Consider the following case: A US-citizen discovers she has significantly overstayed her Schengen-Visa upon leaving the Schengenzone after 10months or so of living there (Austria). She does not want to wait out the mandatory 180day period before applying for a new VISA. Instead, she want to go to Hungary there, invest by buying a location for a restaurant or bar, and do business there. Is there a way for her to get a business VISA granted exclusively for Hungary or any other alternatives for her? Or is the 180days outside Schengen the only viable way here?
Thanks in advance!
Benedek
Dear Bendek,
Thank you for your inquiry. We understand the urgency of your situation and would like to clarify your potential legal options regarding residence in Hungary, despite a prior overstay in the Schengen Area.
Key Exception – U.S.–Hungary Bilateral Agreement
While U.S. citizens are generally permitted to stay in the Schengen Area for 90 days within any 180-day period, Hungary has a special bilateral agreement with the United States.
➡️ If your total stay in the entire Schengen Area has not exceeded 180 days, you may still be eligible to apply for a Hungarian national residence permit from within Hungary, without leaving the country, by invoking this U.S.–Hungary bilateral visa waiver arrangement.
This exception only applies to Hungary and does not restore general Schengen travel privileges, but it allows you to remain in Hungary legally and apply for a long-term permit.
Gainful Activity (Business Investment) Permit
Since your intention is to open a business (e.g., a bar or restaurant), Hungary offers a residence permit for the purpose of gainful activity. This permit can be requested from within Hungary if the bilateral stay limit has not been exceeded.
To qualify, you will need:
A registered Hungarian company (e.g., Kft)
A realistic and sustainable business plan
Proof of accommodation in Hungary
Proof of sufficient financial means
Valid health insurance
Justification of the business’s economic purpose
We strongly recommend including a statement and legal explanation of your previous overstay when submitting your application to avoid misunderstandings.
Important Notes:
If your total Schengen stay exceeds 180 days, this bilateral option no longer applies, and you must leave the Schengen zone and apply for a Type D visa at a Hungarian consulate abroad.
A recorded overstay may appear in the Schengen Information System (SIS), which may affect future entries into other Schengen countries.
Legal Assistance Available
Our law firm specializes in Hungarian immigration and residence law. We can assist you with:
Assessing your eligibility under the bilateral agreement,
Establishing a company,
Preparing a strong business permit application,
Submitting the request through the Enter Hungary portal from inside the country.
Should you wish to proceed, we would be happy to offer a consultation and provide a tailored checklist.