Residency by Investment in Hungary for non-EU people
Why seek to obtain residency in Hungary?
- An absolutely gorgeous country in the heart of the EU and Europe.
- Low cost of living; Hungary is competitively ranked in the Numbeo Cost of Living Index.
- Affordable, quality real estate.
- Geographic location – in Europe. Short flight away from Paris, London, Moscow, and Istanbul. Short drive away from Croatia, Prague and Vienna.
- 9% corporate income tax, 15% personal income flat tax – amongst the lowest in Europe.
- Multiple international schools.
- Affordable healthcare.
- Extremely safe.
- Visa-free travel across the EU
What are the Residency options in Hungary?
- EU people can easily become residents as long as they own property or sign a lease agreement in Hungary
- For non EU people these are the residency options in Hungary:
- Student visa
- Through marriage to a Hungarian citizen
- Work permit – getting an employer to sponsor you
- The little-known residency-by-investment programme in Hungary
How to obtain residency in Hungary through Residency-by-Investment for non EU-people
Laszlo and his team, more on them below, specialize in helping non-EU people obtain residency in Hungary. Here is the process:
- A local company gets created for you. Hungary has the lowest corporate income tax rate in the EU (9%) and does not tax corporate capital gains and dividends.
- You then buy for a minimum of 180,000 euros of real estate in Hungary which must then be rented out. The point is that it must be income generating to be able to qualify for the residency-by-investment scheme in Hungary.
- You must appoint yourself director of the company, and pay local payroll taxes.
- Your spouse and underage children can be linked to your visa, and thus benefit from free local healthcare and schooling
- The visa is valid for 2 years, after which you must renew it. Generally the immigration authorities just check that the accounts of the company are in order and that you did indeed generate income from the real estate investment.
- You’re expected to spend at least 3 months per year in Hungary to be able to renew.
Does it lead to citizenship?
On paper it can. In practice, it is very hard. You’d have to live about 10 years in Hungary, and the requirements are extremely stringent. I wouldn’t do this for the citizenship, but would see it as an added bonus if it materialized.
What are some specific advantages of the Hungary residency-by-investment programme for non-EU people versus other Golden Visa programmes?
Hungary offers the same benefits (EU travel, local healthcare, local schooling, etc) but has some competitive advantages:
- Real estate is actually great value in Budapest. It has amongst the cheapest per square meter prices in the EU, yet is a gorgeous city right in the center of Europe. I wrote a full guide to the real estate investment market in Budapest.
- The company you will create in Hungary is much more attractive than anything you can create in Portugal, Spain, and Greece for example. The corporate income tax rate is 9%, the lowest in the EU, and dividends and capital gains are not taxed. So you can use this company not only for the real estate, but for other matters too. Hungary is a great base for entrepreneurs and people who work online.
- Hungary is in a much better fiscal position than Southern EU countries and has much lower debt to GDP levels.
- Hungary is very safe. Unlike most Western European countries, there are very few personal safety risks. You can let your children and teenagers do their own thing and they will be fine.
Contact Laszlo to get a free brochure on Hungarian residency by investment programme
If you have any questions related to this specific programme or would like to get started, feel free to get in touch with Laszlo at laszlo@thewanderinginvestor.com. Make sure to include your Whatsapp number if you use it.
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