Filming in Hungary:
the 30% rebate
explained.

What the rebate is

Hungary operates an indirect production incentive: a qualifying production receives a 30% cash rebate calculated on its eligible Hungarian production spend. It is not a tax credit you carry forward — it is a rebate paid out against verified, documented local expenditure.

On top of the Hungarian spend, a production may include certain non-Hungarian eligible costs, capped at 25% of the Hungarian spend. Applied together, this is what lifts the effective return up to roughly 37.5% of eligible spend — the figure quoted most often in the trade press.

How 30% becomes 37.5%

The two figures describe the same rule measured two ways. Worked through on a round number:

Line	Amount
Eligible Hungarian spend	€1,000,000
Non-Hungarian eligible spend admitted — capped at 25% of the above	€250,000
Total eligible spend	€1,250,000
Rebate at 30% of total eligible spend	€375,000
Measured against the Hungarian spend alone	37.5%

So 30% is the rate and 37.5% is the ceiling on what a production actually gets back relative to what it spends in Hungary — reached only when the full 25% of non-Hungarian costs is admitted. The euro figures above are an illustration; the scheme itself is administered in forint.

One deduction to budget for: the collection account may charge an administration fee of up to 2.5% of the subsidy granted, so the net figure arriving is slightly below the headline.

What changed in 2026

Applications to the scheme were paused under the previous administration, which created real uncertainty for productions planning Hungarian shoots. That pause ended: registrations reopened on 1 July 2026, and — importantly for larger slates — there is no limit on the number of support applications.

The European Commission approved Hungary's incentive framework for a six-year period, which secures the scheme through the end of 2030. For a production planning a 2027–2029 shoot, that means the incentive is not a moving target.

The size of the pot is set annually by government decree. For 2026 the film incentive available on the collection account is HUF 70 billion — roughly €175 million at current rates. That is the number worth checking before a late-in-the-year registration, because it is finite even though the number of applications is not.

What typically qualifies

The scheme is designed around film and audiovisual production rather than any single format. In practice the categories most often registered are:

• Feature films and international co-productions
• Scripted series and episodic content
• Documentaries and factual programming
• Animation productions
• Certain commercial and branded productions, subject to the applicable conditions

Qualification runs through a registration process and a cultural test administered by the NFI. The practical gate is rarely the creative — it is documentation: contracts, local spend evidence, and a Hungarian entity capable of reporting it correctly.

Why productions still need a local partner

The rebate is claimed through a registered Hungarian production company. An incoming production doesn't apply for the rebate directly from abroad — it works with a local entity that carries the Hungarian spend, handles registration and reporting, and takes responsibility for compliance.

That is the same entity that, in practice, also solves everything else on the ground:

• Crew — English-speaking heads of department and technical crew
• Equipment — camera, grip, lighting packages sourced locally
• Locations — scouting, negotiation and municipal permits
• Permits — including restricted airspace clearance for drone work in Budapest
• Casting, transport, catering, accommodation and day-to-day shoot logistics

This is exactly what our production services function exists for: you bring the creative and the schedule, we make it executable in Hungary.

Why Budapest, beyond the money

The rebate gets productions to look at Hungary. What keeps them coming back is more practical:

Architectural range. Budapest can double for most large European cities — Vienna, Paris, Berlin, pre-war Eastern Europe — often within a few blocks of each other, which collapses company moves.

Crew depth. Two decades of continuous international work means the crew base is experienced with international standards and workflows, and works in English by default.

Compact geography. Most usable locations in the country sit within a two-hour drive of Budapest, so a national shoot rarely requires relocating the unit.

Cost base. Below Western European rates before the rebate is even applied — which is where the real budget difference comes from.

Planning timeline

The single most common mistake is treating registration as a formality to handle close to the shoot. It isn't. Registration, the cultural test and the supporting documentation all take time, and the rebate is paid against verified spend after the fact.

A workable sequence looks like this: confirm the project type qualifies → appoint the Hungarian production entity → register before principal photography → keep local spend documentation clean throughout → file and reconcile after delivery.

There is a clock on the other side of approval as well. Principal photography has to start within six months of the decision on your registration — miss that window and the National Film Office is entitled to amend or revoke the decision. Registering very early to be safe is therefore its own risk if the schedule then slips.

Frequently asked questions

How much is Hungary's film tax rebate?

30% of qualifying Hungarian production spend, with an uplift mechanism that can bring the effective return up to around 37.5% of eligible spend when permitted non-Hungarian costs are included. The collection account may deduct an administration fee of up to 2.5% of the subsidy granted.

Is the rebate still open in 2026?

Yes — registrations reopened on 1 July 2026 with no cap on applications, and the scheme is secured through the end of 2030.

Do I need a Hungarian production company?

Yes. The claim runs through a registered Hungarian entity that carries local spend and handles registration and reporting.

Does a commercial shoot qualify?

Certain commercial and branded productions can qualify subject to the applicable conditions — this is worth checking case by case before budgeting, as it depends on format and structure.

When should we start the process?

As early as the shoot is realistically confirmed. Registration must be in place before principal photography, and documentation quality determines how smoothly the claim reconciles later.