New Hungarian legislation on national security vetting of foreign investors to apply from 1 January 2019
12 October 2018
On 2 October 2018, the Hungarian Parliament adopted a new law, which will require ministerial approval for foreign direct investment into specific sectors. The law, currently awaiting sign-off from the President and then publication, applies to transactions set to close after 1 January 2019.
Even within these sectors, ministerial approval will not be universally required. Instead, it will be required only if the target company is engaged in certain specific activities. A list of such activities will be set out in the applicable government regulations (the Sensitive Activities). Such regulations will designate which minister may exercise the power to block or approve (currently it is expected that this will be the Minister of Interior Affairs).