AGRICULTURE

Hungary's EU membership and central location make it a prime hub for agricultural investments in Hungary, offering access to both domestic and wider European markets. We support domestic and international investors – including those engaged in foreign direct investment (FDI) projects – in navigating the legal and regulatory framework of agricultural operations, from the earliest planning stages to fully developed business structures.

Our legal services for the agricultural sector cover the structuring of investments, including acquisitions of agricultural companies, agricultural land acquisition, establishment of Hungarian subsidiaries, or joint ventures with local partners. We provide in-depth guidance on foreign ownership rules and the specific restrictions applying to agricultural land, ensuring that our clients’ investments remain both compliant and flexible. This includes handling pre-emption rights, local authority approvals, and qualification requirements, which may differ depending on the buyer’s nationality, the investment’s scale, and its intended use.

We deliver end-to-end support for land-related transactions: from identifying suitable properties, negotiating purchase agreements, and managing approval procedures, to structuring long-term lease agreements for clients preferring operational control without ownership. Our expertise extends to resolving complex title issues stemming from Hungary’s historical land redistribution, ensuring that our clients obtain clear and marketable title for their investments.

For large-scale agricultural projects, we coordinate with technical experts and advisors while focusing on the legal aspects of due diligence, covering property rights, land use restrictions, licensing, regulatory compliance, and environmental obligations. This integrated approach safeguards long-term business success and reduces legal risks, while ensuring secure access to the EU agricultural market.

Competition law in Hungary plays a critical role in structuring agricultural investments and FDI projects. Transactions involving acquisitions of agricultural companies, establishment of joint ventures, or other large-scale cooperation agreements may trigger merger control requirements before the Hungarian Competition Authority (GVH) or even the European Commission. We provide comprehensive legal advice on competition law and merger control in Hungary, ensuring that agricultural investments are both compliant and strategically sound.

Our services include assessing whether a transaction qualifies for merger clearance, preparing and submitting notifications, and representing clients throughout the regulatory review process. We also advise on EU competition law for agriculture, covering vertical and horizontal agreements, distribution and supply contracts, and compliance with block exemption regulations. By addressing potential risks such as abuse of dominance or market-sharing restrictions, we help clients avoid costly investigations and fines.

Through our integrated approach, we ensure that agricultural and FDI projects in Hungary proceed without delays, combining business growth opportunities with full compliance under both Hungarian and EU competition law. This dual focus on legal certainty and commercial strategy allows our clients to enter and expand in the Hungarian and EU agricultural markets with confidence.

Hungary's agricultural sector is subject to a complex legal framework, combining EU Common Agricultural Policy requirements, national agricultural legislation, and strict environmental law regulations. Investors and foreign agricultural business operators must ensure continuous compliance with evolving standards on food safety, environmental protection, and sustainable farming practices.

We provide dedicated legal support in addressing environmental compliance challenges – from permitting and zoning issues to waste management, water rights, and emission standards. In doing so, we work in close cooperation with the Hungarian Association of Environmental Enterprises, allowing us to integrate legal expertise with leading environmental and technical knowledge. This collaboration enables us to guide clients through regulatory approvals, compliance inspections, and responses to enforcement actions.

For clients engaged in organic farming or specialized agricultural production, we provide guidance on certification requirements, labeling regulations, and compliance with organic production standards that enable access to premium market segments both domestically and throughout the EU.

Modern agribusiness operations in Hungary involve complex commercial relationships across the agricultural value chain from input suppliers to end consumers. We structure and negotiate commercial agreements that support our clients' agricultural operations, including supply agreements for seeds, fertilizers, and agricultural equipment, as well as distribution agreements for agricultural products with Hungary and across the EU.

We provide legal advice on food processing and value-added agricultural operations, from establishing processing facilities to ensure compliance with EU food safety, traceability, and labeling regulations. This ensures that agricultural products entering European markets meet all legal standards, reducing compliance risks.

For clients engaged in agricultural technology, precision farming, and sustainable innovation, we deliver legal support in intellectual property protection, technology licensing agreements, and regulatory compliance. Our expertise covers biotechnology applications, agri-software solutions, and green technologies, safeguarding innovation while meeting Hungarian and EU regulatory requirements.

Agricultural employment law in Hungary presents unique challenges due to the seasonal nature of agricultural work and the involvement of both domestic and foreign workers. Agribusiness operators must comply not only with general Hungarian labor law but also with sector-specific regulations governing seasonal labor, health and safety, and social security.

We provide comprehensive legal advice tailored to the agricultural sector, including the structuring of employment contracts for seasonal workers, skilled agricultural specialists, and management personnel. Our services cover compliance with working time regulations, occupational health and safety rules specific to agricultural environments, and social security obligations for agricultural employers.

For clients employing foreign and non-EU agricultural workers, we provide guidance on work permit requirements, immigration compliance, accommodation standards, and Hungary’s seasonal worker programs. By addressing these requirements proactively, we help clients avoid legal risks while ensuring a stable and compliant workforce for their agricultural operations.

Digitalization is transforming the way legal services support agricultural businesses in Hungary. We provide legal tech solutions that streamline day-to-day operations and reduce compliance risks. Our services include the development of customized contract templates for employment, supply, distribution, and land lease agreements, ensuring that our clients can operate with legally sound documentation adapted to the specific requirements of the agricultural sector. 

Agricultural investments and operations in Hungary face a broad spectrum of taxation issues, ranging from corporate income tax and local business taxes to VAT, customs duties, and excise taxes on agricultural products. We provide comprehensive tax advisory services to both domestic and international agribusiness clients, ensuring compliance with Hungarian and EU tax rules while optimizing tax efficiency.

Our services include tax planning and structuring of agricultural investments, with a focus on risk management and wealth protection. We advise on the most suitable investment and holding structures, addressing issues such as transfer pricing, local tax obligations, and indirect tax treatment of agricultural products and services. By identifying potential tax risks early, we help clients minimize exposure and achieve sustainable tax positions.

We represent clients in tax audits and tax procedures before the Hungarian tax authority (NAV), including disputes over VAT recovery, customs classification, and the treatment of subsidies or rural development funds. Where necessary, we handle tax litigation before Hungarian courts and the Court of Justice of the European Union (CJEU), drawing on our litigation expertise to defend our clients’ interests in complex tax disputes.

Financing is a critical element of agricultural investments in Hungary, where projects often rely on a mix of bank loans, EU funding, and private capital. We provide specialized legal advice in banking and finance tailored to the needs of agribusiness clients, supporting them in structuring and negotiating financing arrangements that secure long-term stability for their operations.

Our services include advising on project finance, asset-based lending, and leasing arrangements, as well as designing collateral structures such as mortgages over agricultural land, pledges on crops and equipment, and security interests in subsidies or receivables. We represent both borrowers and financial institutions, ensuring that financing structures are legally robust and commercially viable.

Agricultural businesses in Hungary often encounter disputes that require effective legal solutions, ranging from contractual conflicts and land use disagreements to regulatory and commercial disputes arising along the agricultural value chain. We represent clients in civil and commercial litigation before Hungarian courts, ensuring their rights and investments are fully protected.

Our expertise also extends to arbitration proceedings, both domestic and international, where efficiency, confidentiality, and sector-specific expertise are critical. We act for clients in agricultural contract disputes, joint venture and partnership conflicts, land lease disagreements, and environmental enforcement cases, including those with cross-border dimension.

In addition to representation, we assist clients in risk allocation within commercial agreements and the drafting of dispute resolution clauses that anticipate potential conflicts. This proactive approach enables agricultural businesses to manage risks effectively and, where disputes arise, to resolve them through the most suitable forum, whether litigation before Hungarian courts or arbitration before international tribunals.

The agricultural sector is not immune to white collar crime risks, which may include subsidy fraud, corruption, embezzlement, accounting irregularities, and cross-border financial misconduct. We advise agricultural businesses, investors, and executives on preventing and addressing such risks, combining our compliance expertise with strong defense capabilities.

Our services cover internal investigations, compliance audits, and risk assessments, helping clients identify potential vulnerabilities related to EU subsidies, public procurement, or cross-border trading. Where criminal proceedings are initiated, we represent companies and individuals in white collar crime cases before Hungarian courts, ensuring a robust defense strategy.

We also assist clients in developing compliance programs, anti-corruption policies, and whistleblowing frameworks tailored to the agricultural sector. This proactive approach reduces exposure to regulatory scrutiny and strengthens the credibility of agricultural businesses when engaging with investors, financial institutions, and public authorities.

In the agricultural sector, outstanding receivables and unpaid claims can pose serious risks to liquidity and business continuity. We support agricultural producers, suppliers, and investors in the recovery of debts and enforcement of contractual claims, ensuring that their financial interests are protected.

Our services include pre-litigation debt collection, negotiation of settlement agreements, and enforcement of receivables through Hungarian courts and bailiff proceedings. We represent clients in disputes arising from unpaid supply contracts, lease agreements, and distribution arrangements, as well as in cases where counterparties default on cross-border agricultural transactions.

Beyond litigation, we advise on preventive measures, including the drafting of robust payment terms, security arrangements, and contractual safeguards that reduce the risk of non-payment. By combining our expertise in commercial law, litigation, and enforcement proceedings, we help clients secure timely recovery of receivables and maintain financial stability in their agricultural operations.

Hungary's agricultural sector offers substantial opportunities for foreign businesses willing to navigate its complex regulatory and commercial environment with appropriate legal guidance. At Jalsovszky, we combine deep local expertise with international perspective to deliver practical, effective legal solutions that enable our clients to achieve their agricultural business objectives in Hungary.

Our comprehensive approach ensures that foreign agricultural businesses receive the specialized legal support necessary to establish successful, compliant, and sustainable operations in one of Europe's most important agricultural markets. Whether pursuing land acquisition, developing agricultural operations, or expanding existing activities, we provide the legal foundation for long-term success in Hungary's dynamic agricultural sector.