In this article I will explain you details about investing in real estates in Hungary and consequently being able to apply for the Hungarian Residence Permit. With this article you will know who can apply, meaning the eligibility and on a high level, how the process looks like. This is only a guide for you to have an idea about what is necessary and how can it be done, however every case is different. Make sure you look for expert advise, every country has its own specific intricacies. Apart from that factor, Hungary has its unique language and culture which in a way or the other might result into challenges.
Important: this guide is for third-country nationals and I will explain that term later on. If you are an EU citizen or EEA national, I have a guide specific for you here: How EU citizens get the registration card.
Residence Permit via Real Estate Investment
This residence permit is for individuals who would like to come to Hungary for a couple of years, but perhaps also would like to stay in a long term for the purpose of business, in other words as business owners or/and investors. This permit has its own validity, so is not a permanent residence permit, it needs to be extended once it reaches its expiry. However, it is not either temporary permit, it can be extended and transferred. To apply to this permit through a real estate investment you will need to set up a company, but I will explain more about that later on.
Eligibility for the Residence Permit
In very simple terms, you are able to apply to this permit if you are a third-country national and if you are moving to Hungary as a Business Owner. Of course, there are more conditions, but these two are the main ones and the latter one entails complexity, although with local expertise it can be made simple.
Third-country nationals
As this term is the one used officially in the Hungarian inmigration´s office´s website, I need to explain what it means in this context. Third-country national refers to an individual who is moving to a foreign country and is processing his or her papers to legally live and work in that foreign country. Another way of calling an individual on that particular situation is foreign national. In the European Union (and in Hungary as a member state) you are a third-country national. Individuals from any EU member state or from the Economic European Area (EEA) are referred in the official website as EEA national. I am explaining all this to you because it is helpful to understand the whole procedure. One thing though, the United Kingdom is no longer a member state of the European Union, neither of the EEA, thus UK citizens in this context are third-country nationals.
By the way, the Hungarian inmigration office is not called like that, I use that term to simplify the guide. Their official name is National Directorate for Aliens Policing.
Documents required
As it is a residence permit for the purpose of investment or business ownership, the main requirement is all the documents related to the company such as Certificate of Incorportation, Memorandum and Articles of Association and so on. A robust business plan will also be required.
Additionally, you will also need to submit personal documents. A passport for instance, as well as documents which prove that you will be financially self-sufficient in Hungary, meaning documents which show your income. Documents which prove you have housing or accomodation in Hungary and documents which prove you have health insurance coverage.
Application process and processing period
First the company
The first step of the process will be to set up the company as the company papers eventually will be used to submit the application for the residence permit. To create a Limited Liability Company, called in Hungary simply KFT, you will need a unique company name as well as a Hungarian address. A company main profile or activity is also required which in this case will be property management, however the company might have other business activities. The owners and directors will need to be selected and the starting company´s capital will be required to be of 3 million Hungarian forints, although you do not need to have this amount at the very beginning. That is around 8 thousand euro or 8,500 USD dollars approximately. The company will need a bank account in a Hungarian bank account, and also a hungarian accountant. The company registration itself is quick, no more than a week, however end-to-end including all the documents, translations, consultation, it should take between 3-4 weeks. Take into account that most of the process can be done virtually, but not entirely. The managing director will need to come personally to Hungary for a couple of days to sign papers and open the bank account.
Once the company is ready, you can proceed with the residence permit.
Then the residence permit
The process starts after submitting the completed forms, the documents, a recent photograph and the administrative fee. The application can be submitted in any consulate or embassy of Hungary in your country. In case your application gets approved, your will be provided with a visa to enter Hungary and receive your residence permit. That temporary visa will be valid for only 30 days. There is also the option of submitting your application online while you are in Hungary but that is only if you are from a visa-free country. In case you are applying in an embassy or consulate, make sure you contact them before submitting anything, because they might have country specific requirements.
They suppose to take 21 days to process the application, but I have seen that is not always the case. They can take much more time if you do not submit the correct documents or if the documents you submit do not comply with their standards, or in case they ask for additional documents.
Residence permit validity period
The validity period of your permit will depend on your passport as well, but it could be of a maximum of 3 years. Before the expiry of the permit, it can be extended or changed to other permit type. The period you stay in Hungary with this permit counts and can be transferred when applying to another types of permits.
All in all, there are three main procedures in the endeavour: setting up the company, the real estate buy and sell processes and lastly the residence permit. JCE Consultancy can help you coordinating all processes.
Reach out to JCE Consultancy
For help with all three processes.
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Immigration´s office website: Residence in Hungary (bmbah.hu)
