Hungary’s National Card Sparks EU Security Debate, Raises Espionage Concerns

Csaba Magyar
Hungary

Hungary’s introduction of the National Card, a new residence permit for select third-country nationals, has ignited a firestorm of controversy within the European Union. The program, which now includes Russians and Belarusians among its eligible applicants, has raised alarms about potential security risks to the Schengen area.

What is the National Card?

The National Card, distinct from Hungary’s Golden Visa Program, offers a two-year residence permit to individuals from specific countries who work in Hungary. To qualify, applicants must meet one of the following criteria:

• Perform work for remuneration under an employment relationship, including through a temporary work agency, or
• Perform actual work as the owner or chief executive of a legal entity established for gainful activity in addition to activities within this position.

Eligible nationalities include:

• Bosnia and Herzegovina
• Republic of North Macedonia
• Republic of Belarus
• Moldova
• Republic of Montenegro
• Russian Federation
• Serbia
• Ukraine

The permit is renewable for three-year periods, with no limit on renewals. For renewal, applicants must:

• Hold a valid residence permit at the time of application submission
• Reside within Hungary for at least 90 days in any 180-day period
• Pass a cultural knowledge exam (some nationalities, such as Russian, Serbian, and Ukrainian citizens, are exempt)

EU security concerns: Diplomatic tensions rise

The National Card's scope has expanded significantly since its inception. In January 2024, only Serbian and Ukrainian citizens were eligible. A July decree extended eligibility to Russians and Belarusians, sparking controversy among EU member states amid the ongoing Russian-Ukrainian conflict.

This expansion raised serious national security concerns. Manfred Weber, President of the European People's Party, warned the new regulation could open the Schengen area to Russian spies.

Baltic states, Poland, and Finland reacted sharply, fearing for Schengen area security. Sixty-seven MEPs, including Czech MEP Danuše Nerudová and Lithuanian MEP Petras Auštrevičius, penned an open letter urging the European Commission to investigate Hungary's decision.

Critics fear Russian spies could exploit the National Card for unrestricted EU travel. The program's lack of quotas or caps, coupled with unlimited three-year renewals, intensifies these concerns.

Ylva Johansson, European Commissioner for Home Affairs, pressed Hungary's Interior Minister for explanations on safeguarding against potential Russian espionage.

Hungary maintains it will apply the same rigorous migration and security screening to National Card applications as to other residence permits. They assert the National Card will adhere to relevant EU standards and security risk assessments.

The Hungarian government contends its security checks remain consistent, arguing the number of these nationals poses no higher risk than those from other Member States.

An "off-brand" Golden Visa?

The National Card is often mistakenly dubbed a "cheaper Golden Visa," but crucial differences separate these programs.

National Card holders must reside in Hungary for over 90 days in any 180-day period and maintain employment. Conversely, Golden Visa recipients under the Guest Investor Program need not reside in Hungary and receive a ten-year residence permit, extendable for another decade.

The National Card grants a two-year permit, renewable for three-year periods. Another key distinction lies in the cultural knowledge test requirement. While Golden Visa holders (guest investors) may be exempt, most National Card holders must pass this test for renewal, potentially creating challenges.

Family member treatment also differs between the programs. Golden Visa dependents receive ten-year permits alongside the main applicant, renewable for another ten years. National Card holders' family members receive three-year permits, necessitating more frequent reapplications.

The programs share procedural similarities in application processes, issuance methods, processing times, and requirements for Hungarian addresses, health insurance, passports, and biometric identification.

In essence, the National Card differs significantly from the Golden Visa. It offers shorter-term residency to specific nationalities, allows multiple renewals, but imposes stricter conditions, including actual residence and work in Hungary.

Despite these considerable differences, it seems the National Card is falling victim to the same political rhetoric that has plagued Golden Visas for years.