How Hungary Quietly Became Hollywood’s Secret Weapon

When Francis Ford Coppola needed to record the sweeping score for Megalopolis, he didn’t turn to Los Angeles or London, he turned to Budapest. And he’s not alone. In a global industry increasingly shaped by labor disputes, runaway costs, and tax incentive wars, Hungary has emerged as a serious player on the world filmmaking stage.

From The Brutalist to Ruben Östlund’s The Entertainment System Is Down, more and more high-profile productions are heading east, not just for scenery, but for savings, skill, and studio space.

The Shift Away From Hollywood, And Why Hungary Now?

In 2025, Los Angeles saw its steepest production downturn in decades. FilmLA reported a 22.4% drop in on-location filming compared to the previous year. That’s a signal. Studios are chasing better deals, and Hungary is offering them.

Thanks to its 30% rebate system, low labor costs, and high-quality facilities, Hungary has made itself irresistible. And it didn’t happen overnight.

A 20-Year Game Plan, From Underdog to Global Player

Two decades ago, Hungary’s film industry barely registered on the international radar. That changed when Tamás Csutak, a strategist behind the country’s industry overhaul, helped introduce a two-pillar system:

• Direct subsidies for national films
• A competitive tax rebate for international productions

Then came the game-changer: producer Andy Vajna’s revamp of Hungary’s film fund. He centralized oversight, made funding strategic, and raised the rebate cap from 20% to 30%. Studios took notice. Hellboy filmed in Budapest in 2004. Today, annual business volume has grown from $22M to over $300M.

Hungary’s Studio Infrastructure Is Booming

What started with a single studio is now a full-blown ecosystem. Astra Filmland alone grew from three soundstages in 2007 to twelve in 2025, with more on the way. NFI Studios in Fót, backed by state investment, expanded capacity nationwide by 22%. Korda Studios and others now rival any major European facility.

Hungary isn’t just “Europe cheap”, it’s a modern, scalable production destination.

Local Crews, Global Standards

In the past, international productions brought their own crews. Now? Over 80% of production labor is local. The workforce is highly trained, agile, and able to handle up to five major productions at once.

And while Hungary doesn’t have the same union structure as the U.S., that flexibility is part of the draw. Extended shoots and leaner crew models can be managed without red tape, something budget-conscious indies and blockbusters alike appreciate.

The Danube as Your Backlot

Budapest’s versatility is part of its magic. It’s been Paris, Berlin, Rome, even dystopian futures. Combine that with five-star hotels, world-class cuisine, and a film commission that understands production timelines, and it’s no wonder studios keep coming back.

Full-Cycle Production, From Soundstage to Soundtrack

Hungary isn’t just fighting to win shoots, it’s fighting to keep the entire pipeline. That includes:

• Post-production expansion
• Film scoring infrastructure
• Animation and VFX investment
• On-set training programs for emerging talent

At the University of Drama and Film in Budapest, students are learning with LED volumes and cutting-edge tools. And Hungary’s film scoring business is gaining steam…Megalopolis is just one example.

The Streaming Angle, and Hungary’s Own Platform

With the rise of national cinema, Hungary isn’t content to just service foreign projects. The country has launched Filmio, a national streaming platform with plans to expand across Central Europe. The goal: bring Hungarian stories to wider audiences and support domestic filmmakers with distribution muscle.

Political Complexities, Economic Realities

While Hungary’s political climate, particularly around LGBTQ+ rights, has raised red flags internationally, most studios have so far prioritized economic benefits over policy concerns. This echoes the earlier Georgia boycott debates in the U.S., highlighting how financial considerations often override ethical ones in global production planning.

Can the Growth Continue?

The demand is booming, but rebates aren’t infinite. Hungary’s system currently takes up to 200 days to reimburse production costs. As bookings increase, delays could grow. Csutak and others are urging the government to keep investing or risk losing momentum.

The Future: A Film City in the Making

The next phase? Astra Filmland is planning a “film city” complete with retail, food courts, and expanded service infrastructure to support multi-project pipelines. Think Pinewood, but in Central Europe.

And Hungary isn’t just securing the present, it’s prepping for an AI-powered future. Local leaders are actively integrating AI into animation, VFX, and pipeline automation. The message: Hungary doesn’t see AI as a threat, it sees it as a growth tool.

What This Means for Indie Filmmakers

If you’re an indie filmmaker looking to stretch a dollar, Hungary deserves a spot on your radar. You won’t just get old-world charm, you’ll get modern infrastructure, professional crews, and one of the best ROI pipelines in the global market.

As Csutak put it: “We used to sell locations. Now we sell studios.”