Obtaining a residence permit in Hungary through real estate purchase

Answers to questions about obtaining a residence permit in Hungary through real estate acquisition.

Get answers to questions about obtaining a residence permit in Hungary through the purchase of real estate from Ksenia Grishchenko, Vice President of Arton Capital, and Svetlana Thomson, immigration expert at Arton Capital.

Law II of 2007 on the admission and residence rights of third-country nationals

To obtain a residence permit in Hungary through the purchase of expensive real estate, it is necessary to consider Law II of 2007 regarding the admission and residence rights of third-country nationals. This law provides the opportunity to obtain a residence permit based on "circumstances of special significance."

Differences from immigration programs of other European countries

Unlike the immigration programs of other European countries, Hungarian law does not provide for a "golden visa" program and has more general wording. To successfully navigate the process, it is necessary to comply with the law.

Deadlines for obtaining a residence permit in Hungary through real estate purchase

The average time to obtain a residence permit in Hungary through real estate purchase is between one to two months, making this method one of the fastest in Europe.

Duration of residence permit in Hungary

The residence permit is issued for five years to the main applicant and for three years to their family members, with the possibility of unlimited renewal provided the initial investment requirement is met. Residence permit holders can freely reside in Hungary and stay in Schengen countries for up to 90 days within a six-month period.

Conditions for obtaining resident status

Applications for resident status are accepted from investors over the age of 18, as well as from their spouses, children, and parents, provided that the latter are financially dependent on the main applicant. Residency can also be granted to children over 18 and the parents of a married couple or those living in a civil partnership.

When creating a civil union

It is important to provide various documents for verification - a joint bank account, property ownership, or a long-term rental contract that includes both partners. The owner of a residence permit cannot apply for permanent residency or citizenship. However, one can become a tax resident of the country, open a bank account in a European bank, and conduct financial transactions.

Acquisition of real estate

Only residential properties with a value of at least €155,000 are available for purchase. It is preferable to acquire housing in new developments in Budapest. The minimum area of the property must be 6 square meters for each family member. The payment for the apartment must be made in full without the use of loans. The owner of the residence permit is not allowed to rent out the purchased property.

Conducting a real estate acquisition transaction

It is advisable to proceed with the real estate purchase after obtaining a residence permit. The process should be started in advance, as the paperwork must be completed within three months of receiving the residency card. To confirm financial independence, a bank statement showing a balance of at least €155,000 is required.

For obtaining Hungarian residency permit:

To begin with, it is necessary to have a sufficient balance in the bank account. The main applicant must have at least €27,000, and each family member must have at least €16,000. A reliability check can also help assess the chances of obtaining a residence permit. However, the application may be rejected if the investor or their company is under sanctions, has a criminal record, or holds the status of a "politically exposed person."

The process of submitting documents for a residence permit:

To submit documents for a residence permit, it is necessary to personally visit either the Hungarian consulate in your place of residence or the immigration office in Budapest, especially if the applicant already has a Schengen visa. The method through the immigration office reduces the processing time for the application to one month. After the application is approved, the applicant receives a one-year Hungarian visa and the right to enter the country once.

Necessary steps when submitting documents:

During the application process for a residence permit, the applicant and all family members listed in the application will need to provide fingerprints and have their photos taken for the card at the immigration office. The processing time for the cards is 30-35 days.

Acquisition of real estate and related expenses:

When purchasing real estate, it is important to consider a down payment of 10% of the total property value, the payment of a stamp duty of €75, application and registration fees (approximately €500), as well as possible legal costs for preparing and registering the transaction. After obtaining permission to purchase, the main sales contract should be signed, and the remaining amount should be paid.

**Conclusion:**

Obtaining a residence permit in Hungary through real estate investment presents an accessible and promising opportunity for citizens of third countries. The legislative framework, despite the absence of a formal "golden visa" program, allows investors to obtain long-term family resident status while adhering to the "spirit and letter" of the law. This process, accompanied by experienced lawyers from Arton Capital, ensures not only the speed of processing but also legal protection of clients' interests. It is important to note that investments in residential real estate in Budapest are the most preferred option, considering the legal requirements. However, to successfully obtain residency, it is essential to strictly adhere to the established deadlines and requirements, which will ultimately ensure stability and prospects in the new country of residence.