Is Residence Permit issued upon the purchase of property in Hungary?

halvani wrote:

Would I be issued a residence permit or some form of legal documentation that would allow me to travel to Hungary and live in Budapest once I make my first real estate property purchase?i

No.

The only "for purchase" residence permit is to buy Hungarian Government Bonds.

halvani wrote:

.......Thank you for any advice or info you can provide...-Halvani

There's artice here which might be of use: http://www.bbc.com/news/business-27674135

Klsallee and fluffy thank you for the advice. I guess I did not explain myself fully in the first post. By residence permit I did not mean necessarily a permenant resisdency or citizenship. I was simply asking if i would be allowed to live in and manage the property I purchase... For example maybe through a renewable long-term multiple entry visa?

I mean if a person buys a home in Hungary shouldn't he be allowed to live in his own home? (I plan to settle there, so a short term tourist visa, wouldn't do)

Besides since I want to purchase multiple properties, I would have an accountant set-up a company in Hungary in my name and register the purchases to my company and have the accountant file tax returns quaterly and annually (500 euro set-up fee, 250 euro annual recurring fee)... Does this make it more likely that I'd be issued a residence permit/renewable long term visa as opposed to someone buying an apartment as a private purchase?

@fluffy thank you for the article, but unfortunetly I cannot afford to buy a citizenship or puruse the Hungarian governemnt bond scheme to obtain permenant residency.

halvani wrote:

,,,,,Besides since I want to purchase multiple properties, I would have an accountant set-up a company in Hungary in my name and register the purchases to my company and have the accountant file tax returns quaterly and annually (500 euro set-up fee, 250 euro annual recurring fee)... Does this make it more likely that I'd be issued a residence permit/renewable long term visa as opposed to someone buying an apartment as a private purchase

I think this is a different question and I think you are right, you can get a longer term multiple entry visa as part of the management team of a business.  Here's some text from MoFA (Ministry of Foreign Affairs) (my highlighting):

Work and self-employment visas

Unless otherwise provided by legal regulations or international agreements, foreigners planning to visit Hungary with the purpose of employment or other income-earning activity shall obtain a work visa or a self-employment visa before entering Hungary, regardless of the length of their stay.

Work visa (residence visa with a view to undertake employment or seasonal employment) shall be issued if the foreigner intends to visit Hungary for the purpose of undertaking employment on the basis of a valid work permit.

Self-employment visa shall be obtained if the purpose of stay is pursuing an economic, intellectual, or artistic activity aimed at obtaining property or income earning, as well as any working activity not requiring a work permit.

Travelling to Hungary to establish or maintain business contacts, or to negotiate business deals on an ad hoc basis, do not fall under the category of "work", and can be effected either visa free or by a short-term entry visa.

1. putting equipment into operation, providing warranty or guaranteed repair or service work, as part of the contract with the foreign supplier of the equipment
2. for the executive officer of a company having foreign participation, (however it does not extend to work outside the scope of the regular duties of the executive officer - e.g. he cannot drive the cab as executive officer of a taxi company)
3. for the members of the supervisory board of the company having a majority foreign ownership
4. for educational, scientific or artistic activities of internationally renowned foreigners invited by institutions of higher education, scientific research, and culture
5. for a member of a church to work at a church registered in Hungary or at an institution thereof

To receive a self-employment visa, the applicant shall submit:

    in case of paragraph 1.  (certified copy of) the contract on supplying of the equipment
    in case of paragraph 2. and 3. - the company's articles of incorporation, the certificate of incorporation issued by the Court of Registration, certification of usefulness of the activity, as well as statements concerning the nature, scope and duration of the activities and the staff involved
    in case of paragraph 4. - the letter of invitation or request issued by the Hungarian institution
    in case of paragraph 5. the letter of invitation of the Hungarian church or its entity.

To receive a work visa, the applicant has to submit the original work permit. The work permit can be obtained in Hungary from the Employment Agency of the county (or Budapest) where employment is to take place. Application shall be made by the Hungarian employer or the Hungarian party to the contract stipulating the performance of the work. Once issued, the work permit shall be sent to the foreigner to submit with the visa application.

halvani wrote:

I mean if a person buys a home in Hungary shouldn't he be allowed to live in his own home? (I plan to settle there, so a short term tourist visa, wouldn't do)

Simply investing in a country, such as buying property, does not necessarily qualify anyone, in of itself, as a reason to be issued a residency permit or even a visa. As fluffy2560 said, you can pursuit different long term or multiple entry visa options (which is I agree a different question), but simply buying property, even if for business, is not an automatic reason to be granted residency. You have to apply for an appropriate visa as fluffy2560 described.

That is, simply buying property, in of itself, is not an automatic way into the EU and the Schengen Area (at least for Hungary -- from the article posted by fluffy2560 it seems some other EU countries do give special favors in this regard to the wealthy).

And another thing -- if you want to rent out properties you will have to either contract with a property management company or have a business. If you use a property management company, you do not have to live in Hungary. If you want to start a Hungarian business to manage your own properties, do be aware that a business in Hungary has many required tax and maintenance fees you have to pay each month (for example, an accredited accountant is required -- a competent one will cost you about 100 Euro a month), not to mention you have to deal with issues like collecting and paying the local city rental taxes you have to charge to your clients.

klsallee wrote:

...
Simply investing in a country, such as buying property, does not necessarily qualify anyone, in of itself, as a reason to be issued a residency permit or even a visa. As fluffy2560 said, you can pursuit different long term or multiple entry visa options (which is I agree a different question), but simply buying property, even if for business, is not an automatic reason to be granted residency. ....

Yes, this is correct. I believe in Hungary and other countries, non-EEA nationals may only buy property on a reciprocal basis - i.e. in your case, if property can be bought by Hungarians in Lebanon, then you would be entitled to buy property in Hungary.  Otherwise, you could be excluded (obviously Hungarian companies are no problem as they are "local" legal entities). Some years ago, I seem to remember it used to apply to all property but it might now only apply to agricultural land.  In some EU states (Austria particularly) everyone needs permission to buy any kind of property in national parks.

At the individual level, this is not the same in the UK (or USA?) where they don't care where you come from as regards property ownership. Like everywhere else, this does NOT fix the visa, nor does it slip past anti-money laundering, ID and associated requirements.

EEA citizens definitely have no issue with buying property. There's no need to gain prior permission, it's an treaty right and is reflected in the buying contract.

fluffy2560 wrote:

At the individual level, this is not the same in the UK (or USA?) where they don't care where you come from as regards property ownership

The USA is for sale. Lots of non-resident investors. In the latter part of the last century, many downtown buildings in LA (Los Angeles, not Louisiana), for example, were owned by the Japanese. They divested a lot of that when their economy went sour. Currently, West coast properties are being snatched up by the Chinese (who pay in cash more often than not).

fluffy2560 wrote:

In some EU states (Austria particularly) everyone needs permission to buy any kind of property in national parks.

In Hungary the National Parks have first buy rights to all property within the park. If the property is sold, the park has to explicitly say they do not want to buy it before the sale is finalized.

klsallee wrote:

fluffy2560 wrote:

At the individual level, this is not the same in the UK (or USA?) where they don't care where you come from as regards property ownership

The USA is for sale. Lots of non-resident investors. In the latter part of the last century, many downtown buildings in LA (Los Angeles, not Louisiana), for example, were owned by the Japanese. They divested a lot of that when their economy went sour. Currently, West coast properties are being snatched up by the Chinese (who pay in cash more often than not).

Most office property in the UK is owned by pension funds.  Pension funds do not buy individual residential houses property because most of it is freehold. Apartment blocks are usually leasehold. UK has the highest level of home ownership in the EU.  This is not flag waving, it's a disaster. The rental market is too small, rental costs are very high and a lot of people are excluded from the possibility of owning their own home (due to a price bubble) or even renting long term from a decent landlord - renting viewed as negative. It's becoming something of a major economic crisis.  The bubble seems to be mainly in the South East of England (and London particularly). There will be a major property crash if interest rates rise there (not ECB have negative interest rates now). UK government seems paralysed as many people are relying on house price increases to fund their pensions (baby boomers are approaching or are in retirement). However, the (Canadian) governor of the Bank of England has signalled interest rate rises might be on the cards. Negative equity springs to mind and echoes of the Hungarian CHF loan disaster.

fluffy2560 wrote:

- renting viewed as negative.

Going over the cliff into

But since we are there....

The speculative investor seems to be more the norm these days (buy AAPL and just wait for the price to go up, while ignore there is no dividend). Which can cause problems especially in property if people hang on to property and do not work it in the interim. Simply hoping to cash in later by assuming it will increase in value over time can be economically disastrous if too many do this (and a failed concept in many parts of Hungary where the market is flat).

As for me, I expect my investments to work as hard as I do. My stock should provide a dividend and my property should provide an income.

klsallee wrote:

....Simply hoping to cash in later by assuming it will increase in value over time can be economically disastrous if too many do this (and a failed concept in many parts of Hungary where the market is flat)...

Yes, off topic but still.......

UK is a disaster waiting to happen. Property has always been a good bet over the longer term, even in countries run by crackpots/zealots/dictators (e.g. Zimbabwe, Russia, Venezuela etc).  Biggest fear for the risk mitigation is nationalisation or confiscation anywhere.

Incidentally, IMF giving warnings this morning of UK bubble (if only a bubble here in HU):

IMF warnings of a housing bubble in the UK

Dear Halvani,

Buying a property does not necessarily eligible you to obtain residency in Hungary but, if you start a company and hold you property/properties as your company's financial support, it can totally work out for you and you may easily get a residency.

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I was not intending to advertise as our consultations is always for free.
Anyhow, thanks for the notice.

My best advice is to talk to an immigration lawyer.
Just because you are allowed to purchase property in Hungary does not make it a given that you can stay in the EU longer then 90 days.
I know from experience that you should handle this visa and or resident issues before coming to HU.
I have been married to a HU dual citizen for 40 years, our son has dual citizenship( US and HU) my husband's entire family lives in HU, we own a flat in the city and my husband has retirement funds from the states. I was not even planning on working in HU or anywhere in the EU and I had an insane experience in the immigration office in Budapest. In their files they had records of my son getting married in HU, not even being the mother of a citizen was enough for me to stay.
My problem was that I didn't get the proper papers in order before wanting to stay long term in HU.
My husband also refused out of principle to hire a lawyer because he knew his rights as a HU citizen and would not let the immigration workers off easily with their crazy demands that took so long to organize that I was given 90 days to leave the EU. Their paperwork mix up, not ours. We had to prove a strong case that I had a right as a spouse to stay with my husband in HU. They don't care if they break up families as long as they have their file of papers.
We got the feeling that they were pushing hard to make us give up and hire a lawyer.Most non Hungarian speakers would of done so because of the insanity of it all.We are 100% certain in our minds that everyone in immigration is getting a kick back so they will do anything to make you give up and hire a lawyer.
I did get my 5 year resident permit but the whole immigration experience turned us both off to living in HU after my 5 years is expired. We are too old for such drama.I thought my husband would have a heart attack because of the stress. He had several loud and rude arguments with the workers and file clerks.
Good luck, take care of the paperwork before stepping foot in HU to stay.

Marilyn Tassy wrote:

They don't care if they break up families as long as they have their file of papers.

Paperwork pushers love their paperwork. But that is a global phenomenon, and not unique to Hungary. As some US Citizens with foreign spouses, parents or children can attest: dealing with USCIS or ICE can be a challenge as well.

Yes, immigration workers are a real pain everywhere.
My son brought his Hungarian wife over to the US after a long one year wait to have all of her paperwork in order.
The thing was even at the US embassy in Hungary the workers treated her with respect and listened to her after she was "legally" married to a US citizen.
My son is now married to a Japanese national and same thing, immigration in the US has a bit of respect when dealing with her.
In Hungary I felt like a "Street walker" or bar pick up by immigration workers at the office in Budapest although I have been "legally" married to a Hungarian national for over 40 years!
They need to take lessons on how to treat people besides taking a half way course in English to land a job.
It was such a nightmare that if we knew before hand how it was going to be we never would of set foot in Hungary let alone buy into this place.
2 more years to go on my resident permit, if anyone wants to buy a flat from us, please let us know, would rather sell out then go through another round of abuse at immigration.
It is now  a bit funny to look back on our strange experience but to go through anything like that again is going to be too much to handle.
I

Marilyn Tassy wrote:

They need to take lessons on how to treat people besides taking a half way course in English to land a job.I

I do agree that "the customer is always right" concept is not really an integral part of Hungarian customer service. And one unfortunately can find themselves here getting bullied by someone who is supposedly being paid to help and provide a service. Add to that, customer service is highly variable in Hungary. The immigration office in Budapest does seem to have a bad reputation (other expats have commented on it). My experience with immigration in Hungary went smooth and I was professionally treated. But I was processed in my county office, not in Budapest.

Meanwhile, I know some people who had problems with immigration in the US. So it varies.

Marilyn Tassy wrote:

Yes, immigration workers are a real pain everywhere......  immigration in the US has a bit of respect when dealing with her...I

Last time we were in the USA, of about 8 immigration officials/border guards we came into contact with, only one was polite.  The final straw was being treated like dirt by passport inspectors in Miami who did not have any concept of courtesy.  We've not been back to the USA since and vowed not to go again. Been to Canada and that was altogether a different and much nicer experience. US citizens are not hassled in the same way when they return to the USA as foreigners so perhaps spare a thought for that.  Being on the receiving end of HU immigration hassle might be a bit of reciprocity perhaps?

You are right, it all depends. My husband took it for granted that as a citizen his wife would have no problems at immigration. He was so wrong,took me over 6 months to get my resident permit because of the way they treated my case. Lost papers, misplaced papers, asking for one paper to be  translated then asking for another paper. Holding me up for so long that we were ready to just pack up and leave for good.
We were at immigration every other week and running all over Budapest to different offices to process papers.
Any ex-pat would of given up because of the language barrier and the hassle. My husband said it was worst then when he lived under the communists!!
They charged different rates for translations at the one and only  office that is approved by immigration.
It depends on which country you are from, not the language that is being translated, they are only after the $.
Husband was charged $150. to translate our marriage papers and another Hungarian citizen from Romania was only charged $15. for his marriage paperwork to be translated. My husband told everyone off at the office, they told his some BS story and he paid although he had almost been thrown out because he told them off.
When he picked up the translations 2 weeks later then gave him back $50. to shut him up.
They pick and chose how much they charge as there is no posted price for their services.
In the US I know the prices are fixed and everyone pays the same for the same service no matter how much you can or can't afford.
It is hard for my husband because when he lived in HU as a young man, this sort of shady business practice just didn't go on.

fluffy2560 wrote:

US citizens are not hassled in the same way when they return to the USA as foreigners

Being an immigration officer I think is a tough job in any country. After all, they are the vanguard of who or who should not enter a country. Job stress there for the conscientious.

That being said, even I, as a US citizen, admit I have yet to encounter an immigration official in the US that does not seem grumpy.  It is unpleasant to go through US immigration.