Digital nomads are remote workers who regularly travel to different countries and use modern technology to do their work from anywhere in the world. Usually, freelancers only stay in one country for a year.
From 1 January 2022, Hungary introduced the White Card (Fehér Kártya in Hungarian), a new residence permit for digital nomads, investors, entrepreneurs and remote workers from non-EU countries.
According to the official website of Hungary’s National Directorate General for Foreigners Policy, the White Card program is for digital workers who want to live and work in Hungary for up to two years, provided they meet the necessary criteria.
About the visa:
The term of validity is up to 1 year, with the possibility of extending it by one year.
It is not provided to citizens of member countries of the European Economic Area (for which separate rules have been introduced), namely to private entrepreneurs who provide services or perform work for the benefit of a foreign customer or to workers employed in a foreign company and carry out their activities remotely using information- communication technologies.
Reasons for receiving a White Card:
To receive a White Card, a person must meet the following conditions:
1) be able to conclude a contract with a foreign company and not be a citizen of the countries of the European Economic Area;
2) have a monthly income of at least 2,000 euros per month before taxes;
3) confirm your level of income for the last six months;
4) the person cannot engage in economic or labor activities on the territory of Hungary;
5) work, provide services or perform work using advanced (computer) technologies;
6) the person must either be employed in a foreign company or own a business abroad (including being a private entrepreneur).
The procedure for obtaining a visa:
Application procedure. The application is submitted online, namely through https://enterhungary.gov.hu/eh/ (personal account). After that, within 15 days, you must appear at the Migration Service of Hungary office and submit biometric data (photo and fingerprints).
The application review period ranges from 30 to 90 days. Hungary’s Migration Service may require additional documents or consider the application for more than 90 days without specifying the reasons.
During the application review period, a temporary document certifying the right to stay in Hungary is issued.
List of required documents:
1. Bank statements confirming the receipt of funds in the amount of at least 2,000 euros per month for the last six months (recommended for the last 7-9 months).
2. A contract of rent or free transfer of housing for one year or longer, or a document certifying the right of ownership of housing in Hungary or other documents certifying the possibility of living in the territory of Hungary for at least one year.
3. Medical insurance on the territory of Hungary for a period of at least one year.
4. A certificate issued by a counterparty of a private entrepreneur or employer stating that he provides services/performs works or works using digital (computer) technologies is done remotely. The certificate must contain information about what specific duties the worker or executor performs and his areas of activity.
5. A copy of an employment contract or a civil-law (economic-law) contract of a private entrepreneur with a foreign customer for a period covering the previous six months before the date of submission of the application for receiving a white card and for a period of at least one year after the date of submission of the application.
6. The original and a copy of the passport of a citizen of Ukraine for traveling abroad. The passport must be valid for six months longer than the period of stay in Hungary based on the white card.
7. Photo cards 3.5 by 4.5 – 2 pcs. It is possible to do it directly at the place of application.
Payment of the administrative fee takes place either online or on-site at the office of the Migration Service of Hungary.
About visas for family members of a digital nomad. In Hungary, there is no possibility to automatically obtain a visa for family members upon receiving a white card. However, family members of a digital nomad can get their visa to live in Hungary.
Availability of preferential tax conditions. It is assumed that a digital nomad does not acquire tax residency in Hungary and therefore has no obligation to pay taxes in Hungary. Thus, a special tax regime has yet to be introduced for digital nomads.
If you have additional questions on this topic or would like to use the help of Bona Lex lawyers in the issue under consideration, contact the email address: daria.khalkevych@bona-lex.com.ua