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US Citizen here. Applied for Temporary Residence Permit in Hungary via the Private Entrepreneur pass. I've stayed in Schengen for over 90/180 days now. Most of it is in Hungary. Hungary and the US have an agreement that allows US Citizens a 2d 90 day stay visa free. So my overstay in Hungary is NOT a problem. I stayed about in Poland and Italy a total of 21 days this last 180 days.

However, when I get approved for the Temp Residence Permit, does it restart my 90/180 clock in the rest of the Schengen countries? Or does my stay in Hungary NOT count towards the 90 day period?

Thanks.

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The bilateral 90-day agreements are generally interpreted as running concurrently with the Schengen 90/180 rule, not being additional to it. So if you spent 21 days in the Schengen area outside of Hungary before arriving there, you still have only 90 days available to spending in Hungary. At least, I know that Poland and the US interpret their agreement like that; I don't know about Hungary specifically.

Once the residence permit is issued, you no longer need to worry about the 90/180 rule while you are in Hungary, but you are technically still subject to the rule in other Schengen countries, and there's no provision for the counting to restart other than through the passage of time. That is, assuming you stay in Hungary for the first 90 days of the permit's validity, you'll have 90 days available to spend in other Schengen countries.

In practice, however, you're unlikely to have any trouble while you're in possession of the residence permit unless you are doing something to court trouble, such as spending most of your time in some other Schengen country, and you come to the attention of the authorities for some other reason.

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