The Hungarian Investor Residency Bond is suspended from 31st of March 2017. This announcement has been distributed by the Hungarian Government Debt Management Agency (AKK). While application submitted before the final date shall be still processed, no new application for residency bonds will be accepted after the end of March 2017.

The HIRBP was started in 2013 and allowed to high-net-worth individuals from non EU countries to invest € 300 000 in Residency Government Bonds for not less than 5 years and to acquire Permanent Residency Permit in Hungary. The latest amendments of the Program, allowed the process to be finalize within less than two months and the residency to be extended to all family members.

At the end of 2016 the Program become a source of political conflict among the Hungarian Parliament and institutions. The different political fractions quarreled over the efficiency of the Program and referred to the national security, which brought to the final suspension of the Residency Bond system. Although the HIRBP is “alive” on paper, after 31st of March it will be not applicable. The Hungarian officials still do not have plan what would happened with those investors who already had obtained Hungarian PRC, but still remain their compulsory investment in Hungarian GBs, or for those who had started the procedure, but still have not obtained their Hungarian status. It remains unclear whether the Government or the licensed companies, distributors of the GB’s shall be responsible for the investment exit after the fifth year.

Source: Hungary Today


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