Living in Hungary: Expat Guide 2025

Over the last few years, the map for gaining EU residency through investment has been completely redrawn, with some countries practically erased from it. 

Spain made a definitive exit this year, while Portugal axed its popular real estate option and non-habitual tax regime, removing much of its appeal. 

Driven by European Union scrutiny and populist anxieties over local housing markets, the political mood in these countries has soured. 

Add to this the earlier closures in Ireland and Italy’s programs, and a clear pattern emerges of EU residence gateways for investors being firmly shut. 

Because of this wave of closures, those with capital are looking elsewhere. Central Europe, and specifically Hungary, now commands serious attention. 

The country’s original draw was never solely about a golden residence ticket. Its 9% corporate tax rate and strategic position have long made it a pragmatic base for business. 

Its capital, Budapest, delivers the energy and culture of a major European city without the expense and saturation found elsewhere. 

The country’s unique value proposition held true even when its previous residency bond programme was active.

For 2025, the government has launched an entirely new guest-investor programme. 

The new framework moves beyond a single passive bond, with more flexible options that include real estate fund investment. It is a calculated strategy, designed to capture the talent and investment that others are now turning away.

For those looking for their next home base, Hungary has become hard to ignore. However, before taking the plunge, any questions about expat life in Hungary should be resolved. 

Pros and Cons of Living in Hungary

Beyond the investment programme itself, it’s the practical, day-to-day experience of living in Hungary that draws people to this country.

Pros of Living in Hungary

For many global entrepreneurs, the sheer simplicity of a 9% corporate tax rate, one of the lowest in the EU, means those setting up businesses or moving their corporate tax base will save more money. 

The low corporate rate is complemented by a 15% flat personal income tax, which removes complexity for entrepreneurs and high earners. 

For long-term wealth planning, Hungary doesn’t levy an inheritance or wealth tax on direct descendants. 

Such financial predictability is paired with a genuinely high quality of life at a lower cost than most of the so-called ‘top-tier’ countries. 

Your capital goes further, meaning you can rent or buy premium housing and enjoy rich cultural experiences in Budapest for a fraction of the cost of Western European countries. 

Its central location also acts as a superb travel base, putting cities like Vienna and Prague within easy reach.

Cons of Living in Hungary

The romance of life in Budapest can meet a reality check when dealing with the Hungarian language. It’s notoriously difficult to learn, and outside of central Budapest’s business districts, English isn’t widely spoken. 

The language barrier means that tasks like dealing with local authorities or managing home repairs often require a translator. 

These linguistic difficulties are compounded by bureaucracy that can feel like a remnant of a past era. Processes for securing permits or completing registrations are often paper-intensive and slow, demanding a level of patience that can frustrate those accustomed to digital efficiency. 

What is Living in Hungary Like?

​​Ask any expat who has built a life in this EU country, and they’ll likely tell you their story isn’t really a Hungarian one, but a Budapest one. 

The capital has the international schools, high-end services and professional networks that you would expect. 

The city itself has a unique character, blending the grandeur of the Austro-Hungarian Empire with a raw, creative energy. 

 Budapest’s culture runs deep, from integrated thermal baths that serve as a social pillar to a café society that has fuelled intellectual life for centuries.

The city is remarkably efficient, with world-class internet, modern medical clinics and a highly developed service industry.

Underpinning all of this is a distinct sense of personal safety and freedom. Central districts feel secure at all hours, and daily life is conducted with a less intrusive, hands-off approach from the authorities.

What is the Cost of Living in Hungary?

Many people are drawn to Hungary for its low cost and high quality of life. 

Cost of Living in Hungary vs the US

For an American (or EU citizens from a Western legacy country) accustomed to the high costs of a major city, the prices in Budapest can feel like a whole new world.

To put it in perspective, data from the global comparison site Numbeo indicates that overall consumer prices in Budapest can be less than a third of those in New York City once rent is factored in. 

In terms of healthcare, the high premiums and out-of-pocket costs endemic to the US system are replaced by an accessible private healthcare network in Hungary. In Budapest, high-quality consultations, dental work and procedures are available for a fraction of the cost. 

Your Monthly Budget in Budapest

To translate this into practical terms, using Euros as a stable benchmark, this is what you can expect to pay: 

• A modern, well-located two-bedroom apartment typically falls between €900 and €1,600. 
• Utilities, including high-speed internet and heating, usually add €150 to €250. 
• A generous budget for quality groceries and frequent dining out could range from €600 to €900 for a couple.
• With a monthly public transport pass costing €25 the rest can be dedicated to lifestyle spending. 
• A healthy allocation for entertainment, gym memberships and cultural events could easily be €500 to €1,000 or more. 

Therefore, a comfortable lifestyle for a couple can be budgeted for with a monthly total between €2,200 and €4,000.

Is Living in Hungary Safe?

Given the political headlines Hungary often generates, a common question is whether the country is a safe place to build a life and a business. 

To answer these questions best, we’ll look at safety from three angles: personal, political and geopolitical. 

On a personal level, the 2023 Global Peace Index ranked Hungary 13th out of 163 nations, placing it far ahead of other countries like the United Kingdom (37th) and, most notably, the United States (131st). 

While violent crime is rare in the central districts of Budapest, where most expats reside, common sense still applies. Like any major European capital, awareness of petty theft in crowded tourist areas is advisable.

From an investor’s perspective, safety also implies predictability. Hungary’s government has been in place for over a decade, creating a stable, if sometimes controversial, domestic political climate. 

As a full member of both the European Union and NATO, Hungary is anchored by the Western security framework, which is a non-negotiable for many when choosing a European base.

How to Get Residency in Hungary? 

​​​​As many of Europe’s golden visa programmes have shut their doors, Hungary has created a new pathway for investors in 2025. 

Unlike some residency by investment schemes, the journey doesn’t begin with the investment itself. Instead, the first step is securing a Guest-Investor Visa, which serves as your entry ticket, providing up to two years to complete your chosen investment on the ground.

Once there, you have two routes to choose from, each built for a different investor mindset. 

The first, and most affordable, is an investment of €250,000 into a state-registered real estate fund. It’s a passive route that is regulated by Hungary’s National Bank. 

The next path is a €1,000,000 philanthropic donation to a public trust, such as a university. An option like this bypasses asset management entirely, appealing to those who place a premium on time.

With your investment confirmed, you secure the programme’s main prize in the form of a 10-year Hungarian residence permit. It’s also possible to apply for citizenship after 10 years, provided you have lived in Hungary full-time for three of those. 

Such a long-term status gives you the freedom to live in Hungary and travel without a visa across the Schengen Area. 

Taxes in Hungary

For any entrepreneur tired of dealing with onerous tax codes, the Hungarian system can feel simple, efficient and predictable. 

The system is built on a 9% flat corporate income tax, the lowest in the entire European Union. On the personal front, a straightforward 15% flat tax applies to regular income.

Investment income from dividends and capital gains is also taxed at 15%. 

A 13% social contribution tax applies on top of this. However, these social contributions are subject to a relatively low annual cap. Once an individual’s total contributions reach that yearly ceiling, any further investment income is free from the social tax, significantly lowering the effective rate for successful investors.

Finally, Hungary levies no net wealth tax and has highly favourable inheritance laws for direct family members, making it a secure jurisdiction for long-term wealth preservation.

Expat Guide to Living in Hungary: FAQs

Go Where You’re Treated Best

Hungary is a good example of the ‘go where you’re treated best’ philosophy in action. 

A country that actively competes for your investment and talent with a welcoming residency programme, an efficient and low-tax system and a secure, high-value lifestyle. 

Hungary now delivers on all these fronts, making it a powerful contender for your new European base.

Nevertheless, a strategy that is truly beneficial rarely depends on a single country. 

While Hungary serves as an excellent option, the ‘best’ place is ultimately a personal choice. 

While Hungary excels in efficiency, some might prioritise the unique lifestyle and special tax regimes offered by Italy, accepting more bureaucracy as the trade-off. 

Similarly, an entrepreneur focused on Asian markets and top-tier wealth management might choose Singapore, a global financial hub with world-class standards, albeit with a higher cost of entry.

These examples show that the definition of being treated best shifts depending on your goals. 

The real challenge is not finding one perfect country, but assembling a bespoke portfolio of jurisdictions that work in harmony to lower your taxes, grow your wealth and increase your freedom. 

Building that legal and holistic plan is the work we do every day. If you are ready to create your own bespoke strategy, talk to the Nomad Capitalist team.