Immigrating to Hungary for permanent residency: pros and cons

What are the top 10 benefits of moving to Hungary?

Hungary attracts investors with its low living costs, Schengen mobility, long‑term residence options, safe environment, and high‑quality healthcare and education. It also offers a pro-business climate, a central European location, and rich culture and lifestyle.

1. Diverse residency options

Hungary offers 24 pathways to residency, catering to a wide range of applicants including students, spouses of Hungarian citizens, researchers, entrepreneurs, and digital nomads. 
Investment is another viable route to obtaining a residence permit. Applicants can buy approved real estate fund units from €250,000 or make a €1,000,000 donation to a recognised higher-education institution. The previously discussed direct real estate purchase route did not enter into force.

2. Residing in Hungary

A residence permit grants the holder the right to live in Hungary under certain conditions, depending on the permit type. These typically include maintaining a registered Hungarian address, holding valid health insurance, complying with the purpose of stay such as employment or study, meeting good-conduct requirements, and respecting limits on long absences.

3. Visa-free travel

Hungarian residents can travel without a visa within the EU, the Schengen Area, and other European countries. The list of visa-free destinations includes 35 countries.

4. Path to permanent residence and citizenship

Eligible residents may apply for permanent residence after living in Hungary for the required 3 to 5 years, depending on the permit type. After 11 years of continuous residency in Hungary, eligible residents can apply for Hungarian citizenship[1]. This process involves passing language, history, and civic knowledge exam and taking an oath of allegiance. 

5. Cost of living

The cost of living in Hungary is lower than in many other EU countries. For example, living expenses are about half as high as in Norway or Denmark and roughly 33% lower than in Germany, Austria, or Malta. On average, monthly expenses start at €1,500 for a single person and €3,000 for a family of four, including rent.

Compared with the UK and the US, costs for groceries, transport, and housing are generally lower, so an equivalent lifestyle typically requires a smaller monthly budget in Hungary.

Cost of living: Hungary vs. United Kingdom vs. United States

Item	Hungary	United Kingdom	United States
Bottled water, 1.5 L	€0.40	€1.03	€1.94
Milk, 1 L	€0.90	€1.48	€0.91
Bread, loaf	€1.30	€1.37	€3.15
Eggs, 12	€2.50	€3.42	€3.79
Cheese, 1 kg	€9.20	€9.69	€11.20
Chicken fillets, 1 kg	€5.00	€7.41	€10.54
Apples, 1 kg	€1.40	€2.28	€4.50
Tomatoes, 1 kg	€2.70	€2.85	€4.21
Potatoes, 1 kg	€1.10	€1.14	€2.50
Petrol, per litre	€1.60	€1.58	€0.76
One-way public transport ticket	€1.00	€2.96	€2.15
Utilities for a 2—3 bedroom apartment	€133	€274	€180

6. Banking access

Hungarian residents enjoy access to European banking services, including account opening, bank cards, multi‑currency accounts, and foreign‑currency loans. The average mortgage interest rate ranges from 5.5 to 6% annually.

Residents can hold funds not only in Hungarian forints but also in major international currencies such as euros, US dollars, and, depending on the bank, British pounds or Swiss francs. This allows foreigners to receive income, make international transfers, and save or invest without constant currency conversion. 

Multi-currency accounts are particularly useful for expats, cross‑border workers, and investors who operate in different markets or travel frequently within Europe. 

7. Accessible healthcare

Foreigners employed by Hungarian companies or enrolled in local universities are eligible for state healthcare through the National Health Insurance Fund of Hungary, NEAK, and receive treatment in public hospitals, typically in Hungarian. Many residents pair state cover with low-cost private plans to secure same-week specialist appointments, which can be slower in public systems across the European Union.

Hungarian residents can also use the European Health Insurance Card, EHIC, for medically necessary treatment during short stays in other EU and EEA countries.

Private clinics, which are more likely to have English-speaking staff, charge about €70 for a general practitioner, GP, consultation and €40 for basic blood tests. The prices in Hungary are generally lower than in European countries like Germany, Austria, and Italy, and broadly similar to those in the Czech Republic and Poland.

Hungary is one of Europe’s most popular destinations for medical and dental tourism, offering high-quality care at prices significantly lower than in Western Europe. The country also has one of the continent’s highest densities of thermal and mineral baths, and many physicians routinely include spa and balneotherapy treatments in rehabilitation plans.

8. Quality education

Foreign residents' children can attend Hungarian public and private schools, with some offering international curricula in English. Hungarian university degrees are recognised across the EU, the UK, and the US, facilitating global opportunities for graduates.

9. Pleasant climate

Hungary enjoys a temperate climate, generally free from extreme temperature swings and prolonged rainy periods. Summers are warm, with average temperatures reaching 28 °C from June to August, while winters are mild, with temperatures typically ranging between +3 and +5 °C. Many locals find autumn the most comfortable season.

10. Beautiful nature

Hungary's landscape is perfect for relaxation, travel, and active lifestyles, offering extensive hiking trails through mountains and along rivers. The renowned National Blue Trail traverses the country from the Austrian border to the Slovakian border, covering about a thousand kilometres. 

Activities like cycling, thermal spring leisure, and fishing, particularly in Lake Balaton, the country's largest lake, are popular. Hortobágy and Kiskunság National Parks are also prime spots for birdwatching.

Cons of moving to Hungary

Hungary has certain drawbacks, including a language barrier outside major cities, lower salaries compared to Western EU countries, slow bureaucracy, long waiting times in the public healthcare system, and limited English-language schooling outside Budapest.

Language barrier

Hungarian's distinct nature from the Romano-Germanic languages makes it particularly challenging for English, German, or French speakers. Recognised for its complexity, Hungarian features unique sets of phonemes and cases and lacks grammatical genders, adding layers of difficulty for learners.

As the sole official language, Hungarian is essential for daily interactions, from scheduling doctor's appointments to job seeking or enrolling children in public schools. It’s advisable for those planning to move to Hungary to begin learning Hungarian beforehand to ease these transitions.

In Hungary, a variety of language courses are available through private schools, universities, and diplomatic missions. These courses cater to different proficiency levels and learning intensities. Prices vary but generally start at €150 per semester, making them an accessible option for those committed to overcoming the language barrier.

Risk of losing a resident status

Hungary sets different absence rules for temporary and permanent residence, so it is important to understand how time spent abroad affects each status.

Temporary residence permit holders usually need to remain in Hungary for most of the year, 8—9 months, while investors are exempt from this requirement.

For permanent residents, an uninterrupted absence of more than six months may lead to the withdrawal of the status unless the immigration authority is informed in advance and the reason for the extended stay abroad is accepted.

Limited job market for non-Hungarian speakers

Even highly skilled professionals face a narrow job market if they rely solely on English. Budapest offers good opportunities in IT, shared service centres, finance and multinational firms, but outside the capital many employers require at least conversational Hungarian. This can restrict job mobility and salary progression.

Beyond the language barrier, Hungary limits hiring of non-EU nationals through a labour-market test that requires employers to show no suitable Hungarian or EU candidate is available. It also uses occupation restrictions, annual quotas and approved-country lists for work permits.

Strong seasonality in services

In tourist regions such as Lake Balaton or spa towns, many shops, restaurants and services operate seasonally. Winter closures can make day-to-day life less convenient for expats seeking year-round amenities.

Air quality fluctuations

In certain cities, notably Miskolc, Nyíregyháza, and parts of Budapest during winter, air quality can drop due to heating practices and limited air circulation. Sensitive individuals or families with young children sometimes find this challenging.

Very centralised public administration

Many specialised services, including certain immigration procedures, advanced medical care, official exams, and licensing, are available only in Budapest. Residents in other regions often travel to the capital for tasks that other EU countries decentralise.

Who can immigrate to Hungary and get a residence permit?

Hungarian laws offer 24 types of residence permits, including one for investors and 8 specifically designed for employment, catering to workers with different levels of qualification. 

Other categories facilitate family reunification, marriage to a Hungarian citizen and school enrolment. While requirements vary by permit type, some are common across most categories.

EU and EEA citizens do not need a residence permit to relocate to Hungary; they can live and work in the country freely under EU freedom of movement rules.

EU and EEA nationals

EU and EEA nationals planning to stay in Hungary for more than 90 days must apply for a registration certificate through the Enter Hungary online platform[2], submitting their application by the 93rd day from their entry date.

Required documents for a registration certificate include:

• ID card or passport;
• grounds for staying in the country, such as proof of employment or study;
• proof of accommodation in Hungary;
• proof of sufficient funds or scholarship;
• health insurance.

A fee of HUF 1,000, or €2.50, is charged for each registration certificate, which, for EU and EEA nationals, is valid indefinitely.

Third-country nationals

Third-country nationals, meaning those entering Hungary from outside the EU or EEA, must apply for a visa if their country does not have a visa waiver agreement with Hungary, depending on the purpose of entry. To stay longer than 90 days, these individuals must apply for a residence permit through their consular district.

Nationals from countries with a visa waiver agreement, such as the United States or New Zealand, may stay for 90 days and must then apply for a temporary residence permit.

To apply for a residence permit, third‑country nationals generally need to provide the following documents:

• valid passport covering the full intended stay;
• recent passport-size photographs;
• proof of the purpose of stay such as an employment contract, university admission, or investment documentation;
• evidence of sufficient financial means;
• proof of health insurance;
• Hungarian address or accommodation arrangement;
• clean criminal record certificate, when required;
• completed application forms submitted through the consulate or the Enter Hungary platform.

Guest Investor Residency: 10-year permit options

A Hungarian residence permit can be obtained by making an investment of €250,000 or more. Investors obtain a 10-year residency that can be extended for another decade.

All applicants must maintain a registered address in Hungary and remain in good standing.

Qualifying investments

Investment options include:

1. Purchase of fund units for at least €250,000.
2. Donation to a higher educational institution amounting to €1,000,000+.

Who you can include in the application

Investors may add a spouse or registered partner, children under 18, and financially dependent parents. Each family member must hold a valid passport and meet suitability checks. US citizens may apply for the Hungary Golden Visa only if they also hold a second passport.

Documents you provide

Required documents to apply for the Guest Investor Residency include the following:

• valid passports;
• birth and marriage certificates;
• health insurance;
• criminal record certificate;
• proof of the legitimacy of income;
• bank statements.

Additionally, investors must submit a written intent to meet the investment requirements.

You must also register a residential address in Hungary, which usually means renting or buying accommodation before the residence card is issued.

Processing time and renewal

Processing typically takes around 5 months. At renewal, fund-route investors must still hold qualifying units or reinvest before filing, while donation-route investors do not need to make any new contribution. 

Why investment route is attractive

Investors obtain a long-validity card in one step, enjoy Schengen mobility for short visits across the area and gain the right to live, work and study in Hungary without additional permits. The process is straightforward for investors: a single qualifying investment is enough to secure long-term residence, with no extra administrative steps, stay requirements, or recurring commitments.

Residence options in Hungary: key differences at a glance

Criteria	Guest Investor Residency	Work residence permit	Residence by opening a company	Family reunification permit
Minimum entry cost	€250,000 fund units or €1,000,000 donation	No investment required	€7,700+	No investment required
Typical processing time	5+ months	4—6 months	6+ months	2—4 months
Initial validity	10 years	1—2 years, tied to job	1 year	1—3 years, tied to sponsor
Renewal basis	Maintaining the investment	Active employment and valid contract	Active company, tax compliance, substantiated business activity and income	Ongoing family relationship and shared address
Right to work	Yes, in Hungary	Yes, for named employer	Yes	Needs conversion to work permit route
Minimum stay rule	None	Must reside in Hungary for most of the year	Must reside in Hungary and actively manage the business	Must reside with the sponsor
Path to permanent residence	3 years	Depends on the permit type	Not available	Depends on the permit type of the sponsor
Path to citizenship	11 years in total	Depends on the permit type	Not available	Depends on the permit type of the sponsor
Inclusion of family	Spouse or partner, children under 18, dependent parents	Not included	Spouse, children under 18, dependent parents	Sponsor’s spouse and children

What are the work-related grounds for immigration to Hungary?

Eligible work-related grounds include employment with a Hungarian employer, the EU Blue Card for highly qualified workers, intra-corporate transfers for managers, specialists and trainees, seasonal work, and self‑employment.

For remote workers

Digital nomads can apply for a White Card in Hungary, which permits remote workers to reside and work in the country for up to one year, with the possibility of extending for an additional year.

Eligibility criteria for foreigners include:

1. Being a resident or citizen outside the EU and EEA
2. Working for a company registered outside of Hungary or for clients not based in Hungary.
3. Utilising the Internet or other telecommunications technologies for work.
4. Earning a minimum of €3,000 per month.
5. Having at least €10,000 in their bank account.
6. Possessing health insurance that meets Hungarian requirements.
7. Securing accommodation within Hungary for at least a year.

Applications are to be submitted through a Hungarian embassy or consulate, with total fees amounting to approximately €285.

Upon approval, digital nomads are issued a visa to enter Hungary. They must then apply for the White Card at the National Directorate-General for Aliens Policing within one month of arrival. The expected processing time for the White Card is about 30 days.

For employees

The processing time for an employment residence permit usually ranges between 4 — 6 months. Hungary follows a single-application procedure, meaning that the applicant receives one document, a residence permit card, which also serves as work authorisation. There is no separate work permit issued upon arrival.

After approval, the applicant receives a D entry visa allowing them to travel to Hungary and collect the residence permit card.

Once in Hungary, the foreign worker must obtain the following mandatory documents:

• address card confirming registered accommodation;
• tax identification number and tax card;
• social security number and TAJ card.

The employment residence permit remains valid for the duration of the employment relationship and can be renewed as long as the employment contract is active and all required documents remain up to date.

Family reunification grounds for immigrating to Hungary

Relatives of Hungarian residents and citizens can obtain residence permits through family reunification. These permits are initially valid for up to 3 years and can be extended for an additional 3 years.

Eligible family members for reunification include:

• spouses;
• dependent children;
• dependent siblings;
• dependent parents and grandparents.

However, there are exceptions. For example, if the foreigner is a digital nomad or holds a residence permit for studies, family reunification may not be applicable.

Applications for family reunification must be submitted at a Hungarian embassy or consulate. Required documents include valid passports and proof of family relationships, such as marriage or birth certificates. The standard processing time is 21 days.

Study-related grounds for immigrating to Hungary 

Foreigners wishing to study and live in Hungary must secure an admission letter from an educational entity within the country. Eligibility extends to full‑time students at an accredited secondary or higher educational institution or to those enrolled in preparatory courses at a higher educational institution.

The Hungarian residence permit for students[3] is issued for 1 year. However, if the study program lasts less than a year, the permit's validity will match the program's duration. Permits may be extended for 1 or 2 additional years at a time.

Students should apply at a Hungarian embassy or consulate with the necessary documents, including:

• Hungarian language certificate demonstrating the language proficiency required for their studies;
• proof of accommodation in Hungary;
• proof of sufficient finances to support their stay;
• health insurance.

Initially, students must apply for an entry visa at their local Hungarian embassy. Upon arrival in Hungary, they must contact the competent regional directorate of the National Directorate-General for Aliens Policing to request a residence permit for the purpose of pursuing their studies.

What are the grounds for permanent residency in Hungary?

To qualify for permanent residency in Hungary, most foreigners must have resided there for at least 3 years under a temporary residence permit. Residency must be uninterrupted, meaning no more than 270 days spent outside the country during the last three years, with no single absence exceeding 4 months in a row.

The application must include:

• registration of residence in Hungary, confirmed by a lease agreement or a sale and purchase agreement;
• healthcare insurance;
• proof of financial stability, verified by a bank statement or proof of income;
• criminal record certificate.

The cultural knowledge exam is required for third-country nationals who submit applications for a National Residence Card or an EU Long-Term Residence Card on or after 1 January 2025. 

Exemptions are limited to those who have already passed the same exam in another aliens-policing procedure, children under 14, persons under guardianship by final court judgment, and applicants for a National Residence Card issued in the national interest.

In addition, applicants should demonstrate clear value to Hungary, such as stable employment, business activity or other contributions considered a national interest by the competent minister.

Hungarian permanent residency affords rights such as exemption from needing a work permit.

What are the best places to live in Hungary?

People often choose Budapest to build careers and enjoy its culture, while others move to Debrecen for a quieter big-city rhythm. Students commonly pick Szeged or Pécs, which offer lively university life and sunny, relaxed environments.

Professionals settle in Győr for quick access to Vienna, and families relocate to towns around Lake Balaton to enjoy nature, water, and resort-style comfort.

Budapest

As the Hungarian capital, Budapest serves as the country's economic and cultural heart, home to about two million residents. Annually, it also attracts around 12 million tourists, adding to its vibrant atmosphere.

Straddling the Danube River, Budapest is renowned for its stunning cityscape marked by architectural marvels like the Gothic Revival Parliament, the historic Buda Castle, and the picturesque Chain Bridge. The city's baths, inherited from a long tradition of Turkish occupation, and its thriving arts scene, from classical music to contemporary art galleries, further contribute to its dynamic atmosphere.

Property prices in Budapest rank as the highest across Hungary. For new residential developments, prices can soar to as much as €5,500 per square metre. Meanwhile, renting a one-room apartment in the city centre might cost up to €800 monthly.

Living prices overview:

• 3-bedroom apartment rental is €350—1,100 per month;
• cost of housing is €1,300—5,500 per 1 m²;
• utilities are €100—240 per month;
• private kindergarten is €200—500 per month;
• dinner for two in a restaurant is €35—80.

Property examples in Budapest

Debrecen

As Hungary's second-largest city, Debrecen boasts a population of about 210,000. It offers a contrast to Budapest with its quieter, more relaxed lifestyle, characterised by less congestion and abundant green spaces. 

The city is home to a prestigious university, ranked among Hungary's top 5 for its academic excellence and vibrant student community. Additionally, Debrecen's international airport significantly enhances its connectivity, making it an accessible hub for both residents and visitors.

Living prices overview:

• 3-bedroom apartment rental is €300—750 per month;
• сost of housing is €1,700 —2,500 per 1 m²;
• utilities is €110—180 per month;
• private kindergarten is €150—500 per month;
• dinner for two in a restaurant is €30—75.

Szeged

Szeged, situated in southern Hungary, is strategically located near the borders with Serbia and Romania. It is the country’s third-largest city. 

Its first recorded mention dates back to the 12th century, offering a glimpse into its long-standing historical significance. However, following a devastating flood in 1879, Szeged underwent a comprehensive reconstruction, leaving few historical buildings intact. The city was reborn with a harmonious architectural style, showcasing a commitment to unity and design that characterises its current appearance.

Living prices overview:

• 3-bedroom apartment rental is €330—750 per month;
• cost of housing is €1,500—2,700 per 1 m²;
• utilities is €110—200 per month;
• private kindergarten is €200—370 per month;
• dinner for two in a restaurant is €25—80.

Veszprém

The city stands as one of Hungary's oldest and most serene cities, located just 110 km from Budapest and a short 15 km from the scenic Lake Balaton. Home to a population of 60,000, it merges tranquillity with its status as a bustling tourist centre. 

Renowned as a cultural hub, Veszprém hosts a variety of festivals celebrating contemporary literature, opera, blues, jazz, and both light and traditional Hungarian cinema. These events draw enthusiasts from across Hungary and beyond, reflecting the city's vibrant cultural scene. 

The Hungarian government's significant investment in urban infrastructure development highlights its commitment to enhancing Veszprém's historic charm and modern appeal.

Living prices overview:

• 3-bedroom apartment rental is €450—880 per month;
• cost of housing is €1,500—2,500 per 1 m²;
• utilities is €140—160 per month;
• private kindergarten is €200—370 per month;
• dinner for two in a restaurant is €30—65.

Sopron

Sopron stands as a picturesque city on the border between Hungary and Austria, just 75 km from Vienna, which can be reached in about an hour by car. A journey to Budapest from Sopron is equally convenient, taking approximately two and a half hours. 

Reflecting its dual heritage, the local population is proficient in both Hungarian and German, creating a truly bilingual community. This linguistic blend is evident in daily life, as official documents, signs, and street names are presented in both languages, ensuring a welcoming atmosphere for speakers of either language.

Living prices overview:

• 3-bedroom apartment rental is €450—750 per month;
• cost of housing is €2,200—3,000 per 1 m²;
• utilities is €40—150 per month;
• private kindergarten is €200—225 per month;
• dinner for two in a restaurant is €20—45.

Siófok

Siófok, a charming resort town nestled on the shores of Lake Balaton, is a premier destination attracting tens of thousands of tourists annually, despite its modest permanent population of just five thousand. 

Renowned for its vibrant beach life, cultural festivals, and scenic beauty, Siófok offers a perfect escape into nature's embrace. It is well-connected, lying on the European route E71 that links Budapest with Zagreb, making it easily accessible by both road and rail. A comfortable train journey can whisk you from Budapest to Siófok in just two hours.

Living prices overview:

• 3-bedroom apartment rental is €300—750 per month;
• cost of housing is €1,700—2,500 per 1 m²;
• utilities is €100—120 per month;
• private kindergarten is €100—210 per month;
• dinner for two in a restaurant is €40—50.

How do Hungary’s National and EU Residence Cards differ?

Hungary’s immigration law introduces two permanent residence categories with different timelines and obligations: the National Permanent Residence Card and the EU Long-Term Residence Card.

The National Permanent Residence Card is available after 3 years of lawful stay[4], while the EU Long-Term Residence Card requires 5 years[5] and compliance with Directive 2003/109/EC[6], including sufficient income, health insurance, and any basic integration requirements.

National Card and EU Residence Card: comparison

Feature	National Permanent Residence Card	EU Long-Term Residence Card
Minimum residence in Hungary	3 years	5 years
Good-conduct requirements	Clean record proved by the certificate of good conduct	Clean record proved by the certificate of good conduct
Proof of local ties	Stable income, registered address, integration, value to Hungary such as employment, business activity, or clear tax contribution	Stable income, registered address,  sufficient resources
Rights	Indefinite right to live, work, and study in Hungary	Indefinite right to live, work and study in Hungary, with a 2-year stay in another EU state allowing long-term residence there
Grounds for revocation	Loss of eligibility, security concerns, excessive absence, fraud	Same core grounds as the National Card, plus EU‑level rules
Absence rules	Absence over 6 months may lead to withdrawal unless approved in advance	12 months outside the EU may result in loss of EU long-term status
Family reunification	Under standard reunification rules, with permits for relatives valid for up to 3 yeas	Under standard reunification rules, with permits for relatives valid for up to 5 yeas
Validity	Indefinite	Indefinite
Renewal	On expiry or data changes	On expiry or if details change

What are the official requirements for Hungary’s cultural exam for permanent residence?

If you apply for a National Residence Card or an EU Residence Card on or after January 1st 2025, you must pass a Hungarian cultural knowledge exam unless you fall under a narrow exemption[7]. 

Who must take the exam

Third-country nationals applying for a National Residence Card or an EU Residence Card from January 1st, 2025. Exemptions are limited to applicants who have already passed the same exam in another aliens‑policing procedure, children under 14, and persons under guardianship by final court ruling.

What the exam tests

A written exam in Hungarian covers basic language and civic knowledge: national symbols and holidays, key events in Hungarian history, notable cultural figures, core state institutions, citizens’ rights and duties, and everyday life in Hungary. An official topic list is provided in the factsheet[8]. 

How and where to register for an exam

Foreigners apply to the Government Office of the Capital City Budapest, GOCCB, using the designated application form. It can be submitted in person or by post. GOCCB notifies applicants of the exam date at least 15 working days in advance.

Exam format and fees

The exam is held in Budapest. Candidates may attempt it up to 3 times, and after three unsuccessful attempts no further registrations are permitted.

The fee is HUF 20,000, or €50, per sitting and must be paid by bank transfer to the Government Office of the Capital City Budapest. The official exam record issued to the applicant must be submitted with the permanent residence application.

How does the taxation system work in Hungary?

Hungary’s taxes are simple and flat, but expats should align Hungarian rules with those of their home country to avoid double taxation and penalties.

Who pays taxes

A person becomes a Hungarian tax resident if they spend 183+ days in Hungary in a year or if Hungary is their centre of vital interests. Residents are taxed on worldwide income, while non‑residents are taxed only on Hungarian‑source income.

Common expat situations often need extra care:

1. Running a business: a Hungarian company pays 9% corporate income tax and may owe local business tax.
2. Letting property: rent from Hungarian real estate is taxable in Hungary, and certain expenses can be deductible.
3. Investing and crypto: stock options, carried interest, and digital assets have specific rules; check the tax treatment in Hungary and in your home country, and align filings using the relevant double-tax treaty or foreign tax credit.
4. Information exchange: Hungarian banks and brokers report under the Common Reporting Standard, so your home authority may receive data automatically.

Tax rates

Hungary’s tax rates are generally low: personal income tax is 15%, capital gains and most dividends are 15%, employee social security is 18.5% and corporate income tax is 9%. Local business tax may apply to self‑employed people and companies and is set by municipalities.

How to pay taxes

Before your first filing season, make sure you register properly: obtain a Hungarian tax identification number, register your address and keep payslips, invoices and bank statements for your records. Annual filing for individuals is usually due in spring, and pre‑filled returns are common, though you remain responsible for accuracy.

Double taxation treaties

Double tax treaties help most expats avoid paying tax twice. Hungary has more than 80 treaties that allocate taxing rights and allow foreign tax credits. If you claim treaty relief, keep a certificate of tax residence from the relevant country and coordinate social security with an A1 certificate when you work across borders.

Tax obligations for the US, UK, and EU nationals

US, UK, and EU nationals who relocate to Hungary face different cross-border tax rules, because each system defines tax residence differently and applies its own reporting obligations. In all cases, Hungary will tax you on your Hungarian-source income, and once you become a Hungarian tax resident it will tax your worldwide income, with relief provided through double-tax treaties.

The key differences relate to how your home country treats you after you move and what reporting you must continue to file abroad.

For US nationals

For US citizens and Green Card holders, worldwide income remains taxable in the United States even while living in Hungary. You should claim the foreign earned income exclusion or foreign tax credits where eligible and match these with your Hungarian return. 

US persons must also comply with two international reporting regimes:

1. FBAR requires a report if the total of your non-US bank and financial accounts exceeds $10,000 at any point in the year.
2. FATCA Form 8938 requires a report if specified foreign financial assets exceed the thresholds for taxpayers living abroad, starting from about $200,000 for single filers on the last day of the year and higher for joint filers.

For UK nationals

The United Kingdom uses the statutory residence test to determine residence; split-year treatment may apply in the year of arrival or departure.

If you remain a UK resident while spending time in Hungary, the UK can still tax your worldwide income, and the UK-Hungary treaty then determines relief. Coordinate national insurance and Hungarian social security with an A1 certificate.

For EU citizens

EU nationals benefit from free movement, yet tax follows residence: if you become resident in Hungary, Hungary taxes your worldwide income with treaty relief against your home state. Posted workers should obtain an A1 certificate from their home country; without it, you may need to contribute to the Hungarian system.

A practical way to stay compliant is to map all income streams early and decide whether to claim foreign tax credits or treaty exemptions. Keep certificates of residence, A1 forms, dividend vouchers, and fund statements for the statutory period, and consider engaging a cross-border tax adviser if you hold foreign funds, equity awards or operate a business in more than one country.

Moving to Hungary: essential insights

1. Hungary offers various residence permits, each with specific validity and renewal conditions. Residence permits enable visa-free EU and Schengen Area travel, access to European banking and healthcare, and globally recognised education for children.
2. Investment of at least €250,000 grants an immediate 10-year residence status, renewable for another decade.
3. Obtaining permanent residency requires a minimum stay of 3 years, leading to citizenship after an additional 8 years.
4. Living and housing costs are lower than in many EU countries, with average monthly expenses of €1,500 for individuals and €3,000 for a family of four. 
5. Among the best places to live in Hungary are Budapest for careers and culture, Debrecen and Győr for a calmer urban lifestyle and Szeged, Pécs or towns around Lake Balaton for family-friendly living and a warmer climate.

Frequently Asked Questions

Sources

1. Source: Naturalisation after long-term residence, Act LV of 1993 on Hungarian Citizenship 
2. Source: Applications filed through Enter Hungary
3. Source: Requirements for student residence permit
4. Source: EU Long-Term Residence Card, Hungarian immigration authority
5. Source: National Residence Card, Hungarian immigration authority
6. Source: Status of long-term residents, COUNCIL DIRECTIVE 2003/109/EC
7. Source: Cultural knowledge exam, EC notice announcing the 2025 requirement
8. Source: Hungarian cultural knowledge exam — factsheet