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The Hungarian government announced an increase in the minimum investment amount required for the guest investor residence permit has taken effect.
Key Points:
Additional Information: The validity period of a visa for guest investors is up to six months. To be eligible, an individual must either invest EUR 250,000 in an investment fund share, acquire of an ownership interest in a residential property with a value of at least EUR 500,000 or make a non-refundable donation of EUR 1 million into a higher education institution with the purpose of supporting scientific research or artistic activities. The option to purchase a residential property with a value of at least EUR 500,000 is only available until Jan. 1, 2025. The original golden visa program ended in 2017 and allowed certain family members of the principal applicant to obtain a dependent residence permit with work authorization. The Hungarian government hopes the revitalization of the golden visa program will increase foreign investment.
This alert has been provided by the BAL Global Practice Group.
Copyright © 2024 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries, please contact copyright@bal.com.
The Hungarian government announced a cap on work and residence permits for foreign nationals in 2024.
Additional Information: The Hungarian parliament recently approved a new immigration law concerning entry and stay of third-country nationals. The new legislation updates key provisions of existing law pertaining to residence permits for foreign nationals, as well as employment of migrant workers. Officials clarified that new residence permit applications are currently not being accepted at the immigration office until Feb. 29. Residence and settlement permits that expire between Jan. 1 and Feb. 29, 2024, will be automatically extended to April 30, 2024.
BAL Analysis: The Hungarian government will limit the number of visas issued to temporary workers from outside the European Union in an effort to protect local jobs. Employers should be aware of the important changes and are encouraged to take note of the quotas and any relevant exemptions and plan their international recruiting and hiring programs accordingly.
The Hungarian parliament approved a new immigration law concerning entry and stays for third-country nationals that will take effect Jan. 1, 2024.
BAL Analysis: Employers should be aware of the important changes on Jan. 1. It is recommended that renewal applications be submitted by Dec. 31 for resident permits that expire in March or April 2024 to avoid potential processing delays due to the implementation of the new regulations and procedures.
Copyright © 2023 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries, please contact copyright@bal.com.
IMPACT — MEDIUM
The Hungarian government recently moved certain immigration processes online for foreign nationals and their family members.
Additional Information: Individuals must submit residence permit extension applications at least 30 days before their permit expires.
BAL Analysis: Hungarian authorities have moved many immigration processes online to streamline and simplify the application process for foreign nationals and their family members. Foreign nationals are encouraged to familiarize themselves with the new online processes before submitting applications.
This alert has been provided by the BAL Global Practice Group. For additional information, please contact berryapplemanleiden@bal.com.
IMPACT – MEDIUM
The Hungarian government has launched a remote worker visa for qualifying foreign nationals to live and work in the country.
BAL Analysis: The program intends to bring more foreign national “digital nomads” to the country to stimulate the economy, create jobs and help the country recover financially from the effects of the COVID-19 pandemic.
This alert has been provided by the BAL Global Practice group. For additional information, please contact berryapplemanleiden@bal.com.
Copyright © 2022 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries, please contact copyright@bal.com.
The Hungarian government has announced that it will increase the minimum wage by almost 20% in 2022.
BAL Analysis: Businesses may see a slight increase in labor costs because of the new minimum wage levels. Employers should take the new minimums into account when planning their 2022 budgets.
Copyright © 2021 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com
IMPACT – LOW
What is the change? Hungary has introduced a new document requirement for visa renewals.
What does the change mean? Applicants must now submit declarations confirming they were in Hungary for no less than 90 days in any rolling 180-day period during their initial stay.
Analysis & Comments: Employees submitting work visa renewals must include the declaration and confirm that they have been in Hungary for at least 90 days out of any 180-day rolling period. Authorities are not issuing renewals without the additional document.
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What is the change? Social security authorities in Budapest have reorganized their processing of social security numbers and issuance of certificates for foreign assignees.
What does the change mean? The government agency will now process requests for social security numbers in eight business days (instead of one day) and will issue the certificates by mail.
Background: Previously, social security authorities in Budapest processed and issued social security numbers within one day, but offices outside the capital took eight days and sent the certificates via post. All offices in Budapest are now adopting the longer processing time.
BAL Analysis: Employees are generally not permitted to work until they are registered with social security authorities. Employers should factor in the additional processing time for new foreign employees’ social security numbers and may need to adjust work start dates accordingly. BAL is working with Hungarian officials to allow a workaround so that employees may start work while their social security number is pending. Employers should discuss these options with their BAL professional in individual cases.
This alert has been provided by the BAL Global Practice group and our network provider Inter Relocation in Hungary. For additional information, please contact your BAL attorney.
Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
The re-election of Prime Minister Viktor Orbán and his Fidesz Party’s large majority win in parliament signal that anti-immigration and Eurosceptic policies continue to hold populist appeal in parts of Europe.
Orbán ran primarily on an anti-immigrant platform, vowing to stop mass migration and blaming Brussels for requiring Hungary to accept refugee quotas. His party’s two-thirds majority in parliament means it has wide latitude to pass constitutional changes.
In a pre-election speech, Orban vowed to make “moral, political and legal amends” against his critics. Among the legislative proposals is a “stop Soros” law, in reference to Hungarian-American billionaire George Soros, that would impose a 25-percent tax on all foreign funding of organizations that assist or advocate for immigrants. It would also allow any organization to be shut down if the government deems it to be a national security risk.
BAL Analysis: As in the recent election in Italy, the successful anti-immigrant rhetoric in the Hungarian election focused mostly on refugees and there is no indication that policies toward high-skilled immigrants will be affected. However, the strong showing by Orbán does follow a global trend of populist opposition to immigration, which runs counter to the European Union’s pro-mobility policies.
This alert has been provided by the BAL Global Practice group and our network provider located in Hungary. For additional information, please contact your BAL attorney.
What is the change? Hungary has implemented new minimum wages for 2018.
What does the change mean? Unskilled workers must earn a minimum of 138,000 forints per month (about US$580). Skilled workers must earn a minimum of 180,500 forints per month.
Background: The 2018 minimum wages represent roughly a 10 percent increase for unskilled workers and a 20 percent increase for skilled workers. The 2017 salary minimums were 127,500 forints gross per month for unskilled workers and 161,000 forints gross per month for employees with at least a secondary school education. In addition to meeting minimum wages, companies that sponsor foreign employees and assignees must meet salary thresholds that are based on average salaries for the specific job.
BAL Analysis: Employers should factor the new minimum wages into their 2018 budgets.