The statutory procedure for accepted foreign direct investment in the Investor Residency Bond Program includes the purchase of special Hungarian government bonds in the amount of €300,000 with a maturity of five years. At maturity, the original capital is returned to the investor without accrued interest.
Legislation dictates that the program investment is used to purchase bonds that are issued by a Residency Bond Agent approved by the Hungarian authorities. The agent, in turn, invests that amount in the Hungarian government bonds. This transaction is subject to a Subscription Agreement with the designated enterprise, which must be licensed for the main applicant’s geographic region. The government bonds are assigned for the program only and cannot be used for trading on the public or the secondary market.
Once the security is issued to the investor, the Residence Bond Agent will provide an irrevocable declaration certifying that a Treasury bond with a nominal value of €300,000 and a five-year maturity will be purchased using the funds received from the investor within 45 days of his/her residence permit being issued. In addition to the investment, applicants are also required to cover all processing and visa application fees.
To further guarantee the investment, applicants may wish to obtain a Letter of Bank Guarantee by the issuing bank. Additional fees by the bank may apply.
An extremely attractive financing offer is available for a one-time fee of €125,000 to clients who wish to leverage their capital. The loan is initiated and repaid at no further cost to the investor. Standard government fees are applicable in addition to the financing cost. Please contact us for details.
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