Changes to Hungarian residence permits for non-EU nationals: what this means for retirees and other long-term residents
The Hungarian government implemented a new immigration law on 1 January 2024, significantly altering residency options for third-country nationals (TCNs). One major change was the elimination of the “Residence Permit for Other Purposes”, which previously allowed non-EU citizens, including retirees, to live in Hungary without a specific employment, study, or investment purpose.
Why the change in residence permits?
The new law restructured residence permits into 24 distinct categories, removing flexibility for those who previously relied on the “other purposes” permit. Key reasons for this shift include the following:
Stricter immigration controls: The government aims to regulate residency based on specific economic or national interests, favouring skilled workers, investors, and students over general long-term stays.
Focus on high-skilled migration: Work-related permits for low-skilled labour (e.g., “Guest Worker” permits) now come with restrictions, including no path to permanent residency or family reunification.
Elimination of loopholes: The broad “other purposes” category was seen as too flexible, allowing residency without clear economic contributions.
Impact on retirees and long-term residents
The elimination of the “Residence Permit for Other Purposes” has created significant challenges for retirees and long-term residents who previously relied on this category. Unlike work or investment-based permits, there is no direct replacement for this flexible residency option, leaving many with no clear path to remain in Hungary legally. Those who do not qualify under the new categories—such as the Guest Investor Permit, Hungarian Card, or EU Blue Card—must now leave the country, disrupting lives built over the years.
Compounding the issue, the new permanent residency requirements (effective 2025) include a mandatory test on Hungarian culture and history, administered exclusively in Hungarian. For retirees, many of whom lack fluency, this presents an insurmountable barrier to securing long-term status. As a result, affected individuals face a harsh reality: unless they can transition to another permit type, they must adhere to Schengen visa rules, which limit stays to 90 days within every 180-day period. This forces retirees into a cycle of costly relocations, jeopardising their homes, local economic ties, and stability in Hungary.
Possible solutions
Affected individuals may explore:
- Guest Investor Residency: Requires a EUR 250,000 investment in Hungarian real estate funds (more info HERE).
- EU Long-Term Residence: If eligible after five years of legal stay in another EU country.
- Legal Challenges: Some argue the policy violates EU non-discrimination principles, though enforcement remains uncertain.
The sudden policy shift, without grandfathering provisions, has left long-term residents—particularly pensioners who contribute to the economy through spending, property ownership, and taxes—feeling targeted and unwelcome.
Sources and further information: Helpers.hu, European Commission, Fragomen.com, Global Citizen Solutions