US Citizens Moving to Hungary: What Changed in 2024

What changed for US citizens moving to Hungary in 2024?

American citizens can still relocate to Hungary, and Budapest remains one of the most affordable capitals in the European Union. The single change that reshaped the picture is tax: the 1979 US-Hungary double taxation treaty stopped applying to withholding taxes from 1 January 2024, so an American expat in Hungary now deals with two tax systems that no longer coordinate the way they used to (source).

Everything else about the move is unchanged and manageable. A US passport gives 90 visa-free days, longer stays run through a Hungarian residence permit, and Hungary keeps a flat 15% personal income tax. This guide leads with the tax shift because it is the part most Americans underestimate, then covers residence permits, day-to-day Hungarian tax and the first admin steps after arrival. For the wider sequence of the move, the Hungary relocation checklist lays out every stage in order.

Why did the US-Hungary tax treaty end, and when?

The United States formally notified Hungary in 2022 that it was terminating the 1979 Convention for the avoidance of double taxation. According to the IRS, the termination became effective on 8 January 2023. With respect to taxes withheld at source the treaty ceased to have effect on 1 January 2024, and for other taxes it ceased for taxable periods beginning on or after that date (source).

The trigger was a wider dispute over the global minimum corporate tax rather than anything aimed at individuals, but the practical effect lands on people. Since 2024 there has been no bilateral treaty allocating taxing rights between the two countries. That is why the change matters even to Americans who never expected treaty rules to touch their lives, and why the situation should be treated as subject to change if the two governments negotiate again.

Does the ended treaty mean Americans face double taxation?

It can, on the wrong kind of income. Without a treaty, the reduced withholding rates it used to guarantee are gone. US-source dividends, interest and royalties paid to a Hungarian tax resident can now face the standard US withholding of 30%, and Hungary allows only a limited credit against its own 15% tax, which can push the effective burden on such dividends to around 35% (source).

The exposure is concentrated on passive US-source income such as dividends, pensions and certain capital gains, and on anyone splitting income between the two countries. Earned income taxed in Hungary is usually protected by US foreign tax credits, but the mechanics are more manual than they were under the treaty. Because the outcome depends on the exact mix of income, this is the point at which a cross-border accountant earns their fee rather than a purely domestic one. The full mechanics are set out in US-Hungary double taxation after the treaty ended.

Do Americans in Hungary still have to file US taxes?

Yes. The United States taxes its citizens on worldwide income no matter where they live, so an American in Budapest still files a federal return every year. Two tools keep most expats from paying twice: the Foreign Earned Income Exclusion, which for the 2026 tax year lets a qualifying taxpayer exclude up to $132,900 of foreign earned income, and the Foreign Tax Credit for Hungarian tax already paid (source).

Reporting duties reach beyond the tax return itself. Americans whose foreign bank and financial accounts together exceed $10,000 at any point in the year must file an FBAR (Report of Foreign Bank and Financial Accounts), and larger asset holdings can trigger the separate Form 8938 (source). With the treaty gone, the Foreign Tax Credit does more of the heavy lifting than before, which is one more reason to keep clean records of every forint of Hungarian tax paid.

How long can a US citizen stay in Hungary without a permit?

A US passport allows up to 90 days of visa-free stay in Hungary and the wider Schengen Area within any rolling 180-day period. That window is meant for tourism and short visits: it does not allow employment or long-term study, and anyone planning to settle needs a residence permit rather than repeated tourist trips (source).

One change is on the horizon. The European Union's ETIAS travel authorisation is being introduced for visa-exempt travellers, including Americans, and will add a quick online pre-registration before each trip into the Schengen Area. The start date is set by the EU and has moved more than once, so treat it as planned rather than fixed and check the official source before travelling (source).

Which Hungarian residence permit should an American choose?

As non-EU nationals, Americans follow the third-country route rather than the simpler EU registration, so the practical question is which permit fits your situation. The most popular option for location-independent earners is the White Card, Hungary's residence permit for remote workers who earn at least 3,000€ net per month from a foreign employer or their own foreign company; it is valid for one year and renewable once (source).

The common routes for Americans are:

• The White Card, for remote workers paid from outside Hungary.
• An employment permit tied to a specific Hungarian employer.
• A self-employment or business route for founders and entrepreneurs.
• Family reunification for close relatives of an existing resident.

Because the US sits on Hungary's visa-free list, many Americans arrive on their 90 days and lodge the application from inside the country through the online Enter Hungary system. To see which category applies to you, compare the EU and non-EU residence routes and the detail of the White Card for remote workers.

What taxes do Americans pay in Hungary itself?

Hungary's domestic system is simple by design. Individuals who are Hungarian tax residents pay a flat 15% personal income tax on income that includes salary, dividends and rental income (source). Founders benefit from a 9% corporate tax, the lowest headline rate in the European Union, which is a large part of why entrepreneurs choose the country (source).

The catch for Americans is residency itself. Whether Hungary treats you as a tax resident depends on tests such as your permanent home and the number of days you spend in the country, and that status decides which income Hungary can tax. Getting the residency question right is the foundation for avoiding surprises on both sides of the Atlantic, and it interacts directly with the US filing duties described above, so it deserves attention before, not after, the move.

What are the first admin steps after moving to Budapest?

Once your residence permit is under way, a short sequence of steps unlocks daily life. Work through them in this order:

1. Register your Hungarian address to obtain the lakcímkártya (address card), the small card that banks, the tax office and healthcare providers all ask for; the official fee is modest, around 3,700 HUF (source).
2. Arrange health cover: employees and contributors can obtain a TAJ card (public health insurance number), while many newcomers add private insurance for faster English-speaking care in the first months.
3. Open a bank account, where a local account plus a multi-currency account such as Revolut or Wise is a common combination for anyone still moving money between the US and Hungary.

None of these steps is difficult on its own, but the address card comes first because so much else depends on it. Handle them early and the rest of the move settles quickly.

Frequently asked questions

Do US citizens have to file US taxes after moving to Hungary?

Yes. The United States taxes citizens on worldwide income wherever they live, so Americans in Hungary file a US federal return every year. The Foreign Earned Income Exclusion (up to $132,900 for the 2026 tax year) and the Foreign Tax Credit usually prevent double tax on earned income (source).

Is there still a tax treaty between the US and Hungary?

No. The 1979 treaty was terminated by the United States and stopped applying to withholding taxes from 1 January 2024. No replacement is in force as of 2026, so the position should be treated as subject to change (source).

How long can an American stay in Hungary without a permit?

Up to 90 days within any 180-day period, visa-free, for tourism or short visits. Working or staying longer requires a Hungarian residence permit obtained through the immigration authority (source).

What is the easiest residence permit for a US remote worker?

The White Card is designed for remote workers who earn at least 3,000€ net per month from a foreign employer or their own foreign company. It is valid for one year and can be renewed once (source).