Hungary is both a member of the European Union and a country within the Schengen Area. For the past few years, the Hungarian economy has been showing a steady amount of growth, which along with political stability, has gradually begun to put the country on a par with the leading European states.
Hungary has made the transition from raw material manufacturer and supplier of cheap labour to a country of highly developed industrial production and transport links, making it one of the logistical centres of all Europe.
In early 2013 the Hungarian government introduced the program of permanent residence in Hungary through investment in government bonds for nationals of countries outside the EU. This program offers investors more than just a guaranteed right to permanent resident status in Europe (which gives significant advantages both for the investor and for the members of his family). There are new opportunities for business, and financial and tax optimisation, due to tax incentives for those who have become resident in Hungary through this government program.
Advantages of the Hungarian Investor Residency Bond Programme:
Quickest permanent residency program in Europe. Registration of a life-long residence permit in just 30 working days
Absence of tax obligations. Unlike the majority of permanent residence programs in the EU, the profit of permanent residence holders who do not live in Hungary for more than 183 days a year is not subject to taxation
Program for the whole family. Spouse, minor children, dependent adult children without restrictions on age and dependent parents of the investor can be included in the application for Hungarian permanent residence
No requirement to live in Hungary. Unlike the majority of residence permit programs in the EU, holders of Hungarian permanent residence doesn’t have to reside in the country even for a single day, and this doesn’t entail the risk of permanent residence loss and doesn’t force to buy or rent property
Full return of investment. The state guarantees the return of the investment after 5 years
Free movement throughout Europe’s Schengen zone
€ 300,000 Investment in government bonds of special purpose for a period of no less than 5 years
€ 60,000 Administrative fee
Tax benefits for permanent residents in Hungary
With the introduction of a uniform standard for the exchange of tax information (CRS), which was designed to create a system for automatically sharing information about the owners of accounts and the “de-offshorization” of assets, more and more people are thinking about choosing a tax residence and maintaining privacy from CRS (with regards to their first country).
Hungary offers opportunities for permanent residents to become a tax resident without living in Hungary. There are no taxes on income earned outside of Hungary, there is no tax on dividends and inheritance, and the corporation tax is 10-19%.
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