders and the broader healthcare system. This deep comprehension allows us to drive innovation that meets these needs effectively. We focus on maintaining open, transparent dialogues where every team member feels valued and heard. This collective effort ensures that our associates are motivated and passionate about making a meaningful impact in healthcare.
BBJ: Are you concerned about finding suitably qualified staff in Hungary?
CM: The labor market presents challenges, but our strong employer brand helps us navigate these waters effectively. We’ve been recognized as a top employer, receiving awards like the Randstad Award for the most attractive employer in life sciences and being named a top employer for the third consecutive year. These recognitions help us attract top talent, and we also emphasize developing our current employees. We believe in creating an environment where our teams can continuously grow and excel. This is instrumental in fostering a culture of inclusivity, resilience, and social responsibility. This way, our associates are engaged and empowered to contribute meaningfully to the organization and the community.
BBJ: How are you working with external stakeholders to promote healthcare innovation in Hungary?
CM: Collaboration with external stakeholders is key. As a board member of the SwissHungarian Chamber of Commerce and the Association of Innovative Pharmaceutical Manufacturers, I work closely with other investors and industry leaders to address issues of mutual interest and advance the healthcare ecosystem in Hungary.
BBJ: What are the most significant challenges and opportunities for Hungary’s pharmaceutical industry?
CM: The biggest challenge remains the sustainability of healthcare systems amid increasing costs and demographic changes. We appreciate the government’s decision to reduce the special pharma tax back to 20%, which we hope remains stable as regulatory and taxation predictability are crucial for fostering a conducive environment for innovation and investment. However, the opportunities are immense. Hungary’s centralized health database and readiness for digital health innovation provide a unique platform for us to make significant advancements. The country’s ability to forge robust partnerships between industry and academia is another strength we can leverage to improve patient outcomes and propel the industry forward. We’re optimistic about the potential for meaningful progress and are committed to overcoming challenges through innovation and collaboration.
BBJ STAFF
Colette Matz
Microsoft Highlights Power of Copilot, Cybersecurity Risks as AI Tour Makes a Stop in Budapest
Microsoft has made Copilot Chat available for free to promote the adoption of AI-powered solutions. Business leaders and IT professionals attending the Microsoft AI Tour in Budapest learned firsthand how artificial intelligence is transforming workplaces, daily life, and cybersecurity. Experts at the event emphasized that Hungary is particularly vulnerable to cyber threats, with damages from cyberattacks growing twice as fast as the global average.
BENCE GAÁL
Globally, three-quarters of companies now use AI-powered applications. In 78% of cases, employees run these applications on personal devices, creating significant security challenges. Data from the Microsoft Digital Defense Report, presented at the Budapest event, highlights both the opportunities and risks of business AI adoption.
Ales Holecek, Microsoft’s vice president for Office applications, said AI is transforming daily life at an unprecedented pace, rivaling the impact of the internet and mobile technology. This transformation has elevated cybersecurity from a niche field to a core element of innovation and business operations, making it essential for cybersecurity leaders to have a seat on corporate boards.
Péter Szabó, general manager of Microsoft Hungary, stressed that Hungarian companies must integrate AI into their business operations as soon as possible but, crucially, with a well-planned strategy.
“We are witnessing a paradigm shift. Just like past technological revolutions, AI is forcing organizations to rethink their workflows. Change management is more important than ever. New skills and expertise are becoming essential in workplaces and labor markets. This puts greater responsibility on public education, adult training,
and corporate reskilling programs to ensure a smooth transition,” Szabó said.
Experts at the event cited estimates that AI-driven productivity growth could add EUR 7 trillion to the EU’s GDP in the coming years. A previous Bell Research study suggested that widespread artificial intelligence adoption in Hungary alone could generate an additional
HUF 7 tln
in annual revenue for the state over the next decade. According to Microsoft’s internal data, every USD 1 invested in AI generates USD 3.7 in returns. In 2024, businesses worldwide spent USD 44 billion on generative AI investments, more than double the USD 19 bln recorded in 2023.
Accelerating Adoption
To accelerate AI adoption, Microsoft has made Copilot Chat free to use. The company is also introducing Copilot Agents, which are available either as a subscriptionbased or pay-as-you-go service. Holecek described these agents as trusted assistants that will not only automate tasks across various domains but will soon operate autonomously using customer-provided data, with full control over data storage and processing remaining with the client. However, AI is also fueling cybercrime, which causes USD 9.2 tln in damages globally each year, said Najat Messaoud, Microsoft’s director of security solutions for EMEA. She noted that if cybercrime were a country, it would be the thirdlargest economy in the world, behind only the United States and China.
Furthermore, cybercrime is growing at a 15% annual rate, outpacing the GDP growth of most major economies. (By way of comparison, the website economicinsider.com identifies what it believes will be the top
10
fastest growing economies in the world in 2025. Only the top-placed nation, South Sudan, has a quicker growth rate, at 27.2%. The second, Guyana, has 14.4%. Libya is at 13.7%. All the remaining top 10 are at less than 10%.)
At 30% per year, cybercrime in Hungary is expanding at twice the global average rate, primarily due to the country’s geopolitical situation, Messaoud added.
Speakers highlighted that Microsoft is unique in leading both AI innovation and cybersecurity. In 2023, Microsoft’s cybersecurity business generated USD 25 billion in revenue, while the company invested USD 20 billion in strengthening cybersecurity infrastructure and software development.
As a result, Microsoft helped identify 1,500 cybercriminals in 2024, up from 300 in 2023.
Messaoud noted that the majority of cyberattacks target passwords. In Microsoft-monitored networks, the number of password-related security incidents jumped from 4,000 in 2023 to 7,000 in 2024.
Securer Future?
The Secure Future Initiative, Microsoft’s largest-ever cybersecurity project, directly involves 34,000 engineers and
aims to fundamentally reshape public perceptions of cybersecurity. The company has even linked employee compensation to their effectiveness in protecting Microsoft’s and its customers’ data from cyber threats.
“Without cybersecurity, no company can live anymore,” Szabó noted, adding that Microsoft has the highest number of cybersecurity experts around the globe, amounting to some 35,000 people. Michelle Simmons, general manager of Microsoft for Central Europe, discussed GeoTech, a joint initiative between Microsoft and Globsec. The project aims to help the EU rapidly and responsibly integrate critical technologies, including AI, data analytics, and cloud infrastructure. It also seeks to strengthen transatlantic technology policy cooperation between the EU and the United States. Through research projects, policy advisory work, and collaboration with industry leaders, GeoTech looks to ensure that the future of technology aligns with democratic values. Microsoft has pledged USD 3 million to support the initiative, with part of the funding dedicated to enhancing cybersecurity for critical infrastructure.
She also noted that generative artificial intelligence is an area where Microsoft sees a “massive growth potential.” According to her, customers see a USD 3.7 return on investment for every dollar invested in GenAI.
Péter Szabó, general manager of Microsoft Hungary, and Michelle Simmons, general manager of Microsoft for Central Europe.
Fintech Startup Lightyear Secures Strategic Partnership With Petya Balogh
Lightyear, a fintech startup focused on investment education and financial technology, has announced a strategic partnership with Hungarian entrepreneur and angel investor Petya Balogh, known for his role in the Hungarian edition of “Shark Tank” and his success in building up NNG, a leading software company he helped found.
The collaboration is driven by a shared goal of promoting financial awareness and investment culture in Hungary, where market participation remains below European averages. Lightyear aims to expand investment education and encourage broader adoption of diversified portfolios, aligning with Balogh’s mission to enhance financial literacy and technological innovation among individuals and businesses. A recent Lightyear study on the Hungarian investment landscape highlighted that some 68% of Hungarian investors hold bonds, compared to only 17% in the EU, but only 61% of Hungarian investors manage their own investments, significantly lower than in more proactive European markets.
Diversified investment portfolios help individuals and businesses stabilize their financial position and create new growth opportunities. Lightyear and Balogh both emphasize that investing can serve as a passive income stream and a hedge against inflation, yet awareness and participation in Hungary remain low.
Lightyear CEO Martin Sokk expressed excitement about the new partnership. “Lightyear aims to be a truly global company, one that not only provides fair and easy access to global markets with user-friendly investment products but also stands out in financial education and helps build a financially aware future. In Petya Balogh, we have found the perfect Hungarian partner whose talent and credibility ensure the success of our collaboration,” he believes.
Letting His Money Talk
Balogh has demonstrated his confidence in Lightyear by investing his own money through the platform and opening a TBSZ account (Hungary’s long-term investment account) just in time, he says, to reinvest his bond yields tax-efficiently. Lightyear offers a free-of-charge TBSZ account, with no account maintenance fees and a streamlined registration process that takes just minutes via the Lightyear app.
Seed Executive School Celebrates 10 Years of Leadership Education
This year marks the 10th anniversary of Seed Executive School. Founded in 2014, it has developed a wide range of leadership training programs over the past decade and created a leadership community that actively shapes the regional business landscape.
Central and Eastern Europe, and Seed has become a key player in promoting business excellence.
Established by MOL and OTP, the leadership training institution now boasts more than 2,000 alumni from 45 countries and has provided leadership development programs to more than 300 companies.
“Ten years ago, we envisioned a leadership training institution that would equip Hungarian and regional leaders with the skills, mindset, and network necessary to achieve sustainable growth and competitiveness,” recalls Zsolt Hernádi, chairman and CEO of MOL Group and one of Seed’s founders.
“We believed, and still believe today, that world-class leadership education should be accessible in
At MOL Group, we consider leadership development one of the most valuable corporate investments. Infrastructure, technology, and innovation are all important, but without strong, competent leaders to drive change, even the best strategies will fail,” Hernádi adds.
As the business environment becomes increasingly complex, leaders must learn to manage constant change. László Eszes, CEO and academic director of Seed, highlights that Seed’s mission is to help leaders turn challenges into opportunities.
“Today’s leaders are expected to deliver results amid unprecedented uncertainties. The key to success lies
in their ability to break down complexity, focus on the essentials, and confidently execute their strategies,” he says.
“Seed’s programs […] provide simplified frameworks, proven tools, and practical learning experiences to help leaders navigate challenging times effectively.”
Revamped Program
Seed says it has revamped its program portfolio in response to new needs,
A key benefit of TBSZ accounts is that investments held for at least five years are exempt from personal income tax and social contribution tax (szocho). Additionally, Lightyear offers a taxefficient savings product called the Safe, available within the TBSZ framework. As of early February, it offers a 4.44% APY. Lightyear’s TBSZ offering has already gained strong traction in Hungary. Trustpilot, a leading global review platform, rates Lightyear at 4.7 stars, reflecting positive customer experiences.
Balogh believes Lightyear is an ideal platform for SMEs, particularly startups that have recently raised capital. The platform allows these firms to invest their excess funds strategically, accelerating their growth through options like BlackRock’s corporate money market funds.
Before committing to both a strategic partnership and personal investment, Balogh conducted a thorough review of Lightyear’s operations and regulatory compliance. The security measures protecting investors’ funds were key in his decision.
Lightyear does not lend customer funds to third parties. Instead, client assets are held separately in regulated EU financial institutions and top-rated money market funds, ensuring complete protection. Lightyear has assured users that in the case of bankruptcy, investors retain full ownership of their assets, ensuring continued access to their investments.
combining essential leadership skills with specialized focus areas.
Two outstanding alumni are Péter Ratatics (executive vice president of consumer services at MOL Group) and András Becsei (deputy CEO of OTP Group), who participated in the institution’s first program in 2014.
“The expertise of Seed’s faculty is exceptional; experienced professionals who have held leadership roles help participants solve real business challenges,” says Ratatics. “The program structure ensures that what is learned can be applied immediately, creating a tangible impact on individual leaders and organizations,” he adds.
Becsei highlighted that one of the most valuable lessons for him was that effective leadership is about balance and aspiration.
“At Seed, I learned that a leader can only be truly effective if they are aware of their own leadership aspirations, build a strong and motivated team, and achieve business success together. Excelling in just one area is not enough; sustainable growth requires finding balance,” he says.
“Seeing the new specialized programs, Seed now has an incredibly exciting portfolio. Today’s leaders can customize their learning paths to fit their unique challenges, and this type of targeted leadership development is a real breakthrough in the fast-changing business environment,” Becsei added.
BENCE GAÁL
Lightyear co-founder and CEO Martin Sokk.
László Eszes, CEO and academic director of Seed, speaking at the 10th anniversary event.
Hungarians Still Lag in Preventative Healthcare Spending
Despite recognizing the importance of proactive health management, Hungarians primarily rely on vitamins as their primary preventive measure, according to a representative survey conducted by the OTP Health Fund.
The study found that only half of Hungarian adults engage in regular physical activity, and just one in three undergo regular medical screening despite the potential financial benefits of preventive healthcare.
The fact that most Hungarians put more trust into vitamins instead of regular exercise or preventative screening is somewhat surprising, considering that the survey found that the overwhelming majority of Hungarians (79%) consider conscious health preservation important.
The study also highlighted sizeable demographic differences in health-conscious behavior. Women and individuals with higher education levels are more likely to take proactive steps toward maintaining their health.
Among those with a higher education degree,
88%
consider health preservation important, compared to 73% of those with secondary education and 79% with only primary education.
OTP Health Fund also found that interest in health-conscious living increases proportionally with age: approximately 55% of people aged 60 and above prioritize their health, compared to just 27% of those under 40.
Putting in the Effort
Maintaining good health requires active effort, including using medicinal products, regular physical activity, and a healthy diet. However, the OTP Health Fund notes that other preventive services, such as physiotherapy, massage therapy, and medical screening, can contribute to a person’s well-being.
Health Matters
A monthly look at health issues in Hungary and the region
Hungarians, however, tend to equate health-consciousness with popping a pill every now and then, regardless of their age, gender, education, or even place of residence. Some 70% of respondents reported taking vitamins or other medicinal supplements as their primary preventive measure.
Meanwhile, only about half of those surveyed said they engage in regular exercise and try to maintain a healthy diet. Interestingly, the highest proportion of regular exercisers was found among those over
60
at 53%, while 18-39-year-olds had the lowest rate of physical activity at 45%.
Fewer than one in three people attend medical screenings, considered the most crucial element of disease prevention. The difference between the sexes is also apparent here, as onethird of women said they undergo regular screenings, compared to only a quarter of men.
At the lower end of the spectrum, the least popular preventive services, according to the survey, are physiotherapy (4%) and massage therapy (10%). According to the findings, younger individuals are more likely to use massage therapy than older adults.
Health Preservation
“Hungarians are becoming increasingly aware of the importance of health preservation, which is reflected in our Health Fund data,” said József Budai, CEO of OTP Health Fund.
Some 70% of Hungarians report taking vitamins or other medicinal supplements as their primary preventive measure.
“In the first half of 2024, the number of health fund members using their accounts for medical screenings increased by more than 1.5 times compared to the same period in 2023. A wide range of preventive services are eligible for reimbursement, including medical screenings, acupuncture, certain vitamins, dietary supplements, and even massages.”
“Hungarians are becoming increasingly aware of the importance of health preservation, which is reflected in our Health Fund data. In the first half of 2024, the number of health fund members using their accounts for medical screenings increased by more than 1.5 times compared to the same period in 2023.”
While health is considered a priority by many, Hungarians spend very little of their disposable income on healthcare. The OTP Health Fund survey found that about 45% of respondents spend less than HUF 50,000 (approximately EUR 130)
per annum on health preservation, which just about covers the monthly box of vitamin supplements for the year. Another 22% reported spending between HUF 50,000 and 100,000 annually, while just 5% said they allocate more than HUF 300,000 to health-related expenses.
“Health fund members have greater financial flexibility to invest in long-term health preservation. They can claim a
20% tax refund on contributions, up to HUF 150,000 annually,” Budai explained. “Few people know that an additional 10% tax refund is available for preventive screenings prescribed by a doctor, which is included in the maximum HUF 150,000 refund.”
The results of a different survey conducted by Generali show that the Hungarian public is very concerned about their health: when asked what they would wish for themselves in 2025, a higher proportion of respondents, more than a third, would like something related to health.
Meanwhile, some 14% would like to have a more balanced private life, and 14% would like a new job that pays better than the one they have now. Some 12% of respondents want a new home, and 5% want a new car. Attitudes towards health wishes also change with age: while only a fifth of 16-29-year-olds had a health-related wish, 44% of 50-59-year-olds and 60% of 60-75-year-olds did.
BENCE GAÁL
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Accountancy and Taxation
Accountants vs Automation: The ‘Death’ of a
Accountancy is one of the fields that stands to be significantly impacted by widespread automation. Given the pace of change, the profession had better start looking for a way out, if there is one.
LEVENTE HÖRÖMPÖLI-TÓTH
A recent press release by the National Association of Hungarian Accountants (MKOE) painted a gloomy future for the profession. Its detailed timeline listed key milestones on the way to full automation, with the road ending with the disappearance of the entire segment within a few decades. First, bookkeeping and then auditing would shrink, going entirely by around 2060 in the developed world.
Another survey by the same association a few years back found that about one-third of accountants were considering quitting the profession, partly for age-related reasons. Given the latest findings, that might seem like an astute judgment now, but the picture is a lot more nuanced than that.
As Zsolt Ruszin, MKOE vice president, explains to the BBJ, accountants remain frustrated, but he draws attention to the fact that an “exit” is only an option for employees.
High-speed Change
The number of days for SME bookkeeping seems to be numbered primarily because of the gradual digitization of tax-related administrative tasks. From this summer, any receipt must also be electronic; 2027 should witness the final launch of the eVAT era; and data reporting on social contributions will become blockchain-based by 2028. Based on these three regimes, the National Tax and Customs Administration will prepare
“In the case of professional accountants, there is pretty much no such thing as an exit because of the complex responsibility issues,” he says. Accounting offices face higher worker turnover and rely less on employee contracts since paying fixed wages is no longer profitable in light of changing clientele and scope of duties.
According to the expert, the need for a good accountant has not changed, though, and may even increase in the short term, say the next
4-5
years,
at the very time when the profession has thinned out. Simultaneously, the range of professional information available for free has surged enormously.
a proposal on due taxes and contributions for SMEs, similar to how it does today for personal income tax. That will make accounting for solo entrepreneurs obsolete, although advisory roles might continue to exist.
As Zsolt Ruszin of the National Association of Hungarian Accountants says, the belief is that, by 2040, we will be surrounded by voice-command devices.
“In such an environment, even the need for business coaches doesn’t seem valid, given free AI modules would get the job done.”
“There are perhaps a few thousand ‘real’ accountants left in the country with deep experience and considerable expertise, and there is no sign of replacements [for these] among the young, many of whom believe that practical knowledge is no longer in the head but in the computer, and they have a point,” Ruszin notes.
Say ‘Goodbye’ to the 20th -century
MKOE projects that, by 2040, bookkeeping automation will reach the SME circle, and there will no longer be “any sane company” paying for 20th-century methods and skill sets for what is an administrative task.
“It’s a lot more likely that the shrinking demand for accountants will be restricted to activities such as ‘business coaching’ or a hybrid IT-heavy accountant role,” Ruszin adds. MKOE estimates that the number of accountants, currently at 75,000, is expected to halve within ten years and fall below
20,000 by 2040. The same goes for auditors. But others are not so sure.
“I don’t believe that full automation would ever become a reality,” Eszter Török notes. A highly skilled accountant with nearly three decades of experience, she knows that oftentimes, things are just not that obvious when it comes to accounting. While she realizes that the tax authority will prepare ever more draft tax returns, thus less human labor
Profession?
More Obstacles, not Assistance
The dynamic changes and their timeline in the regulatory department seem to be written in stone. It is another matter how those concerned are capable of adapting. According to Zsolt Ruszin of the National Association of Hungarian Accountants (MKOE), the main obstacle to defending sectoral interests is the government’s IT “solutions,” as there is no meaningful cooperation in the IT field mapping regulations to simplify administration.
“The public authorities aim to exclude proactive players from the dialogue because every project must be hailed as part of propaganda. This is a Hungarian peculiarity; in neighboring countries, it’s not like that,” he complains.
Accountants’ work is most disturbed by IT “shocks” such as software changes, system crashes, or administrative obstacles. The recent nationwide switch to Ügyfélkapu+ (“Client Gateway Plus, the enhanced version of the main digital administrative portal for citizens and entities) is also causing trouble. The association also says MKOE’s suggestions to smooth the transition were ignored. Seasoned expert Eszter Török confirms the increasing administrative burden.
“Help? Don’t make me laugh,” she says, arguing that many new tasks emerged due to the switch to Ügyfélkapu+. Although these are not strictly part of the accountant’s job description, she says she couldn’t ignore her clients’ pleas for assistance.
“They [the government] don’t make our lives easier; on the contrary, they dump a lot of problems upon us,” she says of the regulators.
will be needed, she believes it would never come to a full replacement. She is also a tax advisor, and when asked whether that could be an alternative career path for her, should push come to shove, she rules out the option. She also has just 12 years till retirement.
“Tax advisory has become part of the job by now. I can’t see any alternative, but I love my profession regardless.”
Zsolt Ruszin, VP of the National Association of Hungarian Accountants
Keeping Pace With Market Needs and AI Development
We asked some of the key players specializing in accountancy (or it and taxation) to give us their overview of the market as we enter 2025: What has changed, how prepared are businesses, how does Hungary compare, and what should be changed?
appear in areas where we previously did not expect them. We do not believe the accounting, auditing, or tax advisory professions will disappear, but they will undoubtedly undergo transformation.
Béla Kakuk, BPiON: Growing reliance on technology also demands significant effort. Companies often find it challenging to dedicate resources to specialized solutions without diverting attention from their core business and expertise. Clients envision an all-in-one, AI-powered
technology that delivers rapid, seamless solutions. To meet these expectations, service providers must proactively monitor, evaluate, and capitalize on emerging opportunities to maintain a competitive edge in this dynamic landscape. The demand for technology transformations and the “noise” around various solutions is growing, meaning service companies should be more visionary professionals than ever before.
BBJ: What’s new for 2025?
Péter Bergmann, Bergmann
Accounting: The increasing role of technology has been continuous in recent years, but we expect this process to accelerate significantly in 2025. The growing number of AI models available, their expanding capabilities, and the decreasing costs of general-purpose use mean that AI-based solutions will
Nóra Rácz, LeitnerLeitner: Among the incredibly huge number of recent tax changes, I would like to highlight the expanding range of tax-advantaged and tax-exempt employee benefits.
Péter Hajnal, Moore Hungary: Hungary has introduced several key tax and accounting reforms, including implementing the OECD’s Global Minimum Tax, requiring multinational enterprises to comply with a 15% rate. E-invoicing requirements will be expanded to include more sectors, improving VAT reporting efficiency. Hungary is expected to enhance its R&D tax incentives and introduce green technology tax breaks to foster innovation and sustainability. Personal income tax rules may undergo revision. Additionally, the government will continue modernizing tax administration through automation and anti-tax evasion measures.
András Szalai, Process Solutions: There are just minor adjustments in accounting and taxation, not significant legislative changes have been introduced for 2025.
Helga Kiss, RSM: One of the biggest challenges in 2025 is fulfilling tasks that multinational companies subject to the global minimum tax under Pillar II must face regarding FY2024. For example, besides a preliminary notification obligation, Hungarian constituent
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Péter Bergmann
Béla Kakuk
entities have to declare and pay tax advances in respect of their top-up tax by Nov. 20, 2025, for the first time.
BBJ: How prepared is the market to respond to these changes?
Péter Bergmann, Bergmann Accounting: This year marks the moment when we must definitively state that compliance-focused services, such as accounting, auditing, and tax advisory, alone are no longer sufficient to meet the actual market needs of businesses. The winners of the technology-driven transformation will be those service providers who invest in solutions that deliver truly valuable end products: information and advice that can be directly used in business management and decision-making.
The biggest challenge of this paradigm shift in our field is workforce-related. The accounting profession, perhaps partly due to predictions about its potential demise, is becoming less attractive. Consequently, the resulting shortage of professionals and the relatively underdeveloped digital skills of those who remain in the field could limit technological advancement. Therefore, in every development project, the division of tasks between technology and employees must be designed so that creative tasks or those requiring judgment continue to be performed by staff who are also trained to integrate new AI-based solutions into their work.
Geopolitics,
Nóra Rácz, LeitnerLeitner: Although these were positive changes, employers haven’t responded quickly. The trend reversal in the range of cafeteria items has surprised everyone as it has narrowed in recent years. Now, it’s worth revising the benefits in kind to reward valuable staff cost-effectively.
Larger companies should consider introducing employee share plans to provide additional income with favorable tax treatment for key employees and managers.
Péter Hajnal, Moore Hungary: While Hungary’s corporate and tax infrastructure is generally well-equipped
Tax Policy and Society in Flux
are now prioritizing safety and security over measures to promote prosperity and growth. Second, international tax is a rare area where multilateral collaboration continues, with consensus being forged for fairer, more efficient tax rules. The consensus is fragile, however, and significant divisions still need to be bridged. The third trend is that income inequality is worsening globally, leading to distrust of politicians and governments.
to manage these changes, significant challenges will be ahead, especially for SMEs and sectors affected by the new taxes. Larger firms will likely navigate the reforms more smoothly due to better resources.
András Szalai, Process Solutions: Following EU-accepted standards and directives, ESG (under the Act on Accounting) reporting as a new requirement appeared for larger companies in Hungary starting from business year 2024, meaning that the first ESG reports are currently being prepared. This is a relatively new area requiring focus and specialized expertise.
Helga Kiss, RSM: Since this is the first year applying the GloBE rules, practicalities still need to be explored by taxpayers. Besides the diverse OECD rules and guidelines, Hungarian legislative requirements must also be met; therefore, companies usually require tax advisors’ assistance concerning their GloBE-related obligations.
BBJ: Does Hungary follow a fairly tried and tested approach, or is it an outlier (either a pioneer or a laggard)?
Nóra Rácz, LeitnerLeitner: In many ways, Hungary is a pioneer in digitalization, which is transforming the accounting profession. Nowadays, the accounting workforce is increasingly aging, and there is a shortage of staff. Thankfully, the repetitive part of the job can easily be replaced by automation, reducing the workload and freeing up time for more valuable tasks. So, we might see AI as a liberating force. But if AI takes over the tasks previously used to train juniors, how will they gain the experience to become real consultants? At LeitnerLeitner, we develop personalized training for our staff, involving beginners in automatable tasks to give them practice and test the machine solutions with them later.
András Szalai, Process Solutions: Focusing on domestic issues, the handling of the growing state budget deficit may be a priority. Previously handled by the introduction of extra profit taxes, we will need to see if we can expect continued postponed investments, reduced public spending or, with direct impact to the daily operation of taxpayers, by increasing the number of tax audits and possibly tax penalties.
Helga Kiss, RSM: A new data reconciliation procedure has been implemented in 2025, during which the National Tax and Customs Administration (NAV) requests taxpayers to reconcile their data reports if a mismatch is found in the data reported by different parties to the same transaction. Data reporting procedures must be validated, and companies should be prepared with IT solutions for data reconciliations.
As chief tax officers manage complexity and changes in legislation, it’s vital to look at the big picture. Geopolitical events and social trends underway today drive the government’s tax policy decisions and the business strategies of global companies. CTOs should understand these developments to anticipate and even influence the potential effects on the business.
To help businesses navigate these choppy waters, tax leaders should understand how geopolitical trends might play out, what threats might arise and how they can be mitigated. Many companies are taking steps to manage their exposure by scenario planning so they can chart their best course forward. Tax leaders are essential in these endeavors as they shed light on the tax angles of the strategic decisions being made.
Three significant trends are reshaping the global business landscape and creating uncertainty. First, the international order is splintering, and governments
These developments will have implications for tax policy, and being up to speed on them can help put CTOs in the best position to steer their organization’s response. For example, how are professional peers, advisers, academics, and NGOs engaging on emerging issues, social currents, and political trends?
Tax authorities and policymakers must engage in tax policy debates with commercial leaders to ensure business issues are heard. At the same time, the C-suite and senior management must explain the sources of tax risk and highlight opportunities. Consider all of this a risk governance framework. This could contribute to business strategy, build team profiles, and assist business sustainability and success.
Péter Hajnal, Moore Hungary: Hungary’s approach to tax and accounting reforms for 2025 follows a largely conventional approach in many respects, aligning closely with EU regulations. The adoption of the global minimum tax shows that Hungary is aligning its tax system with international standards. However, it does stand out in certain areas, particularly in its pioneering use of digital tax administration and the low corporate tax rate, as well as in the targeted tax policies it has introduced. The country has been a leader in implementing e-invoicing and digital reporting systems.
Béla Kakuk, BPiON: Hungary is leading the way in governmental digitalization, a trend that is rapidly accelerating technological advancements within the business sector. Supported by strong cybersecurity frameworks, Hungarian businesses continue to excel in their longstanding strength: connecting with the world from the heart of Europe and fostering relationships across the region. A crucial element of staying ahead is having an in-depth understanding of specific regions or countries. BPiON distinguishes itself through its extensive experience in Hungary, profound system expertise in Poland, and dynamic, market-driven growth in Romania.
The eVAT system is an innovative step that improves the accuracy and immediate verifiability of the VAT declaration by the tax authority. Businesses and developers must prepare for the new system, which includes implementing standard NAV tax codes and optimizing business management systems and databases.
BBJ: What changes would you like to see that haven’t been made to date? Nóra Rácz, LeitnerLeitner: I would like to make our profession attractive to today’s students so that I can continue to work with intelligent, enthusiastic and creative people in the future.
INSIDE VIEW
KPMG Zsolt Srankó Partner, Tax & Legal
Nóra Rácz
Péter Hajnal
András Szalai
Péter Hajnal, Moore Hungary: Taking a more targeted approach to sectoral taxation, expanding R&D incentives, and improving cross-border tax systems could make Hungary’s market even more competitive and attractive.
Béla Kakuk, BPiON: A well-structured system of innovation hubs capable of driving future growth and efficiency has yet to emerge fully. Such hubs would stimulate economic advancement and create a need for more sophisticated financial solutions. We envision a future with more local decisionmakers and thriving innovation hubs, which would, in turn, generate greater demand for complex financial solutions.
András Szalai, Process Solutions: Despite the moderate changes in the legislative environment, the market of professional services is rapidly evolving due to AI and digitalization driven by changing customer expectations and the need for scalability. This prompts major BPO firms to integrate AI-driven solutions for enhanced efficiency, starting from using the very basic AI-supported tools to touchless real-time accounting. In this revolutionary digital era, by mastering AI, analytics, and specialized skills accounting, professionals need to focus on high-value tasks that demonstrate human creativity and problem-solving, providing the fullest possible support to our clients.
Helga Kiss, RSM: Significant simplification of tax and procedural rules (for example, e-invoicing option through NAV’s online invoice reporting system has been introduced, but archiving the e-invoices is still the taxpayers’ burden).
BBJ: Is there anything else you would like to add?
Helga Kiss, RSM: ESG reporting tasks are to be performed for the first time this year with respect to FY2024; from year to year, more entities will become subject to ESG, which always requires the involvement of ESG experts.
Zoltán Lambert, WTS Klient: It is no longer sufficient to talk about automating business processes; we must act to be competitive or, more importantly, as a pioneer in this fastchanging environment. WTS Klient has a strong team of in-house IT experts and business analysts who can assist in finding and developing IT-based solutions to gather the required data. We aim to help our employees make processes smooth and make sure that our clients receive the best and most effective services where the chances of mistakes are reduced or eliminated. By doing this, our expert colleagues can focus more profoundly on the increasing number of different types of reporting liabilities (ESG, GMT, M2M, and so on) driven by Hungarian and EU lawmakers. The other major issue is probably cooperation with new investors in Hungary. The increasing number of Eastern investors impacts our business as well, and we are ready and prepared to handle
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ARkConsulting kFt. www.arkconsulting.hu
NR bdo mAgyARoRszág www.bdo.hu/hu-hu/bdomagyarorszag
NR Cons-budApest ügyviteli szolgáltAtó és AdótAnáCsAdó kFt. www.consbp.hu A 246 (2023)
Rödl & pARtneR mAgyARoRszág www.roedl.com
NR
1097 Budapest, Könyves Kálmán körút 12–14. (1) 238-8023 fairconto@fairconto.hu
Debrecen, Bem tér 14. (1) 279-1722 office@audit.labtech.hu
Budapest, Bartók Béla út 29. (21) 311-1510 hyper@hypercortex.hu
Bartók Béla út 29. (1) 550-0510 iroda@ecocreative.hu
Budapest, Bartók Béla út 29. (21) 311-1510
Budapest, Bartók Béla út 29. (1) 550-0510 iroda@iriszoffice.hu
1064 Budapest, Izabella utca 66. (70) 380-3970 garas.krisztina@ arkconsulting.hu
1103 Budapest, Kőér utca 2/A (1) 235-3010 office@bdo.hu
(100) krisztina gubicza
1119 Budapest, Fehérvári út 97–99. (1) 800-9097 office@consbp.hu
Roland Felkai
1062 Budapest, Andrássy út 121. (1) 814-9800 budapest@roedl.com NR szommeR könyvelőiRodA kFt. www.szommerkonyvelo.hu
8800 Nagykanizsa, Damjanich utca 3/A (30) 267-7700 iroda@ szommerkonyvelo.hu
Global Pressures, Geopolitical Uncertainties and Digitalization: Tax in 2025
We asked several of the leading taxation specialists based in Budapest to mark our card for what to look for this year. In short, prepare for change, some of it planned (global minimum tax), some of it dynamic (Trump tariffs).
Companies falling under the rules are just starting to realize the impact and take it seriously. Finally, calculations and tax preparations have begun to assess whether they will be above or below the 15% minimum tax rate.
Another hot topic may be the EU’s new deforestation directive (EURD), which, from early 2026, will impose significant financial burdens on those trading with cocoa, coffee, soy, palm oil, wood, rubber, and cattle products (and their derivatives). Companies falling under the scope of these rules must implement secure procurement measures and meet regulatory requirements to avoid severe sanctions. Following the previously introduced EPR and CBAM regulations, the EUDR is the third wave of EU-level tax measures related to ESG.
operators facilitating B2C sales (for example, marketplaces and apps), shifting tax liability from retailers to platforms. Also, simplified employment rules have tightened, now capping individuals’ employment under such contracts, not just employers.
Tamás Vékási, EY: One of the most critical challenges is the geopolitical tension, which puts pressure on multinational and Hungarian companies. A recent example is the trade restrictions and new tariffs announced by the United States. The tariffs and the looming global trade war will surely have a ripple effect that could disrupt global supply chains, landing
costs, demand, and preferred trade routes in ways that would challenge even the best-prepared organizations.
BBJ: What’s new for 2025?
Károly Radnai, Andersen: One of the most significant changes affecting the tax system concerns the implementation of the global minimum tax; 2024 was the first year of its application, and 2025 will be the first year of tax payment.
PRESENTED CONTENT
Borbála Bodó, Grant Thornton: The global minimum tax continues to impact 2025. While filing for the 2024 tax year is due 18 months later, tax prepayments must be made by Nov. 20, 2025, requiring upfront tax calculations. Although reporting requirements have expanded, Hungary’s tax authority has not reflected these in the GLoBE form. Retail tax now applies to platform
Significant Changes Ahead for Business
As the European Union prepares to implement the VAT in the Digital Age (ViDA) package, businesses across the region face a transformative shift in their operations and tax obligations. The reform aims to modernize the EU’s VAT system and improve tax compliance, with full implementation to be finalized by 2035.
ÁRON NAGY
The ViDA initiative presents challenges and opportunities for companies, primarily through reducing administrative burdens and introducing more transparent tax processes. Moreover, the European Commission expects the regulation to allow EU member states to increase their value added tax revenues by reducing the VAT gap caused by fraud.
Zsolt Srankó, KPMG: Digitalization and the use of AI are a priority for adoption in taxation. Taxpayers’ resources alone are not comparable to those of the tax authority, and outsourcing may become more critical.
BBJ: How prepared is the market to respond to these changes?
Borbála Bodó, Grant Thornton: Most stakeholders grasp the global minimum tax, but many overlook the prepayment deadline. Foreign platform operators have begun assessing compliance, yet even the most diligent struggle with unclear regulations and tight deadlines. The labor market seems largely unprepared for the new employment limitations.
Preparation is Critical
The program will also bring substantial changes in Hungary, particularly in digital reporting and e-invoicing. Proper preparation and timely implementation of developments will enable businesses to not just comply with the new regulations but also leverage the opportunities presented by tax digitalization.
Nagy, EY partner
The EU Parliament plenary session approved the ViDA package on Feb. 12. Finance ministers from member states had already agreed to the threepillared reforms in November 2024. It is anticipated that the EU Council will approve the program early in the year, and it will then be rolled out in phases.
The 3 Pillars of ViDA
Digital reporting requirements and e-invoicing: To combat VAT fraud and improve tax compliance, the ViDA package mandates a complete transition to digital VAT reporting and structured e-invoicing for cross-border B2B transactions across EU member states by July 2030.
Platform economy: This focuses on regulating VAT collection for digital platforms such as Airbnb and Uber in cases where the underlying service provider does not charge VAT.
Single VAT registration and OSS expansion: The ViDA package expands the one-stop shop (OSS) system until July 2028, making it easier for businesses engaged in cross-border trade to manage their VAT obligations through a single EU registration. With its three pillars, the ViDA package aligns the EU’s VAT system with the demands of the digital economy, significantly reducing opportunities for tax fraud while enhancing transparency.
Automated data reporting alleviates administrative burdens, improves data quality, and minimizes the risk of penalties arising from errors. More transparent financial processes will promote more efficient resource management, while settlements with partners will become faster and smoother. One of the most significant challenges for businesses will be the implementation of e-invoicing, which will affect all cross-border transactions within the EU. During the transformation of data reporting systems, particular attention must be paid to data security and the application of appropriate technological solutions. Companies must also ensure that contracts and business operations align with the new requirements.
As the ViDA package rolls out, businesses must navigate this new landscape with strategic foresight, embracing digital transformation to enhance operational efficiency and compliance in the evolving tax environment. The ViDA package will potentially also impact their supply chains. This means the coming period should also be a good opportunity to review their supply chains and analyze whether simplifications will be available.
ROBIN MARSHALL
Károly Radnai
Borbála Bodó
Áron
Tamás Vékási, EY: A volatile geopolitical environment poses risks for every organization. While tariffs can disrupt supply chains, they also create opportunities for innovation and improvement. Flexibility, agile planning processes, and technology investments can all contribute to building resilience in the face of uncertainty.
Zsolt Srankó, KPMG: Businesses should prioritize their agenda to keep pace with the tax authority and strategically consider options for internal development or partner with third-party service providers to access the necessary technology and expertise. The market is gradually adapting to these changes, with many businesses already exploring outsourcing options to manage their tax functions more effectively, without overburdening their internal resources. The key will be to carefully manage the transition and mitigate associated risks, such as data security and compliance with tax regulations.
BBJ: Does Hungary follow a fairly tried and tested approach, or is it an outlier (either a pioneer or a laggard)?
Borbála Bodó, Grant Thornton Hungary: While the global minimum tax is an OECD directive, Hungary’s unique “prepayment” requirement stands out. Regarding the extension of the reporting form (GLoBE), we expect an obligation similarly detailed as in Belgium.
Tamás Vékási, EY: In areas like tax digitalization, data access and performing remote audits, we are emerging as pioneers, leading the way for other EU countries to follow. In general, Hungarian companies are wellpositioned in terms of digitalization.
However, there is no tested approach to coping with global supply chain challenges. Country policymakers should support businesses.
BBJ: What regulatory changes would help?
Borbála Bodó, Grant Thornton
Hungary: Several EU countries (e.g., Austria, Germany, Slovakia) have modified social security coordination
rules to ease cross-border remote work, allowing employees to work 50% from home without shifting their social security obligations. Hungary’s 25% threshold creates a heavy administrative burden, and alignment with peers would simplify cross-border employment. Additionally, Hungary’s frequent emergencydriven regulatory changes create legal uncertainty, underscoring the need for codifying lasting tax amendments directly into tax law.
Tamás Vékási, EY: In an unpredictable geopolitical landscape, providing a predictable regulatory environment for businesses is essential, minimizing periodic and one-off taxes. Further simplifying administrative processes and strengthening collaboration between the tax authorities and companies will foster an even more business-friendly environment.
BBJ: Anything else to add?
Károly Radnai, Andersen: Another wave of uncertainty is fueled by Donald Trump’s announcement on imposing new customs measures against the EU, among others. We are on the brink of an emerging trade war, the effects of which Hungary cannot escape. We do not yet know how big the waves of this issue will be, but it will likely impact the Hungarian economy and the tax system. Regarding the renegotiation of the U.S.-Hungarian tax treaty, although hopes are high among Hungarian government officials, we do not expect a new tax treaty to come into force in the next few years as the ratification process on the U.S. side will undoubtedly take a long time.
Tamás Vékási, EY: It’s crucial for businesses to embrace digital transformation proactively. By leveraging technology and fostering a culture of compliance, we can position Hungary as an EU leader in tax innovation.
Zsolt Srankó, KPMG: The government may focus on administrative cuts and concessions for the SME sector and individuals.
Taxation Market Talk Panel 2025
• Károly Radnai, managing partner, Andersen in Hungary
• Borbála Bodó, director of tax, Grant Thornton Hungary
• Tamás Vékási, country managing partner, EY Hungary,
Telepathy and Mind-reading: The Superpowers of Tax Authorities
Judit Jancsa-Pék Partner, Senior tax advisor
LeitnerLeitner
It may seem that the tax authorities increasingly know who is worth auditing as surely as if they have magical or mentalist abilities. The Hungarian National Tax and Customs Administration (NAV) selects taxpayers for investigations with an increasingly sure idea of where they might find some kind of error, discrepancy or, Heaven forefend, fraud.
But how is this possible, assuming we don’t believe NAV possesses supernatural power? The improving hit rate is made possible by digitalization and by firms providing data about their operations. The targeted selection systems and risk analysis procedures build on these. This unimaginably large digital data asset is now analyzed by artificial intelligence, so the contradictions are easily noticed.
However, this year, the authority’s mission is data cleaning to make tax audits even more effective. Taxpayer life cycle analysis and behavior prediction models can be built on reliable and unequivocal data that can predict harmful practices.
To facilitate this, some new tax procedures will be introduced this year. A so-called data reconciliation procedure will first be used to “clean” VAT and social security information. If a company and a business partner provide different data, the taxpayers will be requested to clarify the discrepancies within 15 days or face a fine.
their situation and correct mistakes. One of the most significant differences between compliance and classic inspections is that the compliance check doesn’t close an inspection period. Therefore, this may be carried out more than once in the same period; meanwhile, the taxpayer also has the opportunity to submit a self-revision.
If the investigation reveals a problem, the authority cannot make an incriminating decision or determine a tax difference; only a default penalty may be imposed. However, in the case of a significant error, the investigation may be turned into a classic tax audit.
This year, compliance investigations will also be extended to transactions between affiliated companies and to cover transfer pricing; this will allow NAV to examine the transfer pricing of the ongoing tax year, too.
The authority pays special attention to verifying transfer pricing data reports submitted as part of the corporate income tax returns. This summarises the reports’ conclusions in a well-structured, comparable and analyzable database. Thus, discrepancies may surface, and distorted pricing between related parties can easily be identified.
And this is not the end of the digitalization process. With the introduction of the e-receipt system in July, the transparency of VAT data in Hungary will be complete. The European Union, meanwhile, has begun the launch of its Vida (VAT in the digital age) proposal. By 2030, VAT registration will be standardized and real-time digital reporting will be introduced across the EU, meaning tax authorities will have access to credible transaction data in real-time.
Given all this, companies can no longer postpone reviewing their data provision and compliance processes since incorrect data can result in unpleasant inspections, and the likelihood that processes that ignore the regulations avoid the attention of the authorities will become vanishingly rare.
CESA Central Cluster Tax and Law Leader
• Zsolt Srankó, partner, Tax & Legal, KPMG.
For our accountancy and combined specialists market talk, see p11.
As NAV is using artificial intelligence software, the audit will take place without human intervention, and the default fines will also be imposed automatically. Although this is easy money, the primary interest of the authorities is not to accumulate fines but to clean up data discrepancies, which gives additional ammunition to detect large-scale fraud.
Like the reconciliation procedure, the compliance inspections also provide taxpayers with an opportunity to clarify
LeitnerLeitner’s tax experts have gained extensive experience in introducing digital processes, reviewing online data services, and transfer pricing in recent years. With its knowledge and complex services tailored to individual needs, it can provide high security for your company during inspections, compliance checks, or preliminary health checks.
Tamás Vékási
Zsolt Srankó
Tax Consultants
leiTneR + leiTneR Tax kfT www.leitnerleitner.com
Individuals (100)
Judit Jancsa-pék, nóra Rácz, gellért menczel-kiss
andrás sarkadi-nagy Enikő Kovács Anikó BéleczkiNagy
utca 43. (1) 920-6800 attila.gotz@ hu.andersen.com
1143 Budapest, Stefánia út 101–103. (1) 887-3700 info@wtsklient.hu
1027 Budapest, Kapás utca 6–12. (1) 279-2930 budapest.office@ leitnerleitner.com
1135 Budapest, Mór utca 2–4. (1) 237-9810 sales@saldo.hu 6 gRanT THoRnTon ConsulTing kfT www.grantthornton.hu
9022 Győr, Liszt Ferenc utca 35. (96) 525-030 gyor@molnar-partners.hu
1134 Budapest, Váci út 45. building G (30) 860-9020 hello@ mandoventures.com
beRgmann könyvsZakéRTő és adóTanáCsadó kfT www.bergmann.hu
1138 Budapest, Váci út 186. (1) 238-9000 bergmann@bergmann.hu 14 faiRConTo ZRT www.fairconto.hu
NR abT HungáRia TanáCsadó kfT www.abt.hu
NR bdo magyaRoRsZág www.bdo.hu/hu-hu/bdo-magyarorszag
1,331 (2023)
NR deloiTTe magyaRoRsZág www.deloitte.hu A 35,652 (2023)(2) 1990(3) A
NR ey magyaRoRsZág www.ey.com/hu_hu
NR foRvis maZaRs kfT https://www.forvismazars.com/hu/hu
kpmg magyaRoRsZág www.kpmg.hu
NR mooRe HungaRy Tax advisoRy kfT www.mooreglobal.hu A 3,722
NR pmx ConsulTing gRoup magyaRoRsZág adóTanáCsadó kfT www.pmxconsulting.hu A
NR pWC magyaRoRsZág www.pwc.hu A 32,610(4)
(100)
veronika antal Ruszinné Zsolt Ruszin Zsolt Ruszin
1097 Budapest, Könyves Kálmán körút 12–14. (1) 238-8023 fairconto@fairconto.hu
1037 Budapest, Montevideo utca 3/A (1) 430-3400 abt@abt.hu
Zoltán gerendy, ilona orbók
(100) balázs bíró Sándor Laczka Marcell Nagy
Ernst & Young Center Cluster Limited (100)
(3) Forvis Mazars S.A. (97)
Tamás vékási Bence Molnár Ágnes Pellion
philippe michalak budzan, Zoltán lászló benedek
Rezső Rózsai Krisztina Nagy Gabriella Liptay
(100)
(100)
andrea kocziha, ákos boross, péter Hajnal
János szalai
(100) lászló Radványi, gábor farkas Tamás Pál Borbála Palotai
1103 Budapest, Kőér utca 2/A (1) 235-3010 office@bdo.hu
1068 Budapest, Dózsa György út 84/C (1) 428-6800 deloitteinhungary@ deloittece.com
1132 Budapest, Váci út 20. (1) 451-8100 mailbox.ey@hu.ey.com
1139 Budapest, Fiastyúk utca 4–8. (1) 429-3010
1134 Budapest, Váci út 31. (1) 887-7100 info@kpmg.hu
1138 Budapest, Váci út 144–150. (70) 323-7787 office@mooreglobal.hu
1066 Budapest, Mozsár utca 16. (30) 740-7477 info@pmxconsulting.hu
1055 Budapest, Bajcsy-Zsilinszky út 78. (1) 461-9100 hu_info@pwc.com
1062 Budapest, Andrássy út 121. (1) 814-9800 budapest@roedl.com noTes:
4 Socialite Voyaging Into Underground Music Aboard the A38 Ship
Over the last weekend of February, Noir Voyage: Black Ship Sessions on the A38 Ship hosts “a journey where the boundaries of musical genres are blurred, leaving only what is truly raw, bold and original.” It’s a striking claim. But when I read the list of acts scheduled to appear the weekend and didn’t recognize a single name, I realized the A38’s crew weren’t kidding.
nights and events. They’ve grooved to an extraordinary list of performers, including legends such as – to pick names simply because they’re people I’ve heard of – John Cale, Neneh Cherry, Maceo Parker and Jane Birkin. More out-there acts include Thurston Moore, Laibach and Einstürzende Neubauten.
Typically, the Ship books bands touring Europe that want to play in Hungary one by one. Floating festivaltype events such as Noir Voyage “help strengthen A38’s artistic identity,” Bende, A38’s head of programming, says. “They allow us to be proactive, break patterns, and create unique concepts.”
Henge and Heavy Lungs from the United Kingdom were given to A38 as headliners, and the Ship built the lineup around them. They chose Fran Palermo as the third Hungarian headliner. The band performs today (Friday, Feb. 21). Formed by singer-songwriter Henri Gonzo in
2011
in Budapest, Fran Palermo’s music draws from a range of genres that includes straight rock and roll, indie, afro pop and a spacey, almost Balearic vibe, reflecting the band members’ Cuban, Spanish and Greek cultural influences.
Since the band’s formation, they’ve built a strong following in Budapest and have a reputation for powerful live performances. They’re regulars at Sziget. Judging by their confident-sounding latest album, “Crocodile Juice Bar,” Gonzo writes and sings in English. This is a bonus for those of you who, like me, find Hungarian lyrics impenetrable.
Musical Moonshot
Cosmic rock band Henge headline Noir Voyage tomorrow (Saturday, Feb. 22). Band members Zpor, Goo, Grok and Nom dress in the kind of slightly crap space alien costumes you’d have seen on children’s TV in the 1970s. Formed in Manchester, England, in 2015, Henge is on a mission to save the world, playing a form of space rock they call “Cosmic Dross.”
Attempting to describe the sound Henge makes live, Den Cartlidge of the “We Are Cult” website wrote, “rave and acid house meets prog rock, with added twangy surf guitar, epic choruses and a variety of frankly bizarre electronic sounds, last heard on a ’70s children’s tv show.” Presumably, they came as a job lot with the costumes.
“The Ship,” as Budapest locals call it, is permanently moored on the Danube. Formerly a stone transport vessel, A38 was refitted by engineers, acoustic experts and electricians working with musicians and promoters to create a unique music venue. It’s Hungary’s first internationally recognized music club, hosting bands from around the world. Since the venue opened its doors in April 2003, over a million people have come onboard for concerts, club
Named “Best Bar in the World” by Lonely Planet in 2010, the Ship has partnered with the Sziget Festival for 12
years
and has had its own stage on the island. It’s the headquarters of Petőfi TV and Petőfi Rádió.
“Our programming defies easy categorization,” A38’s Zsuzsanna Bende tells me, “because we believe in diversity and equality. We’re part of an open and eclectic scene catering to niche audiences.”
Bende had been thinking about Noir Voyage and creating “underground euphoria” on the Danube for a while before she shared the concept with her colleague Dániel Rákos, who helped bring it to life.
The A38 team brainstormed names at a lunch meeting and came up with Black Ship, which was refined to the more intriguing and less ominous sounding “Noir Voyage.”
European Support
A38 is a founder of Liveurope, a panEuropean initiative that supports concert venues in their efforts to promote European music diversity. Membership gives the Ship the freedom to book any band from 39 countries. It’s easy for non-Hungarian performers to play in Hungary if they’re big names. Cyndi Lauper was due to play the Papp László Budapest Sportaréna on her “Girls Just Want To Have Fun Farewell Tour” on Feb. 19. But it’s harder for unfamiliar acts.
For those of us who prefer to have our ears opened by new music, it’s good to know that financial support from Liveurope enabled Bende and her crew to curate a diverse lineup of “up-andcoming artists, often unknown in Hungary but exceptional in their own right. They fit our concept perfectly and serve as strong supporting acts.”
Listening to Henge play, it’s obvious they’re highly accomplished musicians. Watching clips of the band on YouTube, it’s also clear they’re great fun to watch. They’ve been known to include dancing mushrooms as part of their show. I very much hope funky fungi appear at A38.
Described by the legendary Iggy Pop as “A real Whammerbanger,” final night headliners Heavy Lungs sound punk to these ears and put on a fast and furious live show. It’s the band’s first time in Hungary, and I’m told they’re excited about the prospect. Their appearance at Noir Voyage is the final date of an Eastern Europe tour that’s enabled the foursome to “give back to the fans that have been so great to us.”
Apparently, Heavy Lungs is “a rock and roll sandwich you didn’t know you needed, but now it’s in your lunchbox every day.” I hope so.
Apart from the headliners, the Noir Voyage bill is packed with Hungarian and international acts that represent the kind of genre diversity the independent and culturally free Ship champions. As Bende says, “We never take success for granted, never give up, and we’re always ready for change. Running A38 is an art form in itself. And we love art.”
Check out the Noir Voyage bill at a38.hu.
DAVID HOLZER
Heavy Lungs
Chamber of Commerce Corner
This regular section of the Budapest Business Journal features news and events from various international business chambers. For further information and to register for specific events, visit the organizing chamber’s website. If you have information for inclusion on this page, send an email in English to Annamária Bálint at annamaria.balint@bbj.hu
Swiss-Hungarian Chamber of Commerce (Swisscham)
We kickstarted the year with an event focusing on 2025 tax changes and strategies and trends relevant to businesses. It featured an overview presentation by our new member and tax partner at WTS Klient Hungary, Viktor Szabó, who helped participants better understand the changing tax environment. Participants could get updates directly from experts, ask specific questions and discuss how to keep their businesses competitive with the new regulations. The event also provided an excellent opportunity for Swisscham Hungary members to network and explore new opportunities for cooperation, strengthening Swiss-Hungarian business relations. Committed to providing its members with a range of topics and platforms to meet, Swisscham also organized a visit to the Art & Antique exhibition and fair, where a professional art consultant gave a guided tour of the exhibiting galleries.
Don’t miss The Business Case for Water: Presentation and panel discussion in collaboration with WWF.
• When: Tuesday, Feb. 25, from 9 a.m. • Where: Német-Magyar Gazdaság Háza, Lövőház u. 30, Budapest 1024, • Fee: Members HUF 15,000 + VAT / person; non-members HUF 25,000 + VAT / person
Hungarian-French Chamber of Commerce and Industry (CCIFH)
Join our next HR club, “HR at a Higher Level: The Human Resources Manager is the Most Important Partner of the Company Manager.” We will discuss the magnitude of damage that can be caused by choosing the wrong company manager or not succeeding with onboarding, talent management, KPIs for performing teams, and so on. The event is presented by László Tóth, managing director of Transearch Hungary Kft.
• When: Wednesday, Feb. 26 • Where: Novotel Budapest Danube, Bem Rakpart 33-34, Budapest 1027 • Fee: (includes lunch): Members HUF 16,900 + VAT; non-members HUF 25,500 + VAT.
Belgian Business Club in Hungary (Belgabiz)
Belgabiz hosted a networking event titled NextGen Leadership at Impact Hub Budapest on Feb. 13. Rachel Altmann, founder of BeHive Consulting, introduced its cuttingedge behavioral science-based approach and shared real-life case studies. Following her presentation, Áron Fellegi (AEC GroupEuroatlantic Consulting) and Sam Vangerven (Stardex Kft.) joined her for a panel discussion, offering insights into the challenges of building a company at a young age. The conversations during and after the Q&A session showed that the event provided an excellent opportunity for guests to connect and exchange ideas in a lively and welcoming atmosphere.
Swedish Chamber of Commerce in Hungary, Netzwerk Digital Collaboration (German-Hungarian Chamber of Industry and Commerce, DUIHK, and the Swiss-Hungarian Chamber of Commerce, Swisscham) and the AI Coalition.
This joint event will explore the use of AI agents and AI for employer branding and discuss further solutions to grow your business. It will take the form of an exclusive workshop exploring the latest trends in AI technology. Guests can discover how emerging technologies are shaping industries, enhancing efficiency, and creating new business opportunities. Prior registration is required by Monday, March 10, at the latest.
• When: Thursday, March 13, 9 a.m.-noon
• Where: Ericsson House, Magyar Tudósok Körútja 11, Budapest 1117
• Fee: Members free; non-members HUF 15,000
Netherlands-Hungarian Chamber of Commerce (Dutcham)
Dutcham will hold a casual networking event at a new location, the Indonesian Culinary Restaurant, close to Kálvin tér. The menu for the night includes typical and traditional Indonesian dishes like beef rendang, chicken satay, spring rolls, nasi goreng, and fried noodles.
• When: Tuesday, Feb. 25, 6:30-8:30 p.m. • Where: Ráday utca 9, Budapest 1092 • Fee: members HUF 12,000 (incl. VAT); non-members HUF 15,000 (incl. VAT)
Canadian Chamber of Commerce in Hungary (CCCH)
At an exclusive event hosted at the W Hotel, business professionals in Budapest will have a unique opportunity to gain valuable insights from Dennis Diokno, founder and CEO of FirstMed. With more than 30 years of experience in international healthcare, Diokno will share his expertise in navigating global markets, building a resilient healthcare business, and critical lessons that extend beyond the industry. As the leader of FirstMed, a premier provider of private healthcare services in Hungary, Diokno has overseen the expansion of medical clinics across multiple countries. His deep understanding of international healthcare challenges and strategies will provide actionable insights on adapting and thriving in evolving business landscapes. The event will offer valuable knowledge and serve as a prime networking opportunity for executives, entrepreneurs, and industry leaders looking to connect with like-minded professionals. Attendees will be able to engage with Diokno and explore best practices in managing businesses across borders.
• When: March 19, from 8:30-11 a.m.
• Where: W Hotel Budapest, Andrássy út 25, Budapest 1061
British Chamber of Commerce inHungary (BCCH)
Join us for an afternoon seminar on the macroeconomic and market outlooks with Dávid Németh, K&H’s chief economist at the bank’s headquarters, followed by a Q&A and networking session. Refreshments will be provided during the networking session. Participation is free for members, but prior registration is required. • When: March 17, 2:30-4:30 p.m.
• Where: Lechner Ödön fasor 9, Budapest 1095
Italian Chamber of Commerce for Hungary (CCIU)
The CCIU will host a unique evening in March, celebrating the elegance and tradition of the Venetian Carnival in an event that unites Venice and Budapest in a fusion of culture, style, and sophistication. The evening will pay tribute to the Made in Italy heritage and the meeting of Italian and Hungarian traditions. At the heart of the evening’s festivities will be the Consorzio Tutela Prosecco DOC, the true star of the event, which will be celebrated as a symbol of Italian sophistication and artistry. This year’s ball will also mark a significant milestone in strengthening connectivity between the two countries with the launch of the Wizz Air Budapest-Venice route. The celebration coincides with a special event: the inauguration of Wizz Air’s new route from Budapest to Venice. The Venetian
Carnival, with its masks, dances, and music, will provide the perfect stage to launch this new air bridge, which will not only enhance travel and tourism but also strengthen cultural and economic ties. Guests will be immersed in a magical atmosphere where elegance and tradition intertwine, featuring lavish costumes and stunning masks. The event will showcase Italian culture with traditional Venetian dishes and a performance reflecting the rich history of both cities. It offers an opportunity to explore the best of Italian and Hungarian culture.
• When: March 1, from 7 p.m. • Where: Budapest Marriott Hotel, Apáczai Csere János utca 4, Budapest 1052 • Fee: Members HUF 50,000 / person (incl. VAT); non-members HUF 62,000 / person (incl. VAT).
Opening a business doesn’t make you a businessman.
