Hungary’s recent overhaul of its immigration law, effective from January 1, 2024, signals a significant shift in policies affecting third-country nationals (TCNs) seeking residence permits. This comprehensive law introduces more stringent conditions while expanding the variety of permit types, shifting from the previous 18 to 24 categories, now including 8 specifically targeting employment. One of the most notable aspects is the abolition of the flexible ‘residence permit for other purposes,’ which previously allowed for broader immigration flexibility. This change underscores Hungary’s intent to tighten its immigration controls and streamline the process, making it more predictable yet stricter.
Differentiation Between Work Permits
Work Permits for Highly-Skilled and Low-Skilled Guest Workers
A cornerstone of the new law is the clear distinction made between work permits for highly-skilled workers and those for low-skilled guest workers. The criteria for highly-skilled workers remain relatively stable, aiming to attract qualifications that are beneficial to Hungary’s economy and society. In contrast, the criteria for low-skilled guest workers have become notably restrictive. Only individuals employed by specific employers, hailing from particular countries, and working in designated occupations are eligible for this guest worker permit. The duration for these permits is capped at three years, after which a fresh application is mandatory. This system ensures that the labor market influx aligns tightly with national interests.
Moreover, the implications for low-skilled guest workers extend beyond employment conditions. They are explicitly barred from obtaining permanent residence or seeking family reunification within Hungary. This approach reflects a measured stance to control the demographics of low-skilled labor coming into the country, possibly aiming for a temporary solution to workforce shortages without long-term socio-economic changes. The limitation to specific employers and occupations further narrows the window, ensuring that the employed workforce is precisely what the Hungarian economy demands at any given time.
Implementation Challenges and National Interest Permits
Despite the new law’s initial implementation set for March 1, 2024, delays have plagued its rollout due to the absence of necessary executive decrees and detailed provisions. Consequently, there has been a temporary suspension of new applications from TCNs, save for those deemed in the ‘national interest’ approved by a ministerial decree. This delay adds a layer of uncertainty for potential immigrants and employers who must navigate this transition period with little regulatory guidance available. The suspension underscores the challenges in ensuring all the parts of a comprehensive legal overhaul are ready and functional by the deadlines.
The ‘national interest’ clause introduces a subjective element to immigration, allowing for ministerial discretion in granting permits despite the overarching strict regulations. This could serve as a double-edged sword; on one hand, it provides flexibility for Hungary to fast-track critical skills or investments, but on the other, it might lead to allegations of inconsistency or favoritism. The clause’s real-world impact will largely depend on its application transparency and how often such discretionary power is invoked by the authorities.
New Visa Types and Extended Permits
Introduction of the Golden Visa
Among the various new categories introduced under the revised immigration law, the golden visa or guest-investor visa stands out. Set to launch on July 1, 2024, this visa category provides a long-term residence permit, valid for 10 years with a possible extension for another 10 years, in exchange for a minimum investment of 250,000 EUR in a real estate fund. This visa specifically targets high-net-worth individuals looking to invest substantial amounts into the Hungarian economy, thereby aligning with national economic growth objectives. However, the specific provisions and conditions governing this visa are yet to be published, leaving potential investors in a wait-and-see mode.
The golden visa presents a potentially lucrative opportunity for both Hungary and investors. For Hungary, it promises significant foreign capital influx, contributing to various sectors, particularly real estate. For investors, it offers a secure and long-term route to European residency, potentially facilitating easier business operations and personal movement within the EU. However, the success and attractiveness of this visa will largely depend on the forthcoming detailed regulations, ensuring it balances investor interests with national economic benefits.
Mandates for Residence Permit Renewal
Another vital component of the new immigration law pertains to the renewal conditions for certain residence permits. Applicants must now satisfy the conditions of ‘social coexistence,’ a requirement that involves passing an exam on Hungarian culture. This mandate aims to promote better integration of immigrants into Hungarian society, ensuring that those who wish to remain long-term align more closely with cultural and societal norms. The focus on integration through cultural understanding underscores Hungary’s broader intent to cultivate a cohesive society amidst a more controlled immigration framework.
Additionally, there is a temporary extension in the validity of residence permits set to expire between January 1 and February 29, 2024. These permits will be automatically extended until April 30, 2024, offering some relief during the transition to the new regulatory environment. This extension serves as a buffer, allowing both immigrants and administrative bodies sufficient time to adapt to the new legal requirements. It also reflects a practical approach, recognizing the challenges that abrupt legal changes can impose on all stakeholders involved.
Conclusion
Hungary has recently made significant updates to its immigration law, which will take effect on January 1, 2024. These changes are a substantial shift in policy for third-country nationals (TCNs) who wish to obtain residence permits. The revamped legislation imposes stricter conditions and expands the types of available permits from the previous 18 categories to 24. Notably, eight of these new categories specifically pertain to employment, reflecting a nuanced approach to labor migration.
One of the most impactful changes is the elimination of the ‘residence permit for other purposes.’ This permit previously offered greater flexibility for immigrants with varied reasons for residency. Its abolition highlights Hungary’s aim to tighten immigration control while making the application process more streamlined and predictable, albeit more stringent. This move indicates a clear intent by Hungarian authorities to enforce tougher immigration standards while providing more clearly defined pathways tailored to specific needs, especially in employment.
