Hungary residence by opening a company

To enter the European market and optimise taxes

Download the guide Calculate the cost
€7,700+ Company's share capital
6+ months Obtaining period
3 years Validity

Business owners in Hungary are entitled to obtain a residence permit. If there are multiple founders, each of them may apply.

A company founder invests at least €7,700 in the share capital. The exact amount depends on the chosen legal form of the company.

The applicant is granted status for one year, with the right to extend it for an additional two years. Family members receive a residence permit when the main applicant renews the initial residence permit card after one year.

The application may include a spouse, children under 18 years of age, and financially dependent parents.

The rules for establishing and conducting business in Hungary are regulated by the Civil Code, Act LXXXI of 1996, and Act V of 2006.

A Hungary residence by opening a company does not grant the right to obtain permanent status or Hungarian citizenship. For these purposes, other types of residence permits, such as the Golden Visa, are required.

Benefits of Hungary residence by opening a company

Visa-free travel to Schengen countries

Entrepreneurs with a residence permit in Hungary can freely enter Schengen Area countries and stay there for up to 90 days within a 180-day period.

Moving to the European Union

Residents have the right to live in the country as long as their residence permit is valid.

Access to the European market and banks

Hungary is located at the centre of the European Union, providing the opportunity to expand a business into the world’s largest markets.

With a residence permit in Hungary, foreigners can open accounts in European banks. Doing so without the status is practically impossible.

No customs barriers for businesses

Hungary is a member of the European Union. This grants the right to freely trade with other European countries without restrictions on the import of goods.

Low tax rates

Hungary has the lowest corporate tax rate in the European Union, at 9%. By comparison, the corporate tax rate is 15% in Germany and 24% in Italy.

Access to quality healthcare and education

Residents of Hungary are entitled to receive medical services in state or private clinics within the country. Compared to other European countries, treatment in Hungary is 30—60% more cost-effective.

The children of residents can attend Hungarian schools and universities.

Developed economy

Foreign investments in Hungary’s economy exceeded €13 billion in 2023.

In 2024, Hungary expects GDP growth of up to 4% and a reduction in the annual inflation rate to 6%.

Practical guide on the Hungary business residence permit

  • Step-by-step procedure
  • Requirements for applicants
  • Required documents
  • Answers to frequently asked questions
Download the guide

PDF, 15 pages, 6 MB

Who can get a Hungarian business residence?

Main applicant
  • Over 18
  • Non-EU and non-EEA citizen
  • No entry bans for Hungary and Schengen Area countries
  • No criminal records
  • With medical insurance
  • With a registered address in Hungary
Spouse

Receives a residence permit by family reunification one year after the main applicant

Children under 18

Receive a residence permit by family reunification one year after the main applicant

Parents

Receive a residence permit by family reunification one year after the main applicant

Expenses of the applicant for a residence permit in Hungary

The applicant’s expenses include the costs of establishing a company, fees for document preparation, property rental, and the purchase of medical insurance.

A foreigner also needs to show savings in a bank account of at least €10,000.

1st option

Investment in company share capital €7,700+
Fee for document translation and notarisation €30+
Application fee for residence permit processing €110
Property rental €500+ per month

Required documents to get Hungarian residence permit by business registration

Personal documents:

  • residence permit application;
  • passport;
  • two photos;
  • proof of residential address, such as a rental agreement or property ownership certificate;
  • bank statement confirming savings of at least €10,000;
  • medical insurance.

Documents for opening a company:

  • company charter;
  • foundation agreement;
  • specimen signatures of the founders;
  • proof of legal address, such as a rental agreement or the property owner’s consent.
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Individual cost calculation for the Hungary business residence permit

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

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Step-by-step process of obtaining Hungary residence permit by opening a company

An entrepreneur can either establish a new company in Hungary or purchase an existing business. The process of obtaining a residence permit, including the registration of the company, takes at least 6 months.

1 day
Preliminary Due Diligence
1 day

Preliminary Due Diligence

Immigrant Invest checks the applicant to reduce the risk of refusal to obtain a residence permit. To do this, a certified Compliance Anti Money Laundering Officer uses international legal and business information databases.

After the check, we conclude a Service Agreement with the applicant.

1+ days
Choosing the company's legal form and name
1+ days

Choosing the company's legal form and name

Business owners choose the legal form of their company. One can open a Kft or an Rt, which are analogous to an LLC and a JSC, respectively.

A Kft can be established by a single founder and is often used by small and medium-sized enterprises. An Rt comes in two types: Nyrt, which is an open or public company, and Zrt, which is a closed joint stock company. Hungarian joint stock companies are registered by large enterprises and are managed by a board of directors.

The choice of legal form depends on the company’s goals, type of activity, and scale of the business. Sole proprietorships can only be established by residents of Hungary.

A unique name is selected for the company, which includes the abbreviation of the legal form.

5+ days
Company registration
5+ days

Company registration

The owner signs the application for company registration and statutory documents in person or online, in the presence of a Hungarian lawyer. In case of remote registration, original documents are sent to Hungary by mail.

1+ months
Opening a current account
1+ months

Opening a current account

One can open an account in Hungary only by visiting the bank in person. To enter the country, a Schengen visa is required.

1+ days
Submitting documents for a residence permit
1+ days

Submitting documents for a residence permit

The founder of a company has the right to obtain a residence permit in Hungary by opening a business. If there are several founders, each of them can apply for this status.

The application for a residence permit is submitted in person to the Hungarian Consulate by appointment.

2+ months
Due Diligence check
2+ months

Due Diligence check

The National Directorate-General for Aliens Policing checks applicants for compliance with the conditions for obtaining a residence permit. If the residence permit is approved, the foreigner is issued a D visa. With this visa, they can enter Hungary and receive a residence permit card.

1+ months
Submitting biometrics and obtaining a residence permit card
1+ months

Submitting biometrics and obtaining a residence permit card

The applicant visits Hungary to submit biometrics at the migration service office. After 21 working days, the foreigner can either collect the card in person or receive it by mail at their registered address in Hungary.

Business taxes for entrepreneurs in Hungary

In Hungary, companies pay the following taxes:

  • corporate tax: 9%;
  • municipal tax: up to 2%;
  • social tax: 13% of the wage fund;
  • VAT: 27%, 18%, or 5% depending on the goods.

The basic VAT rate is 27%. A reduced rate of 18% applies to food products, while a 5% rate applies to medicines, medical equipment, books, and magazines.

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How to extend a residence permit in Hungary

A Hungary residence permit is issued for one year, with the right to extend the status for an additional two years. To maintain resident status, the individual needs to:

  • stay in Hungary for at least 90 days out of every 180;
  • own or continue renting property;
  • own a company that provides an income of at least €1,500 per month.

After the status expires in 3 years, the entrepreneur leaves the country. To obtain a residence permit again, the applicant can submit a new application at the Hungarian consulate. There is no need to establish a new company, provided they supply the required documents for their existing business in Hungary.

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How to obtain permanent residence and citizenship after a residence permit in Hungary

Hungary residence by opening a company does not grant the right to permanent status or citizenship. Other types of residence permits are suitable for this purpose. For example, the Golden Visa.

A resident can get permanent residence in Hungary after three years of living in the country with temporary status. National permanent status is granted for life if the foreigner:

  • lived in Hungary with a residence permit for three years;
  • did not leave Hungary for more than three consecutive months during these three years;
  • spent no more than 270 days outside Hungary in three years.

A resident with permanent status can apply for Hungary citizenship. The total waiting time for a Hungarian passport is at least 11 years: three years with a residence permit and another eight years with permanent status.

To obtain citizenship, the applicant must pass exams on the Hungarian language, culture, and Constitution. Hungary recognises dual citizenship, so there is no need to renounce the original passport.

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Comparison of Hungarian business residency with other EU residence by opening a company

Entrepreneurs are eligible for a residence permit in various states across the European Union. Most countries grant residency through the Golden Visa programs. Foreigners either open their own company or invest in an existing one. Portugal and Italy offer multiple options for businesspeople.

Type of residenceInvestmentRequirementObtaining timeFirst card validity
Hungary business residence€7,700+Open a company in Hungary with the minimum profit of €1,500 per month6+ months1 year
Portugal Startup Visa€9,840+Open a startup with a local business incubator6+ months2 years
Portugal Golden Visa1) €500,000+

2) Not defined
1) Invest in local business and create 5+ jobs

2) Open a company and create 10+ jobs
12+ months2 years
Italy Golden Visa1) €250,000+

2) €500,000+
1) Invest in an innovative startup

2) Invest in local business
4+ months2 years
Greece Golden Visa€500,000+Invest in local business4+ months5 years
Spain Golden VisaNot definedInvest in local business5+ months3 years

Residence permit and Immigrant Invest stay with you

During and after obtaining a residence permit, various practical issues may arise. For instance, you may need to interact with bank employees, immigration services, the mayor's office, and the land committee. We will manage these tasks on your behalf and ensure that everything proceeds smoothly.

Selecting real estate

Immigrant Invest maintains its own database of properties from trusted developers. We will help you choose a property, organise a viewing, and accompany you through the transaction.

Opening a bank account

We will help you choose a bank and prepare the necessary documents for opening an account.

Residence permits for family members

We will prepare the documents and submit the application if you decide to relocate your parents or other close relatives to Hungary.

Replacing a lost residence permit

We will prepare the documents and help you submit the application for reissuing the residence permit card to the immigration service.

Residence permit renewal

We will help collect the documents, confirm compliance with the conditions for renewing the residence permit, and submit the application to the immigration service.

Driving licence assistance

We will help gather the documents and prepare the application to exchange your driving licence for a Hungarian one.

Frequently asked questions

What is the entrepreneur residency program in Hungary?

The Hungarian business residency program grants a residence permit to entrepreneurs who register a company in Hungary. It is valid for one year and can be extended once for two years.

How to get a business visa for Hungary?

A foreigner opens a limited liability or joint stock company in Hungary. Depending on the chosen legal form, the founder invests at least €7,700 or €12,700 in the share capital. The process of obtaining a residence permit takes 6 months or more.

How can a foreigner start a business in Hungary?

The company is registered through an authorised Hungarian lawyer. Registration documents are signed in person in Hungary or online. In case of remote registration, the owner sends the signed originals by mail.

The rules for establishing and conducting business in Hungary are regulated by the Civil Code, Act LXXXI of 1996, and Act V of 2006.

How long is the business visa in Hungary?

Hungary business residence permit is valid for one year. The status can be extended once for two more years.

Can a foreigner set up a company in Hungary?

Yes, a foreigner can open a company in Hungary. Non-residents establish entities such as limited liability companies or joint stock companies. The process includes company registration, opening a bank account, and fulfilling legal requirements.

What are the benefits of obtaining a Hungarian residence by opening a company?

A Hungary business residence permit allows foreigners to:

  • travel visa-free within the Schengen Area;
  • access the European market and banking system;
  • trade freely with EU countries without restrictions on the import of goods;
  • optimise corporate taxes.
How much does it cost to open a company in Hungary?

The expenses depend on the legal form of the company. Founders of a limited liability company invest €7,700+, while founders of a joint stock company invest €12,800+. The fees for document preparation start at €140.

What legal form of company to choose in Hungary?

A non-resident can register a legal entity as either a limited liability company, Kft, or a joint stock company, Rt. To establish a Kft, only one founder is required, making it suitable for small businesses. For an Rt, a board of directors is needed, which must include at least three people.

What amount needs to be invested in the share capital of a company in Hungary?

To open a limited liability company, or Kft, owners need to invest at least €7,700. For registering a joint stock company, Rt, the investment starts at €12,800.

What business is best to start in Hungary?

Entrepreneurs are free to open any type of company. The industry can vary, including IT, trade, tourism, manufacturing of industrial goods, or food production.

However, you will need a licence to open a company in fields such as insurance, pharmaceutical manufacturing, banking, or investment services.

How to open a sole proprietorship in Hungary?

Only residents of Hungary are entitled to open a sole proprietorship, or SP. First, they obtain a residence permit in Hungary with the right to work, then choose the form of the sole proprietorship.

There are no capital requirements for SPs. The registration procedure for them is the same as for registering companies.

Entrepreneurs submit an application to the registry court and open a bank account in a Hungarian bank. The entrepreneur’s data is entered into the register, and they receive a certificate.

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Let’s discuss the details

Schedule a meeting at one of the offices or online. A lawyer will analyze the situation, calculate the cost and help you find a solution based on your goals.

Zlata Erlach, Investment Program Expert
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