The Coronavirus Situation in Hungary

(as of October 15, 2020)
Active Cases Total Confirmed Cases Deceased Recoveries Tested Mandatory Home Quarantine
28052 41732 1052 12628 861620 24710

 

RESTRICTIONS

 

  • A compulsory 1.5-metre distance must be kept from others in public areas across the country.
     

  • It is mandatory to wear a mask or face cover when shopping or using public transportation.
     

  • Public areas, playgrounds, and parks are open
     

  • Shops, shopping malls, and markets are open.
     

  • Restaurants, cafés, bars, clubs, and hotels are open, but they must close at 11 p.m. Only food takeaways are allowed afterward.
     

  • Schools are open and students are back. From October 1, only teachers and students will be allowed to enter the buildings and will be required to undergo temperature screening upon entry.

     
  • Universities are open, but the rectors have the right to decide on personal participation.
     
  • Kindergartens and nurseries are open.
     
  • Hospital and care home visits are banned nationwide. The restrictions do not apply to severely or terminally ill patients. Also, one parent is also allowed to stay at the hospital with their sick child, and women due to give birth may also choose someone to accompany them.
     
  • Record offices, government agencies remain open, but you are recommended to use e-services instead.
     
  • Post offices are open, but you are kindly requested to wear a mask or face cover. Expect delays in international deliveries.
     
  • Open-air baths, spas, beaches, and zoos are open.
     
  • Cinemas, museums, cultural facilities, theaters, libraries are open. You must wear a mask to enter.
     
  • Open-air sporting and cultural events are allowed with spectators.
     
  • Events are limited to 500 people including staff and vendors. Family events (weddings, funerals, etc.) are limited to 200 people.
     
  • Please check with your local municipality regarding local restrictions.

 

CONTINGENCY AND ECONOMIC RELIEF MEASURES

In the following segment, we summarize the government's economic relief measures since the outbreak - including the economy protection plan.

  • Loan payments are suspended until the end of the year for all private individuals and businesses
     
  • Short-term business loans are prolonged until 30 July
     
  • Sectors heavily impacted by the coronavirus outbreak such as tourism, hospitality, entertainment, sports, cultural services, transportation, will be exempted from paying social security contributions. Only healthcare contributions must be paid with the amount limited to 7710 HUF.

    Landlord are forbidden from terminating non-residential rent contracts or increase rent for businesses in the heavily impacted sectors.
     
  • Private entrepreneurs performing passenger transport services under the so-called "KATA" tax regulation will not have to pay their flat tax from March to June.
     
  • Flexible labor regulations: some provisions of the 2012 Labour Code were suspended until the 30th day after the end of the state of emergency.
     
  • Contactless payment limit raised to 15000 HUF
     
  • On March 27, a countrywide restriction on movement was ordered between March 28 and April 11. The order was extended on April 9 and lifted on April 30 with the exception of the capital and Pest county.
     
  • The defense ministry has confirmed that teams from the Hungarian Armed Forces are being deployed to help 84 strategic companies to ensure the continued supply of good and services to the public.
     
  • The Hungarian Armed Forces built a hospital in a single day in the courtyard of Budapest’s St. László Hospital to pre-screen patients so that they can be assigned to the best possible care as quickly as possible.
     
  • Healthcare workers receive a free pass for all long-distance public transport services in Hungary and BKK services in Budapest.
     
  • Parliament grants extended emergency powers to the government to contain COVID-19 allowing extraordinary measures by decree to ensure the health and safety of the people as well as the stability of the national economy on March 30. The state of emergency was also extended.
     
  • Prime Minister Viktor Orbán announced on April 3 that everyone working in healthcare will receive a HUF 500,000 bonus.
     
  • MIT: Heavy trucks are allowed to travel on domestic roads without weekend restrictions, including on public holidays to ensure the continuous supply of goods.
     
  • On April 6, Prime Minister Orbán announced a new economic protection plan to preserve jobs, create jobs, and support hard-hit sectors.
     
  • István Nagy, Minister of Agriculture announced new payroll tax breaks to companies in the farm and food sectors hit by measures to contain the spread of the novel coronavirus.
     
  • Hospitals in Hungary have been ordered to free up half of their beds by April 19 in preparation for a massive increase in novel coronavirus infections.
     
  • On April 18, the government issued a decree to entitle local governments to announce stricter movement restrictions.
     
  • From April 20 onwards, Budapest residents must wear masks or face cover on public transportation.
     
  • From April 27 onwards, Budapest residents must wear masks of face cover when entering grocery stores, markets, and other shops.
     
  • On April 30, Prime Minister Orbán announced that Hungary is entering the second phase of the defense against COVID-19, meaning the country will gradually reopen.

    From May 4, some restrictions are lifted in the countryside. The restriction of movement in Budapest is still upheld.

    Practicing social distancing and wearing masks will remain compulsory in shops and on public transportation across the country.

     
  • On May 8, Péter Szijjártó, Minister of Foreign Affairs and Trade announced that the government has so far helped 9529 Hungarian nationals return from 116 countries across the world since the outbreak. Arrangements are being made to repatriate a further 624 Hungarians.
     
  • On May 11, the Ministry for Innovation and Technology reported that more than 3950 companies have applied for the kurzarbeit program to help nearly 54000 employees.
     
  • On May 14, the government announced that restrictions will be eased in Pest County. The Operative Group will make a decision about the capital later.
     
  • On May 16, PM Orbán announced that restrictions will be lifted in Budapest as well, but social distancing measures must be applied. The PM says the government expects to give up coronavirus-related special powers at end of May.
     
  • Restrictions were eased in Budapest and Pest County from May 18.
     
  • Ministry of Innovation and Technology announced a HUF 80 billion program to support job creation by offering wage subsidies to companies making new hires. According to State Secretary Sándor Bodó, the program could support 70,000 people finding jobs.
     
  • On May 26, the government will submit a bill to rescind emergency powers.
     
  • Mihály Varga, Minister of Finance outlined the 2021 budget, focusing on boosting the economy, protecting and creating jobs, supporting families and preparing for a resurgence of COVID19.
     
  • From May 29, restaurants in Budapest are allowed to reopen indoor areas, hotels can reopen. Outdoor sporting and cultural events can also be held, but festivals, indoor music events, concerts are still forbidden.
     
  • Gergely Gulyás, the head of the Prime Minister’s Office said the government spent HUF 590 billion on protective measures.
     
  • On June 16, the parliament voted to end the state of emergency thus removing the government's mandate to exercise extraordinary powers amid COVID-19.
     
  • June 24: State Secretary Izer Norbert says tax discounts aimed at countering coronavirus impact have already saved Hungarians HUF 62 billion.
     
  • New border restrictions were announced on July 12 amid spikes in cases in the surrounding nations.
     
  • Further economic measures are expected, according to Mihály Varga, Minister of Finance, to stimulate demand in sectors such as tourism, construction, and protect jobs. The government also aims to support investments.
     
  • September 1: Hungary closes borders to most foreigners until October 1. Citizens of the V4 - the Czech Republic, Poland, and Slovakia - have been exempted from the ban if they can produce a negative test from the previous five days.
     
  • September 10: The Municipality of Budapest has ordered that passengers who do not wear a mask on BBK routes may be fined HUF 8,000 and excluded from the trip by inspectors. Passengers without masks can be denied service.
  • September 21: Prime Minister Viktor Orbán has announced that the government will extend the moratorium on loan repayments for another six months for families with children, pensioners, the jobless and fostered workers, as well as for businesses whose turnover has dropped more than 25%.
     
  • On October 1, border controls were extended until November 1.
     

Economic Protection Plan (April 6)

The goal of the plan is to preserve jobs, create jobs and support hard-hit sectors. 18-20% of GDP will be refocused to drive these efforts

Job Retention

The government introduced a job retention subsidy program based on the German Kurzarbeit model. The government will pay a portion of wages for companies that introduce shortened working hours for three months. 70% of the base salary due for the reduced hours.

  • Reduced hours: extended to 25-85% of the original working hours (min 2 hours a day).
     
  • Support amount calculated based on the monthly base salary on the day of application. The maximum is HUF 112418 per employee, monthly, net of taxes– depending on the ratio of the reduction in working time.
     
  • Employers do not need to retain the entire headcount, only those employees who received the aid. Those who receive the subsidy must bet retained during the period of support and a month after its expiration.
     
  • Employment contracts change automatically by virtue of the government's decree.
     
  • If the new, shortened work hours are more than 50% of the original working hours, it is mandatory to introduce a development plan. If the new working time is below 50% of the original working time, development time is optional. Development time can be scheduled and conducted in the next 2 years.
     
  • Employers must guarantee to keep the net base salary during the supported period and pay salaries for the performance development time.
     
  • Aid is available for temporary workers, teleworkers, and those in-home office.
     
  • The employer must submit a joint application with individual employees to the local Government Office’s labor department. Employee consent is a condition for reducing working time and participating in the subsidy scheme.
     
  • The application can be submitted at any time, even in the middle of a month and it is possible to account for a partial month. The subsidy cannot be claimed for the period prior to the date of submission.
     
  • Employers do not have to declare the cause of their economic difficulties upon application.
     
  • The aid is available till December 31 and employers can apply for it during the duration of the emergency or within a month after its end.
     
  • Eligible companies must have operated for at least 6 months before the date of application; they cannot be under insolvency, bankruptcy, or voluntary liquidation proceedings and cannot receive subsidies in respect of the impacted employees prior to application.
     
  • Eligible employees must start before March 11, 2020, and remain on the payroll. They cannot be on notice, unpaid leave, or underpayment obligation to labor authorities.

 

R&D wage subsidy

In order to maintain research and development capacity, the government will provide a wage supplement for those working in engineering and R&D for three months. The subsidy amount is up to HUF 318,920 per month.

Job Creation

HUF 670+ billion will also be devoted to facilitate job creation:

  • Training and education support
  • Development of industries and enterprises
  • investment support
  • infrastructure developments
  • R&D&I programs

 

A HUF 80 billion program will be launched to support job creation by offering wage subsidies to companies making new hires. According to State Secretary Sándor Bodó, the program could support 70,000 people finding jobs. Participants in the scheme must commit to employing new hires for at least nine months during which time they will receive wage support funding from the state for six months. Companies will receive a monthly gross HUF 200,000 support per new hires translating into net HUF 112,000 per hire.

Online training will be organized for workers amid the shutdowns. The state will cover 95% of training fees, while job-seekers are entitled to interest-free adult training student loans.

Administrative burdens and taxes are being reduced

  • The social contribution tax will be reduced by 2 percentage points from 17.5 percent to 15.5 percent from July 1
     
  • The deadline for the submission of tax returns has been postponed to September 30. The extension does not include stock market companies, banks, insurance companies, and investment enterprises.
     
  • The government has also granted a four-month exemption from fixed-rate tax of small (KATA) taxpayers in 26 scopes of activities,
     
  • The rate of small business tax (KIVA) will be reduced from 12 percent to 11 percent from 2021.
     
  • The social insurance of workers sent on unpaid leave will not be terminated.
     
  • Enterprises may request the reduction of any form of tax if they have found themselves in a difficult situation as a result of COVID-19. The maximum level of this reduction is 5 million forints (EUR 14,200). Up to a maximum tax debt of 5 million forints, enterprises may also ask for payment in 12 monthly installments or a six-month, surcharge-free deferment with relation to all tax forms.
     
  • VAT refunds will be accelerated; reducing the time limit in the case of normal taxpayers from 75 days to 30 days, while in the case of reliable taxpayers from 30 days to 20 days.
     
  • Special payment facilities, payment by installments, deferred payment and tax reduction options are being introduced.
     
  • The use of the Széchenyi Leisure (SZÉP) Card will become more favorable with a reduced tax burden and a higher spending limit. No social contributions tax will have to be paid with relation to money transferred to the card, meaning the tax burden will be reduced from 32.5 percent to 15 percent.
     

Recovery

  • MFB Group dedicates close to HUF 1,500 billion to the economic recovery launch of harmonized loan, capital, and guarantee programs.

    The programs have been developed to counteract the economic impact of the coronavirus epidemic and help relaunch the economy and are slated to offer solutions to the liquidity problems of businesses, preserve jobs, foster investment and development and keep Hungarian businesses in Hungarian hands.

    Including: Crisis Loan Program for micro, small and medium enterprises, Competitiveness Loan Program for SMEs and large companies, Vis Maior Guarantee Program, Crisis Guarantee Program, Hiventures Capital Programs such as Crisis Capital Program, SME Rescue Capital Program, and Startup Rescue Capital Program.
     
  • HUF 2500 billion dedicated to supporting the most vulnerable and priority sectors (construction, transportation, logistics, tourism, the creative industry, the health industry, and the food industry) in the form of investment subsidies, tax reductions, infrastructure development, soft and guaranteed loans and capital program.
     
  • The health industry will receive significant support.

Other

  • Further support announced to universities and private research institutes for health research.
     
  • University students will be able to apply for a one-time, any-purpose, interest-free student loan of the amount of HUF 500,000.
     
  • The Family and Pensioner Protection Program will gradually reintroduce the 13th-month pension.

     

PUBLIC TRANSPORTATION

Masks are required on all public transport.

Public transportation in Budapest remains operational.

  • Passengers must wear a mask when using the services. Passengers who do not or wear a mask may be fined HUF 8,000 by BKK inspectors in addition to being removed from the ride.

    Cloths, scarves are no longer accepted.
     
  • Do not get on packed vehicles if possible
     
  • Please note that you can no longer purchase tickets from drivers. You are encouraged to use e-tickets.
     
  • Minimize physical contact with handrails, doors, and buttons.
     
  • Avoid contact with other passengers.
     
  • Clean your hands after using public transportation.
     

BORDER

Budapest’s Liszt Ferenc airport is open.

Hungary closed its borders for foreign nationals on September 1, 2020 to contain the spread of the virus.

Hungarian citizens and foreign nationals with permanent Hungarian residency returning home from abroad will be required to either quarantine or produce two negative coronavirus tests. Foreign commuters within 30 km from the Hungarian border are allowed entry for periods of no more than 24 hours. Hungarians who travel less than 30 km from the border into neighboring countries and return within a 24-hour period can re-enter Hungary without restrictions.

Exceptions to the ban: foreigners on official business involving state organizations, those certified to receive healthcare, students with a certification from an educational institution, truck drivers returning home, visitors taking part in family events such as weddings, and participants of international sport, cultural or religious events.

The decree allows for the unrestricted entry by foreign executives or employees of Hungarian companies as well as foreign companies registered in certain designated countries. A separate decree issued by the interior minister has specified those designated countries to be “any country”.

Czech, Polish and Slovak citizens may enter Hungary with a negative COVID-19 test if they have made reservations before October 6 at commercial lodgings in the country up to October 31, the last day the decree is in force.

V4 nationals were allowed the same exemption from early September, after the blanket ban on entry by foreigners was introduced.

Foreigners whose applications for entry are approved must go into a mandatory 14-day quarantine which may be lifted only after two negative COVID-19 tests taken at least 48 hours apart.

(source: BBJ)