HUNGARY
Since December 2022
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Screening of investment and acquisitions
Government Decree No. 561/2022 of 23 December 2022 on the Different Application of Certain Provisions Necessary for the Protection of Hungarian Companies for Economic Purposes During the State of Emergency (561/2022. (XII. 23.) Korm. rendelet a magyarországi gazdasági társaságok gazdasági célú védelméhez szükséges egyes rendelkezések veszélyhelyzet ideje alatti eltérő alkalmazásáról)
Since May 2020, Hungary has applied an “Alternative FDI Regime”, established under Chapter 85 of Act LVIII of 2020 and its implementing Government Decree. Originally designed as a temporary measure set to expire at the end of 2021, the regime was extended and reinstated through Government Decree No. 561/2022, thereby making it permanent.
The regime applies to a broad range of transactions, not limited to share acquisitions. It encompasses convertible instruments, usufruct rights, corporate transformations, asset purchases, capital injections, and in-kind contributions.
Under Art. 3 of Decree No. 561/2022, notification is required whenever a foreign investor directly or indirectly acquires:
(i) at least a 5% stake in a strategic company (or 3% if the company is publicly listed), provided the transaction value reaches HUF 350 million (approx. EUR 900,000); or
(ii) at least a 10% stake, regardless of deal value; or
(iii) a stake resulting in the combined shareholding of foreign investors reaching 25% in a strategic company, regardless of deal value.
According to Art. 2 of the Decree a strategic company is defined as a limited liability company, a privately held joint-stock company, a publicly held joint-stock company, or a higher education institution with a registered office in Hungary, whose main or additional activity falls within a sector of strategic significance as defined in Annex 1, particularly in the energy, transportation, or communication sectors, as well as industries defined under Regulation (EU) 2019/452 of the European Parliament and Council of 19 March 2019, which establishes a framework for the screening of foreign direct investments into the Union.
Annex 1 lists an extensive coverage of sectors, including publishing activities, telecommunications, and information technology services, among others.
The regime applies to a broad range of transactions, not limited to share acquisitions. It encompasses convertible instruments, usufruct rights, corporate transformations, asset purchases, capital injections, and in-kind contributions.
Under Art. 3 of Decree No. 561/2022, notification is required whenever a foreign investor directly or indirectly acquires:
(i) at least a 5% stake in a strategic company (or 3% if the company is publicly listed), provided the transaction value reaches HUF 350 million (approx. EUR 900,000); or
(ii) at least a 10% stake, regardless of deal value; or
(iii) a stake resulting in the combined shareholding of foreign investors reaching 25% in a strategic company, regardless of deal value.
According to Art. 2 of the Decree a strategic company is defined as a limited liability company, a privately held joint-stock company, a publicly held joint-stock company, or a higher education institution with a registered office in Hungary, whose main or additional activity falls within a sector of strategic significance as defined in Annex 1, particularly in the energy, transportation, or communication sectors, as well as industries defined under Regulation (EU) 2019/452 of the European Parliament and Council of 19 March 2019, which establishes a framework for the screening of foreign direct investments into the Union.
Annex 1 lists an extensive coverage of sectors, including publishing activities, telecommunications, and information technology services, among others.
Coverage Strategic sectors, including publishing activities, telecommunications, and information technology services
Sources
- https://investmentpolicy.unctad.org/investment-laws/laws/535/hungary-government-decree-561-2022-xii-23-
- https://njt.hu/jogszabaly/2022-561-20-22
- https://web.archive.org/web/20231128195920/https://iclg.com/practice-areas/foreign-direct-investment-regimes-laws-and-regulations/hungary
- https://www.twobirds.com/en/insights/2024/hungary/fdi-regimes-in-hungary
- Show more...
HUNGARY
Since June 1995
Pillar Intellectual Property Rights (IPRs) |
Indicator Practical or legal restrictions related to the application process for patents
Act XXXIII of 1995 on the Protection of Inventions by Patents (1995. évi XXXIII. Törvény a találmányok szabadalmi oltalmáról)
Under Art. 51 of Act XXXIII of 1995 on the protection of inventions, foreign applicants that have no residency within the EU or the European Economic Area (EEA) have to be represented by an authorised attorney-at-law in front of the Hungarian Intellectual Property Office.
Coverage Horizontal
HUNGARY
ITA signatory?
I
II
Pillar Tariffs and trade defence measures applied on ICT goods |
Indicator Effective tariff rate on ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
0.62%
Coverage rate of zero-tariffs on ICT goods (%)
77.14%
Coverage: ICT goods
HUNGARY
Since September 2015
Pillar Public procurement of ICT goods and online services |
Indicator Exclusion from public procurement
Act CLXLIII of 2015 on Public Procurement (2015. évi CXLIII. Törvény a közbeszerzésekről)
Under Art. 62. k of the Act CLXLIII on Public Procurement, foreign firms are excluded from government procurement if they are registered in a country that is neither an EU member nor a member of the WTO Government Procurement Agreement nor if they are registered in a country that has no double taxation treaty with Hungary or the EU.
Coverage Horizontal
HUNGARY
Since March 2004, last amended in February 2014
Since September 2015
Since September 2015
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Utilities Directive (2014/25/EU)
Act CLXLIII of 2015 on Public Procurement (2015. évi CXLIII. Törvény a közbeszerzésekről)
Act CLXLIII of 2015 on Public Procurement (2015. évi CXLIII. Törvény a közbeszerzésekről)
Art. 85 of the Utilities Directive (2014/25/EU) contains provisions allowing contracting public entities to reject foreign goods not covered by any EU international commitments from its tender procedures. In these cases, a tender submitted for the award of a supply contract may be rejected where the proportion of the products originating in third countries exceeds 50% of the total value of the products constituting the tender (Art. 85.2). Additionally, in cases of equivalent offers, the provisions provide for a preference for European tenders and tenders covered by EU's international obligations. In practice, this possibility has rarely been used.
In Hungary, the Directive has been transposed with Act CXLIII of 2015 on Public Procurement.
In Hungary, the Directive has been transposed with Act CXLIII of 2015 on Public Procurement.
Coverage Any product sold to a utility provider including software used in telecommunication network equipment
Sources
- https://web.archive.org/web/20220303180640/https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32014L0025&from=EN#d1e7298-243-1
- https://web.archive.org/web/20220308150625/https://www.procurementinet.org/wp-content/uploads/2017/02/Public-Procurement-Act-Hungary.pdf
- https://web.archive.org/web/20240301001209/https://www.lexology.com/library/detail.aspx?g=276feaf8-c91b-4b7d-8310-dad8134f3c4c
- https://web.archive.org/web/20220121131638/https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52019XC0813(01)&from=EN
- Show more...
GUINEA-BISSAU
Reported in 2022, last reported in 2024
Pillar Online sales and transactions |
Indicator Threshold for ‘De Minimis’ rule
Low de minimis threshold
It is reported that in Guinea-Bissau, the de minimis threshold, that is, the minimum value of goods below which Customs Authority do not charge duties, is USD 100, below the 200 USD threshold recommended by the International Chamber of Commerce (ICC).
Coverage Horizontal
GUINEA-BISSAU
Since October 2012
Pillar Online sales and transactions |
Indicator Restrictions on domain names
Decree No. 7/2012 of 23 October - Regulations of the Domain name registration (Decreto No. 7/2013 de 23 de Outubro - Regulamento do Registo de Domínios)
Art. 2 of Decree No. 7/2012 states that only entities legally incorporated or residents in Guinea-Bissau can acquire local domain names ".gw". However, under certain conditions, temporary domain registration can take place, namely if the foreign company appoints a local legal representative and presents a declaration duly certified committing to set up the company in Guinea-Bissau.
Coverage Horizontal
GUINEA-BISSAU
N/A
Pillar Online sales and transactions |
Indicator Framework for consumer protection applicable to online commerce
Lack of comprehensive consumer protection law applicable to online commerce
Guinea-Bissau lacks a comprehensive framework for consumer protection that applies to online transactions.
Coverage Horizontal
Sources
- https://web.archive.org/web/20241211194313/https://unctad.org/page/cyberlaw-tracker-country-detail?country=gw
- https://web.archive.org/web/20231119223135/https://unctad.org/page/online-consumer-protection-legislation-worldwide
- https://web.archive.org/web/20220601091945/https://www.wto.org/english/tratop_e/tpr_e/s362-04_e.pdf
- Show more...
GUINEA-BISSAU
N/A
Pillar Online sales and transactions |
Indicator Ratification of the UN Convention on the Use of Electronic Communications in International Contracts
Lack of signature of the UN Convention on the Use of Electronic Communications in International Contracts
Guinea-Bissau has not signed the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.
Coverage Horizontal
GUINEA-BISSAU
N/A
Pillar Online sales and transactions |
Indicator UNCITRAL Model Law on Electronic Commerce
Lack of adoption of UNCITRAL Model Law on Electronic Commerce
Guinea-Bissau has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce.
Coverage Horizontal
GUINEA-BISSAU
N/A
Pillar Online sales and transactions |
Indicator UNCITRAL Model Law on Electronic Signatures
Lack of adoption of UNCITRAL Model Law on Electronic Signatures
Guinea-Bissau has not adopted national legislation based on, or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures.
Coverage Horizontal
GUINEA-BISSAU
Since May 2010
Pillar Technical standards applied to ICT goods and online services |
Indicator Self-certification for product safety
Law No. 5/2010 of 27 May - Basic Information and Communications and Technologies Law (Lei No. 5/2010 de 27 de Maio - Lei de Base das Tecnologias de Informação e Comunicação)
Art. 106 of Law No. 5/2010 provides that the Autoridade Reguladora Nacional (ARN, National Regulatory Authority) is responsible for determining the approval of equipment used in the provision of information and communications services to interconnect or operate telecommunications systems and terminal equipment. The ARN's approval determinations may be conferred under the terms of this Law No. 5/2010 or in certificates granted by the ARN or by competent organisations authorised by the ARN. Terminal equipment intended to be connected to a network open to the public must be approved by the ARN. In any case, approval is always required in the case of radio installations, whether or not they are intended to be connected to a public network.
As the standards and technical regulations approved at the West African Economic and Monetary Union (WAEMU) level, as well as the community accreditation system, apply in Guinea-Bissau, the conformity of imported goods with technical regulations can be certified by an accredited laboratory, with a certificate of conformity mark as proof. The Scheme for the Harmonization of Accreditation, Certification, standardisation and Metrology Activities within WAEMU is based on the principle of mutual recognition among Member States at three levels: recognition of technical regulations, national standards and specifications, recognition of conformity assessment procedures and their results. Support for achieving consistency of national regimes is provided by three technical structures, one of which is the West African Accreditation System (SOAC). The purpose of introducing the SOAC was to give Member States a single organisation for accrediting conformity assessment bodies (laboratories, inspection bodies and certification bodies). The SOAC signed a Mutual Recognition Agreement with the African Accreditation Cooperation (AFRAC) and the International Laboratory Accreditation Cooperation (ILAC) in May 2022.
As the standards and technical regulations approved at the West African Economic and Monetary Union (WAEMU) level, as well as the community accreditation system, apply in Guinea-Bissau, the conformity of imported goods with technical regulations can be certified by an accredited laboratory, with a certificate of conformity mark as proof. The Scheme for the Harmonization of Accreditation, Certification, standardisation and Metrology Activities within WAEMU is based on the principle of mutual recognition among Member States at three levels: recognition of technical regulations, national standards and specifications, recognition of conformity assessment procedures and their results. Support for achieving consistency of national regimes is provided by three technical structures, one of which is the West African Accreditation System (SOAC). The purpose of introducing the SOAC was to give Member States a single organisation for accrediting conformity assessment bodies (laboratories, inspection bodies and certification bodies). The SOAC signed a Mutual Recognition Agreement with the African Accreditation Cooperation (AFRAC) and the International Laboratory Accreditation Cooperation (ILAC) in May 2022.
Coverage Telecommunications sector
Sources
- https://web.archive.org/web/20230201101051/https://arn.gw/activeapp/wp-content/uploads/2015/03/3.-%C2%A6SUP.-B.-O.-N.-%C2%A6-21-2010.pdf
- https://web.archive.org/web/20231129130619/https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=q:/WT/TPR/S362R1-05.pdf&Open=True
- https://web.archive.org/web/20231202124524/https://www.unido.org/news/international-recognition-passport-global-value-chains
- https://web.archive.org/web/20230325004502/http://www.uemoa.int/sites/default/files/bibliotheque/reg_03_2010_cm_uemoa.pdf
- Show more...
GUINEA-BISSAU
Since November 2013
Pillar Intermediary liability |
Indicator User identity requirement
Decree No. 22/2013 of 13 November - Subscribers of Mobile Telecom Network Regulations (Decreto No. 22/2013 de 13 de Novembro - Regulamento para Identificação de Assinantes das Redes de Telecomunicações Móveis do País)
According to Arts. 3 and 5 of Decree No. 22/2013, anyone wishing to subscribe to mobile cellular telecommunications services (including the acquisition of SIM cards) is obliged to identify themselves by registering their names and national identification numbers before the telecommunications operators.
Coverage Mobile telecommunications services
GUINEA-BISSAU
Reported in 2025
Pillar Content access |
Indicator Presence of Internet shutdowns
Presence of Internet shutdowns
The indicator "7.2.4 - Government Internet shut down in practice" of the V-Dem Dataset, which measures whether the government has the technical capacity to actively make internet service cease, thus interrupting domestic access to the internet or whether the government has decided to do so, has a score of 3 in Guinea-Bissau for the year 2024. This corresponds to "Rarely but there have been a few occasions throughout the year when the government shut down domestic access to Internet."
Coverage Horizontal
