By Hungarian law, any visitor to Budapest or Hungary has to carry one form of ID.
This means, even if you are visiting Budapest for a couple of days or a month,make sure to carry your Identity documents with you.
Either you are traveling in a tram,bus or a Budapest Metro station,make sure to carry an ID Card with you.If you are a visitor in Budapest from 3rd world countries in Asia or Africa, you are required to carry your ID with you at all time. This ID is your valid passport.
If you are on a tourist visa to Budapest, your passport will carry the stamped visa, so it makes it a necessity to carry passport with you during your stay in Budapest.
If you are on a student visa in Budapest, despite having a plastic residence permit for Hungary, you are still required to carry your passport as identity document,as by Hungarian law,only residence permit is nothing.
If you are on a family reunification visa,even then, you need to carry your passport as an identity document with your residence permit.Make sure to check various types of cards and permits in Hungary.
For expats working in Hungary,who have a residence permit because of their job also have to ensure they carry their passport as identity document.
You must be wondering,as a 3rd country national, why on earth you need a passport despite having a residence permit. The reason is that for 3rd country nationals, only identity document is their valid passport.
Some people think that their residence permit (due to work visa,family reunification,study purposes) is their identity in Hungary,which is a wrong understanding.
You will also note,that if you go to any Bank in Hungary,a government office (KormanyAblak), Taxi office like NAV, or Immigration office in Hungary, they will ask for your passport as Identity document.
Hence,make sure to take your passport with you all the time,whenever you are out,because if you are checked by police, you may be fined.
As a 3rd country national, you are eligible for getting a Hungarian ID card once you get a Permanent residence (National Permit or a EC permit).
You are eligible for Hungarian permanent residence only after staying for 3 years( for National permit) or 5 years ( for EC permit) in Hungary.This procedure easily takes 5 to 6 months and requires a long list of documents to be submitted.
After you get a permanent residence card, you are eligible for Lakcim Kartya,as well as the Hungarian ID card.
Lakcim Card in Hungary is pink in color,and it means, you are now a Hungarian resident.
The Hungarian ID card is green in color and once you get it after getting Hungarian permanent residence, you are OK to travel without a passport.
In fact, with Hungarian ID card, you can visit tax office,bank or any government office and do not need your passport.
Now you would be wondering, that carrying passport is a risky thing,what if you lost it in Hungary. What if you put in your hotel instead of carrying it with you.
Well,that can definitely be a more safe option, as realistically, nobody in Budapest has been stopped on streets by police or any other department to show their passports.
However, it does not mean that you will never be checked.
Now you would be wondering, Do you need to carry your passport in Hungary? The answer is yes you need to carry your passport as a non-EEA citizen, if you do not have a permanent residence in Hungary.
Additionally, for 3rd country nationals without a permanent residence, make sure to carry your passports and residence permit with you in Hungary.