Hungarian village introduces settlement fee specifically for foreign workers from the Far East

A small village in eastern Hungary has sparked controversy by explicitly stating it wants to prevent Far Eastern foreign workers from settling in the community, introducing a substantial financial barrier to discourage their arrival.

The local council of Sáránd, near to Debrecen, passed an ordinance last week that requires newcomers to pay 500,000 forints (approximately €1,200) as a “settlement contribution fee” before they can register their residence. While such fees exist in other Hungarian municipalities, what makes Sáránd’s case particularly notable is the openly stated motivation behind it. The village currently has 2,100 inhabitants.

Targeting foreign workers from Asia

According to HAON, Mayor András Dézsi made the policy’s intent clear in a public comment on the municipality’s social media post. While emphasising that the village welcomes everyone with good intentions, he explicitly stated:

“We want to avoid the concerns that have arisen among our residents as a consequence of Far Eastern guest workers moving in. In 2023, we promised to do everything in this regard.”

The mayor added that the local government doesn’t aim for financial gain, and that 99 percent of “well-intentioned families choosing Sáránd” will likely receive exemptions from the fee. However, the message about who is and isn’t considered “well-intentioned” appears unmistakable.

How the system works

The new ordinance, which takes effect on 1 March, introduces restrictions in two main areas:

Property purchases: Local residents and the municipality itself will have pre-emptive rights to purchase properties before they can be sold to outsiders.

Address registration: Before registering a new address at the government office, newcomers must first obtain a certificate from Sáránd’s mayor’s office. This requires either proof of exemption or payment of the 500,000-forint settlement fee.

Who gets exempted?

The fee can be waived for those who:

• Were born in Sáránd
• Currently live in the village
• Meet other criteria to be determined by the local council

According to Mayor Dézsi, the council will use its “wisdom” to grant exemptions to most families with good intentions, supporting them “from cradle to grave.”

Unusually high fee

The 500,000-forint settlement fee is exceptionally high compared to the national average in Hungary. While other municipalities have introduced similar “local identity protection” ordinances, Sáránd’s explicit targeting of a specific ethnic group in the justification represents a new and troubling development.

The mayor framed the policy as a way to “at least get to know the families who choose Sáránd as their home,” calling it an “honour” that people envision their future in the village. However, the stated purpose of alleviating residents’ “concerns” about Far Eastern foreign workers moving in reveals a discriminatory intent that goes beyond simple community planning.

What we know so far:

Hungary’s labour market tightens: Guest workers become essential due to shrinking workforce

Hungary’s 2026 guest worker quota set – and many may be disappointed

Context

Hungary has seen an increase in Far Eastern foreign workers, particularly from Vietnam and other Asian countries, in recent years as businesses struggle with labor shortages. Some rural communities have expressed resistance to this demographic change, but Sáránd appears to be among the first to codify such resistance into official policy with explicit ethnic targeting.

The ordinance raises questions about discrimination and equal treatment under Hungarian and European Union law, though it remains to be seen whether any legal challenges will emerge.

Incidentally, this kind of hostile attitude is unnecessary, as Hungarian immigration laws are currently very strict and tend to prioritise residence over settlement and citizenship.

Read more news about the labour market in Hungary.