KEY PROVISIONS OF THE NEW IMMIGRATION ACT - PART I
1. Introduction
On December 21, 2023, Act XC of 2023 on General Rules for Admission and Right of Residence of Third-Country Nationals (hereinafter: "New Immigration Act") was published in the Hungarian Gazette, replacing in its entirety the prior act, Act II of 2007 on the Admission and Right of Residence of Third-Country Nationals (hereinafter: "Prior Immigration Act").
Most of the rules of the New Immigration Act came into effect on January 1, 2024, but we must point out that, under general rules, the administration processing of immigration cases was only resumed on March 1, 2024. Until this date, no applications for residence permits or residence cards may have been submitted, and the processing of the earlier submitted applications was suspended.
The New Immigration Act applies to the entry into and residence in Hungary of foreign nationals (hereinafter: "third-country nationals") who do not have the right of free movement and residence or the right of asylum.
2. Fundamental changes
One of the main features of the New Immigration Act is that it classifies the residence of third-country nationals based on the length of stay, distinguishing between
- a short-term stay;
- a long-term stay; and
- a permanent stay in Hungary.
It must be emphasized that the New Immigration Act exhaustively defines the legal bases of residence based on these periods. This also means that the possibility of "other purpose" residence permits without specific conditions based on equity will no longer be available.
Therefore, in contrast to the previous practice, individuals who do not qualify for any of the legal bases will no longer be able to apply for a residence permit based on a general "other purpose"; they must meet the requirements of a specified legal base.
3. Short-term stay
A short-term stay is a planned stay in Hungary of not more than 90 (ninety) days in any 180 (one hundred and eighty) day period, allowing a third-country national to enter Hungary under the conditions set out in Regulation (EU) 2016/399 of the European Parliament and the Council.
4. Long-term stay
Long-term stay means any planned stay in Hungary of more than 90 (ninety) days in any 180 (one hundred and eighty) days, which is for a specific purpose and subject to authorization, for a limited period, and related to the legal bases defined in the new act. The long-term stay may be limited depending on nationality, number of persons, or occupation. The New Immigration Act groups long-term stay legal bases into subcategories, the most important of which are described as follows.
4.1. Residence Permits for Business or Investment Purposes
Guest self-employed person: must be legally self-employed, engaged in an activity for remuneration, or a Managing Director of a company, cooperative society, or other legal person established for profit-making purposes.
The validity of a guest self-employed person's residence permit is limited to 1 (one) year, renewable for a maximum of 2 (two) years, up to 3 (three) years from the date of the first issue.
Family reunification is excluded based on this residence permit.
Visitor investor (so-called "Golden Visa"): Reintroducing this residence permit is an essential innovation of the New Immigration Act. The primary condition for this is the fulfillment of one of the following investments:
- the acquisition of at least EUR 250,000 (approximately HUF 97 million) of real estate investment fund units registered by the National Bank;
- acquiring ownership of residential property in Hungary with a value of at least EUR 500,000 (approximately HUF 194 million); or
- making a cash donation of at least EUR 1,000,000 (approximately HUF 388 million) to an institution of higher education maintained by a public interest trust.
The maximum validity period of the visitor investor residence permit is 10 (ten) years, renewable for the same purpose only for a maximum period of 10 (ten) years.
Family reunification is possible based on this residence permit.
4.2. Residence Permits Linked to a Specific Qualification
The Hungarian Card can be issued to a person with tertiary professional qualifications who:
- perform actual work for another person for remuneration;
- work as an executive officer of a company, a cooperative society, or any other legal person established for profit-making purposes; or
- is employed based on an employment relationship with an employer established in a third country under an agreement with a domestic employer.
In addition, the applicant must have a specific qualification as defined in ministerial communication or be a professional sportsperson, coach, performer, or film producer. This residence permit may be granted for a maximum period of 3 (three) years, renewable for 3 (three) years at a time.
Family reunification is possible based on this residence permit.
An EU Blue Card can be issued to a person who:
- has the tertiary professional education or advanced professional qualification required for the occupation; and
- has appropriate healthcare and residence conditions.
The EU Blue Card may, generally, be issued for a minimum period of 2 (two) years and shall be valid for a maximum period of 4 (four) years, renewable up to 4 (four) years at a time.
Family reunification is possible based on this residence permit.
Based on an intra-corporate transfer, a third-country national who is an executive manager, expert, or intern with the appropriate professional qualifications and experience and who resides outside the territory of the Member States of the European Union at the time of application and who has been intra-corporately transferred may be entitled to this residence permit.
It must be demonstrated that Hungary has the longest intra-corporate transfer period for residence in the Member States of the European Union territory. The applicant must also have appropriate employment, healthcare, and residence conditions.
The validity period of the residence permit may be at least 1 (one) year or the duration of the transfer (whichever is shorter), which is a maximum of 3 (three) years for executive employees and experts and 1 (one) year for interns.
Family reunification is possible based on this residence permit.
A Corporate Card may be requested by an employee or executive officer whose employer is one defined in a Government Decree or who has concluded a settlement agreement with such an employer and who:
- would work as an executive officer of a company, a cooperative society, or any other legal person established for profit-making purposes, or would be engaged in an actual activity in addition to this; or
- would perform actual work for another person for remuneration.
The Corporate Card entitles the holder to stay in Hungary for a fixed term of up to 4 (four) years and may be renewable for a maximum of 4 (four) years at a time.
Family reunification is possible based on this residence permit.
The contents of this document do not constitute legal advice and are not a substitute for expert advice.
If you have any further questions about the New Immigration Act or the renewed immigration procedure, please feel free to contact us and request the assistance of KNP LAW experts.
