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November 27, 2023

Hungary's immigration bill proposes new categories of work and residence permits

On 15 November 2023, the Hungarian government introduced a new immigration bill in the parliament, which aims to amend the existing regulations for third-country nationals. If approved, the bill will come into force on 1 September 2024. The proposed bill, if approved, will implement the following changes (i) two separate categories of permits will be available for third-country nationals who seek to work in Hungary: one for skilled ("white collar") workers and another for guest ("blue collar") workers; (ii) permits for skilled workers will authorize holders to reside in Hungary for up to three years (compared to two years for holders of combined work and residence permits); (iii) holders of guest worker permits will be subject to a maximum duration of stay, will not be able to sponsor family members and will not be eligible to apply for permanent residence; (iv) a new type of permit, valid for 10 years, will be introduced for individuals who make qualifying investments in Hungary of at least EUR 250,000; and (v) changes will be made to immigration processes to reduce application processing times.

A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details.


Full text of Tax Alert