Investments in Hungary.

Investments in Hungary.

Investments in Hungary.
Immigration to Hungary.
An investment program that will allow you to obtain permanent residence in exchange for investment in the economy for a period of 5 years. The origin of finance, which is used to invest or pay a state duty for their registration, does not need to be documented. State guarantees of return on investment. In Hungary, there is no capital gains tax.
Hungary is an industrial state with a well-developed agricultural sector. Having begun the transition to a market economy in the 1970s, today the country actively conducts mutually beneficial trade relations with the largest countries of the world – about 80% of exports are spent on European countries.
As a result of 2014, the economy of Hungary is on the rise. The GDP of the country increased by 3.2%, industry – by 5.5%, other indicators continue to grow steadily, which generally has a positive effect on attracting foreign capital to the country. The best confirmation of this is the growth of investments by 13%.
Tax system of Hungary.
In Hungary, there are three groups of taxes that are paid by all enterprises, but the amount of tax rates may vary depending on the goods or services provided. The value added tax in Hungary ranges from 0 to 25% and is charged depending on the size of the annual profit.
The base rate of the compulsory local industrial tax is 2%. This amount may vary depending on the region in which the enterprise is registered.
The rate of income tax is 18%, regardless of the organizational and legal form.
Hungary closely follows the payment of taxes, and evasion is a serious violation of the law. It is three times more careful to treat them in time for foreigners who plan to take root in the country in the future.
Key industries in Hungary.
About 70% of the Hungarian land resources are involved in the agricultural sector. The second focus is on machine building. The automotive industry has been actively developing before, now, having overcome the crisis period and becoming a member of the European Union, foreign investments of leading world corporations Ford, Audi, Suzuki have returned to Hungary. Globally, about 350 companies are involved in the sector, which can be conditionally divided into groups – enterprises of foreign giants and local small and medium companies. In sum, their work provides a significant share of the country’s GDP.
No less active in Hungary is the development of electronic industry. Having quickly assessed the possibilities of a “young” state within the EU, world companies “entered” the country. Here, Ericsson, Nokia, Philips, Samsung, Siemens, Sony assembly lines were opened.
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Advantages of Hungary’s investment program.
In October 2013, Hungary approved a program that allowed foreigners to obtain Hungarian permanent residence in exchange for investment. At the moment, it remains the most profitable in Europe, ensuring a stable inflow of “fuel” to the state economy, and foreigners the right to quickly and lawfully settle in Europe.
The program, through which foreigners can obtain permanent residence in Hungary through investment, assumes a short period of registration – the investor receives a residence permit after three weeks, and permanent residence only six months after the filing of documents. In this case, the investor’s family (wife / husband and children) is entitled to receive permanent residence at the same time. The Hungarian government also does not put forward any requirements regarding residence in the country or studying the language, which also greatly simplifies the life of potential investors.
According to the terms of the program, the required investment amount is 300,000 euros to be invested in government bonds issued by Closed Joint-Stock Company “Center for Public Debt Management” (“AKK Zrt.”). After 5 years, the investor receives this amount back, as the state is guaranteed to redeem the bonds at their par value.
It is also worth mentioning that, in recent amendments to the legislation, the cost of government bonds has already changed – before it was 250,000 euros. Moreover, those who intend to delay the decision to issue a permanent residence in Hungary through investment, it is necessary to take into account the availability of quotas – this is 4 years and 4,000 applications.
Step-by-step scheme of obtaining permanent residence in HUNGARY through investment.
1 First of all, a participant in the state program “Permanent residence for investment” is registered, which will take 1-2 days. The following documents are required for this:
List of family members who participate in the program together with the Investor of the Cross-passport of all members of the Investor’s family (scanned copies) Data on the girl’s names and mother’s names of all participants of the program Page with a residence permit from the Investor’s internal passport (scan copy) Contact details: e-mail and telephone .
The investor receives all contracts by mail, or through a proxy, signs, and retains one copy, sending the rest back.
2 After the signing of the contract, the Investor transfers an amount of 360 000 euros (an investment of 300 000 euros + 60 000 euros administrative fee) to the escrow agent account. This will take 2-3 days.
3 At the stage of preparing the application for issuance of a temporary residence permit from the Investor, the following documents are required:
Passport of all candidates (scanned copies) Copy of the first page of the Investor’s passport (notarized) Copy of the applicant’s marriage certificate (with an apostille) Registration address in Hungary Copies of the birth certificate of minor children (with apostille)
A prepared application and a power of attorney for an attorney firm that will represent its interests in Hungary, the Investor receives electronically.
4 In order to obtain a residence permit, the Investor must personally attend the consular reception. Here, in addition to the received powers of attorney and statements, it is necessary to have:
Passport passports of all candidates Internal passports of all candidates Copies of pages with photos of all candidates, from internal and foreign passports Copies of the pages of the registration of all candidates By 2 photos on the passports of each candidate 00 Euro in cash of which 60 euros are consular fees and 30 euros for authenticating the signatures.
If the Migration Office refuses to issue a residence permit, within 15 days the company reimburses the Investor 300 000 euros of investments and 60 000 admin fees, minus 2,500 euros.
5 45 days after receiving the residence permit card, the Investor receives a nominal bill that guarantees the return of the invested funds after 5 years.
6 Six months after receiving the temporary residence permit, the Investor is entitled to apply for permanent residence. For this purpose it is necessary to prepare the following documents:
Certificates of non-conviction for all candidates over 14 years of age (apostilled, received not earlier than 6 months before application). The birth certificate of the Investor and his spouse (apostilled copy) A brief summary of all candidates in English.
If the Migration Office refuses to issue a residence permit, within 15 days the company reimburses the Investor 300 000 euros of investments and 60 000 admin fees, minus 2,500 euros.
Documents that confirm the basis for residence. This can be a contract of sale, a lease. Certificate of ownership of real estate at the registration address in Hungarian tulajdoni lap.
7 In order to obtain a permanent residence permit in Hungary, the Investor must also come to the consulate by appointment (pre-registration and completion of documents is organized by the company). At the reception in the consulate you must have:
Passport form and residence permit card. 2 photos for each candidate. Power of attorney for the law firm. Consular fee of 60 euros / person + 30 euros for authenticating the signature.
The documents are reviewed within 3 months. After this period, the Investor receives a positive decision and a permanent residence card. For registration of internal documents (Hungarian ID and residence permit), the Investor will personally submit an application to the Migration Board in Budapest (all necessary documents will be prepared by the company’s employees).
If the Migration Board takes a negative decision, the entire amount will be reimbursed to the Investor.
Opening a business in Hungary.
Entering the European market is a reasonable and logical stage in the development of a successful business. And the legislation of Hungary contributes to its implementation. Considering the option of registering a business in this state, it is worth considering that a foreigner has the right to do this by exclusively using the services of a Hungarian lawyer.
The Law “On Companies” here provides for several organizational and legal forms: Kft (similar to a closed limited liability company) is the most common, Rt (open joint-stock company with limited liability), Kkt (unlimited partnership), Bt (Limited Partnership ).
Real estate in Hungary.
Unlike some European countries, Hungary does not have a program for obtaining citizenship or a residence permit when buying real estate. Nevertheless, for foreign entrepreneurs, local real estate is interesting for relatively low cost of facilities – to find an office, production or commercial space here is much easier and cheaper.
The investment program of Hungary is in great demand among the citizens of Eastern and Central Europe. This is a chance to obtain the right to permanent residence, which greatly expands the capabilities of any entrepreneur, and at the same time – guaranteed to return their investment.
Want to know more about Hungary’s investment program? – Our specialists will give you a full consultation on any questions you are interested in.
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