Third-country national entrepreneurs and executive officers may choose this option to lay the foundations of legitimate work in that capacity in the territory of Hungary.

Residence permit for the purpose of gainful activity may be issued if the purpose of residence is to lawfully perform work in a self-employed capacity for remuneration or to engage in any gainful activity in the capacity of being the executive officer of a for-profit business association, cooperative or some other legal entity.

Individuals in possession of a valid residence permit for the purpose of job-searching or entrepreneurship in Hungary may also apply.

The applicant shall fulfill some general requirements that are identical to conditions of other residence permit categories and some that are exclusive to this exact category and also present specified ID cards and documents.

I. General conditions of issuing the residence permit

The applicant shall be

1. in possession of a valid travel document;
2. necessary permit for return or continued travel;
3. justify the purpose of entry and stay;
4. have accommodation;
5. sufficient means of subsistence and financial resources to cover accommodation costs and leaving the country;
6. comprehensive health insurance;
7. and the applicant cannot be subject to expulsion or exclusion and shall not be considered a threat affecting public policy, public security, national security, or public health of Hungary
8. and cannot be a subject of SIS alert

The third-country national holding a residence permit is not required to certify the requirements b)-g) again at the time of entry since during the application procedure these has been examined and holding the residence permit or the visa for the purpose of collecting the residence permit is proof of fulfillment of those conditions.

II. Special conditions in case of residence permit for the purpose of gainful activity

Residence permit for the purpose of gainful activity may be issued to third-country nationals whose purpose of residence is one of the following:

• To lawfully perform work in a self-employed capacity for remuneration.
• To engage – save where the previous case applies – in any gainful activity in any gainful activity in the capacity of being the executive officer of a for-profit business association, cooperative or some other legal entity

In the second case one the following requirements apply:

• The business organization shall employ at least three Hungarian citizens or individuals with the right of free movement and residence in Hungary in full time for at least six uninterrupted months, or
• the applicant’s presence shall be crucial for the business and based on the business plan it is a fair assumption that the profits will cover the third country national’s subsistence

III. Sufficient verification of the purpose of residence

In case of residence permit for the purpose of gainful activity the purpose of the residence can be justified with

• agency, license or service agreement where the applicant concludes the contract as private individual
• business plan in regard of the planned economic activity
• private entrepreneurial license;
• private entrepreneur registry number;
• small-scale agricultural producer’s licence
• other credible means

IV. Validity and extension

“The validity period of a residence permit granted for the purpose of gainful employment shall be three years maximum, and it may be extended by three additional years at a time.” [Act II of 2007]

V. Distinction from residence permit for the purpose of employment

Hungarian law distinguishes between the residence permit for the purpose of gainful activity and residence permit for the purpose of employment. Both permits are considered as earning activities but there is a separation aspect based on the legal relationship. The basic difference is, that gainful activity is an entrepreneurial status and in case of employment, there is a subordinate relation.

According to the legislation residence permit for the purpose of employment may be issued in the following two cases:

1. The purpose of residence is to perform work for or under the direction and/or supervision of others, for remuneration, under contract for employment relationship;
2. or if the third-country national wishes to perform work as the owner or executive officer of a for-profit business association, cooperative or some other legal entity, in addition to the work actually performed in that capacity.

Compared to the characteristics of the residence permit for the purpose of gainful activity if the performed work exceeds the scope of activities as executive officer of a for-profit business association, cooperative or some other legal entity the application to be submitted is for the purpose of employment.

If you wish to obtain detailed information about residence permit for the purpose of employment, you can read our article on the subject.

Do you have any question regarding residence permit for the purpose of gainful activity or other residence permit categories? Do not hesitate to contact us!

Disclaimer: We provide our services in accordance with the Hungarian and European laws in effect. We assist our clients only in lawful entry and residency in Hungary and we do not support illegal immigration.

Dobos István attorney at law (ügyvéd; Budapest)/ Kőhidi Ákos attorney at law (ügyvéd; Győr) / Laczó Barbara

E: office@doboskohidi.eu

Phone / Whatsapp: +36303088151 / + 36305866162