Are you interested in settling in Europe but concerned about the high cost and complex procedures of getting residency? Hungary offers a straightforward path to residency with relatively small investment requirements. This guide will walk you through the process, requirements, and benefits of obtaining residency in Hungary, a European country in the Schengen zone.
What Is Hungary’s Residency Permit for Gainful Activities?
The Hungarian government offers a residency option called the Residence Permit for Gainful Activities. This visa is designed for individuals who want to move to Hungary and establish a business or make a small investment in the country. One of the significant benefits is that after just three years, you are eligible to apply for permanent residency (PR).
Let’s explore how this process works and what you need to do to secure your place in Hungary.
Key Benefits of Hungary’s Residency Program
Before diving into the process, it’s essential to understand why Hungary is an attractive option for residency. Some key benefits include:
- Fast Route to Permanent Residency: You can apply for PR after just three years.
- Schengen Zone Access: As a resident of Hungary, you can travel to 26 Schengen countries without needing a visa.
- Affordable Cost of Living: Compared to other European countries, Hungary has a lower cost of living, making it ideal for families and individuals.
- High-Quality Education: Hungary has many international schools and a solid public education system, with options like the British and American schools. If your children study in Hungarian schools, the education is free.
- Central Location in Europe: Hungary’s central location in Europe makes travel easy and affordable, with budget airlines like Ryan Air and Wizz Air offering low-cost flights to other European destinations.
- Favorable Tax Rates: Hungary offers one of the lowest corporate tax rates in Europe at just 9%, making it an attractive option for business owners and investors.
How to Obtain Hungary’s Residency through Investment
Step 1: Visit Hungary with a Tourist or Business Visa
The first step to applying for a residence permit is to visit Hungary. You can enter the country on a tourist or business visa. Once you’re in Hungary, you’ll need to have a business idea that will serve as the foundation for your application.
Step 2: Form Your Company
To get the residence permit, you will need to form a company in Hungary. The business you establish should be profitable and sustainable, as Hungarian immigration authorities want to ensure that your business contributes positively to the country’s economy.
The steps include:
- Develop a Business Proposal: This is a critical part of your application. Your business proposal must outline what activities your company will engage in, how much you plan to invest, and how you expect the business to grow and become profitable.
- Company Formation: Once your business proposal is ready, you’ll move forward with setting up your company. This process includes registering the company, obtaining a tax number, and opening a Hungarian bank account.
Step 3: Deposit the Required Investment
After your company is formed, you must deposit a minimum of €10,000 into your Hungarian bank account. Additionally, you should have €30,000 available either for future investment or to show that you can financially sustain yourself.
Step 4: Apply for the Residence Permit
Once your company is set up and the necessary funds are in place, you can return to your home country and apply for the residence permit. Make sure all your documentation is in order, including your business proposal, tax information, and proof of financial stability.
Process Timeline
The entire process, from company formation to visa approval, generally takes two weeks. The cost of this service, including company formation, tax registration, and other formalities, is around €6,500.
| Step | Timeline |
|---|---|
| Forming company & opening bank | 2 weeks |
| Deposit €10,000 in bank | After company formation |
| Visa application | After funds deposited |
| Time to PR eligibility | 3 years |
Advantages of Residency in Hungary
Educational Opportunities
Hungary’s education system offers excellent options, both public and private. Public education is free, and universities in Hungary are highly regarded, offering degrees in various fields such as medicine, engineering, and management. Moreover, students in Hungarian universities are eligible for the Erasmus exchange program, which allows them to complete part of their studies in other European countries like Germany, Switzerland, and France.
Healthcare and Quality of Life
Hungary has an affordable healthcare system, and the overall cost of living is relatively low. Whether you’re moving with family or solo, Hungary provides a high quality of life at a lower price than many other European nations.
Quick Process and Family Reunification
Compared to other countries like Portugal, where residency permits can take up to a year, Hungary’s process is quicker. Additionally, Hungary offers a family reunification visa, allowing you to bring your family members to Hungary either with your initial application or within 3 to 6 months after your application is approved.
Investment Opportunities
With a corporate tax rate of only 9%, Hungary is a favored destination for foreign investments. Currently, Indian investments in Hungary stand at around $1.5 billion, employing over 8,000 locals in various sectors.
Additionally, unlike the Golden Visa program offered by some European countries, which can require investments of up to €5 million, Hungary’s €10,000 investment makes it an affordable and viable option for those looking to settle in Europe without a massive financial commitment.
Conclusion
Hungary offers a relatively easy and affordable route to gaining residency and eventually permanent residency in Europe. Whether you’re looking for access to the Schengen zone, a low-cost, high-quality education for your children, or an affordable way to settle in Europe, Hungary’s Residence Permit for Gainful Activities is worth considering.
If you’re interested in moving to Hungary or have questions about the process, seek legal and professional advice to make sure everything goes smoothly.