HOW TO EMPLOY NON-EEA NATIONALS IN HUNGARY? PART III – THE EMPLOYMENT OF HIGHLY COMPETENT EMPLOYEES

05 April 2024

In the last two parts of our series introducing the new legal framework of the employment of third-country nationals in Hungary we dealt with the basic types, the procedural rules, and the details of employing “ordinary workers”. In this last part of our article series, we share the detailed rules for employing highly competent employees.

See the I. part of the article here, the II. part of the article here

 

1. The types of residence permits

The new legal framework effective from 2024 introduced different types of residence permits which may be granted to highly competent employees. The so-called Hungarian Card and the Corporate Card are brand new types of residence permits.

The ICT permit existed already, and its rules are based on the law of the European Union. Highly competent employees may also be employed based on the EU Blue Card, the legal basis of which is set out in an EU directive implemented in the Hungarian law.

This article deals with the Hungarian Card, the Corporate Card and with intra-corporate transfers.

2. Hungarian Card

Hungarian card may be granted to third-country nationals who

a. works in the below professions:

- has a professional qualification as defined by the relevant ministerial communication,

- is a professional sportsperson or professional coach,

- is a performing artist or

- works for a film production company registered by the professional authority,

b. whose purpose is to work in one of the below forms:

- carrying out work for his employer for renumeration,

- be employed in Hungary by an employer established in a third country in order to fulfil an agreement with a domestic employer,

- carrying our activities in additional to his tasks as the owner or manager of a legal person established for gainful purposes.

The Hungarian Card may be valid for a maximum period of 3 years and may be extended for up to 3 years at a time.

3. Corporate Card

A Corporate Card may be issued to third-country nationals who

a. is the manager or the employee of a legal entity that is an employer as defined by the relevant Government Decree or an entrepreneur who concluded a settlement agreement with such an employer and

b. whose purpose is to work in one of the below forms:

- performing activities as the manager of the legal entity established for gainful purposes,

- carry out actual work in addition to his managerial tasks,

- carrying out work on the basis of an employment relationship.

The Corporate Card may be valid for a fixed term up to 4 years and may be extended for a maximum period of 4 years at a time.

4. Intra corporate transfers

Intra-corporate transferees (“ICT”) are third country nationals assigned from a multinational company’s entity outside the EU to another entity of the same company or company group within the EU.

The ICT permit is only available to the transfer of managers, specialists, and trainees.

The ICT permit can be obtained for the duration of the transfer, but for a maximum of 3 years, or in the case of trainees, for a maximum of 1 year.

In case the employee has ICT permit in one EU Member State, he can be seconded within the EU to a second Member State to other branches of the company or company group.