(content by Elinz)
Hungary offers two main residency options for investors and entrepreneurs: the Golden Visa and Business Residence. Both provide a path to long-term residence, but they differ in requirements and benefits. Understanding these differences helps in making the right choice.
Elena Kozyreva, Managing Director for Real Estate projects, Investment Programs Expert at Immigrant Invest, explains Hungary residence permit for investors and entrepreneurs.
What is Hungary business residence
Hungary Business Residency overview. This option is for entrepreneurs who set up and operate a company in Hungary. The permit is granted based on the business’s activity and its contribution to the economy.
Who should choose a business residence? Those who want to actively manage a business in Hungary or expand an existing company into the EU market. It requires proof of business activity and ongoing operations.
Requirements for business residence. Applicants must register a company, provide proof of initial investment, and ensure the business generates revenue. Hungarian authorities may request financial statements to verify the company’s activity.
What is Hungary residence by investment
Hungary Golden Visa explained. This program grants a residence permit in exchange for an investment in government-approved financial instruments. It is designed for high-net-worth individuals looking for a straightforward residency route.
The key options are:
- Purchase of real estate fund units — €250,000;
- Donation to an institution of higher learning — €1,000,000.
Key benefits of the Hungary Golden Visa. Holders get long-term residence rights in Hungary and visa-free access to the Schengen Zone. There are no physical stay requirements, making it suitable for those who do not plan to live in Hungary full-time.
Who should consider the Golden Visa? This option is ideal for investors who want EU residency without the obligation of running a business. It suits those seeking stability, mobility, and long-term planning opportunities in Europe.
Investment options for Golden Visa in Hungary
Fund investment requirement. The Golden Visa requires an investment in a designated Hungarian investment fund. The minimum required amount is set by the government and must be maintained for a specified period.
Real estate and other assets. Unlike some other Golden Visa programs, Hungary does not offer real estate investment as an option. The primary route is through financial investment.
Additional costs and obligations. Apart from the investment, applicants must pay government fees and Due Diligence costs. These expenses vary depending on the program’s specific requirements and administrative processing.
How to apply for Hungary Business Residence and Golden Visa
Golden Visa application process. Applicants must choose an eligible investment fund, complete Due Diligence, submit an application, and fulfill investment conditions. The residence permit is issued after the investment is confirmed.
Business Residence application process. Entrepreneurs must establish a company in Hungary, provide a business plan, and register with tax authorities. The business must generate activity to maintain the residence permit.
Processing time and approval. Golden Visa applications typically take several months due to investment verification and background checks. Business residence permits may be processed faster but require continuous proof of business operations.
Business residence vs Hungary Golden Visa
Key differences. The Golden Visa is a passive investment program, while Business Residence requires active involvement in a company. The Golden Visa has fewer ongoing obligations, while business residence holders must demonstrate economic activity.
Advantages and drawbacks. The Golden Visa is easier to maintain but requires a significant financial investment. Business Residence allows greater flexibility in investment amount but demands active management and operational costs.
Which option is better? The best choice depends on the applicant’s goals. Investors looking for a residency without business obligations should consider the Golden Visa. Entrepreneurs wanting to operate in Hungary and the EU should opt for Business Residence.
Conclusion
Both residency options offer advantages depending on the applicant’s needs. The Golden Visa is ideal for passive investors, while Business Residence suits active entrepreneurs. Evaluating personal goals and compliance requirements helps in making the right decision.
