Investor Residency Bond Program
Hungary Investor Residency Bond Program
A booming hub in the heart of Central Europe, Hungary is one of the most-visited, culturally rich, and well-located countries on the Old Continent. Hungary is a member of the EU and of the Schengen visa zone and the cost of living in Hungary is significantly lower compared to other European countries. Live in Hungry and travel to all Schengen EU countries visa free anytime.
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As a member of the European Union and the Schengen zone, Hungary is among the 30 most-visited destinations on the planet. It boasts a rich and diverse culture (everything from music and film to food and literature) universal healthcare, and is perfectly located in the center of Europe. Established in 2012, the Investor Residency Bond Program offers applicants a host of advantages.
The Investor Residency Bond Program doesn’t have any set criteria for applicants in terms of personal net worth or management experience. However, the Hungarian administration officers reserve the right to request an interview meeting with the applicant, which can be exercised at random.
During the initial due-diligence and application stages, the financial intermediary and the Hungarian authorities will follow standard know-your-clients’ (KYC) and anti-money laundering procedures. For this reason, at the stage of application, the principal applicants will have to provide a set of standard documents proving their source of income and accumulation of personal net worth.
Applicants are required to maintain a residential address in Hungary for the period of their temporary residence permit, for which additional fees apply.
The statutory procedure for accepted foreign direct investment in the Investor Residency Bond Program includes the purchase of special Hungarian government bonds in the amount of €300,000 with a maturity of five years. At maturity, the original capital is returned to the investor without accrued interest.
Legislation dictates that the program investment is used to purchase bonds that are issued by a Residency Bond Agent approved by the Hungarian authorities. The agent, in turn, invests that amount in the Hungarian government bonds. This transaction is subject to a Subscription Agreement with the designated enterprise, which must be licensed for the main applicant’s geographic region. The government bonds are assigned for the program only, and cannot be used for trading on the public or the secondary market.
Once the security is issued to the investor, the Residence Bond Agent will provide an irrevocable declaration certifying that a treasury bond for a nominal value of €300,000, with a five-year maturity, will be purchased from the funds received from the investor within 45 days of his/her residence permit being issued. In addition to the investment, applicants are also required to cover all processing and visa application fees.
To further guarantee the investment, applicants may wish to obtain a Letter of Bank Guarantee by the issuing bank. Additional fees by the bank apply.
All applicants must make sure that their investment is made through the designated agent responsible for their specific region.
For a set pre-paid fee, clients can leverage their capital by choosing the Financed option. This loan is initiated and repaid at no further cost to the investor. Please contact us for details.
The Hungarian Investor Residency Bond Program
- Government-approved investment in bonds;
- Special exemption from physical residence is applied to the main applicant and all qualifying family members;
- Fast application process. All qualifying applicants receive a Hungarian ID for temporary residency (TR) in less than three months, giving them the right to travel freely throughout the Schengen zone.
- A single application process for the main applicant and all qualifying family members, with no mandatory trips to Hungary required;
- A fast and facilitated application process for permanent residency. Applicants and their family members can apply for permanent residency just six months after receiving their TR cards;
- Inclusion of dependents under 18 at the time of PR application approval;
- Free movement throughout the Schengen zone.
- ARTON INDEX SCORE 69%
Updated yearly, the Arton Index is an overall assessment and comparative benchmark of the country and its investment program.
Hungary Investor Program
Hungary is EU zone schengen member country in Central Europe. The capital is Budapest, a beautiful tourist destination and the national currency is Hungarian Forint (HUF). The cost of living in Hungary is much cheaper compared to other european countries and you can take advantage of cheaper real estate prices in Hungary.
In Hungary, there are two types of immigration programs possible for business investors.
1. Hungary Permanent Residence (PR)
Hungary has launched a new immigration program for investors. You can get fast Hungary Permanent Residence (PR) if you invest EUR 250,000 in Government bonds against which a PR for 5 years is issued. In additon to investment amount, there are additional costs of EUR 50,000. The total amount comes around 300,000 euros (approx). With the PR issued by Hungary, you can travel to all schengen countries visa free.
You can pullout the investment after 5 years, still you get to keep the PR in Hungary.
2. Hungary Business Immigration
We offer business immigration program to our clients to move to Hungary. Just form a new company in Hungary and as a business owner, you can move to hungary with your family. The most popular form of company among foreigners is Kft (single person owned LLC). The minimum capital required is approx EUR 10,000 (3,000,000 HUF) to form a company. The company formation is very fast and usually it takes 1-2 weeks. Hungary is a business friendly country and corporate taxes are 10% for small scale companies. Hungarian companies are given VAT number and are required to file taxes every year, based on your worldwide income.
Once company formation is done, and all papers are obtained, non EU persons can apply for long term visa at the Hungary embassy in your country. You will be initially given 30 day C entry visa to enter Hungary, and once you are in Hungary, you will be given residence permit in the form of biometric residence card. This “temporary” residence card allows you to stay in other european schengen countries and stay there for upto 90 days in 6 month period. The residence card is valid for 1 year and after that yearly renewals are done. After 5 years of stay in hungary, you are eligible to apply for “Permanent residence card”.
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