Why Entrepreneurs Are Choosing Hungary for Business Residence

Entrepreneurs are increasingly choosing Hungary as a destination for business residence. With its location in Europe, low operational costs, and investor-friendly policies, Hungary presents a variety of advantages for business owners looking to expand or relocate.

Zlata Erlach, Head of the Austrian office, Caribbean Investment Programs Expert at Immigrant Invest, explores the benefits, requirements, and practical steps for obtaining a Hungary business residence permit.

9 Benefits of Hungary Business Residence

Hungary offers several advantages for entrepreneurs looking to establish or expand their businesses. Some key benefits include:

1. Location. Hungary is in the heart of Europe, making it an ideal base for accessing markets in both Western and Eastern Europe.
2. Low taxes. The corporate tax rate in Hungary is one of the lowest in the EU, at just 9%. This is attractive to entrepreneurs seeking to optimise their tax obligations.
3. Affordable business costs. Operating a business in Hungary is cheaper compared to many Western European countries, especially when it comes to salaries, office space, and utilities.
4. Skilled workforce. Hungary has a well-educated and skilled workforce, particularly in fields like IT, engineering, and finance.
5. EU access. As a member of the European Union, Hungary offers business owners access to the EU’s single market, with free movement of goods, services, and capital.
6. Support for start-ups. The Hungarian government provides various incentives for start-ups, including grants and funding options for innovation.
7. Residence permits for entrepreneurs. Hungary offers business residence permits that allow entrepreneurs and their families to live and work in the country while running their businesses.
8. Stable economy. Hungary’s economy has shown steady growth, making it a secure environment for long-term business investment.
9. Business-friendly environment. Hungary has streamlined bureaucracy, making it easier to start and manage a business.

How to Start a Business and Get Residency in Hungary

Starting a business in Hungary and obtaining a business residence permit is a straightforward process. The steps are as follows:

1. Choose your business type. The first step is deciding the legal structure of your business.
2. Register your company. You will need to register your company with the Hungarian Court of Registration and obtain a tax number.
3. Open a business bank account. This is required to deposit the minimum capital.
4. Apply for a business residence permit. Once your business is established, you can apply for a residence permit as a business owner or investor.

Hungary Business Residence Requirements

To qualify for a business residence permit in Hungary, entrepreneurs need to meet several key requirements:

1. Business activity. You must have an active business in Hungary that demonstrates the potential for growth and employment creation.
2. Costs. Setting up a company in Hungary typically involves legal fees, registration fees, and capital requirements. Entrepreneurs should expect to invest around €10,000 to €20,000 initially, depending on the business type and scope.
3. Financial stability. Entrepreneurs must show proof of financial stability, including sufficient funds to support themselves and their family while living in Hungary.
4. Health insurance. You must have valid health insurance coverage in Hungary.
5. Criminal record. A clean criminal record is required to be eligible for a business residence permit.
6. Job creation. For certain types of residence permits, you may need to show that your business will create jobs for Hungarian citizens.

How to Apply for Residency in Hungary for Entrepreneurs

Applying for business residence in Hungary involves several steps:

1. Gather required documents. This includes proof of your business, financial status, health insurance, and criminal background check.
2. Submit your application. The application can be submitted to the Hungarian immigration authorities.
3. Attend an interview. In some cases, an interview may be required as part of the application process.
4. Wait for approval. Once all documents are submitted, you’ll need to wait for approval. The process typically takes a few months.
5. Obtain your residence permit. Upon approval, you will receive your business residence permit, which allows you and your family to live and work in Hungary.

Perspective Business Fields in Hungary

Hungary’s economy is growing in several sectors, providing business owners with a variety of opportunities. Some of the most promising fields for investment include:

● technology and IT. Hungary has a growing tech scene, especially in software development, IT services, and fintech.

● renewable energy. As the world shifts towards sustainable energy, Hungary’s renewable energy sector is expanding, offering investment opportunities in solar, wind, and biomass energy.

● manufacturing and industry. Hungary has a well-developed manufacturing sector, particularly in automotive and electronics.

● tourism and hospitality. With its rich cultural heritage, Hungary remains a top destination for tourists, making the tourism and hospitality sector a solid investment choice.

● agriculture and food production. Hungary’s agricultural sector is highly productive, and there are numerous opportunities for investment in food processing and export.

Conclusion

In conclusion, Hungary offers a range of benefits for entrepreneurs looking for business residence options in Europe. With low taxes, affordable operating costs, and a skilled workforce, it’s an ideal destination for businesses aiming for growth. The process of establishing a business and obtaining a residence permit is straightforward, with several business fields showing great potential for investment.

Entrepreneurs interested in Hungary’s business residence options can take the next step by consulting with professionals to guide them through the process.