Hungary: New Digital Nomad Status Available

The new White Card digital nomad permit includes the following key points:

• Activities abroad. Foreign nationals must be employed abroad or must own a company registered abroad, and must seek to continue their economic activity abroad through information technology channels.
• Sufficient funds. Applicants must have access to a minimum amount of funds per month (as determined by government regulations) during the six months before the permit application and for the entire permit duration, demonstrated through an employer or tax certificate.
• Document requirements. Applicants submit an employment contract or proof of company ownership, including feasibility of remote, electronic work; identification documents; as well as proof of sufficient financial means, suitable local accommodation, travel tickets and health insurance. Documents may need to be legalized or apostilled and translated. The immigration authority can request additional documents at its discretion.
• Validity. The permit will be granted for one year and will be renewable once for an additional year if the applicant continues to meet eligibility criteria.
• Application process. Foreign nationals apply in person at a consular post or in country if holding another valid entry status, and submit a photograph and fingerprints when applying. Government fees are EUR 110 for consular applications or HUF 26,000-39,000 for in-country applications (reduced fee for online filing). Government processing times are approximately 30 calendar days. Upon arrival, foreign nationals register their accommodation with regional authorities and complete the application in country.

Hungary now offers a clear entry pathway to digital nomads seeking to reside in Hungary while working for a foreign employer or foreign clients. Previously, digital nomads could seek residence under a general miscellaneous permit, which offered less transparency.

• Continuing trend. Although digital nomad visas and permits are not being introduced as rapidly as when the trend first started, we still see such tailored digital nomad statuses being introduced over the past months, with more in the pipeline in Europe.
• Remote work visa warning. In countries where remote work is unregulated, workers and employers may unknowingly put themselves at risk of noncompliance with many aspects of the law, exposing them to possible fines or other penalties, depending on the country. Importantly, noncompliance with regulations could result in employers losing their rights to hire foreign labor. Additionally, this type of work arrangement may have employment or tax law impacts. It will become increasingly important as such policies are developed (and in many countries where remote work is unregulated) for employers to analyze strategies and assess risks associated with implementing and/or continuing remote work policies with a trusted immigration partner.

Remote work and non-traditional non-sponsored statuses remain of high interest to corporate and public stakeholders globally. As the pandemic continues to impact mobility worldwide, countries continue to seek innovative measures to boost post-COVID-19 economic remobilization. Additionally, as the remote work trends continue at a slower pace, governments want to keep up with the competition for sought-after talent by introducing remote work policies in line with neighboring states. Fragomen will report on related developments.