Hungary: New classification required for logistics activities from 2025

A new definition has been introduced to the regulation on the network of regulated parks: from 1 January 2025, certain companies will only be able to carry out logistics activities on their sites if they have obtained the title of "Logistics Park". Obtaining this title requires the completion of several administrative tasks, therefore in view of the short deadline, interested parties are recommended to hand in their application as soon as possible. Anikó Edit Szűcs and Zsófia Takó, experts of DLA Piper Hungary's real estate practice group, provided the below summary on the topic.

What kind of site can be granted the title of Logistics Park?
The Regulation establishes the concept of Logistics Parks in a complex way. A Logistics Park is defined as "a logistics based, mainly market driven location with at least 60% logistics (warehousing, transport) capacity, having its own infrastructure, where core services are linked directly to logistics activities or where service activities take place, and on which the cooperation between logistics, industry, municipality and investment operators is integrated". This definition should be considered in conjunction with the fact that only those areas may qualify as a Logistics Park that have a size of at least 3 hectares and have been classified as an industrial or economic area by the effective urban development plan or a municipal decision.

Within the category of Logistics Park, the legislation distinguishes the categories of intermodal, regional and local logistics parks. The significance of the differentiation is that only one intermodal or one regional logistics park title can be granted in the area of a settlement, from which deviations may only be permitted by the Council for Science and Innovation, Technology, Industry and Logistics Parks ("Logistics Park Council").

"In order to obtain the title of Logistics Park, meeting the above conditions alone is not sufficient, it is also necessary to apply for the title at the competent ministry," emphasized Zsófia Takó, junior associate at the real estate practice group of DLA Piper Hungary.

What is the significance of obtaining the Logistics Park title?
According to the Regulation, those companies that
(i) generate at least 60% of their total annual net turnover from their warehousing and transport activities conducted on their site or branch,
(ii) have a site of 3 hectares or more, and
(iii) have a covered storage capacity of at least 3,000 sqm
may only conduct logistics activities from 1. January 2025 at their respective site if they have obtained the title of Logistics Park under the Regulation.

What should be done to obtain the title?
"In order to obtain the title of Logistics Park, an application must be submitted to the minister responsible for industry, with the content and annexes set out in the call for applications published on the government portal. The Logistics Park Council has 60 days from the date of the application's submission to send its proposal to the ministry, so it is worth submitting the application material and the request for the approval of the Logistics Park Council as soon as possible," said Edit Anikó Szűcs, senior associate at the real estate practice group of DLA Piper Hungary.

In order to speed up these procedures when applying for the title of Logistics Park, administrative procedures related to the investment may now be classified as 'an investment of major importance for the national economy' in a simplified procedure under the Decree. In addition to the existing criteria, priority will be given to applications that would be carried out at a beneficiary district or a free enterprise zone under the relevant government decrees.