On January 1, 2024, Hungary ushered in a new era for its immigration policies with the enforcement of a comprehensive immigration law. This legislation introduces significant changes and more stringent conditions for third-country nationals (TCNs) seeking residence permits in the country. While the implementation was initially set for March 1, 2024, the absence of finalized implementation rules has resulted in a temporary suspension of new applications, except those deemed ‘of national interest’ with ministerial approval.
Transitional Period for Existing Applications:
For applications submitted before December 31, 2023, the old regulations will continue to apply. However, the National Directorate-General for Aliens Policing will refrain from making decisions until March 1, 2024. Residence permits and permanent residence permits expiring between January 1, 2024, and February 29, 2024, will receive an automatic extension until April 30, 2024.
Expanding Categories and Stricter Conditions:
The previous immigration law in Hungary classified residence permits into 18 types, but the new regulation expands this list to 24 types, with a notable focus on employment. Eight of these new types are specifically designated for employment purposes, reflecting the government’s emphasis on regulating the labor market.
Guest Worker Permits: A Shift in Dynamics:
One of the most significant changes lies in the introduction of separate categories for highly-skilled workers, low-skilled guest workers, and a new permit for investors. The guest worker residence permit is now restricted to individuals employed by specified employers, from specific countries, and in predefined occupations. Furthermore, the guest worker permit can only be extended for up to three years, and after this period, a new application is mandatory. This prevents guest workers from obtaining permanent residence in Hungary or pursuing family reunification.
Golden Visa: Attracting Investment:
In a bid to attract foreign investment, Hungary introduces a “golden visa” effective from July 1, 2024. The guest-investor visa and residence permit will be available for a tenure of 10+10 years, requiring a minimum real estate fund investment of 250,000 EUR. However, the detailed provisions for this program are yet to be published.
Cultural Integration Social Coexistence Conditions:
Under the new law, certain residence permits can only be extended if the applicants prove their adherence to ‘social coexistence.’ This involves passing an examination on Hungarian culture, emphasizing the government’s commitment to fostering cultural integration among immigrants.
Hungary’s new immigration law represents a paradigm shift in its approach to welcoming foreign nationals. While aiming to attract investment and skilled workers, the legislation also imposes stricter conditions on guest workers and introduces a novel golden visa scheme. As the detailed provisions unfold, individuals navigating Hungary’s residence permit landscape must stay informed to adapt to the evolving regulatory environment.
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