16 pros and cons of a Hungary residence permit: what you need to know before relocation

11 benefits of Hungarian residence 

Hungarian residence combines long-term legal status in the European Union with financial, professional, and lifestyle advantages. It offers access to the Schengen Area, favourable tax conditions, and a clear pathway to permanent residence and citizenship.

1. Opportunity to get residency by investment

Hungary offers the Hungary Guest Investor Permit for high-net-worth individuals from non-EU countries. Under this framework, applicants who invest at least €250,000 in the Hungarian economy can obtain a 10-year residence permit without the need to secure employment or demonstrate other ties to the country.

The residence permit by investment can also cover the main applicant’s spouse and children under 18.

Neither the investor nor their family members are required to relocate to Hungary or live there permanently.

2. Visa-free travel to the Schengen countries

Residents of Hungary can visit any state of the Schengen Area without visas. They can stay in each country for up to 90 days out of 180.

Hungary’s location in Central Europe makes it a perfect hub for frequent travellers. It takes around 3 hours to drive from Budapest to Vienna, the capital of Austria, and to reach Paris or Milan by plane.

3. Prospect of obtaining permanent residency and citizenship

After 3 years of living in Hungary, foreigners can apply for a permanent residence permit. 8 years after holding permanent residence, they become eligible for citizenship.

The Hungarian passport opens visa-free access to 172 countries, according to the Passport Index 2026.

4. Access to European banks

To open accounts in local and international banks, Hungarian residents typically need only a passport and a residence permit. A Hungarian bank account enables swift money transfers to other EU countries via the Single Euro Payments Area system, or SEPA.

5. Affordable cost of living

Hungary is more affordable than many Western European countries. Household consumption price levels were roughly 25—30% lower than in Germany and France[1].

Monthly expenses excluding rent are around HUF 252,000, or €690, for one person and HUF 905,000, or €2,490, for a family of 4[2]. In Budapest, expenses are approximately 10% higher than the national estimate[3].

6. Business opportunities

Businesses established in Hungary can access the EU single market and provide goods and services across member states without customs duties or routine border checks. The country’s central location also makes it a practical base for European operations, supported by strong road, rail, and air links connecting Western and Eastern Europe.

Hungary has a low corporate tax rate of 9%[4]. For comparison, Italy’s national corporate income tax rate is 24%, with regional tax potentially added. In the Netherlands, the rate is 19% on taxable profits up to €200,000 and 25.8% above that amount.

In addition, Hungary offers a special residence permit for entrepreneurs willing to open a company in the country.

7. Low taxes

Hungary applies a flat personal income tax rate of 15%[4], making it attractive compared with many progressive tax systems in Western Europe. In countries such as Portugal, France, and Germany, the highest marginal income tax rates reach 45—48%.

Many types of investment income in Hungary, including gains from the sale of securities, are also taxed at 15%[4].

8. Public healthcare is available

Foreign residents who are covered by Hungary’s national health insurance system can access publicly funded healthcare under broadly the same conditions as Hungarian citizens. Most medically necessary primary, specialist, and hospital services are covered when provided by a healthcare institution contracted by the National Health Insurance Fund.

Private healthcare is more affordable than in the USA. The average cost of a visit to a private doctor in Hungary is €65, compared to over €100 in the USA. In Italy or Spain, the visit costs around €80.  

9. Safe country to live in

Hungary was ranked 15th out of 163 countries in the Global Peace Index, 2026. The country has a low risk of mugging or natural disasters. Taxis and public transport are also claimed to be safe and reliable.

10. Stable economy

Hungary’s economy is expected to grow faster than those of several Northern and Western European countries in 2026. According to the European Commission’s Spring 2026 forecast, Hungary’s real GDP is projected to increase by 1.8%[5], compared with 1.0% in the Netherlands and 0.8% in Finland.

Inflation has fallen considerably from its 2023 peak of around 17%. The European Commission expects it to average 3.2% in 2026[5].

Higher GDP growth encourages the emergence of new businesses and job opportunities. Additionally, it tends to improve the quality of life for the country’s residents.

11. Quality higher education

Higher education in Hungary follows the Bologna system, which ensures that degrees earned from Hungarian universities are recognised internationally. In the 2026 QS World University Ranking, 10 Hungarian universities are listed among the best universities in the world, including universities of Szeged, Debrecen, and Budapest[6].

What are the disadvantages of living in Hungary?

Living in Hungary also comes with certain limitations that are important to consider before relocating. Differences in income levels, language barriers, regulatory requirements, and climate may affect daily life, particularly for foreign residents. Below are the main disadvantages of living in Hungary that potential residents should take into account.

Low salaries

Salaries in Hungary are relatively low compared with many other EU countries. According to Eurostat, the average full-time adjusted salary in Hungary was equivalent to about €1,540 per month in 2024, compared with approximately €3,320 across the EU.

The same indicator was around €4,480 per month in Germany, €2,810 in Spain, €2,790 in Italy, and €2,070 in Portugal in 2024[7].

More recent national data show that salaries have continued to rise: Hungary’s average gross monthly earnings reached HUF 764,100, or €2,170 in May 2026[8].

English is not widely spoken in Hungary

Around 30% of people in Hungary said they could speak English well enough to have a conversation[9], compared with 47% across the EU. Expats note that it is often difficult to find English-speaking professionals, especially among government officials and healthcare workers. However, this is not the case for large cities like Budapest.

Learning Hungarian may help people feel more integrated into society since it is the country’s only official language. However, Hungarian is considered to be one of the most difficult languages for an English speaker to learn due to its complex grammar and pronunciation.

Employment opportunities are restricted for foreign nationals

Hungary applies restrictions to the employment of third-country nationals, and eligibility depends on the type of residence permit and the applicant’s nationality. Since June 2026, new applications for residence permits for guest workers have been suspended[10], as no third countries are currently designated as eligible for this permit. 

Other employment-based residence permits remain available subject to their respective requirements.

Challenging climate

Hungary has snowy winters, with an average temperature of -3…7°C. On the coldest days, it can drop below -10°C. In spring and autumn, the weather is unpredictable and can change notably within several hours. Summers in Hungary are dry and warm. The average temperature is +23…28°C.

What is the Hungary Guest Investor Permit?

The Hungary Guest Investor Permit, commonly known as the Golden Visa, is a long-stay residence issued to foreign nationals who make an investment in Hungary, as well as to their family members[11]. It is governed by Act XC of 2023[12] and Government Decree 35/2024[13], as amended. Together they define the investment instruments, eligibility criteria, and procedural requirements.

The programme grants a residence permit valid for 10 years, renewable for a further 10 years. It provides a stable legal basis for living and working in Hungary and travelling throughout the Schengen Area.

The Hungary Golden Visa is open to third-country nationals — that is, nationals of countries outside the European Union, the European Economic Area, and Switzerland. EU, EEA, and Swiss nationals already hold free movement rights within the EU and do not require this permit.

How to obtain a residence permit in Hungary by investment

To qualify for the Hungary Guest Investor Permit, an applicant must choose one of the investment options recognised under the programme and provide evidence that the relevant requirements have been met.

There are currently 2 routes:

1. Investment of at least €250,000 in units of a real estate fund.
2. Donation of at least €1,000,000 to an eligible higher education institution.

Fund units must generally be held for at least 5 years. Donations are non-refundable and do not have a holding period.

Applicants must also meet the general requirements, including proving the lawful origin of their funds and providing the documents required by the immigration authority.

The investment is made by the main applicant. Eligible family members can obtain residence permits on the basis of family reunification without increasing the minimum investment amount.

Other types of residence permits in Hungary

Alongside the Golden Visa programme, Hungary offers several other residence permit options, including those for remote workers, students, family members of Hungarian citizens and residents, and entrepreneurs.

For digital nomads

Digital nomads who earn at least €3,000 per month abroad are eligible for the Hungary White Card[14]. The residence permit is issued for 1 year and can be extended for 1 more year. Family members do not obtain the status. The White Card does not allow applying for permanent residency in Hungary.

For employees

Employees are granted a residence permit in Hungary for the duration of their work contract[15]. The usual validity is 1 year. Highly qualified professionals can obtain an EU Blue Card[16], which is issued for 1—4 years. Employees may add their spouse, children, and parents to the application.

For students

Students who are accepted to a Hungarian educational institution get a residence permit for up to 2 years. If the duration of studies exceeds 2 years, the status can be extended for another 1—2 years. A student cannot add family members to their application.

For relatives of Hungarian citizens and residents

Hungarian citizens and residents can bring their family members to live with them. A spouse, parents, minor children, and siblings may apply for a 3-year residence permit on the grounds of family reunification. The status can be extended for another 3 years.

For entrepreneurs

Entrepreneurs who manage a Hungarian company may apply for a residence permit. The most common company type is a limited liability company, known as a Kft, which requires registered capital of about €7,700.

The residence permit is initially issued for up to 1 year and may be extended for up to 2 additional years. Once the entrepreneur has obtained a residence permit, their spouse, minor children, and parents become eligible to apply for residence permits after one year.

How to renew a residence permit in Hungary

To renew a residency card in Hungary, foreigners submit the necessary documents proving they still meet the initial conditions of their status, such as proof of enrolment for students or a work contract for employees.

To renew a Hungary Golden Visa, investors need to reinvest in the country’s economy if

they purchased fund certificates; in this case, they must reinvest at least €250,000.

No reinvestment is needed if investors have initially donated €1,000,000 to an institution of higher learning.

An application must be submitted at least 30 days before the residence permit expires. It is recommended to start working on the renewal at least 60 days before the card expires to have enough time for collecting the required documents.

Renewal applications are processed online through the official website[17], where residents can submit their application and pay the necessary fees.

Within 15 days after submitting the application, foreigners visit the client service of the regional directorate to provide biometric data.

How does Hungary compare with other residency programmes?

Several countries, including Portugal, Malta, Italy, and Greece, offer residence by investment programmes. They differ in terms of eligible options, minimum investment amounts, residence requirements, and the pathway to citizenship.

The table below compares the key features of the programmes.

Residence by investment programmes: comparison

Country	Minimum investment	Permit validity	Minimum stay	Citizenship pathway
Hungary	€250,000	10 years	None	11 years
Portugal	€250,000	2 years	7 days per year	10 years
Greece	€250,000	5 years	None	7 years
Malta	€169,000	Indefinite	None	Separate process
Italy	€250,000	2 years	None	10 years
Latvia	€50,000	5 years	One visit per year	10 years
Cyprus	€300,000	Indefinite	Once every 2 years	8 years

Benefits and drawbacks of the Hungary Golden Visa programme

The Hungary Golden Visa programme offers several advantages, including long-term residence and no minimum stay requirement. However, applicants should also consider the programme’s limitations.

Benefits

1. Long-term permit validity. The permit is issued for up to 10 years and may be extended once for another 10 years, making the entire validity period 20 years. By comparison, Portugal grants residence permits for 2-year periods, and Greece and Latvia for 5 years.

2. Post-approval investment. Investors applying for the Hungary Golden Visa first obtain a D Visa, also known as a Guest Investor Visa. Before issuing the visa, the immigration authority reviews the application. As this assessment takes place before the investment is made, it reduces the risk of a residence permit being refused.

3. No residence requirements. Investors are not required to spend a minimum number of days in Hungary to maintain or renew their residence permit.

4. Investment with return potential. The fund option involves purchasing units in a qualifying real estate fund. Applicants must hold the units for at least 5 years, after which they may redeem or sell them in accordance with the fund’s terms. The investment may also generate returns through distributions or an increase in the value of the fund units. 

However, neither returns nor the repayment of the full invested amount is guaranteed, as both depend on the fund’s performance, fees, and market conditions.

5. Freedom to work and do business. Investors may work in Hungary without restrictions, become self-employed, or manage a Hungarian company without changing their residence status. Family members holding residence permits may also work in Hungary without restrictions.

Drawbacks

1. No property investment option. Direct real estate purchases do not qualify for the Hungary Golden Visa. Although this option was introduced, it never came into effect. The only property-related option is investment in real estate funds. 

2. 5-year lock-in and reinvestment at renewal. Fund units must be held for a minimum of 5 years to maintain residence status. Redeeming or selling them, even partially, results in the loss of the residence permit. Upon renewal, investors who have sold their fund units must make a new investment.

3. Mandatory in-person presence during the application process. Applicants must travel to Hungary to complete the investment, submit their Golden Visa application, and provide their biometric data.

4. Family inclusion has hard legal limits. The programme covers the main applicant’s spouse and minor children. Children over 18, unmarried partners, siblings, and parents are not eligible.

5. Strict source-of-funds checks. Applicants undergo extensive Due Diligence and must provide detailed evidence of the source of their funds. Those whose wealth comes from business sales, cash-based activities, or gifts need to submit additional documents, such as tax returns, sale agreements, and gift records. This makes the process more complex and time-consuming.

Key points about Hungary residence pros and cons

1. Foreigners can obtain a Hungarian residency on several grounds: as digital nomads, employees, students. The most streamlined process is provided for obtaining a Hungary residence permit by investment.
2. Hungarian residents travel visa-free within the Schengen Area. After 3 years of living in the country, they become eligible for a permanent residence permit. In 8 more years, residents can apply for a Hungarian passport.
3. Life in Hungary will be attractive to those who seek a country with an affordable cost of living, a stable economy, and low tax rates.
4. The main disadvantage of living in Hungary may be the strict rules regarding property purchase and employment for foreigners. New residents also need to get accustomed to Hungary’s climate and Hungarian language, which is more commonly spoken in the country than English.
5. To obtain a Hungary Golden Visa, non-EU nationals invest at least €250,000 in the country’s economy. The program provides two investment options, including the purchase of real estate fund units and charitable donation.

Sources

1. Source: According to Eurostat data for 2025
2. Source: According to Numbeo estimates
3. Source: According to Numbeo estimates
4. Source: National Tax and Customs Administration: Tax Booklets
5. Source: European Commission: Economic forecast for Hungary
6. Source: QS World University Rankings 2026: Best universities in Hungary
7. Source: Eurostat: Annual full-time adjusted salary in EU in 2024
8. Source: According to the Hungarian Central Statistical Office
9. Source: European Union’s website: Eurobarometer survey
10. Source: National Directorate-General for Aliens Policing: Legislation on residence permits for guest workers has been amended
11. Source: National Directorate-General for Aliens Policing: Regulations on Residence permit for guest investor
12. Source: Jogtár, Hungary’s online legal database: Law XC of 2023 on the general rules for the entry and residence of third-country nationals
13. Source: Jogtár, Hungary’s online legal database: Government Decree No. 35/2024. (II. 29.) on the implementation of the law XC of 2023
14. Source: National Directorate-General for Aliens Policing: Regulations on White Card — residency for digital nomads
15. Source: National Directorate-General for Aliens Policing: Regulations on Residence permit for the purpose of employment
16. Source: National Directorate-General for Aliens Policing: Regulations on EU Blue Card
17. Source: Enter Hungary: Hungary’s official immigration application portal