Hungary


The year 1000 saw the growth of the Hungarian Kingdom with the annexation of the territories of Slovakia, Syrmia, Croatia, and Transylvania. In the 12th century the Byzantine Empire conquered a few Balkan territories. At the same time Hungary came under the pressure from the Crusades. In the 13th century the country suffered the Mongolian invasion, and between 1526 and 1699 – the Turkish Yoke, which led to the division of the territories into the Austrian and Turkish parts. In 1687 Austria forced the Turks out of Hungary. The authority of the Habsburg Family was officially recognized and they reigned until 1867. The year 1848 witnessed the Hungarian Revolution for the liberation from the Habsburgs. In 1867 Austria-Hungary was founded. In March 1919 Hungary declared itself a Hungarian Soviet Republic, which only existed until August. Then the country was proclaimed a kingdom led by the regent Miklos Horthy (1920 – 1944). During the Second World War Hungary fought on the side of the Third Reich. The Red Army overthrew the military dictatorship of Szalasi (1944 – 1945) and set in the country a communist government which was in power until 1989. Later Hungary became a parliamentary republic. In 1999 Hungary became a member of NATO, and in 2004 it joined the EU.

Service packages

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Service item Express Standard Optimum
Company registration
Legal address per year
Secretarial services for the first year
Fees and duties for the first year
Apostilled bound set of incorporation documents
Compliance fee
Nominee service per year
Bank Account Pre-approval
Price

5 650 USD

12 290 USD

12 790 USD

I want to order «»

Contact method: and / or

Core Services

4 680 EUR

— Incorporation

including incorporation tax, state registry fee, including Compliance fee

Included

— Annual government fees

Stamp Duty and Registration Court incorporation fee

from 3 300 EUR

— Corporate legal services

including registered address and registered agent, NOT including Compliance fee

110 EUR

—Delivery of documents by courier mail

DHL or TNT, at cost of a Courier Service

400 EUR

— Apostilled set of Statutory documents

Optional services

from 5 500 EUR

Nominee Director

Paid-up “nominee director” set includes the following documents

Related services

675 EUR

Tax Certificate

Company’s tax residence certificate for access to double tax treaties network

Certificate of Good Standing

Document issued by a state agency in some countries (Registrar of companies) to confirm a current status of a body corporate. A company with such certificate is proved to be active and operating.

Certificate of Incumbency

Compliance fee

Compliance fee is payable in the cases of: renewal of a company, liquidation of a company, transfer out of a company, issue of a power of attorney to a new attorney, change of director / shareholder / BO (except the change to a nominee director / shareholder)

250 EUR

Basic

simple company structure with only 1 physical person

50 EUR

For legal entity in structure under GSL administration

additional compliance fee for legal entity in structure under GSL administration (per 1 entity)

100 EUR

For legal entity in structure not under GSL administration

additional compliance fee for legal entity in structure NOT under GSL administration (per 1 entity)

250 EUR

For client with high risk Status

Cost of incorporation, including first year servicing 5650
Cost of nominee director services per year, including an apostilled set of documents 6640
Cost of annual service, starting from the second year 3980
Open account in 32988
Incorporation timescale for a turnkey company 15 days
Country 26753

General information shortly

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Total area Population Capital Unemployment Corruption perceptions index rank
93.030 sq. km 9.908.798 (2013) Budapest 8.8% (2013) 47 (2013)
Location Central Europe
National currency Forint
Conditional reduction of currency HUF
Against USD 226.14
Climate, average max and min t° Temperate; cold, cloudy, humid winters; warm summers; avg. maximum temperature (July) +25°; avg. minimum temperature (January) +4°
Time difference from Moscow - 3 hours
Dialing code +36
State language Hungarian
Ethnic groups Hungarian 92.3%, Roma 1.9%, other or unknown 5.8%
Literacy rate 99.4%
Credit rating BB
Government type Parliamentary democracy
Executive branch Head of the government: Prime Minister Government: Cabinet of Ministers
Legislative branch unicameral National Assembly (386 members)
Judicial branch Constitutional Court, Supreme Court, courts of appeal, courts of first instance, and local courts
GDP per capita rank 55 (2013)

Corporate info

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Shelf companies permitted Legal system Incorporation timescale for a turnkey company Cyrillic alphabet permitted in company name Local registered office
No civil law 15 days No Yes
Types of entity sole trader; unlimited partnership (Kkt.); limited partnership (Bt.); limited liability company (Kft.); company limited by shares (Rt.); association (egyesülés)
Incorporation timescale for a new company 2 days
Company suffix Kft
Sensitive words ‘Hungarian’, ‘Budapest’ ‘national’, ‘state’, etc.
Local registered agent Yes
Information to be kept at the registered office register of shares, minutes of meetings and accounts
Seal required, type of seal not required
Redomiciliation (to, from) permitted permitted

Director and secretary

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Minimum number of directors Residency requirements for directors Corporate directors permitted Disclosure to local agent Disclosure to public
1 No Yes Yes Yes
Directors’ meetings/frequency/location Yes / annually
Company secretary required No
Residency requirements for a secretary No
Qualified secretary required No
Corporate secretary permitted No

Shareholder and beneficiary

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Minimum number of shareholders Residency requirements for shareholders Corporate shareholder permitted Disclosure to local agent Disclosure to public
1 No Yes Yes Yes
Meetings/frequency/location Yes / annually / no requirements
Beneficiary info disclosure to No

Shares and share capital

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Minimum authorized share capital Minimum issued share capital Minimum paid share capital Authorized capital payment deadlines Bearer shares permitted
3000000 No requirements 3000000 50% - before incoporation, 50% - within a year after incoporation No
Issued capital payment deadlines No requirements
Standard currency Forint
Standard authorized share capital 3000000
Standard par value of shares 1000
Shares with no par value permitted No

Taxes

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Min. rate for corporate tax Capital gains tax VAT Withholding tax Exchange control
9% + 2% Regular rate 27% 0%/0%/0% No
Personal tax 15%
Corporate tax (in detail) Corporate tax rate is 9%
Other taxes transfer tax, social tax
Stamp duty No

Accounts

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Requirement to file accounts Publicly accessible accounts Audit required Requirement to file Annual Return Publicly accessible Annual Return
Yes Yes No Yes No
Requirement to prepare accounts Yes
Double tax treaties network 82
OECD member Yes
Offshore/onshore status according to the RF laws No

GENERAL INFORMATION

General info

Hungary is a landlocked country in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west.
Total area of the country is 93.030 sq. km. The population is 9.908.798 people (2013). Among ethnic groups are Hungarian (92.3%), Roma (1.9%), other or unknown (5.8%).
The capital is Budapest.
The official language is Hungarian.
The currency is Forint (HUF). 1 USD is equal to 226.14 HUF.
Climate of Hungary is temperate; cold, cloudy, humid winters; warm summers; avg. maximum temperature (July) +25°; avg. minimum temperature (January) +4°.
Time difference with Moscow is -3 hours.
Literacy rate is 99%.
Calling code is +36.

History

The year 1000 saw the growth of the Hungarian Kingdom with the annexation of the territories of Slovakia, Syrmia, Croatia, and Transylvania. In the 12th century the Byzantine Empire conquered a few Balkan territories. At the same time Hungary came under the pressure from the Crusades.
In the 13th century the country suffered the Mongolian invasion, and between 1526 and 1699 – the Turkish Yoke, which led to the division of the territories into the Austrian and Turkish parts.
In 1687 Austria forced the Turks out of Hungary. The authority of the Habsburg Family was officially recognized and they reigned until 1867.
The year 1848 witnessed the Hungarian Revolution for the liberation from the Habsburgs. In 1867 Austria-Hungary was founded.
In March 1919 Hungary declared itself a Hungarian Soviet Republic, which only existed until August.
Then the country was proclaimed a kingdom led by the regent Miklos Horthy (1920 – 1944). During the Second World War Hungary fought on the side of the Third Reich. The Red Army overthrew the military dictatorship of Szalasi (1944 – 1945) and set in the country a communist government which was in power until 1989. Later Hungary became a parliamentary republic.
In 1999 Hungary became a member of NATO, and in 2004 it joined the EU.

Government Type

Hungary is a parliamentary democratic republic.
The head of state is the President, elected by the National Assembly every five years. The President has a largely ceremonial role, but is nominally the Commander-in-Chief of the armed forces.
Executive power is represented by the Government headed by Prime minister. The Government, consisting of Cabinet of ministers, is appointed by the National Assembly and is subject to it.
Legislative power is formed by the unicameral 386-member National Assembly (Országgyűlés) elected for a four-year term.
Judiciary branch comprises Constitutional Court, Supreme Court, courts of appeal (Ítélőtábla), courts of first instance (Törvényszék), and local courts (helyi bíróság).

Economy

The economy of Hungary is a medium-sized, high-income, open economy. The economy of Hungary experienced market liberalization in the early 1990s as part of the transition from a socialist economy to a market economy, similarly to most countries in the former Eastern Bloc. Hungary is a member of the Organisation for Economic Co-operation and Development (OECD) since 1995, a member of the World Trade Organization (WTO) since 1996, and a member of the European Union since 2004.
The private sector accounts for more than 80% of the Hungarian gross domestic product (GDP). Foreign ownership of and investment in Hungarian firms are widespread, with cumulative foreign direct investment worth more than $70 billion.
Hungary's main industries are mining, metallurgy, construction materials, processed foods, textiles, chemicals (especially pharmaceuticals), and motor vehicles. Hungary's main agricultural products are wheat, corn, sunflower seed, potatoes, sugar beets; pigs, cattle, poultry, and dairy products.
In foreign investments, Hungary has seen a shift from lower-value textile and food industry to investment in luxury vehicle production, renewable energy systems, high-end tourism, and information technology.

CORPORATE INFORMATION

Legal system

Hungary is a civil law jurisdiction. The main sources of law are the Constitution, the acts of Parliament, and the governmental, ministerial and municipal decrees. Since Hungary’s accession to the European Union on 1 May 2004, European laws also form part of the Hungarian legal system.

Types of entity

The principal forms of business organization in Hungary are:
  • sole trader
  • unlimited partnership (Kkt.)
  • limited partnership (Bt.)
  • limited liability company (Kft.)
  • company limited by shares (Rt.)
  • association (egyesülés)

The most common structure is the limited liability company.

REGISTRATION

Company name

There is a range of requirements to the company name in Hungary:
  • a company name shall not be identical or similar to the name of an existing company;
  • it must comprise the abbreviation “KFT” (Korlatolt Felelossegu Tarsasag) to reflect its legal form;
  • it must be in Roman letters;
  • it should not contain the following words: ‘Hungarian’, ‘Budapest’ ‘national’, ‘state’, etc;
  • it must reflect at its end if the company is: 1) still under registration – indication ‘bejegyzés alatt’ or ‘b.a.; 2) in liquidation – indication ‘felszámolás alatt’ or ‘f.a.’; 3) in process of voluntary dissolution – indication ‘végelszámolás alatt’ or ‘v.a.’.

Registration

The following steps are required to incorporate a Limited liability company in Hungary:
  1. Hire a lawyer who will represent the company; create the company deed and prepare any other necessary legal document – 1 day : The company must be represented by a lawyer during the registration process.
  2. Apply for registration at the Registration Court (simplified electronic registration) – 2 days : With the effect of 1st March 2012 a tax registration process has been introduced. The Tax Authority examines if the request for company’s registration was submitted to the Court of Registration and whether or not one of the statutory obstacles of the issue of a tax number exists. The Tax Authority refuse to issue a tax number if a hindrance (e.g. tax debt exceeding HUF 15 million) exists regarding a managing director; an owner entitled to represent the company; an owner/shareholder of a limited liability company, etc. The Tax Authority also examines these circumstances and hindrances in case there is any change in the above enlisted persons. The Registry Court receives the application for registration, and after a certificate is issued with the company’s name, address, temporary tax and statistical number and the number of reference of the registration. If the National Customs and Tax Authority consider that the founder or the managing director falls under suspicion according to the above detailed statutory obstacles, Tax Authority does not duly send the tax number of the company to the Registry Court within one working day and the registration process will be suspended for the period of the pending investigation. Companies can be incorporated in 2 ways: 1) By simplified electronic filing - the registration fee: HUF 50,000 and HUF 5,000 for publication fee; incorporation: 2 business days (up to 8 business days). In the simplified electronic filing, the companies must use a standardized template for the articles of association. The companies have to fill in the application form and file certain corporate documents specified by the provisions of law. The simplified electronic registration shall take 1 working hour after the receipt of the tax number from the Tax Authority. If the court does not decide within the 1 hour, the chairman of the registration court must make a decision within 1 business day. 2) By standard electronic filing - the registration fee: HUF 100,000 + publication fee: HUF 5,000; incorporation: 15 business days. If the court does not decide within the aforementioned periods, the chairman of the registration court must take measures to reach a decision within 3 business days regarding the incorporation or the refusal of such application. The company may choose to meet publication requirements by publishing the required information on its website instead of the Company Gazette (Cégközlöny). In the latter case, no publication fees are payable. Simultaneously with the submission of the registration application, the court registers companies with the State Tax Authority (for VAT and income tax purposes) and with the Statistical Office through an online system.
  3. Register for social security – 1 day : The company needs to register with the Hungarian Social Security office.

The formation of a new company in Hungary takes from 2 to 15 days.

Local registered office

As a rule, a Hungarian Limited Liability Company must have a registered office in Hungary. Register of shares, minutes of meetings and accounts should be kept at the registered office.

Seal

There are no statutory requirements for a company in Hungary to have a seal.

Redomicile

The redomiciliation of companies to or from Hungary is permitted.

COMPANY STRUCTURE

Directors

A Hungarian limited liability company should at least have one director. Directors can be either natural persons or corporate bodies. There are no requirements to the nationality of directors.
Directors’ meetings should be held at least once a year to approve the annual report of the company.
The names of directors appear in public records.

Secretary

Hungarian limited liability companies are not required to appoint a company secretary.

Shareholders

Each Hungarian company must have at least one shareholder. There is no restriction on the nationality or residency of the shareholders. The shareholders can be individuals and/or legal persons.
Shareholders’ meetings must be held at least once a year, there are no requirements as to place of holding of the meeting.
The names of shareholders appear on public records.

Beneficiary

Despite the fact that many jurisdictions are discussing an issue of introducing an open register of beneficiaries, there is no such a register yet, including Hungary. This means that beneficiaries’ details do not appear on a public profile. Generally, service providers including firm specializing in company formation, trust managers, lawyers, and accountants, keep beneficiaries’ information in strict confidentiality. It can only be disclosed to regulatory authorities (e.g. during examinations for its existence) or in compliance with a court order.

Share capital and shares

Minimal amount of the authorized share capital of a Hungarian limited company is HUF 3,000,000. Within the incorporation procedure each member must deposit his contribution – 50% of monetary assets. The other 50% of monetary assets must be paid within 1 year from the date of incorporation of the company. If there is only one founder in the company, min. HUF 100,000 must be paid within the incorporation procedure.
Shares are not issued. Share of each member is recorded in the deed of foundation or articles of association. Standard par value of shares is 10000 HUF.

Access to company information

Third parties can request the following information on Hungarian companies:
  • corporate registration number,
  • registered seat,
  • address of branch (if any),
  • date of registration,
  • principal business activities,
  • amount of subscribed capital,
  • details of auditor (if any),
  • statistical and tax numbers,
  • name and address of Bank in Hungary and account number,
  • members, managers and executive officers data (physical person - name, address and mother's maiden name; legal entity - company’s name, company’ registered seat, company’s registration number, name and location of Court of Registration, etc.)

All documents filed to the Registrar including deed of foundation or articles of association are available to public inspection.

TAXATION

Personal income tax

Personal income tax in Hungary is levied on the worldwide income of residents. Nonresidents pay tax on income earned in Hungary.
Income tax is levied at the rate of 15%.
This rate also applies to capital gains and dividends (in some cases, additional tax of 15.5% is paid).

Corporate tax

Corporate tax is paid by all resident companies on their worldwide income. Nonresident companies pay tax on income earned in Hungary.
Taxable income includes the financial profit of the company as adjusted according to tax laws. Dividends received by a Hungarian company are generally exempt from corporate tax, except for dividends distributed by a controlled foreign company.
The corporate tax rate is 9%.

Capital gains tax

There is no separate capital gains tax in Hungary. Capital gains are included in the corporate tax base and are taxed at the rate of 10% or 19%. Tax is not levied if the exemption from tax on dividends applies. Capital gains from the sale of shares by a shareholder of a Hungarian real estate company, who is resident in a country that has no double tax treaty with Hungary, are taxed at the rate of 19%.

Local business tax

Local authorities have the right to impose this tax; it is deducted for the purposes of corporate tax.
The tax base is different from that of corporate tax.
The tax rates vary from region to region, but cannot exceed 2%.
The rate for medium-sized and small businesses is half the standard rate.

Innovation contribution

This contribution is payable at the rate of 0.3%.
The tax base is generally the same as that of local business tax.
Medium-sized and small businesses are exempt from this contribution.

VAT

Hungarian companies are allocated a VAT number by default during their incorporation, which is a great advantage of this jurisdiction. In most European countries, obtaining a VAT number is a rather lengthy procedure that requires a company to meet a number of criteria, while Hungary does not set any special conditions for obtaining it.
The standard VAT rate is 27%.
The reduced rates of 18% and 5% apply to certain types of goods and services.

Withholding tax

Dividends, interest and royalties paid to a nonresident company are not subject to withholding tax.
Dividends, interest and royalties paid to a nonresident individual may be taxed at the rate of 16% unless the rate is reduced under a double tax treaty.

Social security contributions

Employers pay social security contributions at the rate of 15.5% on employees’ remuneration.
In addition, there is a labour training contribution payable at the rate of 1.5%.
Employees pay social security contributions at the rate of 18.5% (pension contribution – 10%, health insurance contribution – 7%, labour market contribution – 1.5%).

Stamp duty

Stamp duties apply primarily to gifts and transfers of property and property rights.
In general, a gratuitous transfer of property and property rights is subject to a stamp duty at the rate of 9% of the market value of residential property and 18% of any other property.
Stamp duty is also charged on the acquisition of property, property rights, and shares in companies that directly or indirectly own property in Hungary. The rate is 2% to 4% of the market value of the property, but not more than HUF 200 million.

Building and land taxes

Municipalities are free to impose these taxes within limits set at the national level.

CFC rules

A controlled foreign company is a foreign company taxed at a low tax rate (less than half of the Hungarian rate), in which a Hungarian company holds, directly or indirectly, individually or jointly with related parties, more than 50% of shares, 50% of the voting rights or rights to more than 50% of the after-tax profit.
CFC rules will not apply in a number of cases, including when a taxpayer can confirm that the foreign company's income is not generated by transactions aimed at tax evasion.

Double Tax Agreements

Hungary has entered a whole range of double tax and tax information exchange mechanisms:
  • 82 DTCs: Albania, Armenia, Australia, Austria, Azerbaijan, Bahrain, Belarus, Belgium, Bosnia and Herzegovina, Brazil, Bulgaria, Canada, China, Chinese Taipei, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, Former Yugoslav Republic of Macedonia, France, Georgia, Germany, Greece, Hong Kong (China), Iceland, India, Indonesia, Iran, Iraq, Ireland, Israel, Italy, Japan, Kazakhstan, Korea (Republic of), Kosovo, Kuwait, Latvia, Liechtenstein, Lithuania, Luxembourg, Malaysia, Malta, Mexico, Moldova (Republic of), Mongolia, Montenegro, Morocco, Netherlands, Norway, Oman, Pakistan, Philippines, Poland, Portugal, Qatar, Romania, Russian Federation, San Marino, Saudi Arabia, Serbia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland, Thailand, Tunisia, Turkey, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States, Uruguay, Uzbekistan, Viet nam.
  • 2 TIEA: Jersy, Guernsey.

Foreign exchange control

There is no exchange control in Hungary.

Financial statements

Hungarian companies must annually file financial statements and an annual report to the Ministry of Public Administration and Justice in electronic form. Financial statements are available to the public on the Ministry's website.
Financial statements can be prepared in HUF, EUR or USD in accordance with Hungarian GAAP, which are similar to the international accounting standards.
The financial year is the calendar year, with some exceptions. The financial year may differ from the calendar year, for example, for branches of foreign companies, if it is the same as the foreign company's financial year. The duration of a financial year is 12 months with some exceptions.
Financial statements must be filed within five months of the end of the financial year. There are penalties for late filing.

Audit

A company is exempt from audit of its financial statements if the following conditions are met in two consecutive financial years:
  • annual net sales do not exceed HUF 300,000,000
  • number of employees does not exceed 50

The audit must be conducted in accordance with the Hungarian National Standards on Auditing, applicable since 1 January 2001 and based on the International Standards on Auditing.
To qualify as an auditor, an individual must have three years of experience, and have passed the qualifying examinations. Auditors must be members of the Hungarian Chamber of Auditors.

Annual Return

In Hungary, every company must file an annual report in addition to its financial statements. The annual report can be full, abbreviated or consolidated. Companies may choose to prepare a more complete report than the required minimum.
An abbreviated annual report can be made by companies with less than HUF 500 million in total assets, with up to HUF 1,000 million in turnover, and less than 50 employees over two consecutive years. Companies that do not meet these criteria must prepare a full annual report. Special rules apply to financial institutions and insurance companies.
The company's management is responsible for issuing an annual report within 150 days of the end of the financial year (180 days in the case of a consolidated annual report). The annual report must include a balance sheet, an income statement, and notes in support of the financial statements. The notes must include a cash flow statement. It is also mandatory to prepare a business report, although it is not part of the annual report.

Tax returns

The tax year of companies usually coincides with the calendar year; for groups of companies, it is the financial year of the group.
The corporate tax return must be filed and the final tax must be paid within five months of the end of the tax year.
Provisional corporate tax payments are made quarterly (monthly at a certain level of income).

HUNGARIAN RESIDENCE PERMIT

Residence Permit through Investment in Bonds

The Hungarian program of residence permit through bonds offers a unique possibility to get an indefinite permanent residency card for the whole family in Hungary, by dint of investment in governmental bonds for a 5-year period.
The nominal value of the government bonds is 250.000 Euro, which will be gained back after 5 years with no interest on it. The one-time administration fee is 40.000 Euro.

Steps to Obtain the Residency

1. Collection of documents
To apply for the residence permit in Hungary the required documents are as follows:
  • Copy of passport;
  • Copy of ID card;
  • 1 original bank reference letter issued by on internationally recognized bank, the letter not older than 6 months;
  • 1 original professional reference letter (e.g. from an attorney, notary public, charted accountant or other professional of similar standing), not older than 6 months;
  • 1 original document of evidence of residential address (e.g. certified copy of a recent utility bill or bank statement showing full name and address, or written confirmation from a bank, attorney, chartered accountant or notary public);
  • Statement of source of funds to be invested in the Residency Program;
  • Police no-criminal record certificate.


2. Bond subscription
The applicant sends EUR 250.000 to the Residency Bond Agent. Upon receipt of this amount the Residency Bond Agent shall issue its own registered security (e.g. its own corporate bonds) with a face value of EUR 250.000 and with a five years maturity to the investor. This corporate bond must have the same maturity and amount of the government bond into which the Residency Bond Agent must invest the funds. As a result, the corporate bonds owned by the investor will be fully backed by the specifically allocated Hungarian Residency Bond. Concurrent with issuing its own security to the investor, the Residency Bond Agent shall provide the investor with an irrevocable declaration, where the enterprise certifies that a treasury bond for a nominal value of 250.000 EUR with a five years’ maturity will be purchased from the funds received from the investor within 45 days upon issuing his/her residence permit.

3. Residency application
The application for a temporary residence permit should be submitted personally to the consular officer of the Hungarian Consulate for the applicant’s residency prior to entry to Hungary. At the time of application the proceeding authority records the biometric data (fingerprint, photograph) of the applicant. The applicant must provide the following documents to the consular officer:
  • Valid travel document (the passport validity has to be for 5 years plus 3 months, as long as the validity of the residency is related to the validity of the passport);
  • 2 original passport-sized photos of the applicant;
  • Proof of ownership for the corporate bond issued by the Residency Bond Agent;
  • Irrevocable declaration of the Residency Bond Agent that the Hungarian Government-issued Residency bonds will be purchased in less than 45 days;
  • A Power of Attorney issued to a Hungarian lawyer to act as a legal representative. This Power of Attorney must be signed by the applicant and must be certified by the consular officer.

If all the documents are in order and the respective conditions are fulfilled, the Hungarian Immigration and Citizenship Authority is expected to issue the residency permit in 8 working days. The fee of the consular procedures cost 60 EUR. The applicants must be screened by the relevant Hungarian Intelligence authority.
At the time of filing the residency application, the applicant must decide whether he/she wants to take delivery of the residency card in person in Hungary or would prefer to have the card sent to the lawyer representing him/her. In the first case after the residency permit is issued, the applicant could apply for a 30-day visa to travel to Hungary, which will be immediately granted.
The temporary residency card of the investor is valid for 5 years.

Family Reunification

Simultaneously with the application, the applicant’s spouse and children (if minors) are also entitled to apply for a residence permit with the purpose of “family unification”. In their case there is no need to prove the national economic interest by investing additional funds; however, documents certifying the existence of family relations and support declaration by the head of the family certifying responsibility for the living costs, housing, and health care shall be attached to the application.
It is important to note, that the temporary residency cards, issued for the purpose of family reunification will be valid for 3 years, which can be expanded. The permanent residency card can be claimed after 6 months from getting the temporary residency card.

Permanent Residency

After 6 months the Hungarian residence permit can be converted into a permanent residence permit by visiting either the responsible office of the Immigration and Citizenship Authority or the Hungarian Consulate. It can be issued in 4-5 working days.
In case the applicant does not claim for the permanent residency card, his/her right of residence will expire with the temporary residency card. In this case invested amount of 250.000 euro will be paid back after 5 years to the applicant with no interest also.

Advantages of Long-term Residency

The permit holder can travel all over the Schengen countries for 90 days for each half of a year. The 6 month will be renewed in each border crossing, in other words he/she can travel with no limits.
They can enjoy equal treatment with the nationals, as the following:
  • To qualify for paid or unpaid employment, conditions of employment and working conditions (working hours, health and safety regulations, leave entitlements, remuneration and dismissal);
  • The right for homemaking interest and assistance;
  • Education and training, scholarships;
  • Social rights (family support, old age retirement) and health insurance;
  • Social support (minimum rent-support, old age retirement, free health insurance)
  • Social allocations, tax preference, access to goods and services;
  • Right of association, union membership, right for union or federal representation;
  • Free stay on the territory of the state.

International law relations

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Party to the Hague Convention (Apostille) Legal system Double tax treaties network OECD member Offshore/onshore status according to the RF laws
Yes civil law 82 Yes No

Public authorities and legal acts

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List of laws and regulations
Act name Scope of law
Act IV/2006 on business associations business association
The Act on Accounting (Act C of 2000) accounting
Act on Rules of Taxation (2003) taxation
Act on Corporate Income Tax and Dividend Tax (1996) corporate income tax and dividend tax
Act on Value Added Tax (2007) VAT
Act on Personal Income Tax (1995) personal income tax
Tax treaties entered Albania, Armenia, Australia, Austria, Azerbaijan, Bahrain, Belarus, Belgium, Bosnia and Herzegovina, Brazil, Bulgaria, Canada, China, Chinese Taipei, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, Former Yugoslav Republic of Macedonia, France, Georgia, Germany, Greece, Hong Kong (China), Iceland, India, Indonesia, Iran, Iraq, Ireland, Israel, Italy, Japan, Kazakhstan, Korea (Republic of), Kosovo, Kuwait, Latvia, Liechtenstein, Lithuania, Luxembourg, Malaysia, Malta, Mexico, Moldova (Republic of), Mongolia, Montenegro, Morocco, Netherlands, Norway, Oman, Pakistan, Philippines, Poland, Portugal, Qatar, Romania, Russian Federation, San Marino, Saudi Arabia, Serbia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland, Thailand, Tunisia, Turkey, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States, Uruguay, Uzbekistan, Viet nam. 2 TIEA: Jersy, Guernsey.
List of state regulatory authorities
Hungarian Parliament http://www.parlament.hu/parl_en.htm
Governmental Portal https://magyarorszag.hu/
Hungarian Government http://www.kormany.hu/en
Ministry of Foreign Affairs http://www.kormany.hu/en/ministry-of-foreign-affairs-and-trade
Ministry of National Economy http://www.kormany.hu/en/ministry-for-national-economy
Ministry of Justice http://www.kormany.hu/en/ministry-of-justice
National Tax and Customs Administration http://en.nav.gov.hu/
Hungarian Intellectual Property Office http://www.hipo.gov.hu/English/
Hungarian Trade Licensing Office http://mkeh.gov.hu/
Hungarian Investment Promoyione Agency https://hipa.hu/main
National Bank of Hungary http://www.mnb.hu/

    Legal Partner of Review:

    Grand Consulting

    Grand Consulting provides company formation and management, tax planning and advisory, accounting and payroll services, legal and trust services in Hungary for resident and non-resident clients since 2003. The managing partners of the Grand Consulting worked as chief financial officers or chief accountants, tax advisors with international companies before they started their own business.

    Company Registration in Hugary

    Consultants

    YOUR CONSULTANT

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    Your question was successfully sent to the GSL office.

    — In the near future you will receive a detailed answer to it. Typically, the response rate does not exceed 24 hours.

    — If your question is urgent, you can always contact me on the office or mobile phone number listed on the site or chat on Skype.


    Regards, If you are ALREADY a GSL customer YOUR CONSULTANT

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    Aniko Sebok

    GSL Law & Consulting Lawyer, Head of UK GSL office

    Office phone:

    +44 207 002 1307

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    Your question was successfully sent to the GSL office.

    — In the near future you will receive a detailed answer to it. Typically, the response rate does not exceed 24 hours.

    — If your question is urgent, you can always contact me on the office or mobile phone number listed on the site or chat on Skype.


    Regards, GSL Law & Consulting Lawyer, Head of UK GSL office Aniko Sebok

    Contact method: and / or

    Valerija Filipova

    GSL Law & Consulting Lawyer, London Office

    Office phone:

    +44 207 822 8592

    Office phone:

    +44 207 822 8594

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    Sign up for a consultation

    c  !

    Your question was successfully sent to the GSL office.

    — In the near future you will receive a detailed answer to it. Typically, the response rate does not exceed 24 hours.

    — If your question is urgent, you can always contact me on the office or mobile phone number listed on the site or chat on Skype.


    Regards, GSL Law & Consulting Lawyer, London Office Valerija Filipova

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