Investor Visa to Hungary

1. What is an Investor Visa to Hungary?

An Investor Visa to Hungary is a type of residence permit that is granted to foreign individuals who make a significant investment in the Hungarian economy. This visa is designed to attract foreign investors and entrepreneurs who can contribute to the country’s economic growth and development. To qualify for an Investor Visa, individuals must meet certain criteria, such as investing a minimum amount of capital in a Hungarian business or project. The specific requirements and investment thresholds may vary depending on the nature of the investment and the individual’s circumstances. Overall, the Investor Visa program aims to encourage foreign investment in Hungary and stimulate innovation and job creation in the country.

2. What are the requirements to qualify for an Investor Visa to Hungary?

To qualify for an Investor Visa to Hungary, there are several key requirements that need to be met:

1. Investment Amount: The applicant must make a significant financial investment in Hungary. The exact amount required can vary, but it is generally expected to be in the range of at least 300,000 to 400,000 euros.

2. Business Plan: The applicant must submit a detailed business plan outlining their proposed investment project in Hungary. This plan should demonstrate the potential economic benefit of the investment, as well as how it will contribute to the local economy.

3. Job Creation: The investment should also lead to the creation of jobs in Hungary. The applicant may be required to provide evidence of how many jobs their investment will generate and how these positions will benefit the local workforce.

4. Clean Criminal Record: The applicant must have a clean criminal record and be able to provide a certificate of good conduct from their home country or any other places they have lived in the past few years.

5. Health Insurance: Proof of health insurance coverage is also typically required for the applicant and any accompanying family members.

Overall, the Investor Visa to Hungary is designed to attract foreign investors who can make a substantial contribution to the Hungarian economy. Meeting these requirements demonstrates not only the financial capacity of the applicant but also their commitment to creating economic growth and opportunity in Hungary.

3. How much investment is required for an Investor Visa to Hungary?

The amount of investment required for an Investor Visa to Hungary is a minimum of €300,000 in the form of a business investment. This investment must be in a Hungarian company that creates at least 10 job opportunities for Hungarian nationals. Additionally, the applicant must demonstrate the legal source of funds for the investment and have a clear business plan outlining the operations and financial projections of the company. The Investor Visa allows for residency in Hungary and can lead to permanent residency and eventually Hungarian citizenship, making it an attractive option for foreign investors looking to establish a business presence in Europe.

4. What are the benefits of holding an Investor Visa to Hungary?

There are several benefits to holding an Investor Visa to Hungary:

1. Residency Rights: The Investor Visa allows individuals to reside in Hungary for an extended period, providing them with stability and the opportunity to explore business and investment opportunities within the country.
2. Business Opportunities: Holding an Investor Visa opens up the possibility of starting or expanding a business in Hungary, taking advantage of the country’s strategic location within Europe and its growing economy.
3. Access to the Schengen Area: Hungary is part of the Schengen Area, which allows visa holders to travel freely within this zone of 26 European countries without the need for additional visas.
4. Eligibility for Permanent Residency: After holding the Investor Visa for a certain period of time and meeting specific requirements, individuals may be eligible to apply for permanent residency or even citizenship in Hungary.

Overall, the Investor Visa to Hungary offers a pathway for investors and entrepreneurs to establish themselves in the country, access business opportunities, and ultimately achieve long-term residency or citizenship status.

5. How long is the processing time for an Investor Visa to Hungary?

The processing time for an Investor Visa to Hungary can vary depending on various factors such as the completeness of the application, the volume of applications being processed at the time, and any additional requirements that may need to be fulfilled. On average, the processing time for an Investor Visa to Hungary ranges from 3 to 6 months. However, it is essential to note that this is just an estimate, and actual processing times may differ. It is advisable for applicants to ensure that all necessary documents are submitted accurately to help expedite the processing of their visa application.

6. Can family members accompany the main applicant on an Investor Visa to Hungary?

Yes, family members can accompany the main applicant on an Investor Visa to Hungary. This includes the spouse and children under the age of 18, as well as dependent children over 18 who are financially dependent on the main applicant. Family members can also apply for residency permits based on the main applicant’s investment, allowing them to live and work in Hungary. It is important to note that family members will need to satisfy the requirements and eligibility criteria set forth by the Hungarian authorities for the issuance of their residency permits. Additionally, family members may also benefit from the various opportunities and advantages that come with living in Hungary, such as access to education, healthcare, and employment opportunities.

7. Is it possible to obtain permanent residency or citizenship through an Investor Visa to Hungary?

Yes, it is possible to obtain permanent residency through an Investor Visa to Hungary. The Hungarian Investor Residency Bond Program allows foreign nationals to obtain a residency permit by investing in special Hungarian government bonds. This program grants a temporary residence permit valid for five years to the investor and their family members. After the initial five-year period, the investor can apply for a permanent residence permit. As for citizenship, Hungary offers a citizenship by investment program whereby individuals who have held a permanent residency permit for an extended period and have basic Hungarian language skills may be eligible to apply for Hungarian citizenship through naturalization. It is important to note that each case is reviewed individually, and meeting the requirements for permanent residency does not automatically guarantee citizenship.

8. Are there any restrictions on the type of business or investment for an Investor Visa to Hungary?

There are no specific restrictions on the type of business or investment for an Investor Visa to Hungary. However, there are certain general requirements that applicants must meet in order to qualify for the visa, which include:

1. The investment must be a substantial amount that contributes to the Hungarian economy.
2. The business should be legally registered in Hungary and comply with all relevant laws and regulations.
3. The investment should create jobs for Hungarian citizens and contribute positively to the local economy.

Overall, as long as the business or investment meets these criteria and is beneficial to the Hungarian economy, there are no limitations on the specific type of business or industry for obtaining an Investor Visa to Hungary.

9. What is the validity period of an Investor Visa to Hungary?

The validity period of an Investor Visa to Hungary typically ranges from one to two years initially. However, it can be extended beyond this period depending on the success and ongoing nature of the investment project. Investors are required to demonstrate that they have made a significant financial investment in Hungary and that their business activities continue to benefit the local economy. Extensions to the visa are usually granted in line with the timeline of the investment project and can be renewed as long as the business remains active and meets the necessary criteria set by the Hungarian authorities. It is important for investors to maintain compliance with the visa regulations and provide regular updates on the progress of their investment in order to ensure visa validity and extensions continuously.

10. Are there any language proficiency requirements for an Investor Visa to Hungary?

Yes, there are language proficiency requirements for an Investor Visa to Hungary. As of the current regulations, applicants for the Investor Visa are required to demonstrate basic proficiency in the Hungarian language. This typically involves passing a language proficiency test or having completed a certain number of hours of Hungarian language classes. The purpose of this requirement is to ensure that investors can effectively communicate and integrate into Hungarian society. It is important for potential investors to prepare for this language requirement in advance to increase their chances of successfully obtaining the Investor Visa.

11. Do I need to reside in Hungary for a certain period each year with an Investor Visa?

With an Investor Visa to Hungary, there are no strict residency requirements in terms of the number of days you must spend in the country each year. However, to maintain your visa status, it is generally advisable to visit Hungary periodically to attend to your investment or business activities. This can also help demonstrate your ongoing commitment to your investment in the country. It is recommended to keep detailed records of your visits and engagement with your investment project in case you need to provide evidence of your compliance with the terms of the Investor Visa. Overall, while there is no specific minimum residency requirement, regular visits to Hungary can be beneficial for both your visa status and your investment endeavors.

12. Can I work in Hungary with an Investor Visa?

Yes, holders of the Hungary Investor Visa are allowed to work in Hungary. The Investor Visa is designed to attract foreign investors who are interested in making a significant investment in Hungary, consequently contributing to the country’s economic development. With this visa, individuals can engage in business activities related to their investment, as well as seek employment within their own company or engage in a managerial role within the invested project. It is important to note that working in Hungary with an Investor Visa is typically limited to activities related to the investment project for which the visa was granted. For any other work outside of the investment scope, additional work permits or residency permits may be required.

13. What is the tax regime for investors holding an Investor Visa to Hungary?

Investors holding an Investor Visa to Hungary benefit from a favorable tax regime that encourages foreign investments in the country. Here are some key aspects:

1. Corporate Income Tax: Hungary has a flat corporate tax rate of 9%, which is one of the lowest in the European Union. This low rate makes Hungary an attractive destination for investors looking to set up or expand their business operations.

2. Personal Income Tax: Individuals holding an Investor Visa in Hungary are subject to a progressive personal income tax rate, ranging from 15% to 35%. This tax rate is competitive compared to other European countries and provides a favorable environment for foreign investors.

3. Dividend Tax: Hungary has a 15% tax rate on dividends received by individuals, which is generally withheld at the source. However, under certain tax treaties, this rate may be reduced for investors from countries with which Hungary has a double taxation agreement.

4. Capital Gains Tax: Capital gains tax in Hungary is currently set at 15%, applying to gains from the sale of assets such as real estate, shares, and securities.

Overall, the tax regime for investors holding an Investor Visa in Hungary is attractive due to its low corporate tax rate, competitive personal income tax rates, and favorable treatment of dividends and capital gains. This, combined with Hungary’s strategic location in the heart of Europe and its growing economy, makes it a compelling choice for foreign investors seeking to establish a presence in the region.

14. Can I sell my investment and still maintain my Investor Visa status in Hungary?

Yes, you can sell your investment and still maintain your Investor Visa status in Hungary under certain conditions:

1. Continuity of Investment: If you have held your investment for the required period specified by the Hungarian authorities, typically 5 years, you may be eligible to sell it without affecting your visa status.

2. Fulfillment of Conditions: Ensure that you have complied with all the conditions set out in your investor visa application. This includes maintaining the minimum investment threshold and complying with any other stipulations outlined in your visa approval.

3. Alternative Investment: If you intend to sell your current investment but wish to continue holding an investor visa, you may need to consider reinvesting the proceeds into another eligible investment option in Hungary. The new investment should meet the criteria for the investor visa program.

4. Consultation with Authorities: It is advisable to consult with the Hungarian Immigration Office or your legal advisor before proceeding with the sale of your investment to understand the specific implications on your visa status and to ensure compliance with the regulations.

By following these guidelines and meeting the necessary criteria, you can sell your investment in Hungary while maintaining your Investor Visa status.

15. Is there a minimum stay requirement in Hungary for Investor Visa holders?

No, there is no minimum stay requirement in Hungary for Investor Visa holders. Once you obtain an Investor Visa, you are allowed to enter and exit the country freely without any strict requirements on the duration of your stay. This flexibility is one of the attractive features of the Hungarian Investor Visa program, as it allows investors to manage their time and business interests in Hungary according to their own schedule and needs. It is important to note that while there is no minimum stay requirement, maintaining active business operations and complying with any visa renewal or extension procedures is essential to ensure the validity of your Investor Visa in Hungary.

16. Are there any special privileges or incentives for investors in certain sectors in Hungary?

Yes, Hungary offers special privileges and incentives for investors in certain sectors through its Investor Visa program. Some of the key benefits include:

1. Fast-track residency permit: Investors who meet the minimum investment requirement can obtain a residence permit in Hungary quickly, allowing them to live and work in the country.

2. Lower tax rates: Hungary offers competitive tax rates for investors, including a flat 9% corporate tax rate, which is one of the lowest in the European Union.

3. Access to the European market: By investing in Hungary, investors gain access to the European Union market, allowing them to expand their business operations across the continent.

4. Support for innovation and research: Hungary provides support for investors in sectors such as innovation and research through various grants and funding opportunities.

Overall, investing in Hungary can provide investors with a range of privileges and incentives that can help facilitate their business growth and success in the country and beyond.

17. Can I apply for Hungarian citizenship through the Investor Visa program?

Yes, it is possible to apply for Hungarian citizenship through the Investor Visa program. However, there are specific conditions that need to be met in order to be eligible for citizenship. Here are some key points to consider:

1. In order to apply for Hungarian citizenship through the Investor Visa program, you must first hold a valid Investor Visa in Hungary.
2. You must have been legally living in Hungary for a certain period of time as a resident to be eligible to apply for citizenship.
3. Meeting the residency requirements is crucial, and typically involves residing in Hungary for a specified number of years.
4. It is important to note that the citizenship application process in Hungary can be complex and may require thorough documentation to support your application.
5. Consulting with legal experts or immigration advisors experienced in Hungarian citizenship procedures can help you navigate the process successfully and increase your chances of citizenship approval.

18. Are there any specific industries or sectors that are encouraged for investment in Hungary?

Yes, there are specific industries or sectors that are encouraged for investment in Hungary, particularly under the country’s Investor Visa program. Some of the key sectors that are highly favored for investment in Hungary include:

1. Information Technology and Software Development: Hungary has a growing IT sector with a skilled workforce and favorable business environment, making it an attractive option for investors looking to tap into the tech industry.

2. Automotive Industry: Hungary is home to several major automotive manufacturers and suppliers, making it a hub for automotive investment. The automotive sector in Hungary benefits from a strong industrial base, skilled workforce, and strategic location within Europe.

3. Renewable Energy: Hungary is increasingly focusing on renewable energy sources to reduce its dependence on fossil fuels. Investors in sectors such as solar, wind, and biomass energy can find opportunities to contribute to Hungary’s transition towards a more sustainable energy future.

4. Tourism and Hospitality: Hungary is known for its rich history, cultural heritage, and natural beauty, making it a popular destination for tourism. Investments in hotels, resorts, and other tourism-related infrastructure can be a lucrative option for investors.

Overall, Hungary offers a range of investment opportunities across various industries, and investors seeking to obtain an Investor Visa to Hungary may find success by targeting sectors that align with the country’s economic priorities and growth potential.

19. Can I bring my dependents with me on an Investor Visa to Hungary?

Yes, as an investor obtaining a residency permit in Hungary through the Investor Visa program, you are generally allowed to bring your dependents with you. Dependents typically include spouses, children under the age of 18, and in some cases, dependent parents. It is important to note that each dependent will also have to apply for their own residency permit and meet the eligibility criteria set by the Hungarian authorities. Additionally, you will need to demonstrate that you have sufficient financial resources to support your dependents during their stay in Hungary. Overall, Hungary’s Investor Visa program offers a pathway for investors to relocate with their immediate family members and enjoy the benefits of living and doing business in Hungary.

20. Are there any investment options that qualify for an expedited Investor Visa process in Hungary?

Yes, Hungary offers an expedited Investor Visa process for those who choose to invest in certain qualifying options. Some of the investment options that may qualify for an expedited Investor Visa process in Hungary include:

1. Investment in government bonds: By purchasing Hungarian government bonds, investors can contribute to the country’s economy and be eligible for the Investor Visa program.

2. Investment in a Hungarian company: Making a significant investment in a Hungarian company that creates jobs and spurs economic growth could also qualify for the expedited Investor Visa process.

3. Real estate investment: Purchasing real estate in Hungary, especially in designated investment zones or areas that require development, could be another qualifying option for an expedited Investor Visa.

It is important to note that the specific requirements and criteria for the expedited Investor Visa process may vary, so potential investors should consult with a professional or the Hungarian authorities for detailed information on the available investment options and eligibility criteria.