Investment in Hungary

Investigation of the conditions for immigrating to Hungary through investment

As you know, one of the ways to migrate is through investment. Your investment is divided into several sub-branches. Therefore, in this article, MIE Austria will examine the different methods for immigrating to Hungary through investment. Hungary is a destination for many immigrants due to its closeness to modern Europe and its borders with countries such as Austria. This country is a member of the European Union and Schengen so it is a good destination for capitalists to immigrate. In general, you can benefit from a free initial consultation of the MIE Austria to increase your information, especially when immigrating to Hungary through investment.

In the Comments section, you can also ask your questions and answer them in a short time.

Topics reviewed in this article:

• Residency in Hungary through investment
• Investment in Hungary by buying a property
• Investment in Hungary through company registration
• Buying bonds in Hungary
• Answers to common questions about immigration to Hungary through investment

Residency in Hungary through investment

Those who seek to immigrate and obtain a residence permit in Hungary through investment should be aware that in general, after five years of legal and continuous residence in Hungary, individuals can apply for permanent residence.

The validity period of permanent residence is unlimited and, except for the right to vote, gives citizenship to the individuals. This residence card is renewed every 10 years but the required conditions will not change. But in terms of investments, it is better to register a company in this country and get a long-term residence so that you can receive permanent residence in Hungary by observing the above conditions cause by buying bonds, buying property, and so on the long-term residence will not be obtained.

The citizenship of Hungary can be obtained by birth, adoption, or after eight years of residence in this country. Spouses of Hungarian citizens can apply for residence after three years and the individuals who are half Hungarian from their mother or father side can apply for residence only after one year.to obtain Hungarian citizenship, you need to take a Hungarian language test. Hungary allows dual citizenship.

Investment in Hungary by buying a property

As it was mentioned before, one way to immigrate to Hungary by investing is by buying a property. Buying a property or farmland can be one of the ways to obtain residency in any country. But this is not the case in Hungary. Applicants will not receive a residence permit in Hungary by purchasing a property. People who buy a property in Hungary can generally reside in this country for two or three months. Therefore, in this article, MIE Austria will not recommend you to buy a property to obtain residence in Hungary.

Based on the experience of the European immigration lawyers, it is recommended to the applicants who want to buy a property and obtain residence, to apply by registering a company so that one can receive long-term residence in Hungary and then proceed to purchase property in this country. Because by doing so, your residence will be issued and you will no longer have to worry about the property you bought in this country. People looking to buy a property or direct investment can get interesting information about Hungary and invest in it by reading the “buying bonds in Hungary” section.

Investment in Hungary through company registration

Another method to immigrate to Hungary through investment is to register a company. The investment situation in Hungary, especially in the production, services, and construction sections, are satisfactory. These sections are still the main causes of growth in Hungary. The motivating factor for investors and investment in this country is mostly created by reducing the corporate tax rate to only 9% in 2017 and reducing the burden on employers from mid-2020. Large-scale projects and investments in upcoming technologies are currently supported by the government.

Public partnerships, limited partnerships, limited liability companies, sole proprietorships, or private limited companies are all types of companies established and widely used in Hungary. In general, the law on the establishment of the companies in Hungary is registered in five stages that individuals must go through to register a company in Hungary.

• Preparation of organizational documents by a Hungarian lawyer
• Opening a bank account
• Registration of the company in the Hungarian Registry and obtaining a tax certificate
• Registration with the Hungarian tax authority, municipality, chamber of commerce, central pension insurance office
• Provide employee information to the IRS

Buying bonds in Hungary

One way to immigrate to Hungary through investment is by buying government bonds or shares of approved companies. At the end of 2012, Hungary passed a new law allowing foreigners to obtain permanent residency by investing in domestic bonds and stocks. Any foreigner can obtain a long-term residence permit up to 5 years in Hungary by buying bonds worth 300,000 euros. The applicant can purchase these bonds as an individual or through a company. In this program, you do not need to know a sufficient level of any language, and also a person’s physical presence in Hungary is not required.

These shares can be issued exclusively by a company licensed by the Economic Committee of the Hungarian Parliament. The company is legally obligated to observe the capital and stock exchange standards under Hungarian government law. Therefore, the bonds issued by the company are fully supported by the Hungarian Government Bond Organization. The company is also required to submit a monthly list of participants in its stock exchange investment system to the Hungarian Immigration and Citizenship Organization.

But the remarkable thing for applicants who invest in Hungary and buy shares and participate in the stock exchange of this country is that the program of buying Hungarian government bonds was closed on March 31, 2017. The Hungarian government launched the investment program to attract foreign investment. Over 5 years, more than 1 billion euros has been invested since the program was introduced. According to the news published by the Hungarian Special Debt Fund, due to the favorable financial situation of this country, the Hungarian residence papers will only be released within the mentioned legal deadline. As a result, the Hungarian Immigration Service will only accept bond purchase applications submitted before March 31, 2017.

Answers to common questions about immigration to Hungary through investment

✅ Is it logical to invest in Hungary?

Yes. This can be done by registering a company and one can achieve one’s financial desires and goals.

✅ Is it possible to obtain permanent residence in Hungary by investment?

Yes. By registering a company, having legal residences, and being present in this country continuously for at least 5 years, it is possible to obtain permanent residence in Hungary.

✅ Is it possible to obtain permanent residence in Hungary by buying a property?

No. By simply buying a property in Hungary, people will obtain a short residence of fewer than 3 months.

✅ Is it useful to register a company in Hungary?

Yes, why not. In this case, you can use the long-term residence of this country.