Budapest has become the most popular location for international film production in continental Europe. This is not only due to its stunning environment, architectural heritage, and 120 years of filmmaking experience, but also to deliberate efforts: both the government and the National Film Institute (NFI) support Hungarian films, co-productions, and international productions in various ways.

The Hungarian motion picture industry has undergone remarkable development in recent decades. Since 2016, annual spending on film production has exceeded $400 million – primarily from international sources. Hungary offers significant tax incentives and continues to invest in the development of local studios, including the expansion of the country’s largest state-funded facility, NFI Studios. In addition to NFI Studios, there are three private film studios operating in Hungary.

Hungary is also a good choice for post-production, especially for VFX/CGI work. Post-production company Filmlab offers a full range of services. For example, Francis Ford Coppola chose to record the soundtrack for Megalopolis in Hungary.

Let’s Shoot a Film! – Film Funding in Hungary

The NFI provides funding for feature-length films (live-action, documentary, and animation) as well as television productions (TV films, series, short animations, and documentaries). Applicants can seek support for script development, project development, production, special projects, or marketing and distribution.

There is no separate call for minority co-productions, but all projects are encouraged to apply with a Hungarian co-producer on board. Applicants must register on the NFI website, complete the application form, and submit all required documents electronically.

Each project is evaluated based on the quality of the screenplay and the potential of the overall concept. There are no fixed deadlines – the five-member board of film professionals votes on applications within 60 days.

Recent animated co-productions supported by the NFI include John Vardar vs the Galaxy (directed by Goce Cvetanovski) and Tony, Shelly and the Spirit (directed by Filip Pošivač).

The Magic Words: Tax Rebate

The tax rebate is one of the most attractive incentives in the European film industry. Films produced in Hungary are eligible for a 30% rebate on direct production costs spent within the country. This incentive is available through local business companies, which receive tax relief in return for supporting film productions. The support is guaranteed by the Hungarian State via the Collection Account managed by the NFI.

The 30% incentive can be extended to 37.5% of eligible production expenses by including 7.5% in non-Hungarian costs. (Non-Hungarian eligible spending is capped at 25% of the rebate.)

Hungarian-Canadian film producer Robert Lantos has made numerous films in Hungary – the most recent being Rise of the Raven, a ten-hour historical series co-produced with Austria. “Of all the places in the world where I have made films, the rebate that works most reliably and smoothly is in Hungary. It happens automatically – you don’t have to wait for years,” says Lantos.

Let’s Hire a Crew!

Beyond financial support, tax rebates, studio facilities, and stunning locations, Hungary offers something equally vital: a workforce of twenty thousand experienced film professionals. And there’s a human side to it as well. “In Hungary, you rarely hear the word ‘no.’ They’d rather say, ‘let’s figure it out!’” says Robert Lantos.

“We have a special film-DNA,” adds Csaba Káel, Government Commissioner for the Development of the Hungarian Motion Picture Industry. He notes that for decades, only 30% of international crews in Hungary were local, but today that number has grown to 80% – not only among below-the-line professionals but also heads of department.

Recent productions reflect this shift: Poor Things by Yorgos Lanthimos, which was largely shot in Hungary, won four Oscars, while the hit series FBI: International employs an almost entirely Hungarian crew. The Oscar-nominated animated film The Red Turtle was drawn and animated at the legendary Hungarian animation studio Kecskemétfilm, where the post-production effects were also created.

Top 10 productions shot in Hungary:

Halo (Seasons 1 & 2), Dune (Parts 1 & 2), Dune: Sisterhood, Moon Knight, Jack Ryan (Seasons 3 & 4), Gran Turismo, Blade Runner 2049.

VFX and CGI Companies in Hungary

Today, it is rare to find a film that does not include visual effects – from simple image enhancements to the creation of entire worlds and characters. The growing importance of visual communication, along with the surge in demand for streaming content, has led to a boom in the number of studios in Hungary specializing in visual effects and computer animation. These studios serve the film, TV, advertising, music, entertainment, and gaming industries, offering a wide range of career opportunities. Many professionals working in these fields hold degrees in animation and contribute as animators, compositors, 3D modellers, or in other specialized roles.

NFI Filmlab, a state-owned post-production company with over 60 years of experience, offers both traditional laboratory services and cutting-edge digital post-production – including VFX. Alongside it, dozens of smaller and larger private companies operate in the field of VFX and CGI, employing hundreds of professionals across Hungary. While some companies specialize in either visual effects or computer animation, others are active in both. These versatile studios may provide complex post-production solutions, collaborate with creative agencies on campaigns, or function as independent production houses. A multimedia perspective, creative mindset, and use of the latest technologies enable them to contribute to international projects as well as local productions – delivering impressive visual results.

Some of the leading VFX and CGI studios include Budapest- and Prague-based Upp (Conclave, Captain America: Brave New World, Barbie), Ionart Studio (Halo TV series, Semmelweis), Brick Visual, Digital Apes (Evolution, The Survivor), The Odd (commercials for McDonald’s, Pepsi, and major Hungarian brands), and Umbrella Collective (Pelikan Blue). Studios specialized in CGI include DIGIC Pictures (Assassin’s Creed, The Witcher 3 video games), Cactus Cubes, KGB Studio (with 25 years of experience), Puppetworks Animation Studio (specializing in video game trailers), Syndicate Productions, and Sublight.

Hungarian studios continue to demonstrate that nothing is impossible in the field of imaging. They consistently adapt to evolving demands while pushing the boundaries set by both the industry and themselves. As this dynamic sector grows, the demand for VFX and CGI professionals is expected to increase further – potentially giving rise to new companies in Hungary.

Lilla Gyöngyösi