On 28 January 2025, the Act on State Fees was amended, bringing significant changes to the fees for civil proceedings. Under the new legislation, the court fees payable will increase gradually depending on the case value and the previously applicable fee cap has been abolished.
As a general rule, the basis for the fee is the value of the subject matter of the case. The subject matter of the action is the right or claim that the applicant asks the court to enforce.
Under the previous legislation, the amount of the fee was set at a flat rate of 6% of the basis of the fee, but there were also lower (HUF 15,000) and upper (HUF 1,500,000) limits determined.
The amendment, however, introduced a complex banded system for calculating the fee, which only regulates the minimum amount of the fee payable, and abolishes the fee cap. The bands are as follows:
- up to a case value of HUF 300,000 the fee is HUF 18,000;
- for a case value between HUF 300,001 and HUF 3,000,000 the fee is HUF 18,000 plus 4.5% for the part exceeding HUF 300,000;
- for a case value between HUF 3,000,001 and HUF 10,000,000 the fee is HUF 139,500 plus 5% of the part exceeding HUF 3,000,000;
- for a case value between HUF 10,000,001 and HUF 30,000,000 the fee is HUF 489,500 plus 7% of the part exceeding HUF 10,000,000;
- for a case value between HUF 30,000,001 and HUF 50,000,000 the fee is HUF 1,889,500 plus 4.5% of the part exceeding HUF 30,000,000;
- for a case value between HUF 50,000,001 and HUF 100,000,000 the fee is HUF 2,789,500 plus 2.5% of the part exceeding HUF 50,000,000;
- for a case value between HUF 100,000,001 and HUF 250,000,000 the fee is HUF 4,039,500 plus 2% of the part exceeding HUF 100,000,000;
- for a case value between HUF 250,000,001 and HUF 500,000,000 the fee is HUF 7,039,500 plus 0.5% of the part exceeding HUF 250,000,000;
- for a case value exceeding HUF 500,000,001 the fee is HUF 8,289,500 plus 0.5% of the part exceeding HUF 500,000,000.
As a result of the amendment, the fee payable in cases with a lower value has decreased. On the other hand, in cases with a higher value (above HUF 21 million) the new rules impose significant additional costs on the plaintiffs. Some examples of the changes:
Case value | Previous court fee | New court fee |
HUF 10 million | HUF 600,000 | HUF 489,500 |
HUF 100 million | HUF 1,500,000 | HUF 4,039,500 |
HUF 500 million | HUF 1,500,000 | HUF 8,289,500 |
Worth weighing: court or arbitration?
In the case of high-value disputes due to increased fees, it is advisable to consider arbitration as it may offer a faster and more efficient solution at a similar cost.
Here is a comparison with the current fees:
Value of litigation | Court fee | Arbitration costs* |
HUF 100 million | HUF 4,039,500 | HUF 4,062,200 |
HUF 500 million | HUF 8,289,500 Ft | HUF 8,666,825 |
* Based on the fees of the Permanent Arbitration Court attached to the Hungarian Chamber of Commerce and Industry.
Although the arbitration fee is sometimes slightly higher, the speed, flexibility and discretionary nature of the procedure can make it a more attractive alternative for many businesses, especially in high-value commercial disputes. However, this issue must be decided when the parties enter into the contract, as arbitration is only available if the parties have expressly agreed to it.
What to look out for?
Prevention is the best solution: a well-written contract can avoid many disputes in the first place. But if a dispute does arise between the parties, it is worth trying to settle it amicably with the help of a lawyer in the first instance, as any form of litigation is expensive. However, if one does go to court, it is worth choosing the quickest and most efficient procedure possible – especially if the value of the claim is substantial.