New 2024 immigration law in Hungary – good or bad for foreigners?

In some respects, the new Hungarian immigration law (Act XC of 2023) is forward-looking, because it has brought back to wealthier, better-off foreign clients the option of a previously existing and then terminated investment residence permit, with which the applicant and his close family members will have a long-term, up to 10-year, renewable opportunity to stay in Hungary by investing a minimum of 250,000 Euros. Various forms of investment can be used to obtain such a permit, and we are convinced that many of our foreign clients will benefit from this.

The new law, however, became stricter in many other respects. An important new restriction is that it is not possible to apply for a residence permit for family reunification purposes if the person who wishes to bring his/her family to Hungary (i.e. who already has a Hungarian residence permit) has a residence permit for seasonal employment, a residence permit for investment project-related employment, a residence permit for employment purposes, a guest worker residence permit, a White Card, a study or training residence permit, a residence permit to conduct an internship, or a residence permit to conduct a voluntary activity. In the case of a guest self-employment residence permit, family reunification can be requested after 1 year.

An even greater restriction is that the duration and legal title of most (temporary) residence permits cannot and will not be taken into consideration as a legal basis for later applying for a permanent residence card. According to the new law, one can NOT get a national permanent residence card having before a residence permit for guest self-employment, a residence permit for seasonal employment, a residence permit for investment project-related employment, a residence permit for employment purposes, a guest worker residence permit, a residence permit for study purposes (including job search and business start-up), a residence permit for training purposes, a temporary residence permit, a residence permit for medical treatment, a White Card, a residence permit to be posted abroad, a residence permit to conduct an internship, a residence permit to conduct volunteer activities. Obtaining an EU permanent residence card is also extremely difficult. However, it is a novelty that those whose long-term stay in Hungary serves the economic, national political, scientific, cultural, and sports interests of Hungary can immediately receive a permanent residence card issued due to and based on Hungary’s national interest.

It is very unfortunate that the so-called temporary residence permit for other purposes was abolished. This was very useful in the past for those who wanted to learn the language in Hungary or simply spend their retirement years here. Now, essentially, the situation is that those who can put on the table the minimum 250,000,- ( or 500,000, – or 1,000,000,-) Euros, as categorized by the law, can come, but for example for a middle-class American, Canadian, etc. the long-term stay in Hungary became significantly more difficult if they do not wish to invest the amount of money required by the new law. We don’t understand why it is in Hungary’s interest to scare away those wealthy foreigners who have savings and a stable income, which they would otherwise spend here. Obviously, there are still options that can be tried in order to obtain a residence permit, but according to the text of the law in effect, the options are significantly narrowed by the irrational and inexplicable termination of the residence permit for other purposes.

We also consider it a good new regulation that highly qualified employees who have outstanding professional qualifications, will be able to apply for a Hungarian Card from March 1, 2024. With this, they will be allowed to work as an employee, and they even might apply for this Hungarian Card as the owner or CEO of a legal entity created to earn income. The competent minister of the Hungarian Government determines the professional qualifications in which such a Hungarian Card can be obtained. In addition to the ministerial list, professional athletes and coaches, entertainers and people working in film production companies can receive a Hungarian Card. In addition to the Hungarian Card, the so-called National Card was also introduced by the new law, which can be obtained by Serbian and Ukrainian citizens who want to work in Hungary. The so-called White Card, i.e. the nomad temporary residency card also remained as an option for foreigners working for a foreign company fully remotely with the help of their computer. What is completely new, however, is that those whose temporary residence in Hungary constitutes the national interest of our country can also apply for a temporary residence permit.

In summary, there are a lot of changes. In many ways, the system has been tightened, but in many ways, it has become more open, especially to investors who have a more serious financial background. What has clearly become more difficult is the long-term stay for those who do not want to work here or start a business… but there are still opportunities. Based on the new law, we have many ideas, moreover, the coming months will determine what kind of official and judicial practice will develop for each new type of residence permit. In our opinion, it has never been more important to use the help of an expert lawyer than it is now, due to the new immigration law, because there are many pitfalls, and we can help find the path that can lead our foreign citizen clients to a Hungarian residence permit.