Permanent residence of Hungary

Permanent residence of Hungary and five options to obtain it

Why do many of our fellow citizens choose Hungary among many European countries as their “second homeland”? Why is it attractive and what benefits do its residents get?

First of all, you should understand the main thing: the status of permanent residence of Hungary automatically implies obtaining the status of a resident of the European Union.

You get the opportunity to live in one of the developed countries of Europe with above-average standard of living, developed infrastructure, good medicine and high-quality education. Buying a residential property in Hungary is very simple, while prices for real estate objects are more than affordable even compared to your domestic prices.

A permanent residence permit of Hungary implies the possibility of free traveling to any countries of the Schengen area without visas. Even if you like a settled lifestyle, there is always something to see in Hungary itself.

The country is in the TOP-30 countries around the world in the amount of tourists. It is famous for its architecture and history, in addition there is an optimal warm climate during almost the whole year. Famous thermal springs, which attract tens of thousands of visitors for healing, are also worth mentioning.

In Hungary there is a wonderful environment, low criminal level, transparent taxation system, laws that work for everyone without exception. This is a country of a mild climate and beautiful nature, developed infrastructure, excellent medical clinics.

The popular investment program of Hungary provides the possibility to obtain citizenship in the most accelerated procedure by investing a certain amount of money in the Hungarian economics. Actually, you obtain the right to live and work in any country of the European Union within six months after making the investment. It is not necessary to reside in Hungary.

What are the privileges of obtaining permanent residence of Hungary? The main benefits of this status are:

1. Visiting any EU countries without the need to obtain appropriate visas;
2. Backup as an alternative for living and working in one of the developed countries of Europe;
3. Legal income and minimal taxation;
4. Opportunity to open accounts in European financial institutions and to keep funds on them;
5. Opportunity to obtain loans with minimal interest in European banks;
6. Free healthcare in countries of the Schengen area for minors under the age of 18 and students under the age of 26;
7. Obtaining a Hungarian passport in the future.

How to obtain permanent residence of Hungary

First of all, it should be understood that obtaining a status allowing permanent residence in this country can take quite a long period of time. First, the applicant shall obtain a residence permit of Hungary through investment or under any other naturalization program, after which it will be possible to submit documentation for obtaining the permanent residence status.

It is necessary to apply to the relevant Hungarian authorities in order to obtain permanent residence of Hungary, and you will need to explain how and for what “achievements” you have previously obtained a temporary residence permit of the country.

As practice shows, it is guaranteed that you will receive a temporary status, permanent residence and citizenship of Hungary through investment under the conditions provided for by the state investment program of Hungary. If you choose another naturalization option, residence permit status may not be as affordable. It is decided by the relevant authorities whether they issue a residence permit or not.

So, how to get permanent residence of Hungary? What documents do you need for permanent residence of Hungary?

Experts identify five main options for obtaining a permanent resident status, including:

1. Obtaining permanent residence of Hungary through investment;
2. Obtaining permanent residence through acquisition of a real estate object;
3. Obtaining permanent residence through establishing a Hungarian company;
4. Obtaining permanent residence through family reunification;
5. Some other ways to obtain a temporary residence permit.

Comparison of options for obtaining the status of a permanent resident of Hungary

What are the advantages and disadvantages of obtaining a permanent residence status? Let us consider the following table, which quite accurately describes your “gains” and “losses” as a result of becoming a permanent resident of Hungary.

Advantages:

• Gradual investment in your future citizenship;

• Visa-free traveling to any countries of the Schengen area.

Disadvantages:

• Taking into account the time for obtaining permanent residence, the options with the initial obtaining of a temporary residence permit look more advantageous;

• The need for a minimum residence in the country for 183 days per year;

• There is a special procedure of obtaining permanent residency for each family member;

• It is necessary to confirm the sources of income for living in Hungary.

Permanent residence of Hungary through investment

Please note that the data is effective taking into account the amendments to legislation of Hungary, which were adopted and approved as of 01/07/2016.

Advantages:

• Investments are returnable;

• The term for obtaining permanent residence is 1-3 months;

• The possibility to travel within countries of the Schengen area and to live in any country;

• The whole family obtains permanent residence for one investment;

• There is no need to confirm the source of income;

• Permanent residence is issued for a lifetime, the renewal procedure is formal.

Disadvantages:

• The amount of necessary investments starts from €300,000;

• Return of investment in 5 years minimum.

In accordance with the norms of the Hungarian legislation, an applicant who wishes to participate in the investment program shall have the right to obtain the status of temporary and permanent residence of the country under an accelerated procedure.

A residence permit of Hungary through investment can be obtained both by the applicant himself and his family members, including a spouse, minor children under the age of 18, elderly dependent parents, and even grandchildren.

The Hungarian citizenship through investment program or Hungarian Residency Bond Program was established at the end of 2013. Any citizens who are not residents of the European Union, including our fellow citizens, have the opportunity to participate in it.

Permanent residence and subsequent citizenship of Hungary through investment  has a number of advantages, including:

1. Registration of permanent resident status in just a couple of months;
2. The state guarantees 100% return of investment;
3. It is appropriate for the naturalization of the whole family;
4. You do not need to reside in the country;
5. The terms of participation are simple.

In plain English, participation in the Hungarian investment program is as follows. The applicant must purchase Hungarian government bonds, which can be redeemed no earlier than in a five-year period. The state of Hungary is a guarantor of the return of your funds.

The minimum investment amount is €300,000. In addition, it will be necessary to pay an administrative fee, the amount of which is about €60,000. The amount of this fee is non-refundable and, in fact, this is the only money that you pay for naturalization in the country for all family members.

Investments in Hungary allow you to obtain a permanent residence status for a lifetime period. At the same time, an important point is that you do not have to reside in the country. You will be required to collect certain documents, including:

1. Scans and copies of pages of international passports, which shall be notarized (passports are required from each family member who will subsequently apply for resident status);
2. Scans and copies of pages of internal passports;
3. Documents certifying family relationships (marriage certificate and birth certificates).

The specialists of our company are ready to provide you with the most complete information regarding application for permanent residence and obtaining citizenship  of Hungary through investment.

Obtaining residence permit through the acquisition of real estate objects

Choosing this option of naturalization in the country, you can count on obtaining a permanent resident status no earlier than in three to five years. It is appropriate for you if you do not have the opportunity to invest €360,000 at once to participate in the investment program, for example.

The purchase of a real estate object is chosen by those who do not have the opportunity to obtain the status through family reunification or as a result of marriage. The acquisition of apartments, houses and other residential, industrial and commercial objects of construction can be a good option that requires a fairly modest investment.

If a special supervisory authority approves your acquisition, you will receive a temporary status immediately after the purchase, this status must be regularly renewed during a minimum of three and a maximum of five years until you become eligible to obtain the permanent residence.

It should be understood that there are certain risks when choosing this naturalization option. The main disadvantage is that any purchase of a property, regardless of its type and cost, in fact does not guarantee that you will obtain even a temporary residence permit.

In addition, this option implies certain requirements for permanent residence within the Hungarian territory. The owner of a real estate object in Hungary will be obliged to live in the country for at least six months every year. To confirm this special authorities constantly monitor this issue, visiting you at your address of residence and interviewing locals, as well as neighbors.

Even under favorable circumstances, after obtaining a temporary residence status, you cannot be sure of obtaining permanent residence after a minimum period of three years. In most situations, the state refuses to issue this document and extends the temporary residence permit for another 1-2 years.

Registration of a company and business in Hungary

Having registered your company in the country and having started a business with the payment of taxes, you become eligible for obtaining a permanent resident status in a period of three to five years, similarly to the previous method. For this, the applicant can be both the founder of the company and its co-founder.

If the state issues a temporary residence permit for an applicant, all family members, including a spouse, children under the age of 18 and dependent parents, receive the same document. The applicant is obliged to renew the obtained status annually, while the established company must function and regularly pay taxes to the budget of Hungary.

The taxation system in the country is controlled at the highest level, so any fraud is unacceptable and is immediately detected. The violators are threatened not only with deportation from Hungary, but also with a real prison sentence.

What are the possible risks in obtaining a temporary and permanent resident status through establishing a business? First of all, you must understand that no one will provide you with a 100% guarantee of naturalization, this is just one of the available options.

In some situations, the applicant is issued only a business visa, which is not a basis for further obtaining and registration of a permanent resident status in the country. It only allows you to visit Hungary to conduct business and pay taxes.

Moreover, you will need to have a certain authorized capital as you will have to pay salaries, pay rent, and regularly pay a certain tax. This is a rather time-consuming activity that requires quite serious knowledge in business.

If you want to obtain the status of a resident in this way, but you do not know a thing and do not have relevant experience in doing business in modern conditions, it is better to choose another option. All your costs and expenses in the end can lead to obtaining a meaningless business visa.

Registration of a residence permit through family reunification

This option of naturalization implies the possibility to obtain the status of a permanent resident within 1-3 years. If you have Hungarian roots and can confirm this fact, applying for a permanent residence of Hungary can be a fairly simple and inexpensive activity (when compared with the other methods described above).

Who can try this option? First of all, it can be recommended to those who have close relatives in Hungary or are officially married to a Hungarian citizen.

You will be eligible for obtaining a permanent resident status if only you already have a temporary residence permit. At the same time, you have to comply with all the requirements and terms of having a residence permit status for the entire period during which you had it. These may be the established periods of residence in the country, the accuracy of the provided information about yourself, the absence of a criminal record, and so on.

What categories of applicants can use this naturalization option in the country? These include:

• Husband or wife of a Hungarian citizen who obtains a permanent residence of Hungary through marriage;

• The birth mother or father of the applicant, as well as his own and adopted children who are under the age of majority;

• Parents and children over the age of 26 who support them and who they run a joint household with;

• Relatives of the second line – grandmothers, grandfathers, grandsons and granddaughters.

It should be understood that all the above methods of naturalization in the country, except for the option with investments, impose certain obligations on applicants when applying for a permanent resident status. First of all, this concerns the strict requirements for the period of continuous residence in Hungary, which is at least six months every year.

If you want to become a permanent resident and constantly travel, work and live in different countries of the world, ordinary naturalization options are unlikely to be appropriate for you. The only possible way to live anywhere in Europe all year round, is the option of participating in the investment program of the Hungarian government.

This minimizes the risks of not getting the desired status, which can be issued as early as six months after investing in government bonds. The status of a permanent resident obtained as a result of participation in the Hungarian investment program allows you:

• To visit any country of Europe from the Schengen area;

• Not to obtain visas;

• To live and work in any country of the European Union for any period of time;

• To obtain a temporary residence permit of any European country with the status of permanent residence of Hungary;

• To have ample opportunities for traveling. You can safely move throughout Europe without a Schengen visa.

Special aspects of obtaining permanent residence of Hungary

Is it difficult to obtain a permanent residence status through one of the naturalization options (except for participation in the investment program)? The main problem is that it is often impossible to get a 100% guarantee, as well as to document direct blood ties.

Maximum attention will be required in collecting the necessary documentation, and one must be prepared for the fact that the authorities will meticulously scrutinize every word, even to the point of punctuation marks. Traditionally European countries, and Hungary is no exception, are not very favorable towards immigrants from the countries of the former USSR.

The only option to guarantee your status as a resident is to participate in the investment program. Documents are collected very quickly, and the applicant is required to visit the consul or ambassador once only. You immediately receive a permanent residence status in just a couple of months without obtaining an intermediate temporary residence permit.

You do not need to stay permanently in Hungary in the future, you are granted a remission of local taxation doing business both in your home country and in any other country of the European Union. All members of your family automatically receive the same status and become EU residents.

The specialists of our company are always ready to answer any questions and advise you on naturalization options in any European country at your choice. We will help you decide on the best solution that will simplify and speed up obtaining a temporary and permanent residence permit, as well as Hungarian citizenship in the future.