For international business owners, Hungary offers an attractive opportunity to obtain residency. The country provides two primary paths for business owners to secure their residency, whether by investment or business operations. Zlata Erlach, Head of the Austrian office, Caribbean Investment Programs Expert at Immigrant Invest, outlines the legal methods, benefits, and the step-by-step process to obtain Hungary residence by investment as a business owner.
Legal ways to get Hungary residence permit for business owner
Business owners can apply for Hungary’s Golden Visa or the Hungary Residence Permit for Entrepreneurs. Both offer legal residency but differ in their requirements and application process.
Hungary Golden Visa. This visa allows high-net-worth individuals to obtain residency by making a significant investment in the country. The Golden Visa route is a popular option for those looking to move with family members and offers a fast-track to residency.
The minimum investment threshold is €250,000, which can be used for fund units purchase.
Hungary business residency. This permit is designed specifically for individuals who want to establish or operate a business in Hungary. Unlike the Golden Visa, the entrepreneur permit focuses on the applicant’s business activities and contribution to the Hungarian economy.
To qualify under the Hungarian business immigration program, applicants must prove that their business has the potential to be sustainable and provide economic benefits. Business registration is mandatory, and proof of initial capital is required, typically about €8,000.
7 benefits of business residence in Hungary
- Tax benefits. Hungary offers competitive corporate tax rates for business owners, which is one of the lowest in Europe at 9%. This can significantly reduce operational costs for international entrepreneurs.
- Central location. Hungary’s central European location provides easy access to both Western and Eastern Europe, making it ideal for international business operations.
- Skilled workforce. The country has a highly educated and skilled workforce, particularly in sectors like IT, engineering, and finance.
- Low cost of living. Compared to other European countries, Hungary has a lower cost of living, making it more affordable for business owners and employees alike.
- Political stability. Hungary has a stable political environment, which provides a secure foundation for business investments.
- Access to EU markets. As a member of the European Union, Hungary provides business owners with access to a large market, allowing for free trade and movement within the EU.
- Permanent residency pathway. After a certain period of holding residency, business owners may apply for permanent residency, providing long-term security for them and their families.
Hungary residency by company registration
Registering a company is a key step. To apply for Hungary residency by business ownership, individuals must first register a company in Hungary. This company can be an existing one or newly established specifically for the residency process. The business must also be actively engaged in local operations, contributing to the economy.
Requirements for registration. The company must demonstrate active business operations, a physical presence in Hungary, and sufficient financial resources. Applicants must provide:
- proof of business plans,
- investment capital,
- documentation of their professional experience.
It is essential to maintain proper bookkeeping and comply with local tax laws to avoid any issues during the residency renewal process.
Costs. The cost of company registration in Hungary can vary depending on the type of business. On average, setting up a company may cost between €2,000 to 5,000, with additional costs for legal and administrative fees.
Entrepreneurs should also be aware of ongoing operational costs, including taxes, employee salaries, office rent, and utilities.
Other conditions. Applicants must have health insurance, a clean criminal record, and stable financial resources to support their stay in Hungary. They should also maintain active involvement in the company’s operations. Residency holders are required to spend at least 183 days per year in Hungary to maintain their permit, although this rule may have certain exemptions depending on the circumstances.
Step-by-step Process to Obtain Residency as International Business Owner
Obtaining a residence permit in Hungary for a company registration consists of several stages: from registering a company to getting a residence permit. The entire process takes at least 6 months.
- Company registration. Begin by registering your company in Hungary. Ensure all legal documents are in order, including proof of funds and business plans. You can either establish a new company or transfer an existing one to Hungary.
- Submitting your residency application. Once the company is established, submit your residency application along with supporting documents such as proof of business activities, income, and health insurance. You will also need to provide evidence of a physical address in Hungary.
- Attending a consular interview. You may need to attend an interview at the Hungarian consulate in your home country, where officials will verify your business credentials and plans. This interview ensures that you are genuinely involved in the business and intend to contribute to the Hungarian economy.
- Obtaining a temporary residence permit. If approved, you will receive a temporary residence permit valid for one to three years, depending on your business and financial situation. The permit can be extended if your business remains operational and meets the necessary requirements.
- Maintaining active business operations. To renew your permit or apply for permanent residency, you must show that your business is actively contributing to the Hungarian economy. This includes submitting annual financial reports and ensuring the company complies with local tax and employment regulations.
Conclusion
Hungary provides an accessible pathway for international business owners to obtain residency. Whether through the Golden Visa or residency by opening a company, the country offers numerous advantages, including low taxes, access to the EU market, and a stable political environment. If you are considering relocating your business to Hungary, the process is straightforward with clear benefits for you and your family.
Article written by Zlata Erlach, Head of the Austrian office, Caribbean Investment Programs Expert at Immigrant Invest
