Costs and Requirements of a Hungarian Business Residency
Zlata Erlach, Head of the Austrian office, Caribbean Investment Programs Expert at Immigrant Invest, provides a comprehensive overview of the Hungary residency by opening a company.
What is Hungary Residence Permit for Entrepreneurs
Hungary offers a business residency option. This permit is available for foreign nationals who wish to establish or run a business in Hungary.
The main condition is that the applicant must be involved in a genuine business activity. This residency allows the entrepreneur to live and work in Hungary legally while overseeing business operations.
The Hungary residence permit for entrepreneurs has clear criteria. Applicants must demonstrate that their business activity contributes to the local economy, whether through employment creation or providing a service in demand.
The residence permit can be renewed as long as the business remains active and meets legal requirements.
Starting a business in Hungary offers a straightforward process. Unlike in some other EU countries, Hungary simplifies the process for entrepreneurs by minimising bureaucratic hurdles.
Hungary’s legal framework ensures a stable environment for businesses, and its location in Central Europe provides easy access to key markets.
How to Relocate Business to Hungary
The process to relocate your business to Hungary involves several steps. First, the entrepreneur must establish a company in Hungary. This process typically takes one to two weeks and involves registering the business with the Hungarian Company Register, obtaining a tax number, and opening a corporate bank account.
Key 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 contributions to Hungary’s economy.
- Proof of accommodation in Hungary.
Additional steps are required after company registration. 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 Hungary’s economy, and additional supporting documents may be requested.
The cost of the application process varies. Setting up a business can cost between €2,000 and €3,000, depending on the complexity of the business structure.
Also, there are administrative fees for obtaining the residence permit, which typically range €60 to 150. Entrepreneurs should also be prepared for costs related to legal or advisory services.
Maintaining a business in Hungary also incurs ongoing costs. Beyond the initial setup, entrepreneurs should be aware of ongoing tax obligations, employee salaries, and compliance costs. Hungary’s business climate is generally favourable, but understanding these long-term financial commitments is important for successful business operations.
Benefits of a Hungary Business Residence
- Moving to Hungary. First, it grants the right to live and work in Hungary while managing the business. Entrepreneurs also benefit from Hungary’s central location in Europe, allowing easy access to other EU markets.
- Tax benefits are another advantage. Hungary offers one of the lowest corporate tax rates in the EU, at just 9%. Entrepreneurs who successfully obtain this permit can take advantage of the favourable tax environment, which encourages business growth. Hungary provides attractive personal income tax rates, making it an appealing destination for high-net-worth individuals.
- Family inclusion is possible. The business residence permit can be extended to family members, allowing them to live and work in Hungary as well. This makes the process appealing for entrepreneurs who want to relocate their families alongside their business operations. Children can access Hungary’s education system, and family members can also enjoy the country’s healthcare services.
Alternative Way to Get Hungary Residence Permit for Remote Workers
Hungary White Card is an alternative option to gain a Hungary residence permit. This is a relatively new permit designed for non-EU nationals working remotely for foreign companies. It provides an opportunity for digital nomads to live in Hungary without needing 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.
Remote workers can apply for the Hungary White Card from abroad or after arriving in Hungary. The card is valid for one year and can be renewed for an additional year. While it does not grant the right to work for a Hungarian company, it offers flexibility for those who prefer not to establish a business in Hungary.
The Hungary White Card also offers flexibility in lifestyle. This permit is especially suitable for digital nomads who can work from anywhere.
Hungary’s affordable cost of living makes it a popular choice for remote workers. Budapest, in particular, is known for its lively expat community and co-working spaces, offering ample networking opportunities.
Conclusion
Hungary offers a range of residency options for entrepreneurs and remote workers. Whether through a business residence permit or the Hungary White Card, both routes provide access to Hungary’s thriving economy and central location in Europe. Each option comes with its own set of costs and requirements, making it essential to understand the specifics before starting the application process.
