Residence permit in Hungary for individual entrepreneurs (business immigration) in 2024

The content of the article

1. Advantages of business immigration to Hungary
2. Requirements for applicants for a residence permit
3. Conditions for obtaining a residence permit
4. Required documents
5. Terms of registration and expenses
6. Types of companies in Hungary that foreigners can open
7. Stages of obtaining a residence permit in Hungary
8. Residence permit for family members of an entrepreneur
9. Extension of a residence permit
10. Reasons for the cancellation of a residence permit

Business immigration to Hungary is given the opportunity to obtain citizenship of the European Union, which means to discover new horizons in Europe. Hungary also offers favorable business conditions, including low taxes and easy company registration. In addition, the country has a strategic geographical location, which makes it convenient for conducting international trade.

The Hungarian residence permit for business immigration is available to several categories of applicants: individual entrepreneurs, owners and directors of companies, self-employed and digital nomads. In the article we will tell you more about these categories, as well as the advantages and features of a Hungarian residence permit through business.

Advantages of business immigration to Hungary

Hungary turned out to be the best country to start a business in 2024, according to the Business Name Generator portal. First of all, a low income tax rate, a capital gain of 9% and a low cost of living in the amount of 694 US dollars per month, excluding rent, made it possible to come out on top. And the registration process is fast — only seven days.

What else does a Hungarian residence permit give?:

• freedom of movement in the Schengen countries;
• the ability to open accounts in European banks without service restrictions;
• the opportunity to work in the EU markets;
• education in schools and universities in Hungary;
• access to medical services;
• obtaining permanent residence and citizenship.

You can also open a business with participation in the Golden visa program of Hungary. In addition to starting a business, such a program provides a number of additional advantages compared to other categories of residence permits. For example, a longer term is 10 years with an extension for another 10 years. At the same time, there are no restrictions on the number of days in the country.

Requirements for applicants for a residence permit

To obtain a residence permit for business immigration to Hungary, you must meet certain criteria. Applicants must demonstrate that they have sufficient financial resources to open and run a business, as well as a business plan that will contribute to the economic development of the country.

Basic requirements for the applicant:

• not to be a citizen of the European Union;
• be over 18 years old;
• do not have criminal records and refusals to issue a residence permit;
• have health insurance and a legal source of income.

Conditions for obtaining a residence permit

Hungarian legislation does not impose specific restrictions on business forms for foreigners. The main condition for obtaining resident status is the provision of evidence of the legality of immigration to the country, successful completion of an audit and payment of taxes. The candidate can independently handle all registration procedures, but this will require a personal presence in the country. An alternative way is to issue a power of attorney to a person who will be able to register the company on behalf of the applicant.

To open your own company or get a status An individual entrepreneur can obtain a residence permit for 2 years using a Hungarian national card and extend it for another 3 years.

For this purpose, the Hungarian authorities have provided an opportunity for citizens of Russia and Belarus to use a special national card for their first entry into the country. It will become faster and easier to get resident status. At the same time, there is no investment threshold for starting a business, and you can reunite with your family under this category of residence permit.

To get a residence permit in Hungary can also be self-employed. These are usually individuals who receive income from professional activities. For the self—employed, the residence permit period is 1 year with the possibility of extension for 2 years.

A visa for digital nomads (White Card) can be singled out separately. It was introduced by the Hungarian government in 2022. One of the main requirements is that the applicant’s income must be at least 3 thousand euros per month for the last six months. This residence permit is suitable for freelancers, IT specialists and those who work remotely and receive regular income outside Hungary. The visa is issued for 1 year.

However, the White Card has some limitations:

• the visa can be extended for another year, but after that it is necessary to leave the country;
• A digital nomad visa does not lead to permanent residence and citizenship;
• Visa holders do not have access to the Hungarian healthcare system;
• The income tax for digital nomads is 15%.

Required documents

Among the standard documents that may be required to obtain a residence permit, one can distinguish:

1. Copies of all pages of the passport.
2. Photo of the applicant.
3. Medical insurance.
4. Confirmation of the address of residence in Hungary (rental or purchase of real estate).
5. Certificate of absence of arrears in taxes and contributions.
6. Documents confirming entrepreneurial activity or the creation of your own company, including an income statement, a document on registration as a self-employed / individual entrepreneur, a business plan, service contracts, employee employment contracts, the company’s legal address, invoices.

Terms of registration and expenses

The process of obtaining a residence permit can take from 2 to 6 months, depending on the complexity of the case. The costs may vary and include government fees, notary services and legal consultants.

Basic fees for procedures:

Types of companies in Hungary that foreigners can open

Foreigners can open various types of companies, such as:

• Individual entrepreneurship (IE). Low registration costs, minimum authorized capital.
• Limited Liability Company (LLC) for small and medium-sized businesses. The minimum authorized capital is 3 million forints, at least one founder is required.
• Joint Stock Company (JSC). A more complex form for a large business with a high authorized capital: at least 5 million forints.
• The partnership. Several participants make financial contributions without restrictions on the amounts.
• The cooperative. A trading or manufacturing organization in which there are no restrictions on the minimum authorized capital.

Stages of obtaining a residence permit in Hungary

1. The choice of the form and type of entrepreneurship: sole proprietor, LLC, JSC and others.
2. Opening a company in Hungary: registration on the website of public services and in Chamber of Commerce and Industry. It can be done remotely through a Hungarian lawyer.
3. Obtaining a national D visa to travel to Hungary and open a bank account. The maximum stay on a D visa is 30 days.
4. Submission of documents for a residence permit: preparation of all necessary papers.
5. Waiting for a decision: the receipt process can take from 2 months.
6. Obtaining a residence permit: after a positive decision, you can obtain a residence permit.

The application is accepted by the migration authority if the administrative fee for the service has been paid, a photo of the applicant’s face and fingerprints have been taken. The immigration authority will send a notification when the application is accepted.

Residence permit for family members of an entrepreneur

Family members of an entrepreneur can also apply for a residence permit. It is important to provide proof of kinship, such as birth or marriage certificates.

Relatives can extend their residence permit if they have lived in Hungary for at least 90 days during any 180-day period.

Family members can get a residence permit:

• spouses;
• children under 18 years of age;
• the candidate’s parents, if they are financially dependent on him.

Extension of a residence permit

Residence permit in The contract for starting a business can be extended for 3 years, subject to all conditions related to the economic activity and financial performance of the company. Usually, the renewal process requires updating the documents and resubmitting the application.

For digital nomads who can get a White Card and work remotely, there is a 1—year extension.

In addition, it should be taken into account that the extension of a residence permit is possible only if:

• The applicant resided in Hungary for at least 90 days during any 180-day period;
• he fulfilled the obligations to regularly report the business to the immigration authorities after the issuance of a residence permit.

Reasons for the cancellation of a residence permit

Usually, a residence permit can be revoked in the case of:

• inconsistencies with the conditions for obtaining a residence permit;
• violations of Hungarian law;
• the absence of actual entrepreneurial activity.

In case of refusal to issue a residence permit, the decision can be appealed within 8 days at the diplomatic or consular mission where the application was submitted.

These are the main aspects of obtaining a residence permit in Hungary. Business immigration is a great way to start a new life in Europe, legalize your stay and develop your own business.

If you are interested in buying real estate and a “golden visa” in Hungary, the Tranio team will advise you.

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