Moving to Hungary in 2024: a relocation guide for expats

Foreign citizens wishing to move to Hungary in several months will soon get such an opportunity. To obtain a residence permit, applicants will need to invest in the Hungarian economy under the Hungary Golden Visa program which is launched in 2024.

Applicants are offered 3 investment options:

• purchase of real estate fund units for €250,000+;

• property purchase for €500,000+;

• donation to an institution of higher learning for €1,000,000+.

Investors can buy fund units starting July 1st, 2024. The property purchase option is available from January 1st, 2025.

After submitting an application, the investor gets a Guest Investor Visa valid for 6 months. Within the validity of the Visa, the applicant has to go to Hungary to fulfil the investment condition and apply for a residence permit by investment.

The residence permit will be granted for 10 years and can be extended for the same period.

The investor’s family can receive residence permits together with the main applicant.

Hungarian residents can travel to the Schengen Area states visa-free and stay there for up to 90 days out of 180.

1. Visa-free travel across the Schengen Area. Residents of Hungary enjoy visa-free access to the Schengen Area states and can stay there for up to 90 days out of 180.

2. Affordable cost of living. The price level index in Hungary is 2—2.5 times lower than in such countries as Sweden, Netherlands, France, Germany, and neighbouring Austria.

The average cost of living in Hungary is €600 per month per person, property rental excluded. A family of four will need around €2,000 per month.

3. Tax optimisation. If a foreigner spends more than 183 days per year in Hungary, they gain tax residency in the country. Hungarian residents pay an income tax at a rate of 15%. To compare, in Germany and France, it can reach 45%.

4. Access to high-quality healthcare. Healthcare services in Hungary meet EU standards but feature more affordable prices, which are lower than in Germany or Scandinavian countries.

Residents of Hungary can seek treatment in public and private clinics. They can also obtain a European Health Insurance Card that allows for medical treatment in EU and EEA countries for free or at a reduced cost.

5. Access to European education. Five Hungarian universities are included in the world’s top 1,000 universities, as per the QS Top Universities ranking. These are the University of Szeged, the University of Debrecen, the University of Pecs, the Budapest University of Technology and Economics, and Eötvös Loránd University.

Universities offer programs in English, French, German, and Hungarian. Diplomas issued in Hungary are recognised in other countries.

6. Opening a bank account in Hungary. Residents can open accounts in Hungarian banks and Hungarian branches of European banks under a simplified procedure — providing only their passports and residence cards.

Foreigners having bank accounts and bank cards in Hungary can transfer money to other EU countries through the SEPA — Single Euro Payments Area.

7. Prospects of Hungary citizenship in 11 years. Residents of Hungary can obtain permanent residency after three years of living in the country. To apply for Hungary citizenship, they need to hold a permanent resident status for 8 years.

The Hungarian passport allows visa-free travel to 171 countries, including the USA, UK, Japan, and Singapore.

Hungary immigration policy allows foreigners to move to and settle in the country. Requirements for immigration highly depend on one’s nationality, the length of stay, and the purpose of the stay.

Citizens of EU countries can freely enter Hungary and stay there for up to 90 days without registration. For longer stays, they need to register with public authorities.

Third-country nationals are required to obtain residence permits. To be admitted for residency in Hungary, foreigners should provide valid documents, have health insurance, and not threaten the country’s security.

A foreign pet owner is required to fulfil several conditions:

1. Microchip a pet. A microchip contains information about the pet’s individual number, name, date of birth, contact details of the owner, and the clinic where the animal was microchipped.

2. Vaccinate a pet against rabies no later than 21 days before entering the EU.

3. Obtain an antibody titration test for a pet if it comes from a country with high rabies incidence rates, such as Albania, Brazil, China, Israel, and India. The test is carried out in approved laboratories on a sample taken by an authorised veterinarian three months before moving to Hungary.

4. Provide a pet passport issued by an official veterinarian.

As per EU legislation, a citizen of one EU country has the right to move freely to any other EU member state, settle, and be employed there on the same conditions as the country’s nationals.

EU citizens are not limited on the time of residence in Hungary provided that they meet one of the following conditions:

• pursue a gainful activity, for example, having a job or running a business in Hungary;

• do not pursue a gainful activity but have sufficient means of subsistence so as not to place an unreasonable burden on Hungary’s social security system;

• study in Hungary and have sufficient means of subsistence;

• be a family member of an EU citizen who fulfils any of the above conditions.

Within 93 days of entering Hungary, EU citizens have to register and submit an application for a registration card to the National Directorate-General for Aliens Policing at the Enter Hungary website.

EU citizens who have legally resided in Hungary for an uninterrupted period of 5 years automatically obtain permanent residency in the country.

Non-EU citizens wishing to settle in Hungary are required to have a residence permit. The Hungarian government offers several types of residence permits, depending on the purpose of the stay.

Hungary residency by opening a company is a viable pathway for entrepreneurs and investors. This option allows you to reside in Hungary based on your business activities.

Applicants must establish a legal entity in Hungary. The most common types of companies for foreign investors are:

• Kft — a limited liability company, which is the most popular form of business;

• Nyrt or Zrt — public and non-public joint stock companies.

Capital requirements depend on the company type:

• HUF 3,000,000, or approximately €7,700 — for a Kft;

• HUF 5,000,000, or approximately €12,700 — for a Zrt.

The residence permit is granted to a company founder for 1 year, subject to extension. The spouse, children, and parents can get residence permits a year later, when an entrepreneur renews their residency.

Individual cost calculation for business residency in Hungary

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The Hungary White Card is a special residency permit for digital nomads and remote workers from non-EU and non-EEA countries. This permit allows foreigners working remotely for companies or clients outside Hungary to reside in Hungary legally for two years.

Applicants must demonstrate a stable minimum income of around €3,000 per month.

The applicant’s relatives do not get residence permits under this ground. The Hungary Digital Nomad Visa does not lead to permanent residency or citizenship in the country.

Individual cost calculation for the Hungary Digital Nomad Visa

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The student visa is granted to foreigners who have been enrolled in a school or university in Hungary. To qualify, an applicant provides confirmation documents from the educational institution, proves knowledge of Hungarian at a basic level, and pays all the required tuition fees.

Upon moving to Hungary, students of higher education institutions get residence permits.

The work residence permit is obtained by everyone wishing to move to Hungary for the purpose of employment. To qualify, an applicant provides the following supporting documents:

• a work permit obtained by a future employer at the Labor Authority of the county in Hungary;

• a contract of employment or a letter of intent;

• a registered address in Hungary;

• travel insurance;

• proof of subsistence until the first salary, such as bank statements, employer’s certificate that they will pay an advance to the person.

The work permit is granted for 2 years and can be extended if the person is still employed.

In addition to the residence permit, an applicant has to obtain a Social Insurance Identification Number from the National Health Insurance Fund Administration and a tax identification number from the tax authority.

The family reunification permit is granted to third-country nationals who are relatives of Hungarian citizens or residents.

The family of a Hungarian resident can apply for a residence permit when the main applicant obtains their work permit.

To qualify, the following documents are submitted:

• document proving occupancy in Hungary;

• document proving subsistence in Hungary;

• marriage certificate and birth certificates;

• copy of the passport of the main applicant.

The residence permit for investors, known as the Hungary Golden Visa, is granted to third-country nationals who invested in the Hungarian economy. The residence permit is granted for 10 years and requires investments of at least €250,000.

As Hungary is a part of the Schengen Area, US citizens do not have to obtain a Hungarian visa if they want to spend up to 90 days in the country. However, to be allowed to stay in Hungary for longer or work there, US citizens have to obtain a residence permit.

To get a residence permit to Hungary, US citizens have to meet the same requirements as other third-country nationals:

• qualify for one of the residence permit categories, such as work, study, family reunification;

• have health insurance or money sufficient to cover possible medical expenses;

• not to threaten Hungary’s national policy, social security, national security, or public healthcare.

Foreigners moving to Hungary can choose a place that will ideally correspond to their lifestyle: from active life in the capital city to more tranquil days outside of the country’s centre.

Budapest, the capital of Hungary, is a vibrant and diverse city known for its rich history, stunning architecture, and lively cultural scene. It offers wide job opportunities, numerous amenities, and recreational facilities. Expats in Budapest will also find a big expat community and will always find support when needed.

The cost of living in Budapest is lower than in many other EU capitals, while standards of living are still high. The city has an active property market with both upscale and affordable housing options for rent and purchase.

Debrecen is the second-largest city in Hungary and a major cultural and economic hub of the eastern part of the country. Debrecen is known for its safe and family-friendly environment. Compared to Budapest, it offers a more tranquil lifestyle and a more affordable cost of living with almost the same living standards.

In Debrecen, there are several universities and research institutions, which makes it a popular destination for students and academics and an ideal choice for those seeking good educational opportunities.

Due to a developed public transportation system and an airport, inhabitants of the city can easily travel to any part of Europe.

Pécs is a historic city located in southwestern Hungary, known for its well-preserved mediaeval architecture, archaeological sites, and vibrant arts scene. Pécs boasts a relatively affordable cost of living, making it an appealing destination for expats looking to live comfortably on a budget.

Inhabitants of the city enjoy a relaxed pace of life in a picturesque setting, with plenty of green spaces, parks, and cultural attractions to explore.

Hungary offers a very affordable cost of living. The country’s price level index is about 40% below the EU average.

Energy resources such as electricity, gas, and other fuels are the least expensive compared to other EU countries.

Source: Numbeo.com

Hungary offers the benefits of living in a modern European country with affordable prices and a rich history. However, there are some disadvantages that one should take into account when considering Hungary as a country for relocation.

Difficult language. The only official language of the country is Hungarian which is one of the most challenging languages to learn. Only about 20% of the population speaks English. Thus, a language barrier may pose difficulties in everyday communication, making it harder to integrate into local communities.

Bureaucracy. Hungary has a bureaucratic administrative system, so benefiting from the public services can be complex and time-consuming, especially for foreigners. Dealing with government agencies, obtaining permits, and completing paperwork for visas or residency may require assistance from local experts or legal advisors.

Economic issues. During the COVID‑19 pandemic, the country experienced a decrease in the GDP and an increase in the unemployment rate. Although economic growth is returning, productivity growth has been low, and there are some financial risks related to the banking sector. All of these significantly affect the labour market and real incomes of the population.

Obtaining permanent residency. Residing in Hungary for at least 3 years can lead to a national Hungarian permit or an EU long-term residence permit.

National permanent residency is issued if the applicant has lived in Hungary with a residence permit for at least 3 years and has not lived outside of Hungary for more than four consecutive months.

The EU long-term residence permit is issued if the applicant has lived in Hungary with a residence permit for at least 5 years and has not lived outside of Hungary for more than six consecutive months.

Applying for Hungary citizenship is submitted after 11 years of living in Hungary, with at least 8 of those years spent as a permanent resident. During these years, the applicant must not leave the country for more than 45 days in any single year.

The countdown of 8 years of residence in Hungary and for naturalisation begins from the moment of registration of a permanent address of residence in Hungary. A permanent residence address is only possible for persons with national permanent residence or EU long-term residence.

Hungarian law does not require individuals to renounce their previous nationality upon becoming a citizen of Hungary. This policy has been particularly significant since 2011, when Hungary started allowing ethnic Hungarians in neighbouring countries to acquire citizenship easily through a simplified naturalisation process.

The simplified naturalisation doesn’t require residing in Hungary, provided the applicant can demonstrate their Hungarian heritage and some proficiency in the Hungarian language.

Thus, many people of Hungarian descent living outside Hungary have taken advantage of this opportunity to obtain dual citizenship, maintaining their original nationality alongside their new Hungarian citizenship.

1. Requirements for immigrants wishing to move to Hungary depend on their nationality, the length, and the purpose of the stay. Citizens of EU countries can freely enter Hungary and stay there for up to 90 days without registration. Third-country nationals must obtain residence permits.

2. There are several types of residence permits issued to expats: a White Card, student visa, a work residence permit, a family reunification permit, residence permits for investors and entrepreneurs.

3. A residence permit for investors, known as the Hungary Golden Visa, is granted for 10 years for investments of at least €250,000. Investment options include the purchase of real estate fund units or property purchase and donation to an institution of higher education.

4. Examples of the best cities for immigration in Hungary are Budapest, Debrecen, and Pécs.