The Hungarian Government has submitted for public consultation a draft amendment to Government Decree No. 143/2018. (VIII. 13.), which sets out the detailed rules for change-of-function permitting procedures applicable to retail units with a gross floor area exceeding 400 m². The consultation process concluded on 10 June 2025.
Key elements of the proposed amendment
According to the government, the purpose of the amendment is to incorporate practical experience gained since the decree’s introduction, clarify certain provisions, and better define when a change-of-function permit is required. The draft, however, introduces other substantial changes that would significantly broaden the scope of the current permitting obligation.
Under the proposed amendment, a change-of-function permit would be required for any transfer or lease — for commercial purposes — of the whole or part of an independently usable retail unit or sales area within a commercial building that exceeds 400 m² and is designated for commercial use. In other words, in certain cases the mere change of owner or a new lease could trigger a permitting obligation.
The amendment also clarifies the definition of “alteration” of a sales area. The draft provides that any division or separation of the sales area using elements fixed to structural components will qualify as an alteration, thereby requiring a permit.
Practical implications
If adopted in its current form, the amendment could have a significant impact on the commercial real estate market and legal practice. Any change in tenancy and – in certain cases – ownership of large commercial units would necessitate a formal permitting procedure. This would effectively impose additional administrative steps on parties involved in such transactions.
In a public statement, the Ministry of Construction and Transport clarified that, under their interpretation of the draft rules, a change-of-function permit would only be required if the new owner or user intends to carry out commercial activities on the premises following the transaction, thereby the sale of the retail property to another investor (not resulting in a change of the actual user) would not require permitting.
The draft decree has not yet been adopted and may be subject to further revision.
For more information on regulations governing the retail sector in Hungary, contact your CMS client partner or these CMS experts.
Social Media cookies collect information about you sharing information from our website via social media tools, or analytics to understand your browsing between social media tools or our Social Media campaigns and our own websites. We do this to optimise the mix of channels to provide you with our content. Details concerning the tools in use are in our Privacy Notice.