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Ease of Doing Business in

Hungary

Hungary Download Profile (1761.4KB, pdf)
Region OECD high income
Income Category High income
Population 9,844,686
GNI Per Capita (US$) 12,990
City covered Budapest

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 41 40 down
1
73.07 72.74 down
0.33
Starting a Business 75 71 down
4
87.28 87.10 up
0.18
Dealing with Construction Permits 69 66 down
3
71.70 71.69 up
0.01
Getting Electricity 121 118 down
3
60.13 60.11 up
0.02
Registering Property 28 28
-
80.08 80.20 down
0.12
Getting Credit 20 19 down
1
75.00 75.00
-
Protecting Minority Investors 81 78 down
3
55.00 55.00
-
Paying Taxes 77 79 up
2
74.46 73.74 up
0.72
Trading across Borders 1 1
-
100.00 100.00
-
Enforcing Contracts 8 13 up
5
75.79 73.94 up
1.85
Resolving Insolvency 63 63
-
51.25 50.58 up
0.67

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

69

DB 2016 Rank:

66

Change in Rank:

down3

DB 2017 DTF (% points):

71.70

DB 2016 DTF (% points):

71.69

Change in DTF (% points):

up0.01

STANDARDIZED WAREHOUSE
Estimated value of warehouse: HUF 164,816,344
City: Budapest
Indicator Hungary OECD high income Overall Best Performer
Procedures (number) info_outline 17.0 12.1 ..
Time (days) info_outline 202.0 152.1 ..
Cost (% of warehouse value) info_outline 0.2 1.6 ..
Building quality control index (0-15) info_outline 13.0 11.3 ..
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Request and obtain certificate of site ownership and site map from the Földhivatal

    Agency: Land Administration Földhivatal

    The site map is obtained by BuildCo. The site ownership certificate can be obtained either by BuildCo or by the local construction authority. The authorities have introduced an electronic application and database and internal administrative processes have become more efficient. However, site ownership certificate and the site maps have to be obtained in a physical copy for the purposes of applying for a building permit.

    1 day HUF 10,000
    2

    Obtain approval from the Municipal Planning Board

    Agency: Municipal Planning Board

    The Municipal Planning Board has to approve the basic project plan (not the detailed architectural plans) of the building. During this approval the Municipal Planning Board establishes whether the building will be far away from other neighboring buildings, how it fits into the landscape, and whether the envisioned construction project complies with the aesthetic standards of the region.

    30 days no charge
    * 3

    Request and obtain preliminary statement from Budapest Water Works

    Agency: Budapest Water Works

    BuildCo requests a preliminary statement from Budapest Water Works, which includes technical and legal conditions required for water service. This preliminary statement is then submitted when applying for a construction license.

    1 day no charge
    4

    Request and obtain authorization from the water authorities

    Agency: Budapest Water Works

    There are two parts within this procedure: 1. BuildCo obtains a conceptual declaration that states that it is feasible to provide the required amount of water, which takes 15 days, and 2. BuilCo obtains the authorization itself, which takes another 15 days.

    30 days no charge
    * 5

    Request and obtain fire protection authorization

    Agency: Fire Authority

    The architectural plans contain the fire protection statement, which must be approved by the Fire Department. The authorization must be obtained before the construction license is issued.

    30 days no charge
    * 6

    Request and obtain authorization from the sewage authorities

    Agency: Budapest Sewage Works

    It takes 15 days to obtain an authorization from the sewage authorities. For more complex buildings, there is usually a requirement to obtain a preliminary notification from the sewage authorities, but in the case of BuildCo this requirement does not apply because the sewage main is available.

    15 days no charge
    7

    Request and obtain construction license

    Agency: Municipality

    The investor applies for the construction license through the ETDR online system, which was introduced on October 1, 2013. The construction license will be issued in 45 days if all documents are submitted properly.

    When an application is submitted for a construction license, the Municipality is responsible for contacting the National Public Health and Medical Officer Service (ANTSZ) for their approval of the construction project, as well as other special authorities, as required in each specific project. This is done by the Municipality on behalf of the investor. The authorization from ANTSZ costs HUF 8,700, which is added to the cost of the construction license. Due to the fact that the Municipality reaches out to ANTSZ on behalf of the investor, this fee is included in this procedure.

    45 days HUF 113,700
    8

    Receive on-site inspection from the Municipality

    Agency: Municipality

    The inspection takes place before construction begins to verify that the site is ready for construction activity.

    1 day no charge
    9

    Set up e-construction log

    Agency: Lechner Knowledge Center (Lechner Tudásközpont)

    On October 1, 2013 Hungary introduced a full electronic administration of building matters and the mandatory use of electronic construction logs (e-log or virtual log). The log contains all relevant documents, contracts,daily updates on construction, and other useful information. Notifications are also submitted automatically through the e-construction log. The e-construction log may be set up only after receiving the approval of the construction license application. The cost varies between HUF 6000 and HUF 8000, depending on the size of the building.


    0.5 days HUF 7,000
    10

    Receive unscheduled inspection from Building Control Authority.

    Agency: Building Control Authority

    The Building Control Authority of the Municipality comes to the construction site at least once to conduct an unscheduled technical inspection.

    This is stipulated in the Government Regulation 313/2012, in force since June 30, 2013.

    1 day no charge
    11

    Request and receive inspection and obtain connection to water

    Agency: Budapest Water Works

    BuildCo is responsible for laying the supply pipes and for setting up the meter. Then, the Budapest Water Works sends out an expert to check that the water meter has been properly set up and is functional. The expert conducts a water pressure test. After this has been successfully completed, the water authority representative can provide the connection and issue the usage approval certificate.

    10 days HUF 100,000
    12

    Request and receive inspection and obtain sewerage connection

    Agency: Budapest Sewage Works

    Once the water connection is established, BuildCo may apply to receive an inspection and obtain sewerage connection with Budapest Sewerage Works.

    21 days no charge
    13

    Close e-construction log

    Agency: Lechner Knowledge Center (Lechner Tudásközpont)

    As the e-construction log is closed, the relevant authorities are notified of the completion of construction works. After the notification goes out, the Municipality sends over an expert to conduct a final inspection.

    0.5 days no charge
    14

    Receive final inspection

    Agency: Municipality

    The final inspection is a joint inspection of the Municipality with the Fire and Public Health Authorities that were involved at the permit issuing stage.

    1 day no charge
    15

    Obtain occupancy permit

    Agency: Municipality

    After receiving the final inspection, BuildCo applies for the occupancy permit through the ETDR online system, which was introduced on October 1, 2013. The fee for the Occupancy Certificate is the same as the cost of obtaining the building permit.

    30 days HUF 105,000
    * 16

    Receive on-site inspection to check on the quality of water

    Agency: National Public Health and Medical Officer Service (ANTSZ)

    A representative from the National Public Health and Medical Officer Service (ANTSZ) comes to inspect the quality of water. The representative takes a sample of the water and sends it to the lab for testing. The approval is issued within 10 days.

    10 days HUF 29,000
    17

    Register the building with the Land Registry Office

    Agency: Land Administration Földhivatal

    BuildCo must submit a “realization plan” to the Land Registry Office to register the new building and the owner’s name on the official site map. In small villages, registration takes 30 days; in big cities and especially in the capital, registration might take from 30 days to 4 years, depending on the specifications of the lot. Since January 1, 2010 the registration fee is HUF 6,600.00.

    30 days HUF 6,600

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Building quality control index (0-15) 13.0
    Quality of building regulations index (0-2) 2.0
    How accessible are building laws and regulations in your economy? (0-1) Available online; Free of charge. 1.0
    Which requirements for obtaining a building permit are clearly specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents; Fees to be paid; Required preapprovals. 1.0
    Quality control before construction index (0-1) 1.0
    Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1) Licensed architect; Licensed engineer. 1.0
    Quality control during construction index (0-3) 2.0
    What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by in-house engineer; Unscheduled inspections. 1.0
    Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are always done in practice. 1.0
    Quality control after construction index (0-3) 3.0
    Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Yes, final inspection is done by government agency. 2.0
    Do legally mandated final inspections occur in practice? (0-1) Final inspection always occurs in practice. 1.0
    Liability and insurance regimes index (0-2) 1.0
    Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)  Architect or engineer; Construction company; Owner or investor. 1.0
    Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance . 0.0
    Professional certifications index (0-4) 4.0
    What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) Minimum number of years of experience; University degree in architecture or engineering; Passing a certification exam. 2.0
    What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) Minimum number of years of experience; University degree in engineering, construction or construction management; Being a registered architect or engineer; Passing a certification exam. 2.0