Attorney’s fees as litigation costs in Hungary: what does the losing party pay?

Anyone bringing or defending a civil action in Hungary will reasonably ask: if the case is decided in my favour, will the other side reimburse my attorney’s fees? This article summarises what counts as litigation costs, how to claim them, and how the court sets the amount of the attorney’s fee. The rules are found in Act CXXX of 2016 on the Code of Civil Procedure (the “Code of Civil Procedure”) and in Decree 17/2024 (XII. 9.) IM of the Minister of Justice on the attorney’s and in-house counsel’s costs that may be awarded in court proceedings (the “Decree”).

What counts as litigation costs?

Under section 80 of the Code of Civil Procedure, litigation costs are all costs incurred by a party — during or before the action — in a necessary causal connection with enforcing the right in court, including the loss of earnings necessarily incurred by appearing before the court. They include, among other things, attorney’s fees, the claiming of which is governed by the Decree.

Who bears the costs?

Under section 83(1), unless an Act provides otherwise, the losing party reimburses the litigation costs of the successful party. Where a party succeeds only in part, it reimburses the opponent’s costs in proportion to the extent to which it has lost (section 83(2)).

How are costs claimed?

Costs are not awarded automatically: a party must claim them by submitting a statement of costs (section 81(1)). The statement must give the amount claimed, the essential circumstances in which the cost arose and the right in connection with which it arose, supported where necessary by documents (section 81(2)). It must be submitted no later than the close of the hearing or, failing that, before the decision terminating the proceedings is adopted (section 81(3)).

The deadline matters: under section 82(3), costs that were not claimed, or that exceed the amount claimed, cannot be taken into account in the party’s favour.

How does the court set the attorney’s fee?

Under section 2 of the Decree, a party represented by an attorney may claim the attorney’s fee in one of two ways:

• the fee agreed in the engagement contract, together with reasonable out-of-pocket expenses reimbursed to the attorney (section 2(1)), or
• the amount under section 3 of the Decree (section 2(2)).

Under section 3(1), where the value of the claim does not exceed HUF 10 million, the fee is 5% of that value; between HUF 10 million and HUF 100 million, 3% of the part above HUF 10 million is added; above HUF 100 million, 1% of the part above HUF 100 million is added. Example: for a claim worth HUF 4 million the fee is HUF 200,000; for HUF 30 million it is HUF 500,000 + HUF 600,000, i.e. HUF 1,100,000.

Where the value of the claim cannot be determined, the fee is twice the hourly rate for court-appointed attorneys per hour, but at least five times that rate in total (section 3(2)). In 2026 that hourly rate is HUF 7,000, giving HUF 14,000 per hour and a minimum of HUF 35,000. The fee is set separately for each stage of the proceedings; on appeal, the amount disputed in the appeal is taken as the value of the claim (section 3(4)).

Can the court reduce the fee?

Yes, but only on request and where justified: the court may reduce a fee that is unrelated to the right enforced, unnecessary or disproportionate, and must give detailed reasons (section 4(1) of the Decree). A fee agreed in the engagement contract may not be reduced by more than 50%, unless it is grossly excessive and contrary to market conditions or common sense (section 4(2)). For claims up to HUF 10 million, the fee calculated under section 3(1)(a) cannot be reduced (section 4(3)). On request and where justified, the court may also award a higher fee than that under section 3 (section 4(6)).

What about VAT?

The fee under section 3 does not include VAT, which is charged on top of it (section 5(1) of the Decree). For a fee agreed in the engagement contract, VAT is taken into account in accordance with that contract (section 5(2)).

Why may the amount reimbursed differ from the fee paid?

The court’s decision on costs settles the relationship between the parties to the action. The client’s obligation to pay his or her own attorney, by contrast, is governed by the engagement contract. If the court awards less — because the party succeeded only in part or because the fee was reduced — the difference is not borne by the opponent.

Which proceedings does the Decree apply to?

The Decree applies to proceedings commenced by a statement of claim or application filed on or after its entry into force (8 February 2025) (section 7). In actions commenced earlier, Decree 32/2003 (VIII. 22.) IM applies.

The court duty payable on bringing an action can be calculated on the “Court duty” tab of the fee calculator, based on the value of the claim; you can find more about representation in court on the Representation in litigation page.

This article provides general information and does not constitute legal advice. Legal position as at October 2026. This English version is provided for information; in the event of any discrepancy, the Hungarian version prevails.