The National Residence Card or the EU Residence Card, formerly known as the National or EU Settlement Permit, is a foreign residency status that provides numerous advantages for third-country nationals who have been continuously residing in Hungary for years. However, as of January 1, 2025, this status can be obtained only after passing a cultural knowledge exam in Hungarian.
The requirements for obtaining the Residence Card and the former Settlement Permit are fundamentally similar, but as of January 2025, a significant new element will be introduced into the legislation: in order to successfully apply for both the National and the EU Residence Card, foreign nationals will need to demonstrate that they meet the conditions of social coexistence, which they can do by successfully passing a Hungarian language cultural knowledge exam. The cultural knowledge exam is based on strict rules and predefined subject areas, including, among others, knowledge of Hungary’s history, law, and politics. Since the provision only comes into effect on January 1, 2025, until the end of 2024, foreign nationals still have the opportunity to apply for a National Residence Card or EU Residence Card without completing the cultural knowledge exam.
Third-country nationals are eligible for a National Residence Card – among other requirements – if they have resided lawfully and continuously in the territory of Hungary for at least 3 years immediately preceding the submission of the application, with ensured housing, livelihood, and healthcare, and they must possess a valid, specified type of residence permit. The requirements for applying for an EU Residence Card are similar, however, a minimum of 5 years of prior residence in Hungary is necessary, with the possibility of including periods spent in other EU member state(s) within these 5 years, subject to certain conditions being met. Both the application processes for the National and EU Residence Cards are lengthy, spanning several months, sometimes even up to half a year, and much depends on whether the application is adequately prepared.
In the case of a successful application, third-country nationals can gain numerous advantages over what a residence permit offers by acquiring either the National Residence Card or the EU Residence Card. This card is issued for a longer period, typically 5 years, although it needs renewal, the status itself (which may be revoked in certain cases) entitles the holder to indefinite residency. Another advantage is that with the residence card, an indefinite-term employment contract can be established with the third- country national employee, thus, from a labor law perspective, the conditions for terminating the employment relationship are more favorable compared to foreign nationals with a residence permit and a fixed-term employment contract. Furthermore, there is no need to apply for a new permit in case of possible changes in the circumstances of employment, such as a new workplace or promotion. It’s also worth mentioning that minor children with a residence card are entitled to access state-provided healthcare services, and as adults – even without employment – this opportunity is available after 1 year following the acquisition of the residence card for a small monthly fee (11,300 forints in 2024).
It is also noteworthy that obtaining the National Residence Card or the EU Residence Card opens the door to applying for Hungarian citizenship in the future. As a general rule, Hungarian citizenship requires living in Hungary for at least 8 years, which must be verified with an address card. While traditional residence permits do not come with an address card (only with an accommodation certificate), the National/EU Residence Card does.
Taking into account all these advantages, if there is a third-country national who has been living in Hungary for at least 3 years, it is worth considering applying for a residence card until this can be done without the need to pass the cultural knowledge exam in Hungarian.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact. Alternatively, if you need further information regarding the national residence card or the EU residence card, or if you require assistance in applying for it, please feel free to contact:
Dénes Megyesi
Director
Kata Magyar
Manager
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Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.
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Further information on Vialto Partners can be found here: www.vialtopartners.com
Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.
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