Investing in Hungary: UK and Italian Connections

EU regulations are not always understood by the member states, and this inconsistency can often lead to struggles for those investing, dealing with tax, or generally solving tough legal cases. We speak with Dr. Levente Lajos, whose knowledge on Hungarian law and EU law, helps guides his clients from the UK, Italy and Hungary itself. He discusses the regulatory changes which would benefit his clients that deal with EU and Hungarian regulations, as well as the malfunctions associated with the Hungarian legal system.

Can you share how your various qualifications from a wide range of jurisdictions enable you to be ahead of your game?
We work for international clients mostly from Italy, the US and England, who invest in Hungary. The understanding of various mentalities and legal cultures is fundamental to assist them in an efficient manner. There are very few colleagues who are able to follow a deal in English, Hungarian and Italian language at the same time with the understanding of the three legal cultures.

How did studying in the US differ to practicing law in Hungary? What challenges did you face to which you did not expect to come across?

Studying in the US added a lot to my approach as a practicing lawyer because the teaching method was more practical. While we were listening to theoretical lectures in Hungary, in the US we discussed certain cases from different points of view. The challenges I did not expect were examples of malfunction associated with the Hungarian legal system.

Could you expand on this and explain the examples of malfunction that are associated with the Hungarian legal system?

For example, the domestic regulation is often in conflict with the European law. We had important cases concerning agricultural subsidies where the Hungarian authorities denied the payment of certain subsidies which should have been paid under European Union law. EU law prevails, so we won at the Highest Court and the domestic rule was consequently modified. Another example is when the legislation goes against the rule of law and human rights. The usufruct rights registered not for family members on agricultural land were canceled in Hungary via legislative changes, from one day to another without compensating the damages. We are initiating a class action for the damages in the second case and I hope that it won’t be necessary to go to Strasbourg [European Court of Human Rights] to win the case.

Moreover, are there any regulation changes your clients, and thus Hungary, would benefit from?

I would change the whole system starting from the constitution. The regulations should be simplified and the bureaucracy as well.

You have recently completed studies in European law – can you share aspects you learnt which thus changed the way in which you practiced law for your clients?

The EU law studies help me during lawsuits when a wrong administrative or court decision is based on a domestic rule which is not in harmony with European regulations. You can find many examples in the field of tax law. The interpretation of the export VAT of the Hungarian tax authority is too burdensome for the issuer of the invoice; they think that the seller should control in every possible way the products exported abroad, when it is usually under the control of buyer.

Levente Lajos
Managing Partner
www.en.studiolegale.hu
+36 1 3316171

 

Lajos Law Firm’s Managing partner began his career in 1997, starting from an elegant, classic-style law office in the downtown city of Veszprém. In the almost twenty years since, Levente has never ceased to work on every single case with the same energy and dynamism. With long-established family connections, the main profile of his law firm has always been Italian clientele. Looking outwards, the young attorney establishes a law firm in the heart of Budapest which soon expands to a lawyers’ association characterised by professional attitude and dynamism. In 1993, Levente studied banking and corporate law in the USA at Tennessee University, Knoxville. In 1994, he continued on completing his studies at Janus Pannonius University of Pécs. In the following, he obtained a master’s degree in the field of banking and finance at Giordano dell’Amore Foundation in Milan, Italy. Completing his bar exam in 1997 , Levente obtained a postgraduate diploma in European Union Law at King’s College London in 2012. In 2014, he completed a postgraduate course in Insolvency Law at University of Pécs and recently followed studies at University of London for an LLM specialisation in European law.

Lajos Law Firm has been representing Italian, Hungarian and English-speaking clients for nearly twenty years. We welcome complicated and challenging tasks as we consider these to be the merit of a lawyer’s profession. Our service is based on confidence – to earn that, we have to prove our professional and responsible attitude day by day. A lawyer’s self-confidence first and foremost is based on up-to-date professional knowledge. Therefore we maintain and raise the quality of our services by ongoing professional training. Accounting, Real-estate development, HR, Marketing and other services provided by our Partner, the ITL Group Ltd. make us possible to cover the needs of most of the clients.