U.S. Ambassador to Hungary Colleen Bell and Hungarian Minister of Human Capacities Zoltán Balog signed an agreement on Tuesday in Budapest regulating social security issues between the two countries.

“The aim of the agreement is to mutually increase the quality of life for citizens in both countries” – Zoltán Balog explained at the signing ceremony. He said it would benefit both Hungarians living in the U.S. and U.S. citizens living in Hungary.

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According to the agreement, citizens will be eligible for pensions regardless in which country they have earned the right for it, while those citizens who only spent less than five years in the partner country, will only have to pay contributions in their home country.

Balog also said that the agreement contains specific regulations for disadvantaged workers, benefiting about 10.000 people in the two countries. Colleen Bell said the agreement will eliminate double taxation of citizens, thus being favourable for people who have careers in both countries.

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“This is the culmination of six years of hard work and permanent consultations between the governments of the two countries” – Bell said. “Such a high-level cooperation indicates mutual respect among our countries, as well as the joint desire to create a more transparent and sustainable business environment”.

(Ministry of Human Capacities)