Business investment opportunities in Hungary have gained prominence as the country defies global economic headwinds, emerging as one of the fastest-growing economies worldwide in 2023, as reported by the Economist.
Why Investors Should Choose Business Investment Opportunities In Hungary?
This robust performance has positioned the nation as an enticing destination for international investors seeking lucrative opportunities, marked by:
- 0.6% GDP growth
- 0.4% increase in employment
- a remarkable 20% rise in market share
The flourishing Hungarian economy presents an ideal juncture for foreign entrepreneurs to capitalise on the country’s “Active Investor Visa” program, a gateway to European residency through foreign direct investment.
This expedited and cost-effective pathway coupled with significant economic growth offers residency to those willing to do their foreign investments and establish viable local companies that generate significant revenue and employment opportunities for Hungarians.
Whether introducing a subsidiary of an existing overseas enterprise or establishing a standalone venture, investors are afforded the flexibility to tailor their foreign businesses to align with their strategic objectives.
Hungary’s competitive 9% flat corporate income tax rate, one of the lowest in the European Union, ensures that investors retain a substantial portion of their profits, amplifying their return on foreign direct investment.
What are the Steps to Get Active Investor Visa?
Eligibility for the Active Investor Visa extends to business owners from around the globe, regardless of their linguistic proficiency in Hungarian, provided they actively engage in their operations as directors or managing partners.
While a grasp of the language can prove advantageous, it is not a prerequisite, allowing investors to immerse themselves in the local culture gradually.
The investment requirements are equally appealing, with no specific minimum amount mandated. However, allocating at least EUR 50,000 as initial capital is advisable to ensure a robust start for the business venture.
Hungary boasts one of the fastest business establishment processes globally, with the incorporation of a Hungarian limited liability company (Ktf) requiring a minimum share capital of approximately EUR 7,710 (HUF 3 million) and a swift four-to-five-day turnaround.
The application process commences with obtaining a short-term business visa, facilitating the opening of a company bank account and the registration of the business.
A viable business plan and a local office or mail forwarding address are essential prerequisites. Investors can enlist the services of registered Hungarian attorneys to streamline the incorporation process, encompassing business plan development, company registration, office and mail forwarding arrangements, corporate income tax and social security compliance, and other administrative support.
Once the company is successfully registered, investors can proceed with applying for a long-term “D” investor visa at the Hungarian consulate or embassy in their home country.
Upon approval, the long-term visa grants entry into Hungary, where investors must apply for a business investor residence permit within fifteen days of arrival, at a cost of approximately EUR 65 (HUF 25,000).
After three years of residing in Hungary for at least 183 days annually, foreign investors become eligible for Hungarian permanent residency.
This milestone paves the way for potential citizenship after eight years of continuous residence, contingent upon demonstrating a basic understanding of the Hungarian language and culture.
A Hungarian passport unlocks visa-free travel to over 180 destinations, including the Schengen area and the United States.
The processing times for business immigration visas and residence permits are remarkably efficient, with the National Directorate-General for Aliens Policing of Hungary typically processing visa applications within two to three months, and residence card issuance taking up to eight weeks.
Hungary’s strong performance has made it an attractive destination for international investors, highlighted by 0.6% GDP growth, a 0.4% increase in employment, and a notable 20% rise in market share.
How Hungary’s Robust Market Supports Simplified Immigration
Hungary’s thriving economic landscape, coupled with its streamlined business investment program, presents a compelling opportunity for international entrepreneurs.
By establishing a company in Hungary, foreign investors not only gain access to the vast European Union market across Eastern and Western Europe of nearly 450 million consumers but also benefit from lower living and operational costs.
With a vibrant business climate, a favourable corporate income tax regime, and the potential for eventual citizenship, Hungary emerges as an ideal destination for those seeking to capitalise on rewarding foreign direct investments while securing a foothold in Europe.
Combining these factors with Hungary’s simplified immigration framework, and the country emerges as an optimal choice in Central and Eastern Europe for those looking to elevate their foreign businesses in the EU while simultaneously obtaining a Hungarian residence permit.
Finally
To know more about foreign investments and business migration to Hungary, contact us today to book a comprehensive consultation with one of our experts.
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