In one of the most ambitious scenes of Francis Ford Coppola’s “Megalopolis,” the musical score comes to life with a grandeur that only a large orchestra can provide. What few viewers know is that this soundtrack was not recorded in Los Angeles or London, but in Budapest.
As Hollywood grapples with escalating production costs, labor disputes, and a competitive global market, studios are increasingly relocating their projects abroad. In Los Angeles, once the heart of film production, on-location filming fell by 22.4% in the first quarter of 2025 compared to the same period the previous year, according to FilmLA. That’s the lowest it’s been in three decades. One reason? Enter Hungary as one of the key players in terms of (less expensive) production locations.
Speaking with IndieWire, Tamás Pásztor, director of the Astra Filmland studio space in Mogyoród, reminded that “two of the major Hollywood studios, Paramount Pictures and Fox, were founded by Hungarians.”
Despite this legacy, Hungary spent much of the 20th century without a leading role in the industry. But in the last 20 years, the country has evolved from just another filming location in Europe to becoming a cinematic hub — with the infrastructure, tax incentive system, and workforce to back it as the “Hollywood of the Danube.”
Even as the Hungarian government faces international criticism for its recent constitutional amendment banning LGBTQ+ public events, including Pride parades, Hollywood productions continue to flock to the country. As history tells us — remember Georgia? — the allure of economic incentives and established infrastructure often outweighs political concerns for studios seeking cost-effective locations.
The Origins of Hungary’s Film Boom
Two decades ago, Hungary’s film industry was in its infancy and lacked the resources to attract major international productions. That was when Tamás Csutak, one of the minds behind the sector’s growth and director of motion picture advisory group Abacus-Consult, devised a strategy that would change the landscape.
“Back then, my idea was that it made no sense to give more money to artists or directors without developing the industry behind them. I proposed a scheme with two pillars: state subsidies for national films and a rebate system to compete with countries like the Czech Republic or Romania. Additionally, we encouraged investment in infrastructure. That’s how our formula was born,” he said.
However, a turning point came with the arrival of Andy Vajna, the Hollywood producer-turned-film commissioner, who spearheaded the overhaul of Hungary’s film financing system. Vajna centralized film funding under the Hungarian National Film Fund, ensuring that resources were allocated efficiently and strategically. His reforms not only streamlined the funding process but also positioned Hungary as a serious competitor on the global stage.
“We went from a business volume of $22 million to $305 million today. The rebate increased from 20% to 30%, attracting studios like Universal. The first major production was ‘Hellboy’ in 2004… It was proof that the model worked,” Tamás added.
The Real Impact on the Industry
The growth of Hungary’s film industry is reflected in its numbers and infrastructure. Astra Filmland is a clear example.
“Originally, this Astra, where we are now, started with this building in 2007, which housed three soundstages. And now, we have 12 soundstages. Two are under construction but will open soon,” said Pásztor.
The country has gone from having just one studio capable of handling major productions to boasting multiple top-tier facilities, such as Korda Studios, founded in 2007, and the recently expanded NFI Studios in Fót. Launched as a landmark state investment in 2020, the development of NFI Studios has increased Hungary’s studio capacity by 22% nationwide, opening new opportunities for the industry.
Budapest film commissioner Csaba Káel highlights the significance of this expansion: “During the pandemic, we understood that the key to maintaining Hungary as a global film destination was to keep investing in our infrastructure. That’s why we expanded the National Film Institute’s studios in Fót, adding four new soundstages and increasing the country’s capacity by 22%. Now, we can host even more high-level productions.”
But beyond the buildings, the real achievement is the professionalization of its technical crews.
“Before, foreign teams were brought in; today, 80% of productions use local technicians. A decade ago, we could handle one major project; now, we can manage five simultaneously,” said Tamás Csutak.
Hungary’s advantages over other European countries extend beyond infrastructure. According to Csutak, labor flexibility is another strong point: “We don’t have rigid unions like in Hollywood. If you need an extra hour of shooting, it’s possible here.” Moreover, Budapest’s versatility as a location is an attractive feature for producers: “Budapest has many faces… It can be Paris, Rome… and it has a first-class selection of hotels and restaurants to accommodate international crews,” added Tamás Pásztor.
Beyond Filming: Training and Expansion
To sustain the industry’s growth, Hungary has invested in training new professionals.
“The film industry doesn’t just need top-notch facilities but also highly skilled talent. In Hungary, we have established a training program at the University of Drama and Film in Budapest, where students learn with cutting-edge technology such as virtual backgrounds and digital lighting design,” said Káel.
The country has also invested in post-production and film music. “Attracting shoots is not enough. We want Hungary to be a full-fledged hub, from production to post-production and film music. A great example is that the soundtrack of ‘Megalopolis’ by Francis Ford Coppola was recorded here,” added Káel.
On another front, Hungarian animation continues to establish itself. “In 2025, we will celebrate 111 years of Hungarian animation and will be the guest country at Annecy Festival,” noted Csaba.
Challenges and the Future of Hungarian Cinema
Despite its success, the industry’s growth faces challenges. One of the biggest is the sustainability of the tax incentive model.
“The limit is the state budget: Every rebate dollar comes from taxes. If more projects arrive, the reimbursement time (now 200 days) will increase. We must convince the government that investing more here is more valuable than in battery factories,” warned Tamás Csutak.
Beyond financing, the industry must also adapt to technological changes. Artificial intelligence is one of the factors reshaping the sector, and Hungary does not want to be left behind.
“Artificial intelligence is already changing the industry, especially in animation and visual effects. In Hungary, we are prepared to integrate these tools into film production. We don’t see AI as a threat but as an opportunity to enhance our capabilities and be even more competitive,” said Káel.
But technology plays a role not only in production but also in distribution. One of the pending challenges is bringing Hungarian cinema to a wider audience.
“One of the challenges we face is the distribution of our films within the European Union. That’s why we have developed a national streaming platform, Filmio, and our idea is to expand it across Central Europe. We want Hungarian cinema not only to be produced here but also to reach the right audiences.”
Future plans also go beyond filming studios. Astra Filmland already has ambitious projects in place. “We call it Astra Filmland… We have many plans to offer not just studios, soundstages, and workshops, but also services. We plan to build a food court, a shopping center… basically, a film city,” said Tamás Pásztor.
Some recent projects that have chosen Hungary for their production: “The Brutalist” filmed part of its scenes at Korda Studios and across Budapest; “The Entertainment System Is Down,” the upcoming satirical film by Ruben Östlund starring Keanu Reeves and Kirsten Dunst, is currently being shot in the country; James Vanderbilt’s “Nuremberg,” featuring Russell Crowe and Rami Malek, also filmed key scenes in Budapest; while “Now You See Me 3” and Sky’s new series “Amadeus” have taken advantage of Hungary’s versatile studio infrastructure and locations. On the local front, Oscar-winner László Nemes completed the filming of “Orphan,” a drama set in post-revolutionary Budapest and expected at fall film festivals.
Looking ahead, several international productions are already scheduled to shoot in Hungary over the coming months. While many details remain confidential due to NDAs, local industry professionals assure that studio bookings for 2024 and 2025 are “busier than ever.”
“We used to sell locations; now we sell studios. Projects like ‘Dune’ or Netflix series are filmed here because we have technology and teams. They only use exteriors for 2-3 days; the rest is done on soundstages with LED screens,” said Tamás Csutak.
Hungarian cinema is not only part of the industry’s present but also its future. And with every new production that chooses Hungary as its home, the “Hollywood of the Danube” continues to solidify its position as one of the great players in global cinema.
