Tightening immigration regulations

With the new regulations, the government introduced stricter rules on residence permits for third-country nationals for employment purposes and residence permits for guest workers, but also provides exceptions.

Government Decree 450/2024 of 23 December 2024 – Tightening on the basis of nationality

The Governmental Decree defines significantly stricter and now covering both types of permits which third-country nationals may be employed with the above-mentioned types of permits in Hungary:

1. Nationals of countries listed in Annex 1 (currently only Georgia and Armenia) with which Hungary or the EU has concluded readmission agreements. The government may revise the list of countries if necessary.
2. Countries that have an organization or office recognized by the state in Hungary, which undertakes that in case of non-compliance with Hungarian and EU legislation, their citizens leave the territory of Hungary and return to such country. The Foreign Minister issue a communication in the Official Gazette listing the countries that meet this condition. The list, published on 9 January 2025, includes the Republic of the Philippines alone.

The Governmental Decree also provides for exceptions to the stricter regulation. In the case of exceptions, it is also possible to take into account the extended list of countries set out in Government Decree 180/2024 (VII.8.) in force on the last day of 2024 in connection with guest worker residence permits, while the Government Decree 450/2024 does not apply to residence permits for employment purposes. In practical terms, this means that, in exceptional cases, permits for both types of residence permits can be applied for under the previous rules in force on 31 December 2024 in the following cases:

1. Applications for employment or guest worker residence permits submitted by third-country nationals after the entry into force of the Government Decree, where the individual filing the application held, as of 31 December 2024, a valid residence permit for employment issued under the previously applicable immigration law.
2. Applications for extensions or reissuance submitted by third-country nationals who, as of 31 December 2024, hold valid employment or guest worker residence permits issued under the currently applicable immigration law, after the entry into force of the Government Decree.
3. For applications pending on 31 December 2024, the previous rules shall also apply. Cases can be considered pending in two cases:

         a)    The administrative service fee was paid no later than 31 December 2024 or,

         b)    in the case of employment permits, the consular officer received the application by by 31 December 2024.

51/2024 of 23 December 2024 NGM Regulation – Tightening the maximum number of permits that can be issued

The new regulation reduces the maximum number of employment residence permits and guest worker residence permits that can be issued in 2025 from last year’s 65,000 to 35,000. The maximum number available under the Regulation was established on the basis of the average number of vacancies measured by the Central Statistical Office for the four quarters preceding the publication of this Regulation.

To our knowledge, there is no official information available on the exact number of permits issued by a given day of the year, so it is also unknown when the total number of issued permits will reach 35,000 during 2025. This lack of information may pose a risk from an employer's perspective, especially if the activity heavily relies on guest workers.

Summary

We have always advised our clients to avoid the permits in question whenever possible, due to the significant disadvantages associated with them. Numerous other types of residence permits are available based on nationality, higher education, special expertise, salary range, or employment background, or a combination of these.

The tightening regulatory environment further emphasizes the need for thorough research and preparation regarding the permits that can be applied for before starting the immigration process. We remain at our clients' disposal to assist with this and with the application for the selected permit type.