Residence of Foreigners in Hungary

The Treaty of Rome of 1957 establishing the European Economic Community (hereinafter: Treaty of Rome) was designed to provide for the free movement of workers inside the Community, that is to ensure the right of free entry and residence in the territory of another Member State and to gradually abolish discrimination based on nationality between workers of the Member States with regard to employment, remuneration and other working conditions. Similarly to the other Member States of the Union, Hungary complied with its obligations undertaken in the Accession Treaty and provides the same treatment to citizens of the Member States of the European Union and the EEA countries as to its own citizens.

Pursuant to the Article of the Treaty of Rome on the right of residence, Hungary abolished all restrictions related to the residence of Community enterprises and citizens, thus according to the principle of national treatment Hungary provides the same conditions for residence and operation to natural persons from other Member States and the agencies, branches or subsidiaries founded by those persons.

Residence of Foreigners in Hungary for Economic Purposes »

In Hungary the investments of foreigners and residence for economic purposes enjoy full protection and security. In Hungary, foreign citizens may freely found businesses and other associations and public-benefit organisations whose purpose is an activity aiming at or resulting in the acquisition of income and profit. In Hungary, an enterprise registered abroad may establish a branch office or commercial representation through company registration or found an independent enterprise or subsidiary.

Certain economic activities specified by law may be performed without a branch office or the foundation of an independent enterprise, such as:

    • educational activities in educational and training institutions or higher education institutions;
    • performing arts;
    • activities requiring expertise (with the exception of auditing, accounting and bookkeeping services and legal services);
    • business activities if they may be performed in Hungary without the presence of the foreign person and his/her permanent equipment.

According to the freedom of services the foreign persons may supply cross-border services in Hungary without establishment in Hungary for an economic purpose, within the limits of EU law and international agreements.

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