Information about "Residency Bond"

Information about Section 28 (3)-(7) of the amendments to Act No. 2 of 2007 on the Admission and Right of Residence of Third-Country Nationals (the “Act”)

Information for applicants for residence permits in Hungary

The so-called “Residency Government Bonds” are zero-coupon government securities was issued after January 1, 2015 with denominations of EUR 50.000 for a tenor of minimum 5 years in accordance with the separate Decree of the Minister for National Economy. The Residency Government Bonds was issued at a discounted price and will be redeemed at par value at maturity. The yield of the Residency Government Bond is calculated in accordance with respective rules of law as a difference between the par value and the discounted price.

The Residency Government Bonds could be subscribed by such companies that invest exclusively into Residency Government Bonds and had signed an agreement with the Government Debt Management Agency private Company Limited by Shares (“ÁKK Zrt.”) for such activity.

In accordance with Section 110.§ (11) of the Act in connection with applications submitted after January 1, 2015 an aggregate par value of 300,000 euro of Hungarian Residency Government Bonds was subscribed (bought) per applicant.

The company as specified above issued a security with at least five years of tenor of which (and not of the Residency Government Bonds) the applicant for a permission of residence in Hungary was hold not less than EUR 300.000 of face value for minimum 5 years. The specific terms of these securities (especially the interest rate or yield) are not specified by the laws of Hungary. The company should have had all licences required to carry out such activities in the relevant country.

The approval for the company was granted by the Economic Committee of the Hungarian Parliament. Having received such necessary approval of the committee, the company should have sign an agreement with AKK Zrt. for the issuance of the Residency Government Bonds (issuance by the State and purchase by the Company). The list of approved companies is published on the website of ÁKK Zrt. (the list can be downloaded here)

With questions related to residence permits applicants should contact the Office of Immigration and Nationality of Hungary (by phone: +361 4639100, by e-mail: migracio@bah.b-m.hu, or by mail: Customer Service Office No.2, H-1117 Budapest, Budafoki út 60. / Sztregova köz).

Information for potential immigration service provider companies

In conformity with the Act the so-called “Residency Government Bonds” could be purchased exclusively by companies, which in turn was issued securities accordingly for the prospective applicants. Only one such company per a third country was approved by the Economic Committee of the Hungarian Parliament. The contact details are the following: by phone: +361 4414567, by fax: +361 4414560, or by e-mail: gb@parlament.hu.