INFORMATION

on

Residence permit for guest investor

Effective from: 01.07.2024! 

1. 1)Which third-country nationals are eligible to be granted a residence permit for guest investor?

A residence permit for guest investor may be granted to a third-country national whose entry and stay in Hungary is in national economic interest due to his/her investments realised in Hungary.

The following investments realised shall be considered as national economic interest:

1. a)acquisition of an investment fund share of at least EUR 250 000 issued by a real estate fund registered by the Hungarian National Bank,
2. b)ownership interest over a property, concerning a residential property with a value of at least EUR 500 000, located in the geographical territory of Hungary and registered in the Land Registry of Hungary under its parcel identification/topographical LOT number, free and clear of all liens, claims and encumbrances,
3. c)provision of a financial donation in an amount of at least 1 000 000 EUR and for a purpose of educational, scientific research or artistic creation activities, to a higher education institution maintained by a public trust with a public-service mission.

Definition of third-country nationals:

• ·Non-Hungarian nationals who are not persons with the right of free movement and residence, i.e. who are not EEA nationals or family members of an EEA national, and
• ·stateless persons

qualify as third-country nationals.

1. 2)Where can clients submit their applications?

1. I.Application for the issuance of a residence permit

Application for the issuance of a residence permit may only be submitted in Hungary.

Submitting the application is conditional on your legal residence in Hungary with a guest investor visa or – if you are allowed to enter the territory of Hungary visa free – on a visa free basis.

The application must be submitted within 93 days from the date of entry with a guest investor visa or in the case of a visa-exemption, from the date of the first legal entry into the territory of Hungary.

Application submission in Hungary is available:

• ·by electronic means via the electronic information system and procedure initiation platform of Enter Hungary, which is available by clicking here, or
• ·in person, before the competent regional directorate of NDGAP as per the applicant’s place of accommodation. Contact details of the regional directorates and further information are available by clicking here.

Please note that application submission is available only via the Enter Hungary platform if your attorney-in-fact is a legal representative or a legal person.

Please also note that you must certify via the platform of Enter Hungary within 3 months after entering Hungary that you have completed the committed investment. Certification of the realised investment will be examined by NDGAP.

1. II.Application for the extension of a residence permit

Submission of applications for the extension of a residence permit for guest investor is only available within the territory of Hungary, via the platform of Enter Hungary, which is available by clicking here.

Please be informed that the extension of the residence permit is only possible if you are a holder of a valid residence permit for guest investor at the time of application submission.

Furthermore, please note that an application for the extension of a residence permit is to be submitted at least 30 days prior to the date of expiry of the issued residence permit.

1. 3)Additional information on application submission

For submission of an application in person, applicants are required to complete the application form correctly in full and to submit the completed document with their signature. The form is available by clicking here and the appendix here.

For submission of an application via the platform of Enter Hungary, the full and correct completion of the electronic application form is required, which is available on the platform. The platform of Enter Hungary is available by clicking here.

For the purpose of the issuance of a residence permit comprising biometric data, a facial photograph and fingerprint of the applicant will be taken.

An application submitted via the platform of Enter Hungary is deemed to have been received by the immigration authority, if the administrative service fee has been paid, and the facial photograph and fingerprint of the applicant is taken and signature specimen of the applicant is recorded within 15 days from the date of receipt. The immigration authority will send out a notification when the application is deemed to have been received.

1. 4)Administrative service fee for the procedure

For information on administrative service fees for procedures, please click here.

1. 5)What are the mandatory attachments/enclosures of an application?

For the approval of your application for a residence permit, you are required to meet conditions for entry and residence in Hungary, during the procedures mandatory attachments/enclosures may serve as proof of meeting the set conditions.

Please make sure completion of the attachments/enclosures is in full and check all documents before submission, supporting the soonest possible processing and examination of the application.

Documents in proof of the purpose of residence

Please attach/enclose certification of one of the following investments:

1. a)a certificate from the real estate fund manager registered by the Hungarian National Bank or from the distributor of the investment fund share on the investment fund share of EUR 250 000 issued under the name of the third-country national;

Please note that in this case you are required to have an investment fund share issued by a real estate fund for at least 5 years whose net asset value comprises minimum 40% of investments in residential real estate in Hungary and its real estate fund manager has at least a simplified site security certificate or is listed in the register under Act XXX of 2016 on Defence and Security Procurement.

1. b)a contract of sale and purchase, countersigned by a lawyer, concerning a residential property with a value of at least EUR 500 000, located in the geographical territory of Hungary and registered in the Land Registry of Hungary under its parcel identification/topographical LOT number, free and clear of all liens, claims and encumbrances;

Please note that in this case, upon acquiring ownership of the residential property, a prohibition on alienation and encumbrance must be registered in the Land Register for a period of 5 years from the date of conclusion of the purchase contract, and the property may be owned exclusively by you or you and one or more family members who are also applying for a residence permit for guest investor for a period of 5 years.

Please also be informed that the competent authority will appoint a forensic real estate expert to determine whether there is a noticeable discrepancy between the actual market value of the property and the purchase price indicated in the application. The applicant must advance the costs of the assessment.

1. c)a certificate from the higher education institution maintained by a public trust with a public-service mission certifying that the higher education institution has received a financial donation from you of at least EUR 1 000 000 to support educational, scientific research or artistic creation activities.

Please be informed that the extension of the residence permit is only possible for each investment may only be granted if the following conditions are met:

1. a)if the investment on the basis of which the residence permit was issued was an investment fund share, the applicant is required to have the investment at the time of application submission,
2. b)if the investment on the basis of which the residence permit was issued was ownership interest over a real estate property, then

• ·the applicant continues to have ownership interest over the property based on which the residence permit was issued with a value of at least EUR 500 000, or
• ·if the applicant no longer has ownership interest over the property based on which the residence permit was issued, or the value of the ownership interest over the property is less than EUR 500 000, the applicant has a new real estate investment meeting the same conditions at the time of application submission,

1. c)if the investment on the basis of which the residence permit was issued was provision of a financial donation, the extension of the residence permit may be granted without further investments realised.

Documents proving that the applicant has a place of accommodation in Hungary

One of the following documents must be submitted as proof that the applicant is the owner of a residential property suitable for habitation, or (s)he has legal title to use such a real estate:

• ·a residential lease contract,
• ·a document on accommodation by courtesy,
• ·a document in proof of ownership of the residential property,
• ·a document in proof of the reservation of accommodation and payment for it.

Documents proving that the applicant meets the conditions of exit (i.e. conditions to a return/onward travel)

Meeting the conditions of exit may be proved by:

• ·a valid passport,
•  

Other required documents

• ·Attaching/enclosing 1 facial photograph to/with the application is required.

1. 6)Time period of procedural administration

Time period for procedural administration: 21 days.

In addition to mandatory attachments/enclosures, NDGAP may request the submission of further documents for clarification of facts of the case or implement other procedural conducts.

The period for remedying deficiencies (e.g., submission of missing documents) and for the implementation of various other procedural conducts is not comprised in the time period of the procedural administration. 

1. 7)Receiving the residence permit document

A residence permit document shall be delivered by way of post to the address indicated as place of delivery in the application form.

Please note that receiving your document before NDGAP’s regional directorate in person is only allowed, if you prove that you are not in a position to receive the document at the address indicated as place of delivery in your application.

1. 8)How long is the validity period of the permit?

Validity period of the document is maximised in 10 years, and it may be extended for another 10 years for the same purpose.

1. 9)Further information

• ·Reporting obligations in connection with investments

In case there is a change in the data based on which the investment was verified during the validity period of the residence permit, the applicant is obliged to report it within 5 days of the change via the platform of Enter Hungary.

• ·Employment and gainful activity

The residence permit for guest investor entitles its holder to pursue activities independently, for remuneration or act as a chief executive of a business organisation, cooperative or other legal entity established for the purpose of gainful activity.

The residence permit for guest investor and the related residence permit for family reunification entitles its holder to perform actual work for or under the direction of others, for remuneration, under contract for employment relationship.

The third-country national is entitled to work in Hungary without restriction.

• ·Appeal

In case of refusal, the decision may be appealed within 8 days of delivery, submitted to the authority of first instance, or at the Hungarian diplomatic or consular foreign mission where the application was submitted.

Please note that the authority shall dismiss the appeal without any examination as to merits in the following cases:

-  the appeal is received after the deadline,

-  the appeal is not submitted by an authorised person,

-  the applicant introduces and refers to new facts of the case, of which (s)he was aware before the decision was adopted,

-  the appeal is submitted without indicating its grounds or cause.

For information on reporting obligations, please click here.