The high success of Hungary’s residency program is going to cause a rise in the price of the country’s residency bonds. From January 1st, 2015, a residency bond in Hungary will cost at least €300,000 at face value.
According to Antal Rogán, Head of the parliamentary group of the ruling Fidesz party, ever since the launch of the residency program (a little more than a year ago), Hungary has sold 1,102 residency bonds to foreign nationals at a face value of €275.5 million. As a result, the country generated revenue of almost HUF 85 billion, which has been labelled as “extraordinary success” by Rogán.
The program was launched with the aim of selling 4,000 bonds over a four-year period, and the past year’s prorated performance has met the targets so far.
Rogán submitted a law amendment proposal which was backed by the Hungarian Parliament’s economic committee. As per the amended law, the face value of the residency bond will increase to €300,000 from the current €250,000.
Forty-seven buyers of the residency bond have been granted permanent residence so far. Rogán explained that permanent residency could be applied for only if the applicant has held the residency permit for more than six months. He also mentioned that in order to gain Hungarian permanent residency, the applicant must have a home address in the country. This implies that it requires purchase of houses in the country, thereby bringing to Hungary larger additional revenues.