Hungary's incentive looks like a tax scheme on paper, because Hungarian companies that fund it receive tax relief. From the producer's side it's a cash refund. The production spends the money, the Hungarian service company claims, and the refund is paid from the Collection Account that the National Film Institute (NFI) manages. The state backs the account, and the NFI says 2026 funding is HUF 70 billion.
Where 37.5% comes from
The base rebate is 30% of direct production costs spent in Hungary. Non-Hungarian costs can be added to the base, but the NFI caps them at 25%. Working that through on HUF 400 million of Hungarian spend:
- Hungarian spend: HUF 400,000,000
- Maximum non-Hungarian costs added: HUF 400,000,000 x 0.25 = HUF 100,000,000
- Base: HUF 500,000,000
- Rebate: HUF 500,000,000 x 0.30 = HUF 150,000,000
- As a share of Hungarian spend: HUF 150,000,000 / HUF 400,000,000 = 37.5%
Without any non-Hungarian costs, the same shoot gets HUF 400,000,000 x 0.30 = HUF 120,000,000.
The NFI also says a producer can spend 20% of the budget outside Hungary without reducing the incentive. That's a separate point from the 25% cap and it matters for productions with a few days in Vienna or a second unit elsewhere.
Salaries over HUF 3 million
Each cast and crew member's fee counts in full up to HUF 3 million per production, and above that, eligibility is capped at 50%. On a production paying a lead actor, a director, and a DP well above HUF 3 million each, the eligible base will be noticeably smaller than the payroll. Build a separate column in the budget for eligible fees so the line producer and the financiers see the same number.
A useful habit is to split the payroll in the cost report into two lines per person: the first HUF 3 million and the remainder. It makes the claim easier to reconcile.
From registration to refund
- Hire a Hungarian production company registered with the National Film Office. Only registered Hungarian companies can apply.
- Pass the cultural test. You need 16 points, and the test looks at European content and cultural values, with bonus points for involving EU nationals. The cultural test glossary entry and our guide to qualifying for international incentives explain how producers approach these tests.
- Register the production with the NFO and report the start of filming.
- Start principal photography within six months of the registration decision. Since a 2025 amendment, authorities can modify or revoke the approval if you miss that window.
- Close invoices promptly. Expenses whose completion certificate falls outside the production period, or whose invoice is issued more than three months after the end date, are excluded.
- Claim the refund after the spend. The support is post-financing, so the production carries the cash until it's paid.
Watch-outs
The six-month start rule is new enough that older schedules may not respect it. Don't register a project whose start date could slip by half a year.
Late vendor invoices are a real risk in wrap. A three-month cutoff means the production accountant should start chasing final invoices from vendors during wrap week.
Because the refund comes after the spend, you need gap or bridge money for the rebate amount. Talk to the bank about lending against the Hungarian refund when you close the financing.
If the project is an official co-production, confirm with the NFI how the Hungarian share is counted before relying on the rebate. The co-production treaty entry explains how those agreements split spend and creative roles.
Hungary and its neighbors
The Czech Republic pays 25% on live action and 35% on animation, and counts eligible costs up to CZK 450 million per project. Serbia and Croatia are nearby alternatives for productions looking at the Balkans. For a US production with a heavy European crew, Hungary's ability to add non-Hungarian costs is the main difference. The incentives hub has every country, and tax incentives and global film production covers why productions end up in Budapest in the first place.