In recent years, Hungary has emerged as an attractive destination for foreigners seeking residency. The country’s central location in Europe, relatively low cost of living, rich culture, and strong economy make it a desirable choice for those considering a move. Whether you’re relocating for employment, investment, retirement, or simply a change of lifestyle, Hungary offers various pathways to residency. This guide covers everything you need to know about securing residency in Hungary, including the requirements, procedures, daily living expenses, property acquisition, healthcare, taxes, food, and more.
Residency in Hungary: Overview
Hungary offers several different types of residency permits for foreigners, depending on your specific reason for moving. Here are the main residency types:
- Temporary Residence Permit (Tartózkodási Engedély):
This permit is typically granted for short-term stays and is renewable. It is suitable for individuals moving to Hungary for work, study, family reunification, or business purposes. The validity period for temporary residency permits is up to three years, and the permit can be renewed multiple times as long as the requirements are met. - Permanent Residence Permit (Állandó Tartózkodási Kártya):
After living continuously in Hungary for five years with a valid temporary residence permit, individuals can apply for permanent residency. This status grants greater security and flexibility, including access to many rights enjoyed by Hungarian citizens, such as long-term employment and social security benefits. - National Permanent Residence Permit:
Foreign nationals who have resided in Hungary for an extended period may apply for this permit after three years of living in the country under certain conditions. It is especially appealing to investors, retirees, and individuals with strong ties to Hungary. - EU Blue Card:
Designed for highly skilled professionals, the EU Blue Card offers a pathway to residency for non-EU citizens who secure high-level jobs in Hungary. The card provides fast-tracked access to residency and is typically granted for a minimum of two years. - Investment Residency Program (Hungarian Residency Bond Program):
While Hungary’s investment residency program is currently suspended, it previously allowed foreigners to invest in government bonds in exchange for residency. It is worth keeping an eye on whether Hungary will reinstate or offer similar programs in the future.
Key Requirements for Residency in Hungary
Regardless of the type of residency permit you apply for, several general requirements are consistent across all residency categories. These include:
- Valid Passport:
Your passport must be valid for at least six months beyond your intended stay in Hungary. Ensure that it has sufficient blank pages for visas and permits. - Proof of Accommodation:
You will need to demonstrate that you have a place to live in Hungary. This can be done by submitting a rental agreement, a notarized declaration from a Hungarian host, or proof of property ownership if you are purchasing real estate in Hungary. - Proof of Financial Stability:
Applicants are required to prove that they have sufficient funds to support themselves and any dependents during their stay in Hungary. This can be demonstrated through bank statements, employment contracts, proof of pension, or a letter of sponsorship. - Health Insurance:
You must have valid health insurance coverage for the duration of your stay in Hungary. This is mandatory for all types of residency applications and ensures that you will not be a financial burden on Hungary’s public healthcare system. - Criminal Background Check:
A clean criminal record is essential. Depending on your nationality and the type of permit you are applying for, you may be required to submit a police clearance certificate from your home country or any other country where you have lived for more than six months. - Purpose of Stay:
You must clearly outline the reason for your stay in Hungary, whether it is for work, study, business, family reunification, or retirement. Each type of residency permit has its own specific requirements, so make sure to gather the necessary documentation that supports your reason for moving to Hungary.
Residency Application Process
The application process for Hungarian residency can be broken down into several stages. Here’s a step-by-step overview of what to expect:
- Determine the Type of Visa or Permit You Need:
Before you can apply for residency, you need to determine which permit best suits your situation. If you’re moving for work, business, family reasons, or study, you may first need to apply for a long-stay visa (D-visa) from your home country before transitioning to a residence permit once you arrive in Hungary. - Submit Your Application at the Embassy or Immigration Office:
Depending on where you are applying from, you may need to submit your application at the Hungarian embassy or consulate in your home country, or you can apply once you arrive in Hungary. Make sure you have gathered all the necessary documents, including completed forms, proof of accommodation, financial stability, and health insurance. - Attend the Interview:
In some cases, applicants are required to attend an interview at the embassy or with immigration authorities in Hungary. The purpose of this interview is to assess your eligibility and ensure that your intentions align with the visa or residency type you are applying for. - Processing Time:
The processing time for residency applications varies depending on the type of permit and your nationality. It can take anywhere from 30 to 90 days for a temporary residence permit, while applications for permanent residency may take several months. You can speed up the process by ensuring that all your documents are in order and submitted in a timely manner. - Collect Your Residency Permit:
Once your application is approved, you will receive your residency permit. This card will allow you to live in Hungary for the duration of the permit’s validity. Be sure to keep it with you at all times as it serves as proof of your legal residency status in Hungary.
Cost of Living in Hungary
One of the major advantages of living in Hungary is its affordability, particularly compared to Western Europe. Here’s a detailed breakdown of the cost of living:
1. Housing Costs:
- Renting a Property:
The cost of renting in Hungary depends largely on the location. In Budapest, rental prices for a one-bedroom apartment in the city center range from €500 to €900 per month. In smaller cities or rural areas, the cost can be as low as €300 to €500 per month for a similar-sized apartment. - Purchasing Property:
Foreigners can purchase property in Hungary with relative ease. Prices for real estate vary depending on the location and type of property. In Budapest, the average price per square meter ranges from €2,500 to €3,500, while in smaller towns and rural areas, prices may be as low as €800 to €1,500 per square meter.
2. Utility Bills:
Utilities (electricity, heating, water, garbage collection) for a standard apartment in Hungary typically range from €100 to €150 per month, depending on the size of the apartment and the season. Internet and mobile phone services are affordable, with high-speed internet costing around €20-€25 per month.
3. Groceries and Food:
Hungary offers a wide variety of grocery options, from budget-friendly supermarkets to specialty stores. On average, a couple can expect to spend between €250 and €350 per month on groceries. Basic staples like bread, milk, fruits, and vegetables are relatively inexpensive, and there are plenty of local markets where fresh produce can be found at low prices.
Eating out in Hungary is also affordable. A meal at a budget restaurant will typically cost around €8-€10, while a three-course meal for two people at a mid-range restaurant will be around €30-€40. If you’re a fan of Hungarian cuisine, be sure to try local dishes like goulash, paprikash, and stuffed cabbage.
4. Public Transportation:
Hungary has a well-developed public transportation system, especially in Budapest. A monthly transportation pass in the capital city costs around €30, giving you access to buses, trams, and the metro. In smaller cities, public transportation is less extensive but still reliable. For those who prefer driving, gasoline prices are around €1.35 per liter.
Healthcare System in Hungary
Hungary has a mixed healthcare system that includes both public and private options. All residents, including foreigners, have access to the public healthcare system, provided they pay into the national health insurance scheme. While the public system is comprehensive, many expats opt for private healthcare due to shorter wait times and a higher standard of service.
1. Public Healthcare:
Hungary’s public healthcare system is affordable and offers a wide range of medical services. All employees and residents must contribute to the system through payroll deductions, and once registered, you will have access to general practitioners, specialist care, and hospital services.
2. Private Healthcare:
Private healthcare is also widely available and is popular among expatriates. Private clinics and hospitals often offer English-speaking doctors, shorter wait times, and a higher level of comfort. Private health insurance in Hungary typically costs between €30 and €100 per month, depending on the coverage level.
3. Pharmacies and Medication:
Pharmacies in Hungary are well-stocked, and many medications are available over the counter. Prescription drugs are also widely accessible, and pharmacists are knowledgeable about treatment options.
Education System in Hungary
Hungary offers a solid education system with both public and private institutions. While the language of instruction in public schools is Hungarian, there are also many international schools available, particularly in Budapest.
1. Public Schools:
Public schools in Hungary are free for residents, and education is compulsory for children up to the age of 16. However, the language barrier can be an issue for non-Hungarian-speaking students. Some public schools may offer bilingual programs or extra language support for foreign students.
2. International Schools:
For expatriates and foreign residents, Hungary offers several international schools in cities like Budapest. These schools follow international curricula, including the British, American, and International Baccalaureate (IB) systems. Tuition fees can range from €5,000 to €20,000 per year, depending on the institution and grade level.
Property Ownership in Hungary
Hungary allows foreigners to purchase property with few restrictions, making it an attractive option for expatriates and investors. Here’s what you need to know about buying property in Hungary:
1. Purchasing Process:
Foreigners can buy property in Hungary, though in some areas (such as near borders or in protected regions), they may need to obtain special permission from local authorities. Once you have found a property, a legal contract will be drawn up, and you will need to place a deposit, typically around 10% of the property’s value.
2. Property Taxes and Fees:
Hungary does not impose an annual property tax on homeowners, making it a cost-effective option for those looking to invest in real estate. However, there is a transfer tax of 4% on the purchase price of the property, payable upon acquisition. In addition, there are legal fees, typically around 1-2% of the property value, and notary fees, which vary based on the complexity of the sale.
3. Property Management:
If you are purchasing a property for investment purposes and plan to rent it out, you may want to consider hiring a property management company to handle tenant relations, maintenance, and other day-to-day tasks. Property management fees in Hungary typically range from 8-12% of the rental income.
Employment and Business Opportunities
1. Job Market:
Hungary has a growing economy and offers job opportunities across various sectors, including technology, finance, manufacturing, and healthcare. The capital city, Budapest, is a hub for multinational corporations, and many foreign companies have set up offices there. English-speaking professionals with experience in IT, engineering, finance, or business management often find good employment opportunities in Hungary.
If you plan to work in Hungary, it is essential to secure a job offer before applying for a work visa or residency permit. Your employer will typically handle the paperwork and assist with the visa application process.
2. Entrepreneurship and Starting a Business:
Hungary is a business-friendly country with low corporate taxes, making it an attractive destination for entrepreneurs and investors. The corporate tax rate in Hungary is 9%, the lowest in the European Union, making it an ideal place to start a business.
To set up a business in Hungary, you will need to register your company with the Hungarian authorities and obtain the necessary permits and licenses. Foreigners can start businesses in Hungary, and depending on the type of business, they may also qualify for a business residency permit. Many expats and investors take advantage of Hungary’s favorable tax policies to establish businesses in sectors such as real estate, hospitality, and technology.
Taxes in Hungary
1. Personal Income Tax:
Hungary has a flat personal income tax rate of 15%, which applies to both residents and non-residents earning income in Hungary. This relatively low tax rate makes Hungary an attractive destination for expatriates and foreign investors.
2. Social Security Contributions:
Employees in Hungary contribute 18.5% of their gross salary to social security, which covers healthcare, pensions, and unemployment insurance. Employers are responsible for an additional 17.5% contribution on top of their employees’ salaries.
3. Corporate Tax:
As mentioned earlier, Hungary boasts the lowest corporate tax rate in the EU, at 9%. This low tax rate is a significant draw for entrepreneurs and multinational corporations, making Hungary a competitive business destination.
4. Property Tax:
Hungary does not impose an annual property tax on homeowners. However, a 4% transfer tax is applied when purchasing a property, and this tax is payable by the buyer at the time of the transaction.
Daily Life in Hungary
1. Food and Cuisine:
Hungarian cuisine is renowned for its rich flavors and hearty dishes. Traditional foods like goulash (a beef stew), paprikash (chicken in a paprika-based sauce), and lángos (a deep-fried dough topped with sour cream and cheese) are staples of the Hungarian diet.
Hungary is also known for its wine, with regions like Tokaj, Villány, and Eger producing world-class wines. If you’re a fan of red wine, be sure to try Bikavér (Bull’s Blood), one of Hungary’s most famous wines.
Supermarkets in Hungary are well-stocked with both local and international products. Fresh produce markets are also a great place to buy affordable, high-quality fruits and vegetables. The cost of food is relatively low compared to other European countries, making it easy to maintain a balanced and healthy diet.
2. Social Life and Entertainment:
Hungary offers a vibrant cultural scene with something for everyone. From classical music concerts and art galleries to theater performances and festivals, there is always something happening in Hungary’s major cities. Budapest, in particular, is known for its lively nightlife, with bars, clubs, and cafes open late into the night.
Hungary also has a strong tradition of thermal baths, and many cities have public baths where residents and visitors can relax in the healing waters. Budapest is home to some of the most famous baths, including the Széchenyi and Gellért baths.
3. Cost of Everyday Items:
Living costs in Hungary are lower than in many Western European countries, making it an affordable place to live. For example, a coffee at a local café costs around €2, while a movie ticket is typically €6-€8. Clothing and household goods are also reasonably priced, especially if you shop at local markets or budget-friendly stores.
Final Thoughts
Hungary presents a great opportunity for foreigners seeking residency, thanks to its affordable living costs, growing economy, and high quality of life. Whether you’re moving for work, business, or retirement, Hungary offers a comfortable lifestyle in the heart of Europe. With a range of residency options available, from temporary permits to permanent residency, the process is straightforward, and the benefits are plenty.
With low property prices, a dynamic job market, excellent healthcare, and a rich cultural life, Hungary is a place where many expats have found a welcoming and vibrant home.