Last reviewed on June 5, 2024

Hungary residency by opening a company

To live and work in the EU and travel across the Schengen Area visa-free

€7,700+

Business investments

6+ months

Obtaining period

Up to 3 years

Validity

What is Hungary’s residence by business registration program?

In March 2024, Hungary implemented new rules for issuing residence permits to foreigners from countries that are not EU and EEA members.

One of the ways to obtain a residence permit under the new law is to register a company in Hungary. The terms and conditions are governed by Law 2023.XC.

The applicant’s relatives can also obtain residence permits a year later.

A foreigner must register a legal entity in Hungary, an analogue of an LLC or JSC. The status of an individual entrepreneur will not suffice because it can only be registered with a Hungarian residence permit.

The company’s minimum authorised capital is €7,700.

The residence permit for opening a company is valid for 1 year, with the right to extend it once for 2 years.

5 benefits of a Hungary business residence permit

  • 1

    Travelling across the Schengen Area

    Hungary residence permit holders can spend up to 90 days within 180 days in the Schengen countries.

    The nearest European capital is Vienna, which is 3 hours away by car. The flight to Lisbon takes 4 hours; 2.5 hours are required to reach London, Paris, or Barcelona.

  • 2

    Living in the EU

    Hungary is peaceful and safe, ranking 17th in the Global Peace Index 2023.

    Foreigners must spend at least 90 days in Hungary within six months to maintain their residency.

  • 3

    Low cost of living

    Hungary’s products, services, and entertainment prices are 1.5 times lower than those in Spain or Portugal.

    Hungary has the lowest electricity and gas supply costs in the EU.

  • 4

    Accounts in European banks

    Hungarian residence permit holders can open accounts in local banks. Opening an account with a residence permit is easier, as banks often refuse applications from non-residents.

  • 5

    Tax optimisation and business development

    Hungary has one of the lowest income taxes in the EU at 9%. In comparison, in Germany, it is 15%, and in Spain, it ranges from 15 to 25%. Small and medium-sized businesses in Hungary can apply for simplified tax regimes.

    Income tax is fixed at 15%. In the EU, a progressive rate is more common: in Germany, it reaches up to 42%, and in Spain, up to 45%.

price

Practical guide on the Hungary Business Residence Permit

  • Step-by-step procedure

  • Requirements for applicants

  • Required documents

  • Answers to frequently asked questions

Who can get Hungary residency by opening a company

  • Main applicant

    • Owner or co-owner of a Hungarian company

    • Over 18

    • Non-EU and non-EEA citizen

    • No entry ban to Hungary or other Schengen Area countries

    • No criminal records in Hungary or other Schengen Area countries

  • Spouse

    • In officially registered marriage

    • A residence permit will be issued a year later upon renewal of the main applicant’s residence permit

  • Children under 18

    • A residence permit will be issued a year later upon renewal of the main applicant’s residence permit

  • Parents

    • Financially dependent on the main applicant

    • A residence permit will be issued a year later upon renewal of the main applicant’s residence permit

Requirements for a company for a residence permit in Hungary

The organisational and legal form must be:

  • a limited liability company — Ktf;

  • a joint stock company: public — Nyrt, non-public — Zrt.

Four out of five Hungarian companies are limited liability companies.

The minimum authorised capital, depending on the legal entity:

  • Kft — 3+ mln forints, or €7,700+;

  • Nyrt, Zrt — 5+ mln forints, or €12,700+.

Founders can be one or more individuals and legal entities. If a company has several founders, each has the right to obtain a residence permit.

The founders appoint either one director or a board of directors. Foreigners can work as directors in their own companies without a separate work permit. A founder increases their chances of obtaining a residence permit if they work as a company director.

Activity fields. Some activities require a licence, such as insurance, pharmaceutical manufacturing, banking, and investment services.

Most of Hungary’s companies are registered in the trade sector; technical and scientific companies are in second place, followed by construction companies.

The applicant’s minimum income from the company’s operations is €1,500. The Migration Service assesses the business’s ability to provide for the applicant.

Entrepreneurial income is confirmed with a business plan if the company is new. A business plan for a residence permit is optional if the company hires five citizens of Hungary or other EU countries.

Agreements with Hungarian partners confirm the company’s readiness to operate.

Cost of a Hungarian business residency

The expenses for obtaining a residence permit include the cost of opening a company, the applicant’s health insurance, and the fee for application processing.

The applicant also confirms a bank account balance of €10,000. It is unnecessary to verify the monthly income.

Expense item

Amount

Authorised capital of the company

€7,700+ (HUF 3,000,000+)

Property rental for 12 months

€6,000+

Health insurance for 12 months

€180+

Translation and consular legalisation fees

€30+

Application processing fee

€110

Total

€14,020+

Individual cost calculation for a Hungary Business Residence Permit

Individual cost calculation for a Hungary Business Residence Permit

Get an individual calculation for your family with all associated costs and government fees

We will send the cost calculation to your email within 1 hour

Step-by-step procedure for obtaining Hungary residency by business registration

Obtaining a residence permit in Hungary for opening a company consists of two main stages: registering a company and getting a residence permit. The entire process takes at least 6 months.

1

1 day

Preliminary Due Diligence

Immigrant Invest identifies issues that may lead to the refusal of a residence permit in advance. The information about the applicant is checked against international legal and business information databases.

Verification reduces the risk of refusal of a residence permit to 1%.

Evaluate your chances of passing Due Diligence

Take a short test and find out about the details that may prevent you from obtaining a residence permit

2

10+ days

Company registration

The company is registered through an authorised Hungarian lawyer. Registration documents are signed either in person in Hungary or via video conference. In the case of remote registration, the signed original documents are sent by mail.

3

1+ month

Opening a company current account

A current account can only be opened in person; this cannot be done remotely. A Schengen visa is required for the visit. Applications for opening an account can be submitted to one or several banks simultaneously.

4

1+ days

Applying for a residence permit

The founders submit documents for residence permits to the Hungarian consulate in their country of citizenship or residence. Applications are accepted in person by appointment.

5

2+ months

Government Due Diligence

The applicant’s information is checked to ensure that he:

  • meets the conditions of a residence permit for opening a company;

  • will bring benefits to Hungary, such as creating jobs;

  • does not pose a threat to public order and national security.

If the residence permit is approved, the applicant will be issued a visitor visa D to enter Hungary and obtain a residence permit card.

6

1+ month

Submitting biometrics and receiving a residence permit card

The applicant enters Hungary within three months and submits biometrics for the residence permit card. The finished card is sent to the address of the rented residential property or an authorised representative in Hungary.

Hungary business residence validity and renewal process

Hungarian business residency is valid for up to 3 years: the first time a residence permit is issued for a year, with the right to extend for another two years.

The residence permit can be extended if the applicant:

  • owns a company that provides income of €1,500+ per month;

  • rents or owns residential property;

  • spends at least 90 days within six months in Hungary.

When renewing a residence permit for opening a company, the family members of the main applicant can get residence permits.

After 3 years, the foreigner can re-obtain a residence permit with the same company.

How to obtain permanent residency and citizenship in Hungary

A permanent residence permit is issued after 3 years of living in Hungary. A foreigner must not leave Hungary for more than four months in a row and for 270 days in three years.

An application for Hungarian citizenship is submitted after 8 years of living in the country with a permanent residence permit. An applicant for citizenship takes an exam to determine knowledge of the Hungarian language, culture, and Constitution. The first citizenship can be retained.

The Hungary residence permit for opening a company does not give the right for permanent residency and citizenship. The Hungary Golden Visa can lead to becoming a permanent resident or citizen.

Business taxes in Hungary

Companies in Hungary pay the following taxes:

  • a corporate tax — 9%;

  • a social tax — 13% of the wage fund;

  • a municipal business tax — up to 2%;

  • a VAT — 5 to 27%, depending on the category of goods or services.

Local authorities set municipal tax. There is no business tax in Budapest.

The VAT is paid by companies with a turnover of more than 12 million forints, or €30,500 per year. The tax is paid by the last VAT payer in the supply chain within the European Union. For example, a Hungarian company does not pay VAT if it supplies goods to a retailer in Germany.

Small and medium-sized businesses can use simplified taxation systems like KIVA and KATA.

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Frequently asked questions

  • How can I get residency in Hungary?

  • What are the requirements for obtaining a business residence permit in Hungary?

    The founders of a Hungarian company get residence permits for starting a business. The minimum authorised capital is €7,700.

    To obtain a residence permit, a foreigner registers a legal entity in Hungary, an analogue of an LLC or JSC. The status of an individual entrepreneur will not suffice because it can only be registered with a Hungarian residence permit.

  • How to register as an individual entrepreneur in Hungary and obtain a residence permit?

    A foreigner needs a Hungary residence permit to register as an individual entrepreneur. A non-resident of Hungary can open a company by forming a legal entity, analogues of an LLC or JSC. Owners of Hungarian companies get residence permits.

  • How to register a company in Hungary?

    The company is registered through an authorised Hungarian lawyer. Registration documents are signed in person in Hungary or via video conference. In case of remote registration, signed originals are sent by mail.

  • Can a foreigner register a business in Hungary and get residence?

    Yes. To obtain a residence permit in Hungary, foreigners open an LLC, Kft, or JSC, Rt. There are no requirements for the company’s scope of activity or investment. A residence permit will be issued if the company provides a sufficient income level to the founder.

  • What are the taxes for business in Hungary?

    Companies in Hungary pay four main taxes:

    • a corporate tax — 9%;

    • a social tax — 13% of employee salaries;

    • a VAT — up to 27%;

    • a municipal business tax — up to 2%.

    VAT is paid by companies with a turnover of more than 12 million forints per year. Some categories of goods and services are subject to preferential VAT rates of 18% and 5%.

    Municipal business tax varies by region; for example, Budapest has no business tax.

  • What is the economic situation in Hungary?

    The economy in Hungary has been growing over the past 10 years, since 2014, by 3% annually. In 2020, GDP fell by 4,5% due to the pandemic, but the following year, the economy offset the decline with growth of 7%. In 2023—2024, economic growth stopped, which became a common trend for the EU.

    Inflation in Hungary remains low at 4%, while Hungary has the lowest prices in the European Union for electricity and gas supplies.

  • Can you live in other EU countries with a residence permit in Hungary?

    The Hungarian residence permit holders enter the Schengen countries without a visa and can spend up to 90 days there within 180 days.

    A residence permit in Hungary does not give the right to live or work in other EU countries. The right to move to another EU country gives the status of a permanent resident of the EU, obtained after five years of living in Hungary.

  • What is Kft in Hungary?

    Kft is the Hungarian designation for LLC. The minimum authorised capital of an LLC in Hungary is 3 million forints, or €7,700. One or more founders open the company, and the LLC is headed by one director or board of directors. The founder of a Hungarian company can obtain a residence permit.

  • How much does it cost to register a company in Hungary?

    The minimum investment in the authorised capital of a Hungarian company is 3 million forints, or €7,700, for an LLC and 5 million forints, or €12,700, for a JSC. The founder of the company received a residence permit in Hungary.

  • How long do you need to live in Hungary to get PR?

    A Hungary permanent residence permit is issued after three years of living in the country with a residence permit. The status is valid indefinitely; the permanent residence card is updated every five years.

Schedule a meeting

Let’s discuss the details

We will develop an individual solution, select a country and status that will solve your problems, and accompany the entire process.

Zlata Erlach
Zlata Erlach

Head of the Austrian office

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