Hungary's business residence permit 2026: open a company and obtain residency

In brief

Hungary's business residence permit is a residence status for a foreigner who opens a company in the country (most often a Kft) and runs it themselves, or does business as self-employed. The company's capital is from 7,500 euros, corporate tax is 9%, and the residence permit is issued for a year, renewable up to three years. The main condition in 2026 is proving the business is real: with turnover, contracts and reports. Sham “shell companies” get refused.

This is a completely different route fromResidence permit by investment (golden visa)with a 250,000-euro threshold. Here you don't invest capital passively, you build a working business. Below is who it suits, the conditions, how much it costs, and how to avoid a refusal.

Who the business residence permit suits

This route was created not for those who want to “buy” residency, but for active entrepreneurs. Hungarian law calls this status a residence permit for guest self-employment, and it covers two scenarios: you work as a sole trader, or you are the head (managing director) of your own company.

Who it really suits:

• Owners of an existing business, who open a Hungarian legal entity to enter the EU market and run it themselves.
• Freelancers and consultantswith real contracts - IT, design, marketing, engineering - ready to pay taxes in Hungary.
• Those who want to live in the EU and run a business, but don't have 250,000 euros for the investment route.
• Families: the main applicant opens the company, the spouse and minor children get a residence permit through reunification.

Who itdoes notsuit: those looking for a “paper” status with no intention of doing business. Since 2025 such schemes are being shut down en masse - more in the section on checks. If the goal is a passport, look at the real path through residency to naturalization in ourHungarian citizenship hub.

Which company form to open

The most common form for a foreigner isKft(Korlátolt Felelősségű Társaság), the equivalent of an LLC: a limited liability company. The minimum registered capital is 3,000,000 forints, about 7,500 euros. The capital isn't “frozen” in an account - after registration it remains the company's working capital and is spent on its operations.

Both a Kft and sole-trader status suit the business residence permit route - only the income conditions differ (see below). By law every Kft must keep double-entry bookkeeping and have a certified Hungarian accountant who files monthly reports. We break down the step-by-step company registration mechanics in a separate article onarranging a residence permit and the accompanying documents in Hungary.

Conditions and requirements

In brief:a real company or self-employment is needed, confirmed income from 24 minimum wages a year, a business plan, and - for the head of a company - either five full-time Hungarian employees or proof that your presence is critical for the business.

Hungary's migration service (OIF, Országos Idegenrendészeti Főigazgatóság) sets two sets of conditions - depending on whether you're self-employed or a company director.

For the self-employed (sole trader):annual income from the activity must exceed the minimum wage by24 times. In 2026 the minimum wage is 322,800 forints a month (about 855 euros), so the annual threshold is roughly 20,500 euros of income confirmed by the tax authority.

For the head of a companythe law requires meeting one of two conditions:

• the companylegally and continuously employs at least five Hungarian citizens(or persons with EU freedom-of-movement rights) full-time for at least six consecutive months;or
• your personal presence in Hungaryis critically necessaryfor the company to operate, and the business plan convincingly shows the company will generate enough income to support you.

In practice almost all entrepreneurs choose the second option (business plan + real activity) at the start - hiring five Hungarians from day one is unrealistic. So the weight of the application shifts to the quality of the business plan and proof of real work. The basic requirements are the same as for other residence permit types: housing, medical insurance, a clean police clearance certificate, a valid international passport.

The business plan and proof of activity

The business plan is the heart of the application, especially if you go the “presence critical for the business” route. It's not a formality: the migration officer must believe the company will operate and support you.

What a strong business plan should contain:

• The essence of the activity- exactly what the company does, which product or service, in which market.
• The financial model- a forecast of revenue, expenses and profit for 1-3 years, with justification for the figures.
• Proof of demand- preliminary contracts, letters of intent, existing clients, agreements.
• The applicant's role- why your presence in Hungary specifically is necessary (management, key competencies, negotiations).
• Income for support- a calculation showing the company will provide you with at least 24 minimum wages a year.

To prove real activity when applying and renewing you'll need: issued invoices, bank statements with incoming payments, contracts with counterparties, a tax-authority certificate of no debts. The more specific the evidence, the lower the risk of refusal.

Documents

The document package splits into personal (for the applicant) and corporate (for the company). OIF clarifies the exact list individually, but the basic set is as follows:

All documents in foreign languages are accompanied by a certified translation into Hungarian. The application is filed at the Hungarian consulate at the place of residence, or, under certain conditions, already within Hungary. The official requirements and forms are published bythe National Directorate-General for Aliens Policing (OIF).

Taxes for business in Hungary

In brief:Hungary's corporate tax is 9%, the lowest in the EU. VAT is 27%, income tax is 15%. There's a simplified KIVA regime for small business. This is what makes the country attractive for entrepreneurs.

The tax system is one of the main arguments in favor of a Hungarian company:

The regimeKIVA(the small business tax) is often more advantageous than regular CIT for companies with a large payroll: the 10% rate replaces both corporate tax and the employer's social contribution at once. The entry threshold in 2026 is up to 100 employees and turnover/balance sheet up to 6 billion forints.

Important: low rates don't mean you can pay nothing at all. Tax residency and actually paying taxes are exactly what the migration service checks at residence permit renewal. A company with zero turnover and contributions raises suspicion of being a sham.

Advantages of a Hungarian company and residence permit

Why entrepreneurs choose Hungary specifically, not Poland, Czechia or other Eastern European countries:

• 9% corporate tax- the lowest corporate tax rate in the entire EU. For comparison, in most EU countries it's 19-25%.
• A low entry threshold- Kft capital from 7,500 euros versus 250,000 euros on the investment route. The capital stays in the company's working capital rather than being frozen.
• Access to the EU market- a Hungarian company operates in the single European market and can invoice across the Union with a VAT number.
• Schengen- a Hungarian resident moves freely around the Schengen area without visas.
• Fast registration- a Kft is registered in days, not months.
• Family together- the spouse and children get a residence permit through reunification.

At the same time it's important to keep the flip side in mind: 27% VAT is the highest in the EU, and control over business authenticity gets stricter every year. Hungary is deliberately filtering out “paper” entrepreneurs, betting on those who actually create jobs and pay taxes.

Timelines and renewal

The business residence permit is issued forone year. It is then renewed - the total term of this status cannot exceedthree yearsfrom the date of first issuance (one renewal, usually for a term of up to two years).

Approximate stage timelines:

• Kft registration- from a few days to 1-2 weeks with documents ready.
• Review of the residence permit application- usually a few weeks to months; depends on the consulate and how complete the package is.
• Renewal- filed in advance, before the current residence permit expires, with proof of real activity for the past period.

The key nuance of 2025-2026 isquarterly reporting. The status holder must submit reports through the E-Paper platform to the migration service: invoices issued for the quarter, bank statements of receipts, confirmation that income is still holding at the level of 24 minimum wages (pro-rata). Missing even one quarterly report can lead to cancellation of the residence permit - this is not an empty formality.

What migration checks - the risk of refusal for sham companies

In brief:since 2025 Hungary has sharply tightened control. Companies with no real turnover, office or activity are deemed sham - refusal or cancellation of the residence permit follows. So the route only works with a real business.

Previously the “open a company - get a residence permit” scheme worked almost automatically. Now the migration service looks at substance, not paperwork. What's checked at application and renewal:

• Real turnover- are there incoming payments, are invoices issued, is money moving through the account.
• Payment of taxes and contributions- a tax-authority certificate is requested confirming the company has no debts and isn't being liquidated.
• Compliance with employment and filing obligations- whether the company has filed employee information with the migration and tax authorities.
• A real office and presence- an address where activity is actually conducted, not a “mass registration” address.
• The business plan's logic- whether what's declared matches what's actual.

What we do at BRIDGES GLOBAL before filing: we conduct internal due diligence on the client's business model - checking whether the company will withstand the authenticity check, whether the business plan is correct, whether the confirmed income is enough, and whether there are risks in the tax history. If we see the activity “doesn't measure up”, we say so before filing, not after a refusal. This reduces the risk of cancellation and lost time.

If your goal is specifically a passport, not an operating business, sometimes it's more sensible to considerthe investor residence permitor - if you have Hungarian roots -simplified naturalization.

The step-by-step process

The route from idea to residence card looks like this:

1. Assessment- we analyze your business model, income and goals; decide whether this route suits or the investor residence permit is better.
2. Kft registration- we prepare the founding documents, contribute capital from 3 million HUF, register the company, open a bank account, and bring on a Hungarian accountant.
3. Business plan and package- we draw up a convincing business plan, gather invoices, contracts, certificates.
4. Filing the application- at the Hungarian consulate or, under certain conditions, within the country; biometrics, fee payment.
5. Review- OIF checks the business's authenticity and the completeness of the documents.
6. Obtaining the residence permit for 1 year- the resident card is issued.
7. Conducting business and reporting- quarterly reporting through E-Paper, paying taxes.
8. Renewal- up to 3 years total, with proof of the company's real operation.

In parallel, the applicant's spouse and children arrange a residence permit through reunification.

Common mistakes

Mistakes on this route are costly - up to cancellation of status. The most typical ones:

• A “shell company”- registering a company with no intention of running it. The main cause of refusals in 2026.
• A weak business plan- generic phrases with no numbers, contracts or logic. The officer doesn't see what the company will earn on.
• Underestimating income- the applicant doesn't reach the 24-minimum-wage threshold and can't confirm it at renewal.
• Missing quarterly reports- even one missed E-Paper report risks cancellation.
• Neglecting bookkeeping- without a certified Hungarian accountant a Kft quickly accumulates violations.
• Confusion with the golden visa- expecting a “passive” status as with the investment route.
• Counting on a fast passport- the business residence permit on its own doesn't grant citizenship, the path to naturalization is long (seethe citizenship hub).

Business residence permit vs investor residence permit

The two routes are often confused, though they solve different tasks. The business residence permit is for those who want to work and run a business. The investor route (golden visa) is for those with capital who want the simplest and longest possible status with no operational load.

The conclusion is simple: if you have a working business or real contracts and are ready to run it - choose the business residence permit, it's cheaper to enter. If a calm, long status with no operations matters more and you have capital - look towardthe golden visa. Our breakdown helps compare the Hungarian options with neighboring programsHungary - Greece - Portugal.

Life and work as a resident in Hungary

The business residence permit is not just the right to be in the country, but a full status for living. What it gives in practice:

• The right to live and workin Hungary, run a business and hire employees.
• Free travel around Schengen- up to 90 days in any six-month period in other countries in the zone.
• Access to banking servicesin the EU, opening personal and corporate accounts.
• Education and healthcare- children attend local schools, the healthcare system is accessible.

Hungary is also attractive for its cost of living: noticeably lower than Western Europe, with comparable infrastructure quality. Budapest is a major business center with developed logistics and an entrepreneurial community. BRIDGES GLOBAL has its own office here, so we support clients not only at the application stage but also in the company's ongoing work: bookkeeping, reports, renewals.

If in three years you've strengthened the business and plan to stay, the next steps are moving to long-term statuses and, if conditions are met, a path to naturalization. We discuss these scenarios inthe article on Hungarian citizenship.

Bottom line

Hungary's business residence permit is a working route for an entrepreneur who wants to live in the EU and run a business. Entry is inexpensive: a Kft from 7,500 euros, 9% corporate tax - the best in the EU. But it's not a “bought” status: since 2025-2026 the migration service strictly checks the company's authenticity, requires quarterly reports and confirmed income from 24 minimum wages. Sham companies get refused or cancelled.

So success depends not on the paperwork package, but on whether there's real activity behind the company. BRIDGES GLOBAL has been guiding clients since 2004: we assess the business model before filing, prepare the company and business plan to withstand scrutiny, and support renewals and reporting. If you want to understand whether this route suits you or it's better to go forthe investor residence permitor the path toHungarian citizenship, write to us and we'll go through your situation based on the facts.