In this episode of Budacast, Alterations and Modifications… We talk to entrepreneur Barbara Ürögdi of Helpers Hungary about what Hungary’s tidal wave of legal changes in 2012 means for expatriates, their businesses and life in Hungary. If you’re even the slightest bit interested in what’s going on in Hungary, you’ve no doubt heard about all of the legal changes being enacted by the Hungarian Parliament and the subsequent international criticism. Without getting into the politics, Budacast and Helpers Hungary’s Barbara Urogdi serve up some information and advice for those living and doing business here. Be sure to get this great summary (FREE download) compiled by Helpers: Changes in Hungarian corporate law and related legislation (2012) First of all, Barbara describes what’s been going on since last December in Hungary and says that numerous Helpers' clients have been asking her what the changes mean for their lives and businesses. “A lot of our clients have been contacting us with different questions and concerns,” she says, “because there’s a lot of stuff written about Hungary in the media these days, and while a lot of it is disturbing and true, a lot of it is quite sensationalist. “I think people are having a bit of a hard time teasing apart the two and finding out not only what is true, because that’s almost like a philosophical question, but what exactly is relevant for them, for their lives, for their business.” For example, Barbara says that some of Helpers’ clients are concerned about the status of Hungary in the EU, “because there has been news or rumors that Hungary might get kicked out of the Union, which I think is quite unrealistic. As far as [clients] are concerned, that would affect their lives very deeply, because they are currently resident for example in Hungary and can travel freely in the EU.” She says that the other issue regarding the legal changes concerns businesses. “There’s a lot of panic over the situation of the Hungarian banking system,” she explains. “Most people know that the currency has declined around 15% over the past few months, which is quite drastic, and people are reasonably concerned, both about the fate of the currency, about the security of their bank deposits, about their mortgages and just the general reputation of Hungary and the international markets. “Most of our clients are foreigners and they do business internationally, so they are concerned that having a Hungarian business might not be such a good idea after a while if things go as they are going now.” But are such changes more likely to hit locals harder than foreigners living in Hungary? “The decline of the currency actually favors foreign investors and also exporters, so basically anyone who does their business in euros or dollars and ends up having expenditures in forints is currently very happy. Not all of those people are foreigners, but most foreigners are in that kind of situation, so a lot of our clients – whether they get a salary or income from business – actually draw their income in euros or dollars. So for those people, actually until inflation catches up with prices, it’s a good thing.” Additionally, Ürögdi notes that real estate prices are currently very very low in Hungary. “Add to that the inflation that’s happened over the last few months, and the fact that real estate prices haven’t even begun to catch up with the inflation. The fact is you can buy property for 10-15% less now than three months ago, which was already quite low. “So if you have euros or dollars to spend, that can actually be an advantage to you.” She addresses the recent rise in Hungary’s VAT rate. “The issue that people often mention is that VAT’s very high in Hungary – it was already quite high last year at 25% - and now it’s been raised to 27%. That is one of the highest in the world, it’s true. But, once again, people who do business to business transactions with foreign companies,