Hungary offers business residency. For high-net-worth individuals outside the EU, this option combines business opportunities with immigration benefits. By opening a business, individuals gain access to Hungary’s business-friendly environment, strategic location, and European Union residency advantages.
Elena Kozyreva, Managing Director for Real Estate projects, Investment Programs Expert at Immigrant Invest explains the Hungary Residence Permit process step-by-step, covering essential requirements and benefits.
What is Hungary residency by opening a business
Hungary allows non-EU nationals to secure a residence permit by establishing and managing a local company. This process involves registering a business, meeting investment requirements, and actively managing operations.
The permit ties directly to the company’s activities. The applicant must ensure the business operates legally, generates economic value, and adheres to Hungarian regulations. Common business types include LLCs — Kft or joint-stock companies — Zrt.
This type of residency grants the holder legal business immigration to Hungary, enabling travel within the Schengen Area and access to other EU markets for business expansion.
Hungary Business Residence Permit Benefits
- Legal residency in Hungary. The permit allows you to live in Hungary legally and travel within the Schengen Area for up to 90 days every 180 days.
- Strategic European location. Hungary’s central location makes it a hub for businesses targeting European and neighbouring non-EU markets. Major cities like Budapest offer excellent infrastructure.
- Favourable tax environment. Hungary has one of the lowest corporate tax rates in Europe at 9%. This helps businesses optimise operational costs.
- Stable business climate. With a well-developed economy and support for foreign entrepreneurs, Hungary attracts international investors looking for stability and growth.
- Family inclusion. Business residence permits typically extend to close family members, offering education and healthcare benefits in Hungary.
Business Residency Requirements in Hungary
Set up a legal entity. To apply for residency, the applicant must establish a company in Hungary. The business must be properly registered with Hungarian authorities.
Proof of economic activity. The company should demonstrate economic viability. This includes a clear business plan, proof of capital, and records of operations like invoices or contracts.
Sufficient financial means. Applicants must show they can financially support themselves and their family members without relying on Hungarian public funds.
Clean criminal record. A criminal background check is required to confirm the applicant poses no security risks.
Compliance with tax obligations. Companies must register for VAT, open a corporate bank account, and comply with local tax regulations.
How to get Hungary Residency by Opening a Business
Step 1. Register the business. Choose the type of company and register it with the Hungarian Company Registry. This includes drafting articles of association, choosing a name, and paying registration fees.
Step 2. Open a corporate bank account. Deposit the initial capital into a Hungarian bank account. Entrepreneurs should expect to invest around €10,000 to €20,000 initially, depending on the business type.
Step 3. Obtain a tax number. The business must register with Hungary’s tax authority. This ensures compliance with corporate tax and VAT obligations.
Step 4. Develop a business plan. Submit a clear business plan that outlines the company’s goals, expected revenues, and economic contribution to Hungary.
Step 5. Apply for a residence permit. Submit the application to the Hungarian immigration office or a Hungarian consulate in your home country. Include proof of company registration, financial means, and other required documents.
Step 6. Manage your business actively. To maintain residency, the business must operate as planned. Annual renewals require proof of activity and compliance with regulations.
Fundamentals of Doing Business in Hungary
Business structures in Hungary. The most common types are Limited Liability Companies , Joint-Stock Companies, and Sole Proprietorships. For foreign investors, Kft is the most popular due to its straightforward setup and low capital requirements.
Taxation system. Hungary’s corporate tax rate is 9%, the lowest in the EU. Also, VAT rates vary depending on the industry, with standard, reduced, and exempt categories.
Labour laws and hiring. Hungary has a skilled and multilingual workforce. Labour contracts must be formalised, and employers must contribute to social security and healthcare funds.
Accounting and reporting. Businesses must maintain accurate financial records and submit annual reports in compliance with Hungarian and EU standards. Hiring a local accountant is highly recommended.
Banking and financing. Opening a corporate bank account is mandatory. Hungary’s banking sector is well-regulated, offering services to facilitate domestic and international transactions.
Industry opportunities. Key sectors for foreign investors include technology, manufacturing, real estate, and tourism. Hungary’s growing startup ecosystem also attracts tech entrepreneurs.
Conclusion
Hungary provides non-EU entrepreneurs with a chance to establish a business in Europe and gain residency benefits. With a straightforward process, favourable tax conditions, and family inclusivity, Hungary stands out as a prime choice for investors seeking both business opportunities and a European lifestyle.
