Hungary offers a Business Residence Program designed for investors who want to start or expand a business in the country. It provides the opportunity for long-term residency and access to the European Union. In this article, Ferenc Tihánszky, Director of the Hungarian office, Investment Programs Expert at Immigrant Invest, will cover what the Hungary Business Residence Program is, its benefits, requirements, and how to apply.
What is Hungary Business Residence?
The Hungary Business Residence Permit allows non-EU citizens to obtain a residence permit by making an investment in a Hungarian business. It is aimed at entrepreneurs and investors who wish to establish or support a business in Hungary, either through opening a new company or expanding an existing one. The program is an attractive option for individuals seeking residence in Hungary and access to the wider European Union market.
9 Benefits of Hungary’s Business Residence Program
1. Access to the EU market. Hungary is part of the European Union, which provides residents with the ability to operate freely within the EU 29 member states. This gives investors access to a large and diverse market.
2. Long-term residency. The program offers long-term residence permits, with the possibility of renewal after two years. After five years, investors may apply for permanent residency.
3. Fast processing time. The Hungary Business Residence Program has a relatively quick processing time compared to other EU residency options. The permit can be approved within a few months.
4. No minimum investment requirement. Unlike some other countries, Hungary does not set a fixed minimum investment amount, giving more flexibility to investors. Instead, the focus is on the business plan and its potential for job creation and economic contribution.
5. Family inclusion. The program allows investors to include their family members in their application, providing them with residence permits as well.
6. Competitive tax regime. Hungary offers a relatively low corporate tax rate compared to many other EU countries, making it an attractive location for businesses.
7. Access to skilled workforce. Hungary has a highly educated and skilled workforce, particularly in fields like technology, engineering, and finance. This can be a valuable resource for businesses looking to expand.
8. Gateway to other European countries. Holding a Hungarian residence permit grants investors the ability to travel freely within the Schengen Area, which includes most EU countries.
9. Stable economy. Hungary has a stable economy with a growing business environment, particularly in the technology, manufacturing, and services sectors, which makes it a good place to invest.
Hungary Residence Permit Requirements
To qualify for Hungary’s Business Residence Program, applicants must meet certain requirements.
Business activity. The applicant must demonstrate an active business in Hungary or plans to start one. The company’s minimum authorized capital is set at €7,700.
Financial stability. Investors need to show that they have sufficient financial resources to support themselves and their business. This may involve showing proof of funds or the ability to make the necessary investments.
Legal compliance. The business must comply with Hungarian laws, including tax and employment regulations.
Health insurance. Applicants must have valid health insurance for themselves and their family members.
No criminal record. Applicants must have a clean criminal record.
Each application is evaluated individually, and the exact requirements may vary depending on the nature of the business and the investment.
How to Apply for Hungary Visa for Investors
Applying for the Hungary Business Residence Program involves several steps:
- Prepare the necessary documents. Applicants need to gather essential documents, including proof of financial resources, a business plan, and documents verifying the business’s legal status in Hungary.
- Submit the application. The application for the residence permit can be submitted at a Hungarian consulate or embassy in the applicant’s home country. Alternatively, it can be done in Hungary.
- Wait for approval. The application will be reviewed, and applicants may be asked for additional documentation or clarification. The process can take a few months.
- Obtain the residence permit. Once approved, the residence permit will be issued, and the investor can live and operate their business in Hungary.
- Apply for permanent residency. After eight years of legal residence, investors can apply for permanent residency if they continue to meet the program’s conditions.
Conclusion
Hungary’s Business Residence Program offers a straightforward and flexible path to residency for investors looking to expand their business in the European Union. With its access to the EU market, competitive tax regime, and fast processing time, it is an appealing option for entrepreneurs.
