When to choose the residence permit for guest self-employment in Hungary?

Who can apply for residency for guest self-employment?

Applicants need to be self-employed in Hungary in order to be eligible for this type of residency. In connection with residency for guest self-employment, this means that they either need to be freelancers or the managing directors of their own Hungarian company.

In case of managing directors, it is important to consider what kinds of tasks they intend to perform for their company, and how much time they intend to spend in Hungary. Under specific conditions, the residence permit for guest self-employment might be a more favorable option compared to other work-related residence permits, and it may let the holder pay less in taxes.

For both freelancers and MDs, it is essential that the application includes a business plan that establishes the feasibility of the business.

Self-employment for students

Sometimes we also recommend this type of residence permit to students who have recently graduated in Hungary, or who have already depleted the 9 months available through the “study-to-work” residence permit. In these cases, third-country nationals can typically apply for neither the residence permit for employment purposes (because it is currently available to nationals of only three countries), nor the Hungarian Card (which demands that the applicant has NOT graduated from a Hungarian university), nor the EU Blue Card (because salary requirements are too high for career entrants).

Please note: students who have previously applied for the “study-to-work” residence permit are typically expected to find employment or start a business in their field of expertise. This means that with an engineering degree, you cannot start a home delivery business and get a residence permit for guest self-employment. You have more chance for success if you apply for this permit before the expiry of your student residency, leaving out the “study-to-work” phase.

Validity and extension

The Hungarian residence permit for guest self-employment can be issued for one year, but then it can be extended for another two years. During the validity period, holders must submit quarterly reports to the Immigration Authority through the E-Paper platform (the feature is currently not available on EnterHungary). The reports should mention both the holder’s income and include any other documents demonstrating business activity, e.g. invoices or contracts. Not submitting these reports may result in the rejection of the renewal.

The income reports should prove that the holder keeps meeting the income requirements of this residence permit and that they can earn a living in Hungary.

• For freelancers, this means that their yearly income must be double the yearly minimum wage, so HUF 6,979,200, or ca. EUR 17,600 in 2025. Please note: in this sense, “income” is your profit that remains with you after the deduction of expenses. For flat rate taxpayers, the income is 60% of the revenue, which should then be at least HUF 11,632,000, or ca. EUR 29,000 (the HUF sum will be considered).
• For MDs, this means that their income will be sufficient to maintain both the company and the managing director (no hard income limit is set), OR that the company should employ at least 5 Hungarian or EEA nationals.

Additionally, the residence permit for guest self-employment allows family unification only after the first year. As a result, it is not preferred if applicants want to bring their family members to Hungary as soon as possible.

Moreover, if you are interested in permanent residency in Hungary, this residence permit will grant you eligibility only after 5 years through the EU Residence Card. The National Residence Card available already after 3 years of residency is unfortunately not an option for guest self-employment.

What to watch out for

The residence permit for guest self-employment might be a suitable option for you if you have a business idea and you do not want to leave Hungary in order to apply for another type of residence permit. However, you should keep in mind the following:

• This permit allows family unification only after one year
• It allows permanent residency only after 5 years
• You cannot apply for any other type of Hungarian residency while staying in Hungary
• The first extension (after year 1) already requires an income that is double the minimum wage, which might not be easy to achieve for freelancers, especially if they are just starting their business

At the same time, the main advantage of this permit is that it is available, and it can grant you Hungarian residency for at least a year.

Helpers at your service

If you need help deciding how to go about your Hungarian residency, book a consultation with one of our experts, tell us about your plans, and let us help you evaluate your options.

Helpers Hungary provides assistance with business setup and residency applications. With our 20 years of experience and committed team, we are confident we can find the solutions that fit your needs the best so you can make the most of your Hungarian residency. If you want to learn more about Hungary, you can also follow us on Facebook or sign up for our monthly newsletter.