03 - Scope of privilege | Hungary | Global Privilege and Professional Secrecy Guide

Is attorney-client communication only privileged as long as it remains in the lawyer's possession, or is a copy held by the client also protected?

For a document to qualify as legally privileged, it is not necessary to be in the possession of the attorney. Documents meeting the criteria and in the possession of the client are also protected. Legal privilege does not cover documents which are no longer in the possession of the attorney or the client, unless they were removed from their possession unlawfully or in a criminal procedure.

Are in-house lawyers treated in the same way as external lawyers for determining privilege?

As of 1 January 2018, legal privilege has been extended to communication between the client and its in-house lawyer (employee), as long as the in-house lawyer is admitted to the lawyer's bar association as a registered in-house counsel (kamarai jogtanácsos). It must be noted that the registered in-house counsel can carry out activities of attorneys for its employer, the employer's affiliated companies and the entity controlling the employer. Thus, communication with any of these entities may be considered as legally privileged.

Does privilege extend to internal communications between in-house lawyers?

Probably yes, but the judicial practice needs to confirm this interpretation.

Are foreign lawyers recognized for the purposes of privilege?

Attorneys registered in the European Economic Area (EEA) may carry out all of the activities of attorneys in Hungary, as long as the attorney is admitted to the lawyer's bar association as a European lawyer (európai közösségi jogász). European lawyers are subject to the same obligations and enjoy the same rights as Hungarian attorneys, with the exception of representation in criminal proceedings. Thus, communications with European lawyers are also covered by legal privilege.

Attorneys registered outside the EEA can only provide legal advice in Hungary on a permanent basis if they are admitted to the lawyer's bar association as a foreign legal adviser (külföldi jogi tanácsadó). Although a foreign legal adviser may only provide legal advice with respect to their domestic law or international law, the requirement for a cooperation agreement with a Hungarian attorney makes it likely that such communications are also privileged.

Additionally, communications with foreign attorneys not registered in Hungary may fall under legal privilege in accordance with the domestic law applicable to the foreign attorney.

Does privilege extend to nonlegal professionals who may from time to time advise on legal issues relating to their field, e.g., accountants or tax consultants advising on tax law?

Professional secrecy obligations extend to several nonlegal professionals:

Employees of the attorney/law firm
Data storage, archiving, safeguarding and processing service providers
Accountants
Other advisers participating in the engagement with the consent of the client
Operators of whistleblowing platforms

However, legal privilege is explicitly limited to communications with a person carrying out the activities of an attorney.

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