Investor residency changes on the horizon
28 Jun 16
IMPACT – MEDIUM
What is the change? Hungary is set to expand its government bond-based long-term residency program to cover dependent children and parents and to provide faster processing times beginning Friday.
What does the change mean? Dependent children (no matter their age) and parents will be permitted to reside in Hungary along with the principal applicant. Authorities have also eliminated a six-month waiting period and will issue residence permits as soon as applications are adjudicated. Processing times will be reduced to 30 days.
- Implementation time frame: The changes take effect July 1.
- Visas/permits affected: Permanent residence cards.
- Who is affected: Foreign investors interested in obtaining permanent residence in Hungary.
- Impact on processing times: Processing times will be reduced to 30 days, as opposed to the current 90 days or more.
- Business impact: Officials hope the changes will lure more foreign investors to Hungary.
Background: The Hungarian Parliament created the government bond-based long-term residency (investor residency) program in 2012. The program provides permanent residence to non-EU nationals who are able to invest at least € 300,000 in government bonds in addition to paying a € 60,000 government processing fee. The investment is then returned after five years with no interest payable on it. The program provides residency to principal applicants and their spouses and dependent children under the age of 18. An amendment to the law, passed this year, will additionally provide residency to dependent children over the age of 18 and dependent parents. Processing times will also be reduced and a six-month waiting period will be eliminated so that permits are issued as soon as applications are adjudicated. The changes take effect July 1.
BAL Analysis: The changes will make it easier for foreign investors and their families to obtain residency in Hungary.
This alert has been provided by the BAL Global Practice group and our network provider located in Hungary. For additional information, please contact your BAL attorney.
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