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2014. January 23.

Frequently Asked Questions regarding the Hungarian Residency Bonds Program


  1. Under both programes it appears that residency is in perpetuity after the initial six month probation period. Is this true?

Yes, in both cases the applicants will get a temporary residence permit first, which can be converted to a permanent residence permit after 6 months.

  1. In the event that residents under either of the above programes opt to apply in the long term for citizenship, what are the conditions for obtaining such?

In order to apply permanent residence permit, all applicants:

  • shall have a clean criminal record,
  • shall not be considered as a threat to the national security of Hungary
  • payment of the financial contribution.

 
In both cases no further requirement is necessary to obtain permanent residence permit.

However the permanent residence permit does not guarantee the Hungarian citizenship automatically. In order to obtain Hungarian citizenship further conditions must be met by the applicant.

  1. What is the precise role of the seven entities participating in the transaction bonds? Are these companies essential to the process or only in programe 1?

In both cases these entities are the ones, who are fully entitled to carry out this special immigration procedure.

Their major role in the Programs is the following:

  • All personal documents (passports or other identification documents) shall be submitted to them first.
  • They fill out the required application forms on behalf of the applicants.
  • They organize and assist on the meetings with the authority (where the applications shall be submitted and the biometric identifications will be performed).
  • They register the government bonds on behalf of the applicant.
  • They issue purchase declarations to the applicant (which shall be submitted to the Immigration Office proving that the investor paid the amount completely).
  1. The €50,000 transaction fee for Programe 1 is distributed how? What is the fee structure for programe 2?

The fee of EUR 250,000 is the value of the residency bonds in the Program 1, which amount will be returned after the 5 years or the prolonged period. In this case the investor is required to pay an additional administration fee of EUR 50,000 which is not refundable. The investment and the administration fee cover the residence permit for the whole family and shall be paid at once.

The fee of EUR 120,000 is a one-time administration fee in the Program 2. In this case no payment will be returned after the 5 years or the prolonged time period. This one-time administration fee also covers the residence permit for all family members, who can jointly apply.

 

  1. Are the Hungarian consulates fully briefed on the procedural aspects of these programes? (this has been a weakness in some territories for our existing activity)

 The Hungarian embassies or consulates have been properly informed on the procedural aspects of this Program, since this kind of immigration procedure is regulated by law as well (Act II of 2007 on the Admission and Right of Third-Country Nationals).

 The representatives of the mentioned 7 entities maintain continuous contact with the consulates, therefore, the administrative tasks are completed quickly and smoothly at the consulate, which is the simplest available to the applicant. Moreover, for the comfort of the applicant, the representative of the relevant entity is present at the time of personal arrangement of the application and client identification.

  1. What is the form of the documentation to be submitted, and does this go initially and uniquely to the consulates?

The investors can decide whether they would like to apply: at the local Embassy or Consulate of Hungary, or in Budapest at the Immigration Authority. The Embassy or Consulate is not entitled to take a decision in this matter, therefore the applications will be sent directly to the Immigration Office.

As mentioned above the responsible company fills out and sends the required application forms to the applicants. 

The following documents need to be attached to the application:


By the investor:

  • good quality copy of the passport (which should be valid for at least one year)
  • 2 passport-sized color photos

In case of the family members:

  • good quality copies of the passports (which should be valid for at least one year)
  • marriage and birth certificates
  • 2 passport-sized color photos for each person

If the documents do not contain English, they have to be officially translated to English or Hungarian and apostilled.

Hungarian lifetime residence for the whole family by state bonds


Referring to our former articles published in the last year, we continue the introduction on the latest news regarding the Hungarian Residency Bond Program (“Program”) including a possibility of a cheaper option.

This Program offers a lawful and lifetime Hungarian residence under preferential conditions for non-EU nationals, who are willing to invest into government residency bonds.

The Program is unique in the world in some notable aspects:

  • it allows free movement and relocation in the Schengen countries;
  • it may serve as a major route to the Hungarian citizenship;
  • there is no need to travel to Hungary in order to make an application (the applicants can decide whether they would like to apply at the local Embassy or Consulate of Hungary, or in Budapest at the Office of Immigration and Nationality of Hungary – “Immigration Authority”);
  • the investor’s family (see below in point 4) is also included in the Program as a joint part of the investment.
  1. List of companies responsible

Currently the following enterprises/companies are entitled to participate in the transaction of bonds; these companies are also in cooperation with our Law Office:

  • S & Z Program Limited Company provides services of the bond transfer for citizens of Egypt, Morocco, Tunisia, Libya, Algeria, Yemen, Oman, Iran, Qatar, Kuwait, Lebanon, Iraq, Saud-Arabia, Syria, Jordan and Bahrain.
  • VolDan Investments Limited provides services of the bond transfer for citizens of Russia, Ukraine, Turkmenistan, Georgia, Belorussia, Uzbekistan, Montenegro, Serbia, and Bosnia-Herzegovina.
  • Hungary State Special Debt Fund provides services of the bond transfer for citizens of China and Vietnam.
  • Discus Holdings Ltd provides services of the bond transfer for citizens of the United States of America, Kazakhstan, Thailand, Azerbaijan, Turkey, South Africa, Indonesia, Kenya and Nigeria.
  • Innozone Holdings Limited provides services of the bond transfer for citizens of Cyprus and India.
  • Arton Capital Hungary PénzügyiTanácsadó Kft. provides services of the bond transfer for citizens of the United Arab Emirates, Islamic Republic of Afghanistan, Islamic Republic of Pakistan and Malta.
  • EURO-ASIA Investment Management Pte Ltd. provides services of the bond transfer for citizens of Singapore.
  1. Required fees for the participation in the program

There are two options for the financing of the participation in the Program:

a.) buying the dematerialized government bonds worth at least EUR 250.000 for a duration of five years (which can be prolonged without further payment) and the administration fee of EUR 50.000 for the procedure.

The government bonds are kept and registered by the Hungarian Government Debt Management Agency Private Company Limited by Shares (hereinafter: “ÁKK”). ÁKK undertakes that it pays off the full amount of government bond’s nominal value (i.e. EUR 250.000) at the end of maturity.

b.) NEW OPTION! Only one-time administration fee of EUR 120.000 shall be paid for this special immigration procedure for the whole family. In this case no payment will be returned after the 5 years or the prolonged time period. This EUR 120.000 amount covers also the residency permit for the family members too, who can jointly apply (see point 4.)

  1. Steps to be followed for participating in the Program

3.1  Payment

The investor can choose between the following secured payment methods:

  1. a)    through the deposit account of the responsible company, managed by Gránit Bank Zrt.
  2. b)    through the escrow account of a Law Office present in Hungary and chosen by the investor.

In case of escrow payment an agreement shall be signed by the responsible company, which is relevant upon the country of the applicant, by the law office and also by the investor (applicant). This escrow agreement and the escrow certificate ensures that the amount of the payment (including the procedure fee too) will be kept ready and safely in escrow until receiving the order or the residency card from the Immigration Authority upon their positive decision. At this stage the escrow will be transferred to the bank account of the responsible company.

In case of unsuccessful procedure of the Immigration Authority upon any ground, the escrow amount will be returned to the investor in its entirety.

Please note that according to the regulations of the law, the payment is always processed after the signing of the assignment agreement between the investor and the responsible company.

3.2  Application

3.2.1 Attachments

The following documents shall be attached to the application:

For the investor:

  • Good quality passport copy (valid min. for one year)
  • Proof of address

For the family members:

  • Good quality passport copies (valid min. for one year)
  • Birth certificates of children, marriage certificates

If the certificates do not contain information in English, they have to be officially translated to English or Hungarian, and apostilled.

3.2.2 Further requirements

In case that the investor applies for a residence permit at the local Embassy or Consulate of Hungary abroad, an additional administration fee shall be paid for the consular processing in the amount of EUR 60.

3.3  Procedure

If all conditions are met, the whole family can get the temporary residence permit within 1 month (it takes usually 3-4 weeks), which can be converted to a permanent residence permit after 6 months with a formal application at the Hungarian Immigration Office.

The residence permit will be delivered to the applicant in a pre-agreed method, usually via express mail.

  1. Which family members can jointly receive residence permit?

The investor’s spouse, their common underage children (under the age of 18), also the underage children of the investor or his/her spouse are all entitled to apply for residence permit. All applications can be submitted at the same time, even though each applicant is treated separately in the procedure, but in case of a positive evaluation and if completion of documents will not be required, the whole family will get the residence cards simultaneously.

In case that you are interested in the Program or you would like to find out more, please do not hesitate to contact us.