Immigration
Hungary | Will the new immigration law affect the status of senior and executive-level third country national employees?
Summary
The short answer is yes, it may affect, and not necessarily in a reassuring way. This is because the Hungarian Parliament approved the legislative proposal aimed at re-regulating the stay of third-country nationals in Hungary on 12 December 2023. The crucial part of the originally submitted legislative proposal, which was initially scheduled to take effect in September 2024, came into force on January 1, 2024.
The aim of the new immigration law is to re-regulate third country nationals’ residence in Hungary by introducing new categories such as “guest worker” for labourers with limited rights compared to other categories available for highly qualified employees. By focusing on the latter category, we identified certain situations that are not, or not treated appropriately by the new regulation.
The detail
If a third country national planning to stay and work in Hungary does not have a diploma, family members might not be able to join him/her according to the provisions of the new act.
It is an open question how managing directors/ CEOs, who are not owners and, could apply for a residence permit that would allow them to work in Hungary in a local-contract setup and whether their family members could join them.
The feasibility of assignments not qualifying for intra-corporate transfers should be carefully analysed.
The general “other” residence permit category is no longer available based on the new immigration regulation. Such a category would have been an option when for example a cross-border commuter intends to reside in Hungary while working cross-border in another country.
While the new law is well-structured and transparent, it can still change over time, and certain questions may be clarified in the government decree on the implementation of the law.
For further details please read our detailed update here.
Contact us
Vialto will continue to monitor developments and the possible impact for businesses and employees. For further details on the above, please reach out to your usual Vialto Partners contact or alternatively contact:
Dénes István Megyesi
Director
Kata Magyar
Manager
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Contact us on the following address: me-immigration@vialto.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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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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