Zlata Erlach, head of the Austrian office and expert on Caribbean investment programs at Immigrant Invest, provides a comprehensive overview of the Residence permit in Hungary by setting up a company.
What is a residence permit for entrepreneurs in Hungary?
Hungary offers the possibility of a business stay. This permit is available to foreigners who want to start or operate a business in Hungary.
The most important requirement is that the applicant carries out a genuine business activity. This residence permit allows the entrepreneur to live and work legally in Hungary while monitoring business operations.
The residence permit for entrepreneurs in Hungary is subject to clear criteria. Applicants must demonstrate that their business contributes to the local economy, whether through creating jobs or providing an in-demand service.
The residence permit can be extended as long as the company continues to be active and meets the legal requirements.
Setting up a company in Hungary is a straightforward process. Unlike some other EU countries, Hungary simplifies the process for entrepreneurs by minimizing bureaucratic hurdles.
Hungary’s legal framework ensures a stable business environment and its location in Central Europe allows easy access to important markets.
How to relocate your business to Hungary
The process of moving your business to Hungary involves several steps. First, the entrepreneur must set up a company in Hungary. This process usually takes one to two weeks and includes registering the company in the Hungarian commercial register, applying for a tax number and opening a company bank account.
The main documents required include:
- A valid passport.
- A Hungarian company registration certificate.
- Proof of sufficient financial resources.
- A business plan detailing the nature of the business and its expected contribution to the Hungarian economy.
- Proof of accommodation in Hungary.
After company registration, further steps are required. Once the company is registered, the entrepreneur must apply for a residence permit at a Hungarian consulate or embassy. The application must demonstrate the company’s potential to contribute to the Hungarian economy. Additional supporting documents may be requested.
The costs for the application process vary. Depending on the complexity of the company structure, setting up a company can cost between 2,000 and 3,000 euros.
There are also administrative fees for obtaining a residence permit, which usually range between 60 and 150 euros. Entrepreneurs should also be prepared for costs associated with legal or consulting services.
Maintaining a business in Hungary also entails ongoing costs. Beyond the initial startup, entrepreneurs should be aware of ongoing tax obligations, employee salaries and compliance costs. The business climate in Hungary is generally favorable, but understanding these long-term financial obligations is important for successful business operations.
Advantages of a business residence in Hungary
- Moving to Hungary. First, it grants the right to live and work in Hungary while running the company. Entrepreneurs also benefit from Hungary’s central location in Europe, which allows easy access to other EU markets.
- Another advantage is tax advantages. Hungary offers one of the lowest corporate tax rates in the EU at just 9%. Entrepreneurs who successfully obtain this permit can benefit from the favorable tax environment that promotes business growth. Hungary offers attractive income tax rates, making it an attractive travel destination for wealthy individuals.
- Family involvement is possible. The business residence permit can be extended to family members so that they can also live and work in Hungary. This makes the process attractive for entrepreneurs who want to relocate their families in addition to their business operations. Children have access to the Hungarian education system and family members can also use the country’s health services.
Alternative way to obtain a residence permit for teleworkers in Hungary
Hungary White Card is an alternative way to obtain a residence permit for Hungary. This is a relatively new permit intended for non-EU citizens working remotely for foreign companies. It offers digital nomads the opportunity to live in Hungary without having to relocate a business.
Key requirements include:
- Proof of employment with a foreign company;
- Proof of sufficient income of at least €3,000 per month;
- valid health insurance;
- Proof of accommodation in Hungary.
Teleworkers can apply for the Hungarian White Card from abroad or after arriving in Hungary. The card is valid for one year and can be extended for another year. Although it does not grant the right to work for a Hungarian company, it does provide flexibility for those who do not wish to start a business in Hungary.
The Hungary White Card also offers lifestyle flexibility. This permission is particularly suitable for digital nomads who can work from anywhere.
The affordable cost of living makes Hungary a popular choice for remote workers. Budapest in particular is known for its vibrant expat community and co-working spaces, which offer numerous networking opportunities.
Diploma
Hungary offers a range of residency options for entrepreneurs and teleworkers. Whether through a business residence permit or the Hungary White Card, both routes offer access to Hungary’s thriving economy and central location in Europe. Each option comes with its own costs and requirements. Therefore, it is important to understand the details before beginning the application process.
