Because of its central location on the continent and the good connections with the neighbouring markets, as well as its growing economy, Hungary is a great place to start your own business. In fact, to attract new businesses, Hungary has made the process of starting a business very straightforward and is offering many perks to potential business owners, like a corporate tax of only 9%, which is the lowest rate in the whole of Europe.
Advice for third-country nationals
Whereas EU/EFTA nationals can start and manage their own business in Hungary without a lot of paperwork, if you're a third-country national, you'll most probably need to apply for a residence permit. There are several types of residence permits (consult our section on Work Permits for more), but the best one for your case would be the 'Residence Permit for Guest Self-Employment'. Just be aware that if you intend to also perform actual work in the business you own, you'll need to apply for a 'Residence Permit for the Purpose of Employment'. However, if you don't intend to relocate to Hungary just yet, it is totally possible to start your own Hungary-based business from abroad, by hiring a Hungarian law firm and a Hungarian accountant to assist you with the technicalities.
Hungary remains a good place for bootstrapping startups looking for EU market access because of low operational costs. The Hungarian startup ecosystem is rapidly maturing, particularly for technology-driven ventures in Budapest. Fintech, AI, and cybersecurity all benefit from the country's deep pool of engineering talent and relatively low burn rates compared to Western Europe. The medtech and biotechnology industries are also strong, as is the electric vehicle supply chain, driven by massive recent investments in battery manufacturing.
While there is no dedicated "startup visa" distinct from the standard self-employment residence permit, the regulatory environment is welcoming. Founders should note that while most startups incorporate as an LLC (called Kft in Hungarian), those seeking significant venture capital often eventually transition to a Private Limited Company (Zrt.) structure to better handle complex equity distribution. It is also worth exploring opportunities with local incubators and state-backed funds like Hiventures, which are actively looking to invest in innovative early-stage companies registered in Hungary. You can learn more about these in the final section of this article.
The process of setting up your business
Setting up your own business in Hungary usually doesn't take more than one or two business days, as the process can be completed by electronic filing of documents. Although you'll need to check what applies in your particular case, as a general rule, you'll need to do the following:
- Have a Hungarian attorney-at-law prepare your corporate documents, which will be signed by you and any other company founders.
- Register your company's physical address. This address needs to be publicly available, as any letters delivered to your business address by the authorities are considered to be 'read' by you. If there's any action to be taken on your end, you should do so within 8 days of receiving your mail.
- Open a bank account in a Hungarian bank. You are required by law to do so within 8 days from your company's incorporation date, and as the owner, you need to go to the bank in person (though some fintech solutions and banks may now accept remote identification, in-person verification remains the standard).
- Register your company at the Hungarian Court of Registry, which will grant you a tax identification number.
- Get an accountant. Even if your company's activity is non-existent yet, or you have a very small turnover, you're still required by the Hungarian law to have an accountant from the minute you start a business in the country. Your accountant will be tasked with submitting reports to governmental and municipal authorities like the Tax Office, the Health Authority and the Statistics Bureau, and there are very strict fines if they fail to do so.
The cost for setting up your own company, depending on the type of company you opt for, can be anything between HUF 50,000 (EUR 125) and HUF 100,000 (EUR 250). Find out more here.
Expats most commonly set up LLCs (called Kft. in Hungarian), which requires a minimum share capital of HUF 3,000,000 (approx. EUR 7,500), though this does not usually need to be deposited immediately. Any nationality can own a company; you do not need to be an EU citizen to be a shareholder or director. For smaller operations or family businesses, a Limited Partnership (Bt.) is a flexible option with no minimum capital requirement, though it requires at least one general partner with unlimited liability and one limited partner with liability restricted to their contribution, which is why the format is widely seen as antiquated these days with little upside considering the relative ease of launching an LLC.
As a further alternative, a Private Limited Company by Shares (Zrt.) is the larger form that is commonly considered for bigger operations. It requires a minimum capital of HUF 5,000,000 (approx. EUR 12,500) and involves a more formal governance structure, including a board of directors.
You can absolutely hire employees for your business in Hungary, but the employer pays a 13% social contribution tax on top of the gross salary, and the employees themselves pay 15% personal income tax plus 18.5% social security contributions, making for a significant tax burden. As of 2026, the minimum wage has increased to HUF 322,800 gross, which serves as the baseline for many tax calculations.
You should also be aware that if your business deals in financing, insurance or any other capital market activities, you may need a special permit from the Central Bank of Hungary (MNB).
Support programs for foreign entrepreneurs in Hungary
The three key players in startup support are all available for expats under the right circumstances. HIPA, or the Hungarian Investment Promotion Agency ,offers "VIP" cash subsidies, tax incentives, and professional guidance, particularly for businesses making significant investments in research and development or job creation. Early-stage startups and pre-seed projects should seek out the state-owned venture capital fund Hiventures. For businesses past the MVP stage, private advocacy groups like Startup Hungary offer community resources, mentoring, and networking opportunities to help international founders integrate into the local business fabric.
We do our best to provide accurate and up to date information. However, if you have noticed any inaccuracies in this article, please let us know in the comments section below.
