Hungary is a signatory of the 1954 and 1999 protocols to the Hague Convention for the Protection of Cultural Property in the Event of Armed Conflicts (Hague Convention); the 1970 UNESCO Convention on the Means of Prohibiting and Preventing the Illicit Import, Export and Transfer of Ownership of Cultural Property (UNESCO Convention); and the 1995 Convention on Stolen or Illegally Exported Cultural Objects adopted by the International Institute for Private Law (UNIDROIT Convention). Hungary has ratified the 2017 Council of Europe Convention on Offences relating to Cultural Property (Nicosia Convention).

Hungary is also a member the Berne Convention for the Protection of Literary and Artistic Works, adopted in 1886. It has endorsed the Washington Conference Principles on Nazi-Confiscated Art of 1998.

As an EU member state, Hungary has incorporated the EU Directive on the return of cultural objects unlawfully removed from the territory of a member state (Directive 2014/60/EU). It has adhered to the EU export/import control system for cultural objects (EC Regulation 116/2009 and EU Regulation 2019/880), and is subject to the Brussels I Regulation on the EU Jurisdictional Regime (EU Regulation 1215/2012).

In addition, Hungary applies the European Union’s rules on intra-community acquisitions of works of art, collectors’ items and antiques (Directive 2006/112/EC), is subject to the EU anti-money laundering regime (EU Regulation 2024/1624), and must observe the new EU Artificial Intelligence Act (EU Regulation 2024/1689) adopted in May 2024. Further, in Hungary, EU rules apply on online-only auctions and, in accordance with Directive 2011/83/EU, the country provides extensive consumer protection in respect of distance selling contracts.

Art transactions governed by Hungarian law are subject to the Hungarian Civil Code (Act V of 2013 of the Civil Code). Other important domestic rules relevant for art, antiques and collectibles include Act LXIV of 2001 on the Protection of Cultural Heritage, Act LXXXVI of 1999 on Copyright and Act XIII of 2019 on Asset Management Foundations.

Artists are entitled to all copyright protections from the moment the work is created, including moral and economic rights. Artists’ moral rights include the right to publish the artwork, the protection of its integrity, the right to have their name credited, and the exercise of their personal rights. Moral rights are inalienable, intangible and unlimited in time.

In addition, artists have the exclusive right to use the work in whole or in identifiable parts, whether in material or non-material form, and to authorise any type of use, for which the author is entitled to remuneration. Usage includes reproduction, distribution, public performance, communication to the public, adaptation, and exhibition. Unless otherwise specified by the Copyright Act, permission for third-party use must be obtained through a licensing agreement. Economic rights are exercised by the artists during their lifetime and by their successors in title thereafter.

The Hungarian Copyright Act defines cases of free use, which allow access to works under specific conditions before the expiration of the protection period, without charge and without the artist’s permission (eg, citation, use for educational purposes and copying for private or institutional purposes). However, free use is strictly limited, as it must not directly or indirectly serve the purpose of generating or increasing income.

Copyrights are protected during the artist’s lifetime and for 70 years after their death. The 70-year protection period is calculated from the first day of the year following the author’s death. Once the protection period expires, the work enters the public domain, allowing anyone to use it, including reproducing and distributing it.

According to the EU Directive on copyright in the digital single market (Directive 2019/790/EU), content-sharing platforms are now not permitted to display unlicensed copyrighted content on behalf of users.

Hungarian courts will adhere to the EU AI Act (EU Regulation 2024/1689), which entered into force in August 2024 and will be fully applicable in August 2026, save for a small number of exemptions.

Hungarian Copyright Law states that copyright protection applies to a “work based on its individual and original nature arising from the author’s intellectual activity”. It is therefore in line with other EU member states’ view that purely AI-generated works should not be eligible for copyright protection, as only a natural person can be considered an author under the Berne Convention. However, where the general requirements are met, AI-assisted works can obtain copyright protection.

Additionally, the use of copyrighted material for AI training is a major issue under the EU AI Act, which mandates AI providers to disclose training data and comply with copyright laws. The AI Act makes reference to the EU Copyright Directive’s text and data mining (TDM) exceptions allowing AI systems to mine data for commercial purposes if the copyright owner has not expressly opted out. Many websites and social media platforms now explicitly prohibit TDM via machine-readable statements or contract clauses. However, the effectiveness of the opt-out system has been questioned.

Hungarian law recognises collective works, which are creations made jointly by multiple authors whose individual contributions are inseparable from the rest of the work. These works are characterised by the creative input of each author merging into a unified whole that cannot be divided into distinct parts.

Under the Hungarian Copyright Act, only a natural person can be considered an author. References to the author in the Act also apply to the author’s successors and any other holders of copyright.

According to Section 6 (1) of the Copyright Act, in the case of a collectively created work, copyright is held by the natural person or legal entity that initiated, directed, and published the work under its own name, acting as the successor to the authors. As a result, the economic rights are owned by the entity holding the copyright.

For a work to be classified as a collectively created work under Section 6 of the Copyright Act, and for the statutory transfer of rights to a legal entity, three cumulative conditions must be met, as follows.

• The contributions of the collaborating authors must be so well integrated into the unified work that the individual rights of each author cannot be separately identified.
• The work must have been created at the initiative and under the direction of the legal entity.
• The legal entity must have published the work under its own name.

Collective works are protected for a term of seventy years, starting from the first day of the year following the date of first publication.

Under Hungarian Copyright Law (Act LXXXVI of 1999 on Copyright), the following civil remedies can be granted for copyright infringement in a civil action:

• judicial determination of the occurrence of the infringement;
• cessation of the infringement and the prohibition of the infringer from committing further infringements;
• the right to seek redress, and if necessary adequate publicity for the redress at the infringer’s expense or by the infringer; and
• restitution of the enrichment gained through the infringement and compensation for damages in accordance with the rules of civil liability.

Criminal liability tends to be limited to cases where there is an intent to gain profit or where financial harm occurs. The same is true for copyright infringement in the context of AI-generated content.

Copyright is automatically established when a work is created, without any need for registration. However, artists or holders of related rights can choose to voluntarily register their works with the Hungarian Intellectual Property Office. Upon registration, the Office issues a certificate that serves as proof of the applicant’s status as the copyright holder on the date the certificate was issued, along with the specific content attached to it. This certificate helps artists establish evidence of authorship or entitlement, although it does not grant copyright or any other form of intellectual property protection.

To apply for voluntary registration, the applicant must complete the form provided by the Office and submit it either in person, by mail, or through the designated electronic administration system. An administrative fee of HUF6,750 is required for this service.

The author has the right to request the revocation of the certificate at any time, free of charge. Additionally, with the author’s written consent, the Office may publish the information provided on the form and compile a public database for informational purposes.

If a court definitively rules on the identity of the author in legal proceedings, and this identity differs from the person listed in the voluntary registry, the rightful author may request the removal of the incorrectly listed individual from the registry.

Resale royalty applies only to subsequent sales, not the artist’s original sale, and cannot be waived. It is payable to the artist or heirs for 70 years after their death. The royalty rate starts at 4% for sales up to EUR50,000, decreasing to 0.25% beyond EUR500,000, with a maximum cap of EUR12,500. Sales below HUF5,000 are exempt. Professional dealers must pay royalties to the national collection society, regardless of whether the buyer or seller covers the cost.

Under the Copyright Act of 1999 (Act LXXVI), the author – or, after their death, their successor – holds the exclusive right to use the work and to authorise others to use it.

The term “use” includes various forms of exploitation, such as the reproduction of the work. For example, including a reproduction of an artwork in an auction catalogue is considered a form of reproduction.

This type of use requires the permission of the author or their successor, or, in certain cases specified by law, the authorisation of an association representing the copyright holders. In Hungary, this role is fulfilled by HUNGART Collecting Society of Hungarian Visual Artists. HUNGART is empowered to grant permission for specific uses of works by artists and rights holders. In certain situations, and based on the creators’ decisions, HUNGART is also authorised to grant usage permissions and to enforce remuneration claims on behalf of the artists.

In Hungary, the authentication of artworks by deceased artists is not governed by specific legislation. Traditionally, the Museum of Fine Arts in Budapest provided authentication services from its opening in 1908 until September 2008. However, these services have been discontinued since then.

It is important to note that while certificates of authenticity can be issued by various parties – including artists, their heirs, auction houses, and galleries – the credibility of such certificates heavily depends on the issuer’s reputation and the thoroughness of the accompanying documentation. Specific court rulings on the authentication process itself are limited.

The inclusion or exclusion of artworks in a catalogue raisonné involves the exercise of moral rights and is generally viewed as an expression of expert opinion, not a legal obligation. A catalogue raisonné is a scholarly work, with inclusion decisions based on subjective assessments of authenticity, provenance, and artistic value. Courts typically respect the discretion of art experts and foundations in authentication matters and tend only to intervene in cases of bad faith, fraud, or defamation.

Under Hungarian contract law, a buyer who purchases an artwork later discovered to be misattributed has two options: they can either void the contract or pursue a claim for breach of contract.

In cases of contract avoidance, the buyer has a claim to rescind the contract and the burden of proof is on the seller to demonstrate that their conduct was reasonable under the circumstances, and that they could not have reasonably foreseen the loss at the time the contract was made. The basis for compensation will consist of the current value of the amount paid for the artwork, including interest from the date of the contract, any loss of pecuniary advantage that could have been achieved if the artwork had been authentic, and, finally, all costs necessary for the mitigation or elimination of the financial losses sustained.

Conversely, in cases of defective performance or non-performance, the buyer must prove that the loss was foreseeable at the time of the contract’s conclusion. The scope of damages awarded is determined by how the parties agreed to allocate risks when entering into the contract. It is worth noting that a breach of contract does not automatically release the breaching party from their performance obligations. Therefore, in certain cases, the buyer may still choose to receive the authentic artwork if it is possible to do so.

A contract may be avoided by giving notice to the other party within one year from the date the contract was concluded. If the other party rejects the notice of avoidance, the entitled party can initiate court proceedings within the same one year.

In the case of breach of contract, the buyer is required to inform the seller of any lack of conformity without delay. In the case of a consumer contract, if the notification is made within two months of the time the misattribution is detected, it is deemed to have been made in good time.

Hungarian law does not have a single definition for cultural goods; the definition varies depending on the context, such as procedures for illegally exported items, export licensing, or immunity from seizure.

For the EU system governing the return of cultural objects unlawfully removed from a member state, cultural goods are defined as national treasures of artistic, historical, or archaeological value.

When dealing with cultural objects on temporary loan from foreign countries, Hungarian law applies its own definition under cultural heritage protection laws rather than the definition used in the object’s country of origin. This definition includes all significant tangible, pictorial, audio, written records, and other evidence related to the origin and development of nature, humanity, the Hungarian nation, and Hungarian history, as well as works of art, but excluding real estate.

Cultural heritage items held through adverse possession are generally subject to the following.

• Public interest and inalienability: Cultural heritage items, particularly those in public collections or of national historical significance, are considered inalienable. They cannot be acquired through adverse possession due to cultural heritage protection laws. Cultural objects in public collections, museums, institutions, libraries and archives owned by the state, are protected by law. The Office of Cultural Heritage Protection may declare objects in private hands as protected. Objects declared by the Office as protected are registered and changes of ownership are subject to notification. The state also has pre-emption rights for cultural objects declared as protected.
• A “good faith” requirement: To claim adverse possession, the possessor must be in good faith, believing they have legitimate ownership. However, if the item was stolen or illicitly obtained, good faith is difficult to establish.
• Continuous, uninterrupted public possession: Adverse possession requires continuous, uninterrupted, and public possession. Cultural heritage items are often concealed or privately held, complicating the fulfilment of these requirements.
• Statutory limitation periods: The limitation period for adverse possession may not apply to stolen or illicitly exported cultural property, particularly if it belongs to public collections or holds significant historical value.

These peculiarities limit the acquisition of cultural heritage through adverse possession, prioritising public ownership and cultural preservation.

Anyone who discovers a valuable object that was hidden by unknown persons or whose ownership has otherwise been forgotten is required to offer it to the state. If the object found belongs to the category of protected cultural assets, its ownership automatically goes to the state.

A fundamental principle is the state’s ownership of archaeological finds: any archaeological find located on the surface of the ground, underground, in waterbeds, or elsewhere within Hungary’s borders is state property and is protected by law.

According to heritage protection law, if an archaeological artefact, find, or object is discovered without archaeological excavation, the finder, be they the person responsible for the activity during which the artefact was discovered, such as a property owner, a developer, or a contractor, is required to:

• immediately cease the activity that led to discovery;
• notify the authorities through the local notary without delay; and
• ensure the requisite safeguarding of the site and the find until the institution authorised to conduct the excavation takes action.

Failure to comply with these obligations may result in the imposition of a heritage protection fine. If the act involves an object classified as a protected cultural asset or an archaeological find, it is a criminal offence and may be punishable by up to two years’ imprisonment.

The Office of Cultural Heritage Protection has the authority to declare privately-owned cultural objects as protected ex officio. The state holds a pre-emption right over these items. Ownership of cultural assets that have been declared as protected can only be transferred through a written agreement. The owner or holder of such protected cultural assets is required to keep them in good condition and ensure their preservation, proper maintenance, and protection. Authorised authorities have the right to conduct on-site inspections to verify the condition of protected cultural assets and to ensure compliance with the provisions of the protection rules.

The registry for protected cultural assets includes the following information: the personal identification details and address of the owner and possessor, the date and method of acquisition, and the object’s storage location (permanent or temporary).

In cases where protected cultural assets are handed over for ownership transfer in commercial transactions – especially at auctions – the trader is responsible for making the notification required. This obligation also applies if the trader becomes aware of the protected status at a later date.

Owners of protected cultural heritage must allow the authorities – based on prior arrangements – to study, view, and document the entirety or specific parts of the heritage. Protected cultural assets must be made accessible to the public and for research purposes. To achieve this, the authorities may require the owner to make the protected assets available to public collections for exhibition or scientific research purposes.

Protected cultural objects may be taken out of Hungary only subject to a temporary export permit.

Cultural objects not classified as protected may be exported subject to a licence from the Office, together with an accompanying certificate with the corresponding identification details.

The contract governing the sale of an artwork will depend on the transaction and specific transaction structure in question. However, one would expect to see at least the following terms in a sale and purchase agreement in Hungary: the parties involved, capacity and authority; the description of the artwork; a condition report; price, payment terms, taxes and fees; terms dealing with authenticity and provenance, including literature and exhibition history; any trade restrictions; the artwork’s location and tax status; delivery and the passing of risk; the seller’s warranties and representations that the artwork is free of liens, claims, or other encumbrances; risk allocation; the parties’ agreement on the period of limitation, governing law and forum selection.

First, the exportation into the foreign country must not be illegal. For example, the jurisdiction that is the destination of an artwork from Hungary must not be subject to any applicable Hungarian trade restrictions and sanctions. If that was the case, it would render the proposed transaction, and the corresponding exportation of the artwork, illegal under Hungarian export controls and sanctions laws.

Second, it is important to check that the artwork can be freely exported from Hungary, in other words that there are no Hungarian legal restrictions on the artwork leaving Hungary in the first place. For example, the artwork might qualify as national patrimony in Hungary, or it might require a specific licence for example an individual export licence or a CITES licence because it incorporates material from protected wildlife.

Third, if Hungary is the country of destination, there are other considerations to take into account. For example, if the artwork comes from outside the EU, the EU Import Regulation will apply, as it is directly applicable in Hungary (as an EU member state).

Disputes over attribution and authenticity of artworks depend on the contractual terms governing the underlying transaction. In general, however, there are “leading experts” on various artists who may or may not have published exhaustive catalogues raisonnées about their respective oeuvres. In addition, a Hungarian court may appoint a separate independent “expert” in an authenticity dispute to opine on whether the artwork is by the master’s hand or not. The opinion of the judge may therefore be informed by a person who is different from the expert accepted as being the authority on that artist by the international art market. There are also legal provisions that govern the responsibility and liability of expert opinion, which tends to be scrutinised even more where the expert is part of an interested party, such as a dealership, auction house, or art advisor involved in a prospective sale and expecting to earn a commission from that sale.

For that reason, Hungarian auction houses and galleries must conduct thorough due diligence, including provenance checks and expert authentication, and use clear disclaimers in contracts and catalogues to limit liability. They must also maintain transparency and communicate all known information about an artwork’s authenticity to buyers, as well as obtaining indemnity agreements from sellers, ensuring that the seller guarantees the authenticity of the work.

In Hungary, auction houses and galleries are legally and ethically obligated to perform rigorous checks before selling artworks. This includes verifying authenticity, conducting provenance research, ensuring compliance with intellectual property and cultural heritage laws and maintaining transparent disclosure practices. Failure to perform these checks can lead to legal liabilities, including claims for breach of contract, fraud, and copyright infringement.

Art advisors play an important role combining market expertise, aesthetic judgment, financial acumen, and legal knowledge. They often represent owners or buyers in transactions. Hungarian law requires them to disclose who they act for. Hungarian law does not allow for the direct acquisition of ownership between the principal and the third party the agent is dealing with. Instead, the agent independently enters into the contract in their own name but for the benefit of the principal. No direct legal relationship is established between the principal and the third party. The agent is liable for fulfilling all obligations of the third party only if they have expressly undertaken this responsibility. The buyer can enforce its rights under the sale contract only against the agent, not the principal.

A service provider engaged in the trade of cultural goods (artworks, antiques) has to be registered with the Hungarian Anti-Money Laundering and Counter-Terrorism Financing Office of the National Tax Authority (“the Authority”). The Authority must also approve the Art Market Participant’s internal policies and procedures. The scope of the Hungarian AML Act – in accordance with the EU AML Directive – covers service providers dealing with the trade of cultural goods (artworks and antiques) for transactions or series of transactions with a value of at least HUF3 million. Note, however, that Providers are required to record certain data for cash payments of HUF300,000 or more.

Cultural objects registered in museums, institutions, archives, image and sound archives, public collections, and libraries are legally protected per se. Additionally, the Office of Cultural Heritage Protection has the authority to declare privately owned assets and collections as protected.

According to Hungarian Copyright Law, copyright protection applies to all works of literature, science, and art, regardless of whether this law explicitly names them. As such, a photographic work qualifies as such a creation.

According to Section1 (3) of the Copyright Act, “Copyright protection applies to a work based on its individual and original nature arising from the author’s intellectual activity. Protection is not dependent on quantitative, qualitative, or aesthetic characteristics, nor on any value judgment regarding the standard of the work”.

Therefore, the copyright qualification of photographic works requires the uniqueness of the depicted situation, the appropriateness of the composition, an individual perspective, suitable technical solutions, special lighting conditions, and other aspects that reflect creative image-making decisions.

The term “photographic art” in Section 1 (2)(i) of the Copyright Act does not imply any special quality classification or specific “artistic” nature. Photographs are subject to copyright protection if they are of an individual and original character.

As a matter of Hungarian jurispudence, it is sufficient that a minimum level of individuality is present in the product. This means that it should not be entirely determined by circumstances or the equipment used, allowing at least minimal room for human choice between different solutions, and that it should not be a slavish copy of an existing work.

Article 6 of Directive 2006/116/EC of the European Parliament and the Council on the term of protection of copyright and certain related rights establishes that the sole requirement for a photograph to qualify for copyright protection is that it constitutes the author’s own intellectual creation and that no other criteria may be applied in this regard. Accordingly, Hungarian Copyright Law protects photographs of individual and original character.

NFTs (non-fungible tokens) are blockchain-based, non-replaceable digital representations (tokens) of real or virtual content (objects or data). Through structured metadata, they enable the sale of these tokens – and, in rare cases, the underlying content – in exchange for alternative (cryptocurrency-based) compensation, without the need for intermediary service providers.

An NFT represents a tool, pathway, or method of communicating information. The token is generally excluded from copyright protection. However, NFTs are always created for the purpose of managing underlying (physical or digital) content. This underlying content is subject to copyright and/or related legal protection.

The generational transfer of an artwork or art collection requires careful legal, financial, and strategic planning to ensure smooth succession while preserving its value and integrity. Key considerations include establishing clear ownership and provenance, using estate planning tools such as wills, trusts, or private foundations, and obtaining professional appraisals for accurate valuation. Tax efficiency is crucial, with strategies like gifting, charitable donations, and fractional ownership helping to mitigate estate and inheritance tax burdens. Legal compliance, especially in cross-border transfers, should also be assessed to avoid complications.

Beyond financial and legal aspects, preservation and education are essential for maintaining the collection’s legacy. Proper conservation, storage, and insurance ensure the artworks remain in good condition, while educating heirs or appointing professional advisors facilitates informed management. Succession planning, whether through direct inheritance, a structured foundation, or museum donations, should align with the family’s vision and legal framework. A well-planned transfer not only protects the collection but also ensures it continues to be appreciated by future generations.

If someone inherits from a deceased relative, they must pay inheritance tax on the estate. Inheritance tax on artworks located abroad must be paid in Hungary only if the country where the asset is located does not require the payment of an equivalent tax or duty.

In the case of inheritance, the tax base is the net value of the artwork acquired by the heir, meaning the market value of the asset minus the value of any debts encumbering the estate. The general rate of inheritance tax is 18% of the net value of the inheritance.

The recipient of the gift is required to pay gift tax after a movable asset transferred domestically, such as a high-value painting, if the recipient receives a gift valued at more than HUF150,000.

When gifting, the tax base is the net value of the property acquired by the recipient, meaning the market value of the gift minus any debts and burdens associated with it. The general rate of the gift tax is 18% of the net value of the gift.

Inheritance is exempt from tax when the artwork is received from a direct relative – including adopted family members – a sibling, spouse, or registered partner. No tax is required if someone renounces their inheritance free of charge — that is, without receiving compensation. However, if the renunciation is made in exchange for compensation, the renouncing party must pay gift tax based on the value of the compensation received. Inheritance tax cannot be imposed if the artwork or collection is taken over by the deceased’s creditor to settle outstanding debts. In such cases, the estate creditor must pay a transfer tax on onerous property acquisition.

Gifting between direct relatives — including adopted family members — siblings, spouses, and registered partners is exempt from gift tax. The acquisition of property resulting from the termination of marital community property is also exempt from tax. No tax is required on gifts received from charitable public donations.

Fiduciary Asset Management Contracts (FAMCs)

The Hungarian Civil Code defines fiduciary asset management contracts (FAMCs), where the trustee owns and manages assets on its own behalf but for the benefit of the beneficiary. The settlor pays the related fees. FAMCs must be in writing and terminate after 50 years, even if established indefinitely or for a period longer than 50 years. Attempts to override this rule are void. Creditors of the settlor and trustee cannot claim against the trust property, but creditors of the beneficiary can claim once the assets or their benefits become due.

Asset Management Foundations (AMFs)

Asset management foundations (AMFs) are designed for managing family assets, allowing professional management and investment activities. Unlike traditional foundations, AMFs can operate without a licence from the Hungarian National Bank and are bound by strict confidentiality, even during public authority inquiries. AMFs enable settlors and beneficiaries to retain control by reserving the right to give instructions to the board of trustees. A minimum capital of HUF600 million is required, which must be maintained throughout the AMF’s existence. If the capital falls below the minimum for three consecutive years, the AMF must be liquidated.