Hungary Profile | Legal Background | Program Details | Program Advantages

 


Hungary Profile:

Hungary_SymbolSovereignty: The Prime Minister is the head of government of a pluriform multi-party system, while the President is the head of state and holds a largely ceremonial position.

Location: Hungary  is a landlocked country in Central Europe. It is situated in the Carpathian  Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west.

Government Type:  A Parliamentary Republic.  

Interesting facts: Hungary is a booming hub in heart of central Europe.  A country with a wealth of history, culture and exquisite cuisine.  Because Hungary is a landlocked country, it is best known for its thermal baths, but still there are sandy beaches that provide an array of water sports and a bask in the sun.

Population: A population of 9,942,000 and a land area of 93,030 km2.

Demographics:  Ethnic groups  Hungarian 92.3,  Roma 1.9%, unknown 5.8. Religions Roman Catholic, Calvinist, Lutheran, Greek Catholic.

Economy: The strongest sectors of the economy are Tourism, mining, metallurgy, construction materials, processed foods, textiles, chemicals (especially pharmaceuticals), and motor vehicles and agricultural products (wheat, corn, sunflower seed, potatoes, sugar beets, pigs, cattle, poultry, and dairy products). Hungary has the largest thermal water cave system and the second largest thermal lake in the world.  


Legal Background:

Flag_BulgariaIn December 2012, the Hungarian Parliament adopted an amendment to the immigration law of Act LV of 1993 on Hungarian Citizenship, which creates a legal framework for the so called “investment citizenship” (investor residency) in Hungary. Hungary has introduced a simplified application for the permanent residence permit in return for purchase of government residency bonds in Hungary.


Program Details:

  • The Investor Residency Bond Program was established in 2012.
  • The program offers temporary  residence (annually renewable permit) or permanent residency.
  • Temporary Residency Accounts For:
    • Government-approved investment 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.
  • Permanent Residency Accounts For:
    • A single application process for the main applicant and all qualifying family members, with only one trip 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.
    • Free movement throughout the Schengen zone.
  • The Investor Residency Bond Program does not have any set criteria for applicants in terms of  personal net worth or management experience.
  • The program is addressed to non-EU citizens.
  •  Due Diligence is required and 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-you-clients (KYC) and anti-money laundering procedures. So, at the stage of application, the Principal applicant will have to provide a set of standard documents proving their source of income and accumulation of personal net worth.

Program Details:

  • The program includes the purchase of special Hungarian Government bonds in the amount of € 250,000 with a maturity of five years. At maturity, the original capital is returned to the investor without accrued interest.
  • Legalization dictates the program investment is issued 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 € 250,000 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.
  • There is no financing option available under this program.
  • In addition to the investment, applicants are also required to cover all processing and visa application  fees.
  • Government fees are one time, upfront and non-refundable fees amounting to € 40,000 for the main  applicant and €5,000 for each qualifying family member.
  • All application fees charged by the Hungarian government and by (GICG) are subject to change and depending on the number of applicants and complexity of the process.


Program Advantages:

  • You get a lifetime permanent residence permit. You pay once and you can use it in your whole life.
  • Your spouse and your minor children are also included in the Program free of charge. They also get their lifetime residence permit.
  •  The total cost of the program is €300,000 of which €250,000 will be refunded after 5 years. It actually costs EUR 50,000 for the whole family (say, EUR 17/person/month for a family of five).
  • You can travel within Schengen countries without visa and border control.
  • You can apply for visa of other countries in Hungary.
  • Hungary is a safe country. You and your family are in safety in Hungary.
  • You invest in Hungarian government bonds. You pay EUR 300,000 to take part in the Program, and you will get back EUR 250,000 after 5 years.
  • Hungary is a springboard for European business.