A TCN’s pocket guide to success in Hungary

Part One: Navigating the ‘Work Permit’ in Hungary: What are Your Options?

If there is one thing every single TCN (Third Country National) can agree on, it’s this: dealing with the bureaucratic black hole that is the Hungarian residence permit process is a friggin’ nightmare. Especially when you are trying to navigate this process in the context of an employment residence permit.  Seriously. I don’t care who you are, which passport you hold, or how much financial/legal support you are being given. We’ve all come out at the other end of the process with quite a few more gray hairs than we did when we started.

Lucky for you, SVF’s (the Subjective Values Foundation) MIraGE team is here to help.  We’ve spent the past three years listening to what you (as a TCN in Hungary) need to succeed, and providing in-depth trainings on topics like how to get employed or self-employed in Hungary, and how to start your own business in Hungary as a TCN. After completing three successful trainings, we noticed that the TCN community still has a huge need for free and reliable resources that can help break down the different immigration procedures required to work in Hungary.

SO, the SVF MIraGE team has decided to put our collective TCN-Hungarian heads together to create a very basic guide for TCNs navigating residence permit procedures (for employment or other economic activity) for the first time.  

However, before we dive in, we wanted to add a couple of disclaimers. First, we would like to ask that you do not treat this document as a universal guide. There are many factors that can either create additional requirements or exempt specific TCNs from specific criteria.  Second, please note that the present article (and its subsequent p  is intended to help those TCNs who are already living in Hungary and currently have valid residence permits.  If you are a TCN who is not currently sitting in your high-ceilinged Budapest abode, scrolling through your phone on the 4-6, or equivalent, then this article is not for you.   

So, let’s start by going back to the basics: What is a residence permit and who needs one?

A residence permit is “an authorization to reside in the territory of Hungary for a limited duration of more than 90 days within any 180-day period and not more than two years.” (see here the full text). Translation? A residence permit is a document (in Hungary it is a plastic card) which gives you permission to live in Hungary for more than 90 days. A residence permit can give you permission to live in Hungary for a specific amount of time.  If you are not from one of the EEA countries, then you probably need to get a residence permit to live in Hungary for more than 90 days. 

Okay, you know you need a residence permit, but which residence permit should you  apply for?

There are a bunch of different types of residence permits that you can apply for.  If you would like to work in Hungary, you also have multiple options.  However, based on recent trends in residence permit application approvals, TCN anecdotal experience, and the competencies of Hungarian employers and TCNs in Hungary, we suggest you look into the two options we list below.

The first option is the Residence Permit for the Purpose of Employment (Employment RP). This permit is for those “whose purpose of residence is to perform work for or under the direction and/or supervision of others, for remuneration, under employment relationship…” So, what does this mean exactly? Basically, if there is a single employer (who is officially registered as a company operating in Hungary) who would like to employ you in a “traditional” employee-employer relationship, then you should apply for this residence permit. The Employment RP usually has a maximum duration of two years.

The second option is the Residence Permit for the Pursuit of Gainful Activity (Gainful Activity RP). The Gainful Activity RP is for those TCNs who would like “to lawfully perform work in a self-employed capacity for remuneration; or to engage in any gainful activity in the capacity of being the executive officer of a for-profit business association, cooperative or some other legal entity.” In other words, if you would like to do any type of money-making activity in Hungary (for example, working as an entrepreneur using the KATA system or starting your own Kft. or Bt.), you should probably apply for this residence permit as a TCN.

Conclusion?

When trying to figure out which type of residence permit to apply for, remember this: When you are applying for an employment residence permit, you will literally have the name of your Hungarian company printed on the back of your card. When you are applying for a gainful activity residence permit, you will probably not have a single company’s name printed on the back of your residence permit and you will be engaging in economic (money-making) activity that is a bit more complicated.

Now that you know your best options, go do a bit of research! If you decide that the Employment RP is the best option for you, keep an eye out for Parts 2 and 3 of this article. We will be breaking down the specific steps and documents you need to be aware of in order to try to make this process just a wee bit less stressful.

Photo credit: Valentin Antonucci, https://www.pexels.com/hu-hu/@valentinantonucci