Filming in Hungary: A Complete Guide to Incentives, Permits & Production Support

Hungary Film Rebate Overview

Hungary offers a generous film rebate system designed to attract international productions, providing a cash rebate of up to 30% on qualifying production costs. This robust incentive aims to boost the country’s film industry and position it as a leading destination for filmmakers worldwide.

Key Features of the Rebate Program

The program is available for feature films, television series, documentaries, animations, and other creative projects. Productions like daily soap operas, reality shows, and extreme content are excluded. Eligible expenses include Hungarian crew wages, location fees, rentals, travel, and post-production costs. Foreign expenses can also qualify, up to 25% of the total local spend.

To qualify, productions must pass a Cultural Test to demonstrate alignment with European cultural values and meet a minimum local spend requirement of approximately €270,000 (HUF 100 million). Productions must also work with a registered Hungarian production company that handles the rebate application process.

Tax Rebate Structure

The rebate system covers various expenses directly linked to production, including:

• Local wages and salaries (above- and below-the-line)
• Rental costs for equipment or real estate
• Travel and accommodation tied to production
• Post-production services
• Financing and administrative fees

Additionally, expenses for foreign cast and crew can qualify if Hungary has a tax treaty with their country of residence, subject to specific tax compliance requirements. The rebate is funded through contributions from government and corporate sponsors, providing financial incentives to productions while allowing tax-paying corporations to receive benefits in return.

Streamlined Application and Certification

Productions begin the process by registering with the National Film Office (NFO). The application requires:

• A production schedule and detailed budget
• A signed service agreement with a local production partner
• A Hungarian translation of the script

The project must pass the Cultural Test, which requires scoring at least 16 points across specific cultural and industry categories. Once approved, expenses are reviewed and certified periodically (monthly, quarterly, or annually), with rebates issued after a thorough audit.

Cost Implications and VAT Considerations

Productions must factor in local fees, including a 27% VAT on certain expenses, a 2% local business tax, and a 0.5% vocational contribution. While VAT is refundable, the process can take 3–6 months. The NFO charges a registration fee and certification fee (0.2–0.3% of the budget) and deducts a 2.5% administrative fee from the rebate. Foreign expenses are eligible for rebate if processed through a local Hungarian production partner. Additionally, specialized loans are available to support VAT financing and ensure smooth cash flow during production.

Filming in Hungary: Essential Information

Main Cities and Bordering Countries
Hungary’s capital is Budapest, a vibrant hub for film production. Other major cities include Szeged and Szabadka. The country shares borders with Slovakia, Austria, Ukraine, Romania, Slovenia, Croatia, and Serbia, offering excellent connectivity for regional filming.

Local Languages and Currency
The official language is Hungarian, and the local currency is the Hungarian Forint (HUF).

Climate
Hungary has a continental climate with four distinct seasons:

• Winter (December – February): Cold temperatures, occasional snowfall.
• Spring (March – May): Mild and blooming landscapes.
• Summer (June – August): Hot and sunny, ideal for outdoor shoots.
• Autumn (September – November): Cool and colorful foliage.

Visa Requirements

Non-EU citizens require a Schengen Visa for filming. Applications must be submitted 15-60 days in advance, with fees ranging from 90-110 EUR. The full application process and required documents can be accessed via the official government website.

General Film Permit

Filming permits are issued by the National Film Institute (NFI) and other relevant authorities based on location.

Processing time:

2-10 days for NFI permits; longer for other locations.

Timings:

Standard permit processing takes 23 to 72 hours.

Required Documents:

Production schedule, location map, scene descriptions, and project details.

Cost:

Varies based on location, duration, and space requirements.

Private Locations for Filming in Hungary

Filming at private locations involves varying costs and processes, depending on location size, accessibility, and amenities. Atlas Film Fixers assists in securing suitable locations within your budget.

Drone Permit

Drone filming requires an application submitted 36 days before flight. A Carnet is mandatory for equipment valued over 10,000 USD.

Issuing Authority:

Hungarian Ministry of Defense.

Processing time:

30-36 days.

Cost:

Under 200 EUR per permit.

Equipment Customs Clearance

Hungary follows the ATA Carnet system for equipment clearance. The required documents must be obtained in the country of departure. Full details are available on the Carnet website.

Safety and Security

Hungary is a safe filming destination, though minor risks like pickpocketing and taxi scams exist. Security measures depend on the location and production needs. Atlas Film Fixers provides guidance on safety arrangements.

For more details and assistance in navigating filming requirements in Hungary, contact Atlas Film Fixers today.

Conclusion

Hungary’s film rebate program provides unmatched benefits for productions seeking to maximize their budgets. With no cap on the rebate amount and flexible spending rules, it offers financial efficiency alongside creative freedom. The country’s rich cultural heritage, stunning locations, and experienced film industry professionals further solidify its reputation as a premier destination for filmmakers.

For expert guidance and seamless logistics, contact Atlas Film Fixers to ensure your production benefits from the unique offerings of this spectacular location while adhering to local regulations and maximizing efficiency. Visit our LinkedIn page to connect with us!