Spar Files New EU Complaint Against Hungary Turnover Tax

Austrian retail group Spar has filed a fresh complaint with the European Commission against Hungary’s contentious 4.5 percent turnover special tax on foreign supermarket chains, salzburg.ORF.at reported on October 12, 2026. The levy, combined with strict state-mandated profit-margin caps, continues to inflict heavy losses on non-Hungarian operators in the country’s grocery sector.

Ninety Million Euros in Special Taxes and Mandatory Margin Caps

Under the unvarnished rules of the regime, Spar and other foreign-owned supermarket chains must pay a special tax amounting to 4.5 percent of their annual turnover in Hungary. By contrast, domestic food providers and Hungarian franchise networks face a much lighter tax rate ranging strictly between 0 and 0.15 percent, according to reporting by Sarganserländer and blue News.

Financial pressure on foreign grocers remains severe. Spar manager Peter Manhartsberger stated that the special tax burden alone is expected to reach up to 90 million euros this year, while state-imposed margin restrictions will cost the company an additional 40 million euros, as detailed in reports from Oberösterreichische Nachrichten and VOL.AT. These figures follow heavy financial hits from the prior year, when the special tax cost Spar roughly 80 million euros and margin caps added another 30 million euros in losses.

Forced Corporate Restructuring and Market Exit Pressures

The special tax originated during the tenure of former Prime Minister Viktor Orban and was preserved by the administration under Prime Minister Peter Magyar, which altered only a single legal clause. Under the revised terms, large food retailers can theoretically reduce or eliminate their tax liability by splitting up their corporate structures into smaller entities. Company representatives, however, have rejected this option outright.

Spar noted in its formal complaint that the company cannot divide its Hungarian subsidiary with hundreds of stores into hundreds of separate corporations. Ein Zwang zur Änderung der Unternehmensform ist in der EU rechtswidrig (Oberösterreichische Nachrichten), or forcing a change in corporate form is illegal under European Union law, company representatives argued, adding that the statutory amendment is both absurd and an act of harassment. Furthermore, the company pointed out that Hungary’s own anti-tax-evasion rules mean local authorities would reject any restructuring driven predominantly by tax motives.

European Court Proceedings and Wider Industry Fallout

The broader regulatory assault extends well beyond a single corporate grievance. The European Commission formally filed a lawsuit against Hungary at the European Court of Justice over both the special tax and the commercial margin restrictions, backing persistent calls for intervention from Spar and Austrian political leaders.

Beyond Spar—which operates as the second-largest food retailer in Hungary behind Lidl—other foreign-owned chains including Penny, dm, and Tesco face steep operational losses from the dual measures. Company officials asserted that the underlying intent of the legislation is clear: Man wolle, dass ausländische Handelsketten Ungarn verlassen und ihre Supermärkte verkaufen (VOL.AT), meaning authorities want foreign retail chains to leave Hungary and sell off their stores, with Spar representatives noting that only Hungarian oligarchs possess any genuine buying interest.