By Janos Toth, Partner, Zoltan Bodog, Senior Associate, and Reka Deak, Associate, Wolf Theiss
On 18 August 2025, Government Decree No. 274/2025 (VIII. 18.), amending Government Decree No. 143/2018 (VIII. 13.) on the detailed rules applicable during the change-of-use authorisation procedure (the “Amendment”), was published in the Hungarian Gazette. The Amendment will enter into force on 17 September 2025. In June 2025, the Hungarian Government submitted the draft legislation for public consultation. The draft proposed amendments to the decree known as part of the “mall stop” regulation, which applies to retail units larger than 400 m2. The essence of the Amendment is to define additional cases where a change-of-use authorisation procedure becomes necessary.
1. New cases under the decree
A change-of-use authorisation must be obtained by the new owner or user if:
- the owner/user – not holding an existing change-of-use authorisation – transfers or hands over for use, for the purpose of establishing a retail store selling daily consumer goods (i) a commercial building with a gross floor area exceeding 400 m2 or (ii) a building unit or retail space with a gross floor area exceeding 400 m2 within a commercial building with a gross floor area exceeding 400 m2, in whole or in part;
- the owner/user – holding a change-of-use authorisation – transfers or hands over for use, in whole or in part, on any legal basis, a building, building unit or retail space with a gross floor area exceeding 400 m2 for the purpose of establishing a retail store selling daily consumer goods; or
- the holder of an occupancy permit for a building or building unit with a gross floor area exceeding 400 m2 grants the use of such building to another person, in any form, for the purpose of establishing a retail store selling daily consumer goods.
2. Extension of the concept of “alteration”
Even prior to the Amendment, the alteration of a retail space with a gross floor area exceeding 400 m2 in a commercial building – where no building permit was required – was subject to a change-of-use authorisation. Under the Amendment, the interpretation of “alteration” is broadened: it now includes the partitioning, division or separation of the retail space using elements fixed to its structural boundaries, resulting in a newly created, continuous area intended for the operation of a retail store selling daily consumer goods.
It should be emphasised that the Amendment applies only to the transfer of ownership or usage for the purpose of establishing retail stores selling daily consumer goods, as defined in Act CLXIV of 2005 on Trade. These goods – excluding products sold within catering activities – include food, cosmetics, drugstore items, household cleaning 2 | 3 and chemical products and hygiene paper products intended to meet the daily needs of the population, typically consumed, use up or replace within one year. The authorisation requirement applies in all cases of granting use, including, for example, leases or the establishment of usufruct rights.
Compared to the earlier draft, the final version of the Amendment has a significantly narrower impact on the retail market and affects far fewer market players than anticipated. It mainly concerns, among others, food stores and similar retail outlets exceeding 400 m2 in size, as well as shopping centres and malls where tenants operate retail stores selling daily consumer goods.
Originally published on CEE Legal Matters on September 18, 2025.