If you are considering moving to Hungary as a digital nomad or entrepreneur, this article will help you understand the key differences between residency options and guide you in making the right choice.
Hungary offers attractive residency options for entrepreneurs in Hungary and Hungary’s Digital Nomad options, making it an appealing destination for many. But how do you know which path is best for you?
Zlata Erlach, Head of the Austrian office, Caribbean Investment Programs Expert at Immigrant Invest, explores digital nomad residency in Hungary and business residence in detail.
9 Benefits of Living in Hungary
Living in Hungary offers numerous advantages for digital nomads and entrepreneurs. Here are some key benefits to consider:
- Affordable cost of living. Hungary is known for its reasonable living costs, especially compared to Western Europe.
- Access to the European Union. As a member of the EU, Hungary offers opportunities for travel and business within the EU.
- Quality healthcare. Hungary’s healthcare system provides excellent care at lower costs compared to other EU countries.
- Business residency benefits in Hungary Hungary offers a well-developed infrastructure, a skilled workforce, and access to funding programs, which can help businesses thrive.
- Central location in Europe. Hungary’s location makes it a great base for travel within Europe, with easy access to neighbouring countries.
- English-speaking population. Many Hungarians speak English, especially in major cities like Budapest, making it easier for expats.
- Business-friendly environment. Hungary offers a low corporate tax rate and an easy process for setting up a business.
- Modern infrastructure. Budapest and other major cities boast modern infrastructure, including high-speed internet and reliable public transportation.
- Abundant lifestyle. Hungary has a mix of urban and rural living, with plenty of outdoor activities, cafes, and restaurants to enjoy.
Moving to Hungary through opening a company
For entrepreneurs looking to establish a business presence in Europe, Hungary offers a straightforward route to residency. The entrepreneur visa Hungary process involves registering a company and actively operating it within the country.
Entrepreneurs must register a legal entity, such as a limited liability company (Kft), and demonstrate the business’s viability. This includes providing a business plan, financial projections, and evidence of initial capital investment.
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.
The application for a residence permit is submitted after the company registration. Entrepreneurs need to show proof of the company’s operational status, such as contracts, employee hires, or other business activities. Residency is granted once the company is fully registered and active.
Moving to Hungary with the White Card Program
The White Card program is a new initiative designed to attract highly skilled workers, including digital nomads and entrepreneurs. This program grants residency to foreign nationals who can demonstrate their ability to contribute to the Hungarian economy.
To qualify for Hungary’s White Card, applicants must prove a stable income over €3,000 per month.
The White Card program provides a pathway to long-term residency in Hungary. To qualify, you should meet certain criteria such as having a stable income, health insurance, and a professional background that benefits Hungary’s workforce. The program is still relatively new, but it offers a streamlined process for skilled individuals looking to move to Hungary.
Digital Nomad vs. Business Residence in Hungary
When moving to Hungary, the two primary residency options for digital nomads and entrepreneurs are the Digital Nomad Visa and business residency.
Digital Nomad Visa. This visa is designed for remote workers who want to live in Hungary while working for foreign companies or clients. It allows you to stay in Hungary for up to one year, with the possibility of extension. This visa is issued for one person only, there’s no opportunity to include family members.
Business residence. If you plan to start or run a business in Hungary, the business residence option might be more suitable. This residency allows you to live and work in Hungary while managing your business activities.
The main difference between the two lies in your work situation. If you’re working remotely for an employer outside Hungary, the Digital Nomad Visa is the better option. However, if you plan to run a business in Hungary, you should consider the business residence option.
Other types of Hungary Residency for Entrepreneurs
Entrepreneurs have a few different options when it comes to residency in Hungary. If you wish to start or run a business, Hungary provides residency for business owners under several programs:
- Business Visa. For entrepreneurs who wish to set up a business in Hungary. This visa allows you to work and live in Hungary while managing your company;
- EU Blue Card. If your business is innovative or provides significant value to Hungary, you might be eligible for the EU Blue Card, which offers permanent residency options after several years.
Setting up a business in Hungary is relatively straightforward. The country offers competitive tax rates, and the process of establishing a company is quick and simple compared to other European countries.
Conclusion
Hungary offers appealing residency options for both digital nomads and entrepreneurs. The choice between the Digital Nomad Visa and business residence depends largely on your work situation. If you are working remotely for a foreign company, the Digital Nomad Visa might be the right option for you. However, if you are looking to set up a business or work as an entrepreneur, Hungary’s business residency options provide a solid foundation.
