Hungary is exploring new financial opportunities for international film productions beyond its existing 30% rebate. In an interview published on October 7 by Film.hu, film reform commissioner Viktória Petrányi suggested the possibility of introducing a small equity fund for international projects, as well as a regional co-production fund aimed at long-term development.
While no specific plans have been put into action yet, details regarding budgets, eligibility criteria, and timelines for these potential funds are currently unknown. However, these proposals signal Petrányi’s vision for evolving Hungary’s film financing structure to better complement the rebate system that has long attracted foreign filmmakers.
Petrányi brings valuable experience to her role, having co-founded Proton Cinema with renowned filmmaker Kornél Mundruczó. She has been involved in numerous Hungarian independent films as well as international productions, such as The Brutalist. Appointed as commissioner in September, her role focuses on coordinating reforms in the industry rather than directly managing the National Film Institute or determining funding for specific projects.
Expanding the Role of Hungarian Film Financing
The proposed equity fund would mark a shift from the existing rebate system, offering investment in productions rather than merely providing refunds based on qualifying expenditures. Petrányi envisions this fund as a way to foster international collaboration, though specific operational details remain undefined.
In addition to the equity fund, she also mentioned the idea of a regional co-production fund, a concept that has been part of previous discussions regarding film reform in Hungary. Another potential financing source could come from a streaming levy, which would require streaming platforms to invest a portion of their local revenues into domestic productions. However, this remains an ambition without established regulations.
Together, these initiatives raise broader questions about the film industry in Hungary. The country has the necessary talent, facilities, and production experience to support significant film projects. The ongoing discussions around reform aim to strengthen the connections between international productions and local projects, fostering co-productions and promoting long-term investments in Hungary’s film industry. Petrányi has highlighted the importance of enhancing relationships between local filmmakers and production services as a priority.
A More Predictable Rebate System
For productions considering Hungary as their filming location, the immediate difference lies in the distinction between the current offerings and the future enhancements anticipated through reform. The National Film Institute continues to promote a 30% rebate on eligible expenses. Following the expiration of restrictions on new production registrations on July 1, filmmakers can now submit applications without the earlier restrictions.
Petrányi expressed her intent to make the rebate system more predictable, especially after recent interruptions caused uncertainty for international partners. She aims to restore normalcy in the industry by spring 2027, though this timeline is more of an aspiration than a formal commitment. Previous reports indicated a government pledge for a stable rebate framework; the real test will be the reliability of the system over time.
Separately, the schedule for domestic funding calls from the National Film Institute is underway. Petrányi anticipates that a new institute director will be appointed by the end of October, with new funding calls expected to open by early 2027. However, these should not be conflated with the ongoing registration for production rebates.
Currently, the proposals for an equity fund, regional co-production fund, and streaming investments are still in the discussion phase. Their actual impact will become clearer as specific details regarding funding, eligibility, and legal parameters are established. Nonetheless, Petrányi’s interview reflects a significant shift in focus: Hungary’s future film policy may ultimately be evaluated based on its ability to attract productions and foster enduring partnerships within the industry.
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Hungary’s Film Reform Looks Beyond the 30% Rebate to Equity and Co-Production
