Comparative Guides

Welcome to Mondaq Comparative Guides - your comparative global Q&A guide.

Our Comparative Guides provide an overview of some of the key points of law and practice and allow you to compare regulatory environments and laws across multiple jurisdictions.

Start by selecting your Topic of interest below. Then choose your Regions and finally refine the exact Subjects you are seeking clarity on to view detailed analysis provided by our carefully selected internationally recognised experts.

4. Results: Answers
How is innovation in the fintech space protected in your jurisdiction?

Answer ... As there is no specific regime for fintech solutions, fintech innovations may fall under the general rules relating to intellectual property. Fintech solutions are often based on software innovations. Software recorded as either source code or object code, including user programs and operating systems and databases recognised as a compilation, is protected under Act LXXVI of 1999 on Copyright. Ideas, theories, processes, working methods and mathematical operations or algorithms, even if they are the basis of in-future software, are not protected by copyright. However, they may be subject to the rules on business secrets. Novel inventions that are industrially applicable are subject to patent protection.

For more information about this answer please contact: Veronika Bakonyi from Gardos Mosonyi Tomori Law Office
How is innovation in the fintech space incentivised in your jurisdiction?

Answer ... The National Bank of Hungary (NBH) has established an Innovation Hub, through which information on applicable regulations is made available for market players. The Innovation Hub also serves as a platform for the exchange of information among market players and a channel through which fintech companies can contact the NBH. It also helps the NBH to collect ideas and feedback from market players in respect of their needs relating to regulation and other aspects of fintech.

Within the framework of its Digital Wellbeing Programme, the government supports fintech companies through several incentives. In order to encourage private investments, a reduced level of tax has been introduced, allowing angel investors to reduce their corporate tax base by the value of their investment in start-ups.

The 9% corporate tax in Hungary could also incentivise foreign investment in Hungary.

Within the framework of the Digital Wellbeing Credit Programme, the government provides grants of between HUF 5 million and HUF 200 million for projects of small and medium-sized enterprises (SMEs) aimed at improving the development of digital products and services. Under the Digital Wellbeing Capital Programme, SMEs and start-ups may apply for a capital injection of HUF 5 million to HUF 500 million in consideration for the acquisition of a 50% stake. These resources may also be available for fintech start-ups.

For more information about this answer please contact: Veronika Bakonyi from Gardos Mosonyi Tomori Law Office