' Fight the dark ages' Best screenplay went to another favourite of the festival, "A Fantastic Woman" by Chile's Sebastian Lelio, starring transgender actress Daniela Vega.
Lelio, joined on stage by Vega, said the film about a singer fighting for her right to attend the funeral of her much older lover was a call for tolerance in trying times.
During the last years of World War II, they suffered severely, with over 600,000 being killed (within Hungary's 1943 borders) between 19, mainly through deportation to Nazi German-run extermination camps.
The 2011 Hungary census data had 10,965 people (0.11%) who self-identified as religious Jews, of whom 10,553 (96.2%) declared themselves as ethnic Hungarian.
Film industry bible Variety said the film "blends mournfully poetic whimsy with stabs of visceral brute reality".
Jews have a long history in the country now known as Hungary, with some records even predating the AD 895 Hungarian conquest of the Carpathian Basin by over 600 years.
"We live in a more and more absurd country, frighteningly absurd country," she told reporters after the ceremony, while adding that the state film fund served as a "sort of island".
"We can work there at relative freedom, peace and we get professional support." The runner-up jury prize went to Franco-Senegalese filmmaker Alain Gomis for "Felicite" about a Kinshasa nightclub singer who has to scrape together funds to pay for her son's treatment after a serious road accident.
The Jews of Hungary were fairly well integrated into Hungarian society by the time of the First World War.Presenting the Golden Bear, Verhoeven said the jury "fell in love" with "On Body and Soul", adding that it was about "two people connecting in quite an amazing way".The enigmatic film features Endre and Maria, who by day work in a slaughterhouse but by night have the same dream about a male and a female deer nuzzling in a snowy forest.Last year, jury president Meryl Streep gave top honours to Italy's "Fire at Sea", a portrait of the refugee crisis on the island of Lampedusa.It is nominated for an Academy Award for best documentary this month.