TEÁOR 2025 – What you need to know about the changes
As of 1 January 2025, the TEÁOR has undergone significant changes, aligning with the European Union's updated NACE classification system. The aim is to ensure a more accurate and up-to-date categorization of economic activities. TEÁOR’25 replaces the previous TEÁOR’08 system, which had been in effect since 2008.
Why was the TEÁOR updated?
Nearly two decades have passed since the introduction of TEÁOR’08, during which business processes and economic activities have undergone substantial transformations. New activities and services, such as the production of smart devices, have emerged, while other activities have changed in nature or disappeared entirely. These developments required the system's revision to better reflect the current economic environment and business processes.
How will activities be reassigned under TEÁOR 2025?
To reduce the administrative burden, the Central Statistical Office has automatically updated the primary activities of all businesses to the new system as of 1 January 2025. These updates can be reviewed via the TEÁOR inquiry link using the statistical number.
Under the Act on Public Company Information, Company Registration and Liquidation Proceedings (PCI Act), the tax authority will automatically reclassify the core and other activities reported by businesses to align with the new TEÁOR’25 sectoral classification codes. The tax authority will complete these updates and arrange for the changes to be reflected in the corporate register by 31 January 2025.
As in the new system the activities are broken down in a more detailed manner, some businesses may find that the newly assigned activity codes do not fully or accurately reflect their actual economic activities. If businesses wish to amend their reclassified core activities or if the secondary activities reported to the tax authority cannot be automatically reassigned using the official conversion key, they shall report the revised activities to the tax authority based on the new TEÁOR’25 codes no later than 1 July 2025.
Failure to meet this deadline will result in the tax authority deleting any secondary activities coded under the previous system that could not be clearly converted using the official conversion key.
TEÁOR'08 and TEÁOR'25 conversion key also available
The structure, content, and conversion key between TEÁOR'08 and TEÁOR'25 are available on the website of the Central Statistical Office (KSH). To facilitate the transition, KSH also provides code search and recoding programs, accessible here.
TEÁOR 2025: what should businesses pay attention to?
From a legal perspective, it is important to note that the conversion of the primary activity code does not require an amendment to the constitutional document. This can be performed when the business modifies any data in the company register anyway. However, if the organization changes its primary activity after 1 July 2025, this change must be reflected in the constitutional document. Other activity codes can be updated upon the next amendment of the constitutional document. According to favourable legislative provisions, if the amendment of the constitutional document solely aims to comply with the new activity classification, the application for registration of the change can be submitted without payment of fees or publication costs.
Electronic real estate registry ("E-ING")
The introduction of the electronic real estate registry has been postponed multiple times. However, Act C of 2021 (new Real Estate Registration Act) and Government Decree 179/2023 (V. 15.) on its implementation came into effect on 15 January 2025. Based on this, the electronic system will commence, and it must be applied in real estate registration procedures initiated after this date, although the full transition to the electronic system will occur gradually.
The goal of the E-ING is the complete digitization of paper-based records, enabling faster and more efficient administration for citizens.
Electronic real estate registry ("E-ING") – What changes?
The introduction of the system represents a significant shift as procedures will henceforth operate digitally within the framework of the E-ING system. While paper-based administration will remain an option for a transitional period, eventually, only electronic administration will be possible. The environmentally friendly innovation means that applications, authorizations, and registration permits must be completed via electronic forms. Consequently, individuals involved in the procedures will need to have a secure electronic signature. In the new system, real estate registration procedures will transition to electronic processing, with attorneys electronically recording documents in the real estate registration system.
During the initiated registration procedures legal representation will remain mandatory. However, only registered attorneys authorized to act will be eligible to perform these procedures. The requirements for attorneys will also become stricter, introducing new conditions such as meeting relevant training and examination requirements, holding supplementary mandatory professional liability insurance, and being registered as an authorised attorney for the procedure.
With the entry into force of the new legislation, the content of contracts related to real estate will also change. For example, the possibility of pending registration and the notation of the sale with retention of title will cease. Instead, a buyer's right related to the retention of title and a buyer's right concerning future buildings will be introduced.
Phasing out of AVDH service
The stand-alone document authentication function of the Identification Based Document Authentication (AVDH) service was discontinued as of 31 December 2024, with document authentication still available for e-Paper and other government services and administrations until the end of October 2025. However, an important change is that from this year, a document authenticated by AVDH will no longer be considered a private document with full probative value.
Client Gate+ and DÁP
As of 16 January 2025, the currently used Client Gate system in Hungary will be discontinued, and the Client Gate+ and Digital Citizenship Programme (DÁP) systems will become available. The single-factor Client Gate service no longer complies with the European Union's identification regulations, making it necessary to introduce a more secure, two-step identification system. A detailed article on this topic is available here.
Changes to the minimum debt threshold for initiating liquidation proceedings
According to the effective Act on Bankruptcy and Liquidation Proceedings, the competent court will declare the insolvency of a debtor company in the following two cases:
- if the debtor fails to settle or dispute its previously undisputed contractual or recognised debt within 20 days of the due date and fails to settle such debt upon receipt of the creditor’s written payment notice,
- if the debtor company does not settle its debt within the performance deadline specified in a final court decision or payment order,
and in both cases, the amount of the claim (calculated without interest and charges) must exceed HUF 200,000.
However, under the new (temporary) regulation introduced in response to the state of emergency, this HUF 200,000 threshold has been raised to HUF 1,000,000. These provisions apply to liquidation proceedings initiated based on claims submitted by 31 December 2025. The higher threshold may encourage creditors to seek alternative dispute resolution methods (e.g., out-of-court settlements, payment order procedures) for debts that do not reach the threshold, while the possibility of liquidation proceedings remains available for significant debts.
New rules on the calculation of court fees
A significant change for 2025 involves court fees. This change affects the court fee for first-instance litigation, specifically in cases where the value in dispute can be determined. While the previous regulation set the fee at 6% of the value in dispute, as of 28 January 2025, the following tiered calculation based on the subject matter value will apply:
- Up to HUF 300,000 (value in dispute),the fee is HUF 18,000.
- From HUF 300,001 to HUF 3,000,000 (value in dispute),the fee is HUF 18,000 plus 4.5% of the amount exceeding HUF 300,000.
- From HUF 3,000,001 to HUF 10,000,000 (value in dispute),the fee is HUF 139,500 plus 5% of the amount exceeding HUF 3,000,000.
- From HUF 10,000,001 to HUF 30,000,000 (value in dispute),the fee is HUF 489,500 plus 7% of the amount exceeding HUF 10,000,000.
- From HUF 30,000,001 to HUF 50,000,000 (value in dispute),the fee is HUF 1,889,500 plus 4.5% of the amount exceeding HUF 30,000,000.
- From HUF 50,000,001 to HUF 100,000,000 (value in dispute),the fee is HUF 2,789,500 plus 2.5% of the amount exceeding HUF 50,000,000.
- From HUF 100,000,001 to HUF 250,000,000 (value in dispute),the fee is HUF 4,039,500 plus 2% of the amount exceeding HUF 100,000,000.
- From HUF 250,000,001 to HUF 500,000,000 (value in dispute),the fee is HUF 7,039,500 plus 0.5% of the amount exceeding HUF 250,000,000.
- Above HUF 500,000,001 (value in dispute),the fee is HUF 8,289,500 plus 0.5% of the amount exceeding HUF 500,000,000.
In practice, this means that court fees will be lower for cases with smaller values in dispute, while cases with larger values in dispute will incur higher fees compared to the previous regulation.
Another important change is that the previous maximum court fee of HUF 1,500,000 has been abolished under the new regulation. Consequently, as the value in dispute increases, the payable fee will also rise, with no upper limit in the new system.
This change primarily affects first-instance proceedings; the fees for second-instance proceedings, appeals, and review requests remain unchanged.
Increased fee for payment order procedures
Alongside the changes to the calculation of court fees, the fee for initiating payment order proceedings will also change. The fee will now be 3% of the amount of the monetary claim (fee base) as it stands at the time the proceedings are initiated, excluding additional costs. The minimum fee will be HUF 12,000 (up from HUF 8,000), and the fee cannot be less than HUF 1,600 multiplied by the number of parties involved, but it will not exceed HUF 300,000.
If you have any questions regarding the new TEÁOR system, the electronic real estate registry, or the other changes described above, please feel free to contact our expert team.
