Hungary updates film funding rules while keeping 30 percent tax rebate for international productions
Hungary is updating its film funding system from 2026 while keeping its key 30 percent tax rebate unchanged. The government has set clearer budget limits, stricter registration caps, and tighter timelines to manage demand and prevent delays. Despite the changes, Hungary remains open to Hollywood and international productions, with EU approval ensuring the rebate continues and the country’s status as a major European filming hub stays strong.
Hungary is making changes to how it supports the film industry, but the country is still making it clear that Hollywood and international productions are welcome. Starting in 2026, the government will introduce tighter rules around film funding to make the system more stable and better managed in the long run.
At the heart of Hungary’s film incentive system is its well-known 30 percent tax rebate, and that will stay exactly the same. This tax break has played a huge role in attracting big international projects to Budapest and other filming locations across the country. What is changing is how the money behind this system is controlled.
According to new rules published in the Hungarian official gazette, the annual budget for the film trust account has been set at 70 billion forints for 2026. This fund is used to cover the 30 percent tax credit that producers can claim on money they spend while filming in Hungary. While the amount is higher than earlier estimates, it is slightly lower than the record budget set in 2025, showing an effort to balance demand with realistic limits.
To avoid overcrowding and delays, the National Film Office is also bringing in stricter registration limits. For the first half of 2026, registrations will be capped at 140 billion forints, with a portion set aside specifically for Hungarian-backed projects. Since applications are approved in the order they are submitted, many expect the limit to be reached quickly. Projects that miss out may still move forward later, depending on how the next phase of rules is rolled out mid-year.
Another key change aims to prevent projects from holding funds without actually filming. Under the new system, productions must start shooting within a fixed time after approval or risk losing their funding slot. This is meant to ensure that only serious, well-planned projects move ahead.
Despite the tighter rules, Hungary’s global appeal remains strong. The European Union has approved the 30 percent tax rebate until at least the end of the decade, keeping Hungary among the top film destinations in Europe. Government film commissioner Csaba Kael has previously said this system helped make Hungary the second biggest film production hub in Europe after London. With these updates, the goal is to protect that position while making the industry more transparent and sustainable for the future.