HUNGARY
IMMIGRANT INVESTOR
PROGRAM

Overview


The program was established in the late 2012 but became operational in mid 2013 following the urge of the Hungarian government to apply contemporary approach in attracting foreign investment. The program evolved from a combination of proven practices around the world and is addressed to business people who are not residents or citizens of the EU.

Investors acquire special “residency” bonds issued and guaranteed by the Government and with maturity of at least 5 years. The subscribed bonds should be for a minimum amount of €250,000 and qualify the investor and the investor’s family to submit residence permit application under preferential treatment.

Under the law, the special bonds must be acquired exclusively by companies – Residency Bond Agents – that had received the approval of the Economic and Information Technology Committee within the Hungarian Parliament. There are a limited number of financial intermediaries assigned for the different geographic regions.

Qualifications


There are no special qualification criteria in respect of minimum personal net worth or management experience applied to the foreign investors. The Hungarian administration officers, however, have the right to ask for a simple interview meeting with the applicant. This procedure might be randomly applied.

During the initial due-diligence and application stages, the standard know- your-clients’ (KYC) and anti-money laundering procedures are performed by the financial intermediary and by the Hungarian authorities.

All applicants must make sure that the investment is made through the designated agent, responsible for their specific geographic region.

Program Benefits


  • Government approved investment in bonds;
  • Special exemption from physical residence applied to the principal applicant and all qualifying family members;
  • Fast application process allowing for receipt in less than 3 months of Hungarian ID for a temporary resident (TR) for all qualifying family members. The TR card gives its holder the right to travel freely throughout the Schengen zone.

Benefits of Permanent Residence


  • Unified application process for the principal applicant and the qualifying family members requiring only one trip to Hungary for the application process;
  • Fast and facilitated procedure for PR application of program applicants and their family members – six months after receipt for their TR cards, the family is entitled to apply for their PR under facilitated procedure;
  • Free movement within Schengen.

Investment Progress


The statutory procedure for accepted foreign direct investment in the program includes the purchase of special Hungarian government bonds at the amount of €250,000 with a maturity of 5 years. At maturity, the original capital is returned to the investor without accrued interest.

The legislation prescribes that the investment amount is used to purchase bonds that are issued by the Residency Bond Agent approved by the Hungarian authorities.  The agent,  in  turn,  invests the said amount in the special Hungarian government bonds. The transaction is subject to a Subscription Agreement with the designated enterprise, which is licensed for the geographic region of the main applicant. The government bonds are designated for the program and are prohibited from trading on the public and the secondary market.

Upon issuance of the security to the investor, the Residence Bond Agent shall provide an irrevocable declaration, where the agent certifies that a treasury bond for a nominal value of €250,000 with a five years’ maturity will be purchased from the funds received from the investor within 45 days upon issuing the residence permit.

The government bonds are designated for the program and are prohibited from trading on the public and the secondary market.

There is no financing option available under this program. Apart from the investment, the applicants must also cover the processing and visa application fees.

The program was established in the late 2012 but became operational in mid 2013 following the urge of the Hungarian government to apply contemporary approach in attracting foreign investment. The program evolved from a combination of proven practices around the world and is addressed to business people who are not residents or citizens of the EU.

Investors acquire special “residency” bonds issued and guaranteed by the Government and with maturity of at least 5 years. The subscribed bonds should be for a minimum amount of €250,000 and qualify the investor and the investor’s family to submit residence permit application under preferential treatment.

Under the law, the special bonds must be acquired exclusively by companies – Residency Bond Agents – that had received the approval of the Economic and Information Technology Committee within the Hungarian Parliament. There are a limited number of financial intermediaries assigned for the different geographic regions.

Procedures and Timelines


The application process is straightforward and is one of the main advantages of this product compared to similar programs. Below, is an outline of the general steps, which the applicant and the qualifying family members need to follow to obtain Hungarian permanent residence (PR).

PLEASE NOTE

The below given timeline is an estimate based on our experience with previous clients and is provided for information purposes only. Any changes that may occur, which may or may not affect an applicant’s processing, will not be the responsibility of Can-Quest Management Consultants. Governments can experience large volumes of applications, local authorities can modify required documents and/or processing delays, are some of the factors that may affect timings. Processing times will vary depending on where the application has been filed. For the latest up-to-date information, please refer to our website.

STAGE I - APPLICATION

MONTH 1

Step 1 – File preparation and submission, application fees payment, signing of documents.

Step 2 – Application for expression of interest with the Hungarian embassy covering the country of applicant’s citizenship.

STAGE II - INVESTMENT

MONTH 2

Step 3 – Investment is authorized, principal applicant wires the investment amount of €250,000 to Hungarian Intermediary.

Step 4 – Hungarian Intermediary issues the Bonds and all required investment-related documents as per its mandate with the Hungarian authorities.

STAGE III - FAMILY APPLICATION FOR TEMPORARY RESIDENCE

MONTH 3

Step 5 – The principal applicant and all qualifying family members visit the Hungarian embassy to submit their Temporary Residence visa applications.

Step 6 – The main applicant and each qualifying family member collect their ID cards from the Hungarian embassy (the statutory term for issuance of the cards is up to 45 days as of submission of application).

STAGE IV - FAMILY APPLICATION FOR PERMANENT RESIDENCE

MONTH 9

Step 7 – Trip to Hungary for family PR application – not earlier than 6 months after receipt of the Temporary Resident permit.

Step 8 – Collection of Permanent Resident cards.

Contact Us!


For more information please contact our office by completing the form on the right, by email to info@can-quest.com or you can call us +9714 294 1213. Our office is opened Thursday to Saturday (6 days a week) from 10:00 AM to 7:00 PM.

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