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.
Benefits for temporary residence (annually renewable permit):
- 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.
Benefits for permanent residents:
- 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;
- Free movement throughout the Schengen zone.
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.
All applicants must make sure that their investment is made through the designated agent responsible for their specific region.
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.