Amendments to Hungarian Film Law Introduce Flat Fees for Location Rent

The move is expected to make production costs more predictable.

MOSCOW – In accordance with amendments to the Hungarian Film Law, adopted by the country’s parliament, film crews are to pay flat fee for shooting location rent as of Jan. 1, 2013.

The Hungarian National Film Fund said in a statement that the new system is to make production costs more predictable.

The amendments also stipulate maximum rental fees that can be charged by the municipalities based on the type of locations.

In Budapest and the country’s other cities alike, the highest fees are to be charged for locations considered to belong to world heritage and therefore serving as major tourist attractions. In accordance with a chart sent to The Hollywood Reporter by the Hungarian National Film Fund, renting a location like that would set a film crew back by 2,000 forints ($9.2) per square meter per day.

Meanwhile, the lowest fee, 200 forints ($0.92) per square meter per day is to be charged in regional central cities and in other cities for “non-ornamental surfaces or locations that do not represent high priority from tourism aspects.”

The amendments to the Film Law also change the procedure of obtaining tax allowances by film companies, which will now be able to collect their allowances more quickly.

The amended law also extends the definition of a “film originally shot in the Hungarian language,” making films with a majority of scenes in a foreign language due to the use of foreign actors, also qualify as “Hungarian films” and be entitled to support of up to 80 percent percent of their production budget.