Situated in the heart of Eastern Europe, Hungary offers a high standard of living for a fraction of the cost when compared with other countries in the Schengen Zone. Whether you’re looking for a bustling city or a relaxed laid-back vibe, living in Hungary offers something for everyone.
In this guide you will learn about:
Living in Hungary Pros and Cons
Pros of living in Hungary
Pros of living in Hungary1. Affordable cost of living
Hungary offers a lower cost of living compared to Western Europe and the US, making it attractive for expats. For example, the cost of living in Hungary is 85.5% cheaper than in the UK including rent.
2. Safety
Hungary is a very safe country, often ranking high on global safety indexes. While there is petty theft like in most countries, overall, Hungary is extremely safe.
3. Quality healthcare
The quality of healthcare in Hungary is fantastic. There are public and private healthcare facilities. Luckily, the private healthcare system is much less expensive than other countries in western Europe. Additionally, the private health insurance options cost significantly less.
4. Favorable tax system
Hungary has one of the most favorable tax systems in the world. The corporate tax rate stands at only 9%. This is one of the main benefits for potential investors in Hungary. Luckily, the Hungary Golden Visa program invites investors from across the globe to invest in the country in exchange for residency.
5. Opportunity to travel
One of the biggest benefits of living in Hungary is that citizens and residents have endless travel opportunities. As Hungary is part of the Schengen Area, travelling and business is convenient. Additionally, there are 181 Hungary passport visa free countries, offering ease of travel.
6. Rich history and culture
Hungary is full of historic cities, UNESCO World Heritage sites, and traditions. It is a cultural hub in Central Europe, offering visitors a chance to explore stunning historical architecture, discover the amazing natural landscapes, and dig into the amazing food.
7. Growing economy
One of the main draws to the country for investors is that Hungary has experienced significant economic growth in recent years. The Hungary GDP has grown from $157.29 billion in 2020 to $212.39 billion in 2023.
Cons of living in Hungary
1. Language barrier
Hungarian is a challenging language for foreigners, and English proficiency can be limited outside urban areas.
2. Bureaucracy
Administrative processes can be time-consuming and complex. If you’re thinking about moving to Hungary, working with an immigration specialist is highly recommended to avoid this as much as possible.
3. Limited job opportunities
Depending on your field, finding work in your preferred job market can be difficult without knowing the Hungarian language. Hungarians, in general, are very smart people, and the primary labour market is competitive, with employment quality varying significantly. It’s important to remember that earning in Hungarian Forint will also be different to earning in Euros or Dollars.
Life in Hungary for Foreigners
Education in Hungary
The Hungary education system is well developed with a strong focus on academic excellence at all levels. School is compulsory for children between the ages of 6-16.
Luckily, Hungary has a range of options for locals and foreign nationals residing in the country. Most expats choose the range of fantastic international schools as they offer similar schooling structures as their home country.
The schooling system in Hungary is broken down as follows:
School level | Age group | Further details |
Preschool (Óvoda) | 3–6 years | Compulsory from age 3: focuses on early childhood development and social skills. |
Primary School | 6–14 years | Grades 1–8: core subjects include Hungarian, mathematics, science, and a foreign language. |
Secondary Education | 14–18/19 years | Three main pathways: |
Gymnasium: Academic high school preparing for university (4–6 years). | ||
Vocational secondary school: Combines academic subjects with professional qualifications and training. | ||
Technical school: Practical skills training for direct workforce entry. | ||
Higher Education | 18+ years | Universities and colleges offering bachelor’s, master’s, and doctoral programs. |
Healthcare in Hungary
Hungary has a comprehensive healthcare system that includes both public and private healthcare providers. The public healthcare system is run through the National Health Insurance Fund (NEAK). This system is funded through employees and employers and is available to all those who contribute. For example, citizens with a Hungary passport or those with residency that work or have worked in Hungary.
However, like most public health systems, the wait times can be long in Hungary. That’s why most foreigners choose to use the public healthcare system. It is cheaper than other countries, while offering improved services and facilities. Additionally, private health insurance in Hungary is significantly cheaper to other European countries.
Transport in Hungary
The Hungary transport system is generally reliable and affordable, particularly in major cities like Budapest. There are a few options for getting around in Hungary, including:
- Busses
- Trams
- Metro
- Trolleybuses
- Boats
- Taxis
Read our Hungary Golden Visa Guide
Hungary Visa Options for Expats
Hungary Golden Visa
The Hungary Golden Visa, officially called the Guest Investor Program (GIP), provides a pathway to residency for non-EEA and non EU citizens through investment. Reintroduced in July 2024, the program aims to attract foreign capital to boost Hungary’s economy.
In return, investors and their families gain access to the European Union (EU) and the Schengen Area. The residency permit is valid for ten years and can be renewed indefinitely. One of the biggest benefits here is that after eight years of continuous residence, participants may qualify for Hungarian citizenship.
Investment Options for the Hungary Golden Visa
Foreign nationals seeking residency through Hungary’s investment program can choose from several options:
- Real estate investment fund: Applicants are required to invest €250,000 in a state-approved real estate investment fund. These funds focus on Hungarian real estate and offer a lower-cost alternative to direct property ownership. The investment must be maintained for at least five years to retain residency.
- Residential real estate: Starting in January 2025, applicants can invest €500,000 in residential property in Hungary. The property must be held for a minimum of five years.
- Donation: Investors may opt to donate €1 million as a non-refundable contribution to a Hungarian higher education institution. Unlike other options, this direct donation has no holding period requirements.
Hungary Citizenship by Descent
Hungarian citizenship by descent allows individuals with Hungarian ancestry to obtain citizenship through a legal process. Based on the principle of jus sanguinis (right of blood), Hungary grants citizenship to those who can trace their lineage to a Hungarian country national.
This means that individuals born outside Hungary may be eligible if they can demonstrate a familial connection with proper documentation, such as birth or marriage certificates.
There is no strict generational limit for citizenship by descent, as long as applicants provide clear evidence of their Hungarian heritage.
Living in Hungary as an American: What to Consider
Cultural differences: US vs Hungary
Living in Hungary as an American can be an enriching and exciting experience. But it’s always important to understand the difference in culture to ensure you make the most of your time living in Hungary.
- Communication style: Compared to Americans, Hungarians are generally more reserved and formal, particularly when speaking with elders. This is something to note if you will be working in Hungary as an American.
- Individualism vs collectivism: Like most western countries, the US is very much about individual achievements, with an emphasis on self-expression. Hungary is far more community orientated with a collective approach to most things in life.
- Dining: Hungarians are all about long meals with conversations that can go into the early morning hours. If you’re invited out with locals, be ready to pull up a chair and get involved in the conversation, this is a fantastic way to learn about the Hungarian culture and way of life.
- Time: Americans coming from the US may be used to a far faster paced lifestyle, whereas Hungarians take things slow and enjoy the moment.
Cost of living: Hungary vs the US
Understanding the cost of living in Hungary vs the US is another important aspect to consider before you choose to live in Hungary.
Item | USA | Hungary |
Apartment (1 bedroom) in City Centre | $1,756 | $489.41 |
Apartment (3 bedrooms) in City Centre | $2,944.56 | $784.10 |
Apartment (1 bedroom) Outside of Centre | $1,449.52 | $374.26 |
Apartment (3 bedrooms) Outside of Centre | $2,402.51 | $646.81 |
International Primary School, yearly for 1 Child | $22,667 | $9,488.04 |
Fitness Club, Monthly Fee for 1 Adult | $46.84 | $42.39 |
Cinema, International Release, 1 Seat | $14 | $6.91 |
Basic (Electricity, Heating, Cooling, Water, Garbage) for 85m2 Apartment | $20.98 | $14.81 |
Internet (60 Mbps or More, Unlimited Data, Cable/ADSL) | $71.01 | $16.85 |
Monthly Pass Local Transport (Regular Price) | $65 | $22.48 |
Meal, Inexpensive Restaurant | $20 | $10.05 |
Meal for 2 People, Mid-range Restaurant, Three-course | $75 | $45.21 |
Paying Taxes in Hungary as an Expat
You are considered a tax resident in Hungary if you spend more than 183 days in the country. Luckily, taxes in Hungary are generally better or on-par with many other EU member state countries. Here is a breakdown of the different taxes in Hungary:
Personal income tax | 15% |
Corporate tax | 9% |
Social security contributions | 8.5% |
Capital gains tax | 15% |
Inheritance tax | 18% |
Banking in Hungary as an Expat
Expats are welcome to open bank accounts in Hungary. You will need to provide the following to open a Hungarian bank account:
- Passport (original and copy)
- Hungary tax identification number
- Proof of address (e.g., utility bill or rental agreement)
- Residence permit (if applicable)
Where to Live in Hungary as an Expat
Before packing your bags and moving to Hungary, it’s important to know the best areas to live. Buying a property in Hungary is a fantastic investment option, with the Hungary property market growing substantially. The residential property market in Hungary is predicted to grow at an annual rate of 5.92% (CAGR 2024-2029). This would lead to a total market volume of $1.96 trillion by 2029.
Budapest
Budapest is the most sought-after location in Hungary. Known for its vibrant expat community, booming tourism, and high demand for rental properties. Investing in real estate in Budapest offers excellent potential.
Living in the city offers a high quality of life, with the opportunity to enjoy its stunning historical architecture and luxury properties. Additionally, Budapest’s relatively low cost of living compared to other major EU cities makes it an appealing investment destination.
Lake Balaton
Lake Balaton, often referred to as Hungary’s “inland sea,” is a top destination for property investment. Its breathtaking natural beauty and thriving tourist scene make it an excellent choice for vacation rental properties.
In contrast to Budapest, Lake Balaton offers a more relaxed, resort-like atmosphere, perfect for those seeking peace and quiet.
Popular locations such as Siófok and Balatonfüred cater to a wide range of preferences, from vibrant nightlife to family-friendly getaways.
Debrecen
Debrecen, Hungary’s second-largest city after Budapest, is famous for its prestigious university, making it an excellent location for purchasing rental properties in the city center.
With a more relaxed atmosphere compared to Budapest, Debrecen still offers a high quality of life. Additionally, property prices in Debrecen are generally more affordable, presenting a great investment opportunity.
Frequently Asked Questions About Living in Hungary
Is Hungary a good place to live in?
Absolutely, Hungary is a fantastic place to live. Not only is the cost of living cheaper compared to the US and other EU countries but the history and culture are simply sensational. Hungary has everything to offer expats an excellent standard of living, including great international schools, reliable healthcare, and friendly locals.
Can an American live in Hungary?
Yes, Americans are welcome to live in Hungary as long as they obtain the right visa for their stay. One of the most popular options is the Hungary Golden Visa, offering foreign nationals a chance to obtain residency in exchange for financial investment in the country.
What is the lifestyle in Hungary?
The lifestyle in Hungary is laid back, particularly when compared to countries like the US. Things are slower paced, and the Hungarian locals enjoy long and relaxed meals with an emphasis on community.
What is life like for foreigners in Hungary?
Life for foreigners in Hungary is generally positive, offering an affordable cost of living, rich culture, and a central European location. Expats enjoy Hungary’s vibrant history, excellent public transport, and welcoming atmosphere in cities like Budapest.
What are the best cities in Hungary for expats?
Some of the best cities in Hungary for expats include Budapest, Pécs, Győr, and Debrecen. Each has its own advantages, depending on lifestyle and cost.
Can foreigners live in Hungary?
Yes, foreign nationals are welcome to live in Hungary, but they need to have the right visa for their type of stay. For example, a work visa, tourist visa, or residency visa.
Can I speak English in Hungary?
In Hungary you will generally find more English-speaking locals in the more popular tourist areas and major cities. But if you’re planning to live in Hungary, learning the basics of the Hungarian language is highly recommended.
