Are you interested in obtaining a European Residence Permit by investing in property? Look no further than Hungary, as it is one of the countries that grant residency permits to foreign nationals in exchange for real estate investment.
In this guide, we will provide you with all the necessary information you need to know about the Hungarian Residence Permit program, including the eligibility requirements, application process, and benefits of obtaining a residence permit through property investment.
We will also discuss some tips and insights on maximizing this opportunity.
- Requirements for the Hungarian Residence Permit
- Documents Needed for the Hungarian Residence Permit
- Hungarian Residence Permit Application Process and Timeline
- Dependent Applicants
- Fees and Costs
- More on the Hungarian Residence Permit
- Taxes, Education, and Healthcare
- FAQ About Hungarian Residency by Investment
HNWI Hungarian Residence Permit Offer
At High Net Worth Immigration, we are committed to delivering exceptional services to our clients by tirelessly seeking the most attractive offers.
To that end, we are excited to present our Hungarian residency program offer, and we'd like to start by giving you a brief overview. After that, we will delve into the specifics of applying for and holding a Hungarian Residency Permit.
Our newest offering, the Hungarian Residency by Investment, entails a minimum investment of €155,000 in a completed residential property in exchange for a temporary European residence permit. Eligible properties must be spacious, without existing tenants, and accommodate you and your family. In addition to the investment amount, you need to cover application fees:
- €60,000 for the principal applicant, spouse, and children
- €10,000 for each family member above 18, including parents/grandparents.
Throughout the application process, you must confirm your intention to purchase a qualifying property within three months of receiving your residence permit card. Simply sign the real estate sale agreement and provide a copy to the immigration authority.
The key advantage of this program is that physical residence in Hungary is not required. You can enjoy the benefits of residency while maintaining your lifestyle and business interests elsewhere.
Requirements for the Hungarian Residence Permit
First and foremost, if you're considering obtaining residency in Hungary, it's crucial to understand the specific criteria you must meet. The requirements range from due diligence checks to demonstrating financial means.
Here are the specific requirements that an applicant must satisfy:
- Pass due diligence and background verification checks at all process stages.
- Demonstrate a minimum of €27,000 for the principal applicant and €16,000 for dependents as proof of sufficient means to support themselves and their family, along with disclosing the source of wealth.
- Obtain approval from competent authorities to purchase a residential property valued at a minimum of €155,000 in Budapest, meeting specific requirements such as completion, residential use, and a minimum living area of 6 sq.m. per person.
- Demonstrate the necessary funds to purchase residential property in Hungary.
- Complete the property purchase within 90 days of receiving the Hungarian ID card.
Restrictions Regarding Applicant’s Nationality
When it comes to restricted nationalities, the Hungarian government does not ban any nationalities. However, you might be asked to provide different documents based on your country of origin.
You must be at least 18 years old to qualify as a principal applicant. In terms of work experience and education, there are no specific requirements. However, you must meet the general application requirements and demonstrate that you possess the minimum investment amount and the necessary funds for yourself and any accompanying family members.
Available Investment Options
According to the current legislation, the required investment for a residence permit in Hungary involves purchasing real estate. The property must be a finished residential unit with a minimum livable area of 6 square meters per person included in the application, encompassing living rooms and/or bedrooms.
Source of Investment Funds
When applying, you will be required to complete the KYC (Know Your Customer) process. As part of this procedure, you will need to verify that the investment funds were obtained from legitimate sources, whether directly or indirectly.
Additionally, the Hungarian authorities will conduct due diligence checks and background verifications, so be prepared to provide information about the source of your wealth.
Documents Needed for the Hungarian Residence Permit
Obtaining a residence permit can be complex, often requiring various documents and careful preparation.
To initiate the Hungarian residence permit application, applicants must provide several documents. These include agreements, forms, civil status documentation, proof of investment funds in the principal applicant’s account, and other supporting materials. All required documents must be legally translated into English to ensure clarity and uniformity in reviewing your application.
Moreover, unlike similar residency-by-investment programs, Hungarian immigration authorities do not ask applicants to provide medical certificates. However, applicants need to provide valid health insurance as part of their application. Ensuring you have comprehensive health coverage is vital to meet the necessary requirements for a residence permit.
Hungarian Residence Permit Application Process and Timeline
Surprisingly, obtaining a Hungarian residence permit can take as little as two months. This process is divided into two stages. First, applicants need to secure a long-term visa (type D). Once the visa is secured, the second stage involves applying for a Hungarian residence permit.
Another advantage of the Hungarian Residence Permit application is that if you and your family already have a valid Schengen visa, you can travel to Hungary and apply for residence there.
It is also recommended to visit the country at least once during the application process. This visit can occur either when obtaining visa type D or when the Hungarian residence permit is ready. Additionally, we encourage our clients to explore and immerse themselves in the country's rich history, nature, and culture after the process.
When applying for a residence permit in Hungary, it is essential to understand the definition of dependents and the criteria for including them in your application.
That said, let’s start by defining who qualifies as a dependent:
- Spouse: Legally married partner of the principal applicant. Non-marital partners may be considered in exceptional cases, but additional documents may be required to prove cohabitation status.
- Minor or incapable children: Principal applicant's or accompanying spouse's children under 18 years old.
- Dependent adult children: Children over 18 years old who are (a) single, (b) financially dependent on one or both applying spouses, and (c) enrolled in full-time studies with official documentation.
- Dependent parents: Parents of the principal applicant or accompanying spouse who depend financially on them.
Additionally, while advisable, it is not mandatory for all family members to submit their applications simultaneously.
Further points to consider:
- If the principal applicant divorce during the application process, the spouse loses the right to residence renewal.
- If the principal applicant gets married or has a child after receiving the residency permit, the new family member can be included at any time. However, the application process and fees will need to be repeated for the new family member.
- For adopted children, legal certificates and documents for full adoption must be presented.
- Hungarian authorities do not recognize same-sex marriage.
- Siblings of the principal applicant/spouse cannot be included in the residence permit application.
Fees and Costs
In addition to the investment amount, applicants must be prepared to pay consultancy and administrative fees. These fees cover application processing, and legal representation, among others.
It's important to note that legal fees, charges related to property purchase and registration, translation and authentication costs outside Hungary, as well as travel and accommodation expenses, are not covered and must be paid separately. Renewals, if desired, entail additional fees.
Furthermore, the processing, application, and advisory fees are payable upfront at the start of the engagement. Visa application fees are due at the moment of visa submission and should be directly paid at the Hungarian diplomatic mission.
What about the investment?
The investment is typically paid in two parts: a 10% reservation deposit and the remaining balance of the purchase price and expenses upon approval. Legal fees must be paid to the lawyer before submitting the purchase approval request. The property must be bought within 90 days of receiving the Hungarian residence permit. All payments must be made in euros.
The investment must be maintained as long as the applicant wishes to hold the residence permit. There is no mandatory holding period, and no interest is accrued on the investment.
Likewise, the principal applicant and their family must be the purchased property’s sole occupants. If the property is sold without a replacement that meets the investment criteria, the residence permits will be revoked. The investment must be made solely under the name of the principal applicant. Finally, it cannot be a joint investment with the spouse.
More on the Hungarian Residence Permit
If you're considering obtaining a Hungarian residence permit through property investment, it's important to understand the requirements and obligations associated with maintaining your permit.
One of the most critical requirements to maintain your Hungarian residence permit is to retain ownership of the purchased property throughout the permit's validity period. The Hungarian residence permit is valid for five years for the principal applicant and three years for all dependents included in the application.
Once the time to renew the permit comes, the principal applicant must provide a recent bank statement covering the last six months, demonstrating a minimum livable cost of EUR 27,000 for the principal applicant and EUR 16,000 for dependents. Additionally, the title deed for the property owned in Hungary must be submitted.
Can a Hungarian Residence Permit Lead to Citizenship?
Currently, Hungarian residence permit holders cannot obtain citizenship through this program.
Taxes, Education, and Healthcare
When it comes to taxation in Hungary, residents should take note of a few key points. The residence permit contribution is only subject to national taxation if associated with a purchased property. In other words, if you own property in Hungary, you may be required to pay taxes related to your residence permit.
Hungary offers a diverse and accessible education system. Public school education in Hungary is generally free of charge. However, tuition fees may apply in certain schools, especially those offering foreign language programs. The primary language of instruction in schools is Hungarian. However, there are also programs available in foreign languages, providing additional options for students.
While public healthcare is available in Hungary, it is essential to note that it is not free of charge for residents with a residence permit. Costs may be associated with accessing public healthcare services.
Hungary allows signing a contract with the National Health Insurance Fund. However, clients are responsible for covering the costs separately. The monthly package starts from €430, and clients typically need to enroll for a minimum of 24 months.
Applying for a Hungarian residence permit can open a world of opportunities for you and your family in this stunning European country. Let our experienced High Net Worth Immigration team handle the process for you.
FAQ About Hungarian Residency by Investment
Can applicants still apply if they have been refused a Schengen visa type C for a country with a visa waiver or visa on-entry agreement with Hungary?
Absolutely! A previous rejection of a Schengen type C visa does not automatically result in denying a residence permit application. You can still proceed with your application.
Are there any limitations or time restrictions for the application process?
As of the latest update, there are currently no restrictions regarding time or quota for residence permit applications in Hungary. You can proceed with your application without worrying about any time constraints.
What are the grounds for refusal of a Visa type D application?
One potential reason for refusal is when the applicant fails to demonstrate an intention to enter Hungary within the next five years during the interview process.
Is there a minimum duration of marriage required for a spouse to be included as a dependent?
No, there is no such requirement for marriages.
Is there an obligation to live in Hungary once the residence permit is obtained?
Obtaining a Hungarian residence permit grants applicants the privilege, but not the obligation, to temporarily or permanently move to Hungary. Clients are encouraged to explore and familiarize themselves with the country’s history, nature, and culture.
Can a Hungarian residence holder travel visa-free to any Schengen country?
As Hungary is a member of the Schengen area, residence permit holders can enjoy visa-free travel to all other Schengen member states for up to 90 days within 180 days.
Can an applicant for Hungarian residence take employment in Hungary?
The Hungarian residence permit holders cannot take employment. However, they have the right to establish a business in Hungary under this option.