Hungarian bureaucracy survival guide: Residency, taxes, insurance
Navigating Hungary’s bureaucracy can be daunting for newcomers, but understanding the essentials of residency, taxes, and insurance is key to a smooth transition. Here’s a comprehensive guide to surviving (and thriving) in Hungary’s administrative landscape.
Residency: Your gateway to Hungary
Who needs a residence permit?
Non-EU/EEA nationals must secure a residence permit for stays longer than 90 days (read our guide HERE). There are over 20 types of residence permits, tailored for purposes such as employment, entrepreneurship, study, family reunification, and investment (read more on HungaryGoldenVisa). Not all permit types lead to permanent residency, so choose carefully based on your long-term plans.
Application basics
Applicants must provide:
- Valid passport
- Completed application form
- Recent photos
- Proof of medical insurance (minimum EUR 30,000 coverage)
- Proof of Hungarian address
- Evidence of sufficient financial means (bank statements, income certificates)
- Declaration of readiness to depart if the permit is refused
Applications are managed online via the Enter Hungary website, and processing typically takes around 30 days.
Pathways to permanent residency
National permanent residency: Available after 3 years of continuous residence with a valid permit, provided you haven’t left Hungary for more than 4 consecutive months or 270 days in total. Applicants must also demonstrate that their stay is in Hungary’s national interest.
EU long-term residency: Granted after 5 years of residence, with no need to prove a national interest (read more on Immigrant Invest).
Golden Visa route
Investing at least EUR 250,000 (or EUR 500,000 in real estate) can grant a 10-year residence permit, extendable if the investment is maintained. After 3 years, investors may apply for permanent residency. Read our Golden Visa guide HERE.
New for 2025: Cultural exam
From 2025, third-country nationals applying for permanent residency must pass a Hungarian cultural exam, demonstrating their intent to integrate. There are no exemptions for age or other conditions. Read more on Helpers.hu, or read our guide HERE.
Special note on employment permits
As of January 2025, only Armenian and Georgian citizens are eligible for guest worker or employment residence permits, unless new bilateral agreements are signed. Read more HERE.
Taxes: What you need to know
Personal income tax
- Flat rate: 15% for residents and non-residents on Hungarian-source income.
- Residents are taxed on worldwide income, while non-residents pay tax only on Hungarian-sourced income.
- The tax year aligns with the calendar year.
Social security contributions
- Employees: 18.5% of gross wages (10% pension, 4% healthcare, 3% unemployment, 1.5% work accident insurance)
- Employers: 13% social contribution tax on gross wages
- Total deductions from employee gross wages: 33.5%
Family and other allowances
From July 2025, the monthly family tax allowance increases to HUF 100,000 for one child, HUF 200,000 for two, and HUF 330,000 for three. These amounts rise further in 2026.
Other tax changes for 2025
- Reduced 5% VAT rate on new residential property sales until the end of 2026
- Annual vehicle and company car taxes indexed to inflation
- Local taxes, excise, and duty rates adjusted for inflation and EU requirements (read more HERE)
Insurance: Health and beyond
Compulsory health insurance
All residents must have health insurance, managed by the National Health Insurance Fund (NEAK). Contributions are deducted from salaries or paid directly by the self-employed. This covers essential medical care, including GP visits, specialists, hospital stays, and some medications.
For expats and third-country nationals
- Proof of health insurance is required for residency applications, with coverage of at least USD 50,000.
- Public healthcare is accessible after 24 months of contributions, or immediately if you pay the full 24-month premium upfront.
- Monthly contributions (2025): HUF 145,400 for adults, HUF 87,240 for minors or students.
- Private insurance is recommended for faster access, English-speaking doctors, and broader coverage, especially for those living outside major cities or seeking higher service standards.
International insurance
International plans offer flexibility, access to private clinics, and coverage for treatments not included in the public system. Many expats and even locals opt for private insurance to avoid long wait times and outdated public facilities.
Additional Points
- Dental care is only partially covered by public insurance; private coverage is advisable for comprehensive dental services.
- Emergency care is always provided, but full access to services may be limited during the initial coverage period for new residents.
Hungary’s bureaucracy can be complex, but with the right preparation (securing the correct residence permit, understanding your tax obligations, and ensuring robust health insurance), you can navigate it successfully. Stay updated on legislative changes, as rules evolve frequently, especially for non-EU nationals and investors. For personalised advice, consult local experts or legal professionals before making major decisions. Welcome to Hungary, and good luck on your journey!
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