Animation in Hungary

Backed by strong public funding, a generous tax rebate system and emerging talent from top animation schools, Hungary’s animation industry is enjoying a creative and commercial resurgence.

Tradition meets innovation

Hungary is home to a diverse range of animation studios and service providers. The Hungarian Animation Producers Association counts around 30 member companies, from large studios employing over 100 staff to boutique operations with just a handful of artists. These studios work across all forms of animation: 2D, 3D, VFX, games, VR, and even 360-degree dome and planetarium films.

The country has a rich and distinctive legacy dating back to the early 20th century, with its golden age unfolding during the socialist era, particularly under the renowned Pannónia Film Studio, which won the 1981 Academy Award for Best Animated Short for The Fly.

Culturally, Hungarian animation has deep roots in 2D production, and while studios now work in all styles and techniques, there remains a strong affinity for traditional storytelling and aesthetics, with a storytelling approach often grounded in literature and folk traditions.

Standout recent projects include The Quest, a 2D feature film designed in the 1970s by the late Attila Dargay and completed in 2025. Meanwhile, Fairyheart, due for release in 2027, is a fantasy adventure coproduced with Canada and Germany, adapted from a novel by renowned author Magda Szabó. Producers are equally adept at taking inspiration from Hungary’s more recent history too, as highlighted by features such as the animated documentary Pelikan Blue (2025) from László Csáki.

The sector benefits from a healthy mix of independent productions and international coproductions, underpinned by a strong focus on education and training. Institutions such as Moholy-Nagy University of Art & Design, Metropolitan University and Esterházy University are producing promising young talent, many of whom are successfully transitioning into professional roles thanks to studio mentorship.

Post-pandemic momentum

Since the Covid-19 pandemic, the Hungarian animation sector has emerged stronger and more visible on the international stage. After the initial disruption, the pandemic helped democratise the production process in Hungary, with remote working allowing for more inclusive and efficient collaboration across locations.

Several animated feature films were completed in the aftermath of the pandemic. At the 2023 Annecy International Animation Film Festival, the Cristal for a Short Film was awarded to 27 by Flóra Anna Buda, while the festival also recognised other Hungarian animated shorts, including Amok by Balázs Turai (Cristal in 2022) and Symbiosis by Nadja Andrasev (2021), plus feature films such as Tony, Shelly & the Magic Light (2023), Toldi (2022), White Plastic Sky (2023) and Four Souls of Coyote (2023), which won the Jury Award.

This success has been bolstered by the consistent backing of the Hungarian National Film Institute, which supports animated features, series, shorts and coproductions. This has led to a dynamic creative ecosystem increasingly viewed as a viable hub for local and international animation projects.

Crucial to the sector’s appeal is Hungary’s competitive tax rebate system, one of the most generous in Europe, which also benefits foreign coproducers. Notably, up to 20% of eligible external spend on a coproduction can still qualify for reimbursement, broadening the appeal for cross-border projects. Coupled with a transparent, year-round funding process, Hungary has positioned itself as a reliable and attractive coproducing partner.

Meanwhile, Hungary’s VFX studios continue to service high-end live-action projects, including Hollywood blockbusters shot on location in Budapest.

Copro power leads to international praise

Despite these positives, domestic broadcast support for animation in Hungary remains minimal, with producers receiving very little in support from Hungarian broadcasters. Instead, most Hungarian animated projects rely on direct institutional support and international coproduction financing.

However, thanks to strong local backing and international funding sources such as Eurimages and Creative Europe Media, Hungary often leads coproductions and producers are keen to foster further regional collaboration across Central and Eastern Europe. Common copro partners include producers in France, Belgium, Slovakia and the Czech Republic.

AI, meanwhile, is being approached with cautious optimism as producers attempt to learn how to use it ethically. YouTube is also being explored as a platform to launch new IP, however gaining an audience is a challenge and channels often require a high-volume of content to gain traction, leading to a focus on quantity over quality.

Hungary’s rise in the animation world was recognised in June 2025, when the country was honoured as the official country of focus at the Annecy International Animation Film Festival. This represented a moment of celebration and validation for an industry that has weathered adversity and come out stronger.

With a supportive infrastructure, diverse talent pool and an openness to innovation, Hungarian animation is poised not only to sustain its recent momentum but to play a central role in the European animation landscape for years to come.

Backed by strong public funding, a generous tax rebate system and emerging talent from top animation schools, Hungary’s animation industry is enjoying a creative and commercial resurgence.

Tradition meets innovation

Hungary is home to a diverse range of animation studios and service providers. The Hungarian Animation Producers Association counts around 30 member companies, from large studios employing over 100 staff to boutique operations with just a handful of artists. These studios work across all forms of animation: 2D, 3D, VFX, games, VR, and even 360-degree dome and planetarium films.

The country has a rich and distinctive legacy dating back to the early 20th century, with its golden age unfolding during the socialist era, particularly under the renowned Pannónia Film Studio, which won the 1981 Academy Award for Best Animated Short for The Fly.

Culturally, Hungarian animation has deep roots in 2D production, and while studios now work in all styles and techniques, there remains a strong affinity for traditional storytelling and aesthetics, with a storytelling approach often grounded in literature and folk traditions.

Standout recent projects include The Quest, a 2D feature film designed in the 1970s by the late Attila Dargay and completed in 2025. Meanwhile, Fairyheart, due for release in 2027, is a fantasy adventure coproduced with Canada and Germany, adapted from a novel by renowned author Magda Szabó. Producers are equally adept at taking inspiration from Hungary’s more recent history too, as highlighted by features such as the animated documentary Pelikan Blue (2025) from László Csáki.

The sector benefits from a healthy mix of independent productions and international coproductions, underpinned by a strong focus on education and training. Institutions such as Moholy-Nagy University of Art & Design, Metropolitan University and Esterházy University are producing promising young talent, many of whom are successfully transitioning into professional roles thanks to studio mentorship.

Post-pandemic momentum

Since the Covid-19 pandemic, the Hungarian animation sector has emerged stronger and more visible on the international stage. After the initial disruption, the pandemic helped democratise the production process in Hungary, with remote working allowing for more inclusive and efficient collaboration across locations.

Several animated feature films were completed in the aftermath of the pandemic. At the 2023 Annecy International Animation Film Festival, the Cristal for a Short Film was awarded to 27 by Flóra Anna Buda, while the festival also recognised other Hungarian animated shorts, including Amok by Balázs Turai (Cristal in 2022) and Symbiosis by Nadja Andrasev (2021), plus feature films such as Tony, Shelly & the Magic Light (2023), Toldi (2022), White Plastic Sky (2023) and Four Souls of Coyote (2023), which won the Jury Award.

This success has been bolstered by the consistent backing of the Hungarian National Film Institute, which supports animated features, series, shorts and coproductions. This has led to a dynamic creative ecosystem increasingly viewed as a viable hub for local and international animation projects.

Crucial to the sector’s appeal is Hungary’s competitive tax rebate system, one of the most generous in Europe, which also benefits foreign coproducers. Notably, up to 20% of eligible external spend on a coproduction can still qualify for reimbursement, broadening the appeal for cross-border projects. Coupled with a transparent, year-round funding process, Hungary has positioned itself as a reliable and attractive coproducing partner.

Meanwhile, Hungary’s VFX studios continue to service high-end live-action projects, including Hollywood blockbusters shot on location in Budapest.

Copro power leads to international praise

Despite these positives, domestic broadcast support for animation in Hungary remains minimal, with producers receiving very little in support from Hungarian broadcasters. Instead, most Hungarian animated projects rely on direct institutional support and international coproduction financing.

However, thanks to strong local backing and international funding sources such as Eurimages and Creative Europe Media, Hungary often leads coproductions and producers are keen to foster further regional collaboration across Central and Eastern Europe. Common copro partners include producers in France, Belgium, Slovakia and the Czech Republic.

AI, meanwhile, is being approached with cautious optimism as producers attempt to learn how to use it ethically. YouTube is also being explored as a platform to launch new IP, however gaining an audience is a challenge and channels often require a high-volume of content to gain traction, leading to a focus on quantity over quality.

Hungary’s rise in the animation world was recognised in June 2025, when the country was honoured as the official country of focus at the Annecy International Animation Film Festival. This represented a moment of celebration and validation for an industry that has weathered adversity and come out stronger.

With a supportive infrastructure, diverse talent pool and an openness to innovation, Hungarian animation is poised not only to sustain its recent momentum but to play a central role in the European animation landscape for years to come.

HAPA

The Hungarian Animation Producers Association (HAPA) was established in 2019 through the cooperation of Hungarian animation producers. Its main objective is to develop common positions and to communicate and represent these towards relevant professional organizations. It is also HAPA that represents Hungarian animation producers in the CEE Animation network. It considers as its key responsibility to promote the Hungarian animation industry in Hungary and internationally, and it cooperates with training institutions in order to ensure the continuity of new professionals entering the field.