- Hungary, the former eastern bloc country was a trendsetter even in the communist Soviet era, has not failed its reputation and the government has continued with it policies of making Hungarian economy a truly innovative phenomenon. The authorities had converted the economy of this country into a true mix of market socialism back in 1960. Owing to that trend, the Hungary was quick to convert its economy from a planned one into a market based economic system. Now the government of this central European nation has come up with yet another outstanding scheme called “The Residency Bond Program” to facilitate immigration of qualified foreign nationals into country on permanent basis.
Hungary Residency Program: Overview
The Hungarian Investment Immigration Program, “The Residency Bond Program” is one innovative scheme that makes all the difference and it is pulling in lot of attention of the willing investors across the globe. This distinctly only of its kind scheme was incorporated in 2012 and is laden with multiple advantages that other contemporary investment scheme of other global locations may not be able to offer.
Some of the scope and salient features of the “Hungarian Residency Bond Program” are
- The policy is intended to attract willing investors of countries other than nationals of European Union, i.e. the authorities would prioritize selection of the investors from countries other than EU.
- The government is offering permanent residential permit to the willing investing individuals in lieu of infusion of funds in Special Hungarian Government Bonds that have a minimum 5-year lock in period. The investment does not yield any interest.
- After the lock in period, the investment can be liquidated and the investors would be able to retain their permanent residential status in the country.
- The applicants gaining entry into the country would have open access to Schengen treaty zone by virtue of Hungary being a fulltime signatory of the Schengen treaty.
- The new entrants would also have unimpeded access to vast market of EU.
- The spouse and children under the age of 18 years would be included in the application without any extra charges.
- This program has NO specific stipulations connected to Language, Age, Work experience and requirement for furnishing/substantiating proofs of source of money or any other tax return or auditor reports
- In addition, procurement of landed property or establishment of companies is not mandatory under the Hungarian Investment Immigration Program.
Hungary Residency Program: Progress
The popularity of this policy has risen manifold and in the period from June 2013 till August 2014interested immigrant investors have procured over 1100 Residency Government Bonds. The initial success has encouraged the Hungarian authorities to raise the threshold non-refundable investment by Euro 60,000 from January 2015.
Why Hungarian “The Residency Bond Program”?
Although the Hungarian government guarantees the scheme, there are other features that talk tall about the long-term viability of investing in this scheme. The key elements that guarantee success of this scheme include:
- Reaps maximum benefits for each penny invested
- Comparably cheaper way of gaining entry into EU*, i.e. Euro 60,000. Please note that deposit of Euro 300,000 is refunded in full after lock-in period of 5 years. These investments become applicable from January, 2015
- Guaranteed premature refund in case the application for the permanent residence is rejected
- Applicants enjoy unprecedented freedom of deciding whether they would like to land in the country or not with only exception of maintaining a Hungarian residential address while filing for permanent resident visa
- After the grant of permanent residence permit, visa holders are exempt from fulfilling the requirement of maintaining residence in the country. After being granted the permanent residency, there is no residency obligation and no landing requirement. Applicant can decided whether or not they would like to reside permanently in Hungary.
- Allows the children of applicants to take benefits of Hungary’s public education system
- The program permits the visa holders to buy landed properties, establish business or even take up a job in the country
* Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the UK.
- Stable economy with clear intentions of government to facilitate business and investments.
- Hungary can prove to be a launch pad for business as this country is member of European Union, which allows the business oriented people to access a large market segment constituting of about 250 million people within a 1000km radius and the EU common market that comprises of more than 500 million people.
- Being at the heart of Europe and having a well developed infrastructure like business ready industrial sites, offices and science parks makes Hungary a best location for manufacturing, services and logistics business.
- This eastern European country is the best deal when it comes to entrepreneurs and investors intending to establish and develop business enterprise to foray into European markets.
- Literate, efficient training ready and cheap labor force
- Government offers a plethora of sops to investors (cash subsidy, tax allowance)
- Being a full time signatory of Schengen treaty allows the PR visa holders to travel across the Schengen zone without needing special visa.
- Visa free travel Freedom within European Union (EU) member nations* without visa
- Make application for Citizenship after 8 years of being permanent Resident.
- Get a right 28 EU countries right to live and work for the family
- Children can study in Universities throughout Europe at Subsidized and pay highly reduced tuition fee as a EU resident
- Avoid EU import duties on goods and services
- Higher standard of equality and human rights
- Participation in foreign social security programs
- Participation in national health programs
- Access to the largest trading block in the world
- Enhance freedom for you and your family
- Children can stay in Europe after finishing their studies
- Powerful tool for international tax planning
- Lowest tax regime in Europe allows you to keep your wealth – 10%
- Lowest business running costs in Europe
- Low labor costs
- Highly educated work force
- Member of NATO
- Secure banking and financial sector
- 2-3 hours from all main EU airport hubs
- Links Europe and Asia
- Stunning country and friendly people
The investors need funds in tune of Euro 300,000 for investment plus the Euro 60,000 as non-refundable administrative charges. These investments become applicable from January 2015
Hungarian “The Residency Bond Program” application process is easily classified in eight phases. The process is completed in less than 12 months.
Phase 1 DAY 0 (Contacting and Preparing): Decision to park money in this scheme and contacting us and hiring our services DAY 1 Collaborate with us on collecting the required data and documents Phase 2 DAY 7 Approval for the investment is received and the principal applicant remits the investment funds to the investment broker. Pay EUR 300,000 investment and EUR 60,000 administrative fee Phase 3 The investment broker issues the Bonds to the applicants Phase 4 Day 21. The principal applicants and his kin (to be included in the application) visit Hungarian consulate and lodge requests for temporary residence visa Phase 5 Day 28 The Hungarian Consulate disburses the provisional residence visa cards to applicants Phase 6 Investment broker procures Investor Residency Bonds. Phase 7 Month 7 The applicants file requests for PR visa at the Hungarian consulate Phase 8 Month 8 Collection of permanent residence Visa (subject to approval) End of YEAR 5 Redemption of bonds worth EUR 300,000 LIFELONG Permanent Resident status
Note: All mentioned Investment figures, non-refundable administrative cists, processing delays are subject to change without notice and are not under the control of the advisor/broker/consultant.
Hungary Residency Bond Programme Process
There are several steps in the process.
To start the process of the residency-through-investment procedure, the candidates have to subscribe and move funds to the HSSDF. For the process, the investors will require proffering proof of their bank handover of EUR 300,000in a duly recognized bank of Hungary, inked PPM and also the subscription deal, evidence of their permanent address, documentation of familial relationships, and proof of a spotless criminal background.
In addition, the investors will put their signature to a formal accord with their immigration consultant and a Hungarian lawyer. The investors have to shell-out a cost of EUR 45,000 for the professional advice-giving services of the immigration consultant. The Fund will reply to investor subscriptions, inside a period of 10 days of the handover of capital. And, in case the investors are dismissed, their capital will be given back.
After getting sanctioned, the successful investors will get a certificate of shares even as they will progress to the residency permit petition procedure. The procedure is carried-out with the help of migration professionals, even as investors, along with their family members, will have to offer lawful passports, a EUR 60 processing cost every individual above age 6, evidence of investment, and also the power of attorney to a lawyer of Hungary, etc.,.
Candidates could have to take part in an interview at a Hungarian embassy. After approval, the HSSDF will buy the government bonds on the behalf of the investor in the needed amount. In case dismissed, the investor will be given back their money.
In case sanctioned, the investors and their families will get permanent residency in the country.
Important: Duly certified translations of every paper/certificate into either Hungarian or the English language must be offered, for successful Hungary Presidency Bond Programme Process.
Hungary Residency Permit by Investment FAQs
What is the Hungarian Residency Bond Scheme?
It is basically a business plan run by the Government of Hungary. It provides the cherished Permanent Residency (PR) status under preferential conditions for those nationals of the non-European Union (EU)countries who have not less than EUR 360,000,for the object of investment, even as EUR 300,000 are given back to the investor, post a period of 5 years.
Has the Hungarian Government sanctioned the Residency Bond Programme?
Yes, it has done so! A law–duly passed on December 11,2012 and amended in 2014 &2016–provides PR in the country to those nationals of the non-EU countries who are ready to make an investment in administration’s residency bonds.
Is citizenship promised by the Hungarian Investment Immigration Programme?
It is a fact that the scheme is an amazing tool for those who are interested to make an investment in the country, to rapidly acquire the nation’s PR. The plan offers a fast track to the position of PR, in the process, circumventing numerous normal waiting periods stuck between every step. Still, no preferential treatment is offered to those investors who want to obtain citizenship. However, in case you wish to shift to the country, and possess the necessary funds to invest, it may be a first-rate option for you.
What is the topmost advantage of the scheme?
You and your family (and this includes the dependent kids &also your parents) acquire the PR rights in the country–a member country of the EU. It denotes that it will be possible for you all to move, without any restrictions whatsoever, inside the Schengen nations in Europe (Schengen Visa).
What rights greet me, post I get a Permanent Residence Permit in Hungary?
PR in Hungary gives every right &benefit that greet the nation’s citizens but with some noteworthy exceptions, like not being qualified to cast your votes in the national government elections, or have the nation’s passport. The PR holders can reside, stay and do a job in the country for an unlimited time-frame. The holders are permitted to attend the country’s public schools. As a permanent residence permit holder, you also get to enter the country, minus a visa. You can also move and stay inside the Schengen zone.
Does the scheme enjoy widespread popularity?
The scheme is tremendously popular: the figure of the residence permits given jumps immensely. Hitherto, 4247-plus Residency Government Bonds have been bought even while the concerned Hungarian officials hope the figure will further improve in the future.
Is it possible to include my family members in the scheme?
Yes, it is possible! It is possible to include your significant other and your dependent kids and also the dependent parents on the basis of your investment. The same denotes that you and your family may submit the petitions all together though you have to present the official papers/certificates proving your family connections. Your kids, who are not dependent on you, and other family members can also take part in the scheme, but on the basis of their separate independent investments.
Is it necessary to have a local address when I present an application?
From July 1, 2016 onwards, there is not any need of at all any Hungarian address when you submit an application, for the permanent resident standing in the country.
Is the programme expensive, what is its exact cost?
The scheme is not costly even while the total amount of money for getting a Permanent Residence Permit via the plan is just EUR 360,000. What’s more: EUR 300,000 will be given back to you, post 5 years. The non-refundable EUR 60,000 is the real price of the scheme. The same comprises every governmental and service costs linked with the plan. It signifies you, along with your family, will attain a lifelong residence permit, a 100% safe passage to the European continent, for just EUR 60,000.
Are there any unseen expenses?
No! EUR 360,000 includes each &everything for a family with four members. In case your family–comprising your other half, dependent parents and kids–is bigger than four, you have to just shell-out the overhead expenses.
Will I receive back my EUR 300,000 Investment?
Yes, you will! The EUR 300,000 will be duly credited in 5-year maturity government residency bonds, and in the wake of maturity, you will get it back.
Will I lose the power of a Permanent Residence Permit for lifetime, in case I receive EUR 300,000, post 5 years?
No need to worry as Permanent Residence Permit is certainly permanent. Though post 5 years your investment will come back to you, you and your family may retain the prized permit.