Starting 1 January 2025, only citizens of Georgia and Armenia will be eligible for residence permits for the purpose of employment and guest worker residence permits. This marks a significant tightening of the previous rules, which allowed citizens of 10 countries to obtain guest worker residence permits and had no such restrictions for residence permits for the purpose of employment. Although these changes do not affect currently valid permits, the new rules will apply to all new permit issuances
As of 1 January 2025, Government Decree 450/2024 (XII. 23.) on the employment of guest workers in Hungary has come into effect. According to the decree, only citizens of the countries listed in Annex 1 can be employed with a residence permit for the purpose of employment or a guest worker residence permit. Currently, Annex 1 only includes Georgia and Armenia. The new restrictions do not affect immigration procedures that were ongoing as of 31 December 2024, nor the validity of residence permits issued by that date. Extensions of permits are also possible under the old rules. However, new permits can only be issued based on the new decree.
According to the above-mentioned decree, the countries listed in Annex 1 are those with which Hungary or the European Union has concluded a readmission agreement. As a general rule, only citizens of these countries can obtain residence permits for the purpose of employment or guest worker residence permits. However, citizens of countries not listed in Annex 1 can also obtain residence permits if their country has a state-recognized organization or office in Hungary that ensures their citizens leave Hungary if they do not comply with the regulations. The list of these countries will be published in a statement by the minister responsible for foreign policy. No such statement has been published yet, so employers should keep an eye on this in the future.
With the changes coming into effect, employers who cannot or do not wish to employ third-country nationals under the seasonal guest worker residence permit or the employment residence permit for the purpose of investment have the option to apply for permits available for highly skilled individuals or those tied to specific nationalities.
Regarding permits tied to specific nationalities, employers should be aware of the list of countries whose citizens can obtain the National Card. Citizens of these countries can reside and work in Hungary with relatively few restrictions and favorable conditions.
If there is no option available based on nationality, opportunities for highly skilled workers may be considered. For third-country nationals with higher qualifications in IT, engineering or natural sciences, the Hungarian Card may be relevant. For those with different degrees and salaries above the special minimum salary, the EU Blue Card could be a solution.
As of 1 January 2025, the decree of the Minister for National Economy on the total number of residence permits for the purpose of employment and guest worker residence permits that can be issued annually in Hungary has been published. According to the decree, the maximum number of these permits for 2025 is 35,000. Although it is unlikely that the number of issued permits will exceed this limit due to the existing restrictions, employers should keep this in mind in case the country restrictions are relaxed.
By Akos Fehervary, Managing Partner, and Nora Ovary-Papp, Counsel, Baker McKenzie
