What is a proof of funds in the Hungarian golden visa program?
When you apply for your 10-year Hungarian residency, you will need to provide a proof of funds pretty early on. However, this does not mean that you have to make the investment in the real estate fund right away.
What is a proof of funds?
A “proof of funds” is a document that verifies that you have a set amount of money at your disposal and that you are ready to realize your goals in Hungary. It typically a document issued by your bank, concerning money in a current account or savings account.
In some cases of Hungarian residency applications, a proof of funds is the same as a proof of financial security, because it shows that you have the means to support yourself while you are in Hungary. For example, it can show you have a regular income from employment or a business, or that you have inherited a large sum.
A “proof of funds” is not to be confused with a proof that you have made an investment in a real estate fund, which is just one of the investment residency options in the Hungarian Golden Visa Program. That is referred to as an investment certificate, and you will need it only later in the procedure.
Proof of funds in the Hungarian Golden Visa Program
Regarding the Hungarian Golden Visa program, a proof of funds is a document that shows that you have the money necessary for the golden visa investment at your disposal. The required sum will depend on the investment option you choose. The proof of funds will be relevant in the first stage of the application process.
In the Hungarian Golden Visa Program, you can acquire Hungarian residency for 10 years in 3 stages:
- Apply for the guest investor visa: This is a visa valid for 6 months, which will let you enter Hungary to make your investment. For the visa application, you will need a proof of funds to show you have the means to make your chosen type of investment, and a declaration that you fully intend to make that investment.
- Come to Hungary: With your guest investor visa, you can travel to Hungarian and make the investment. You will receive an investment certificate, which you will need to submit with your residency application.
- Apply for the guest investor residence permit: Now that you have your investment certificate, you can apply for your residence permit, together with your whole family. The permit will be valid for 10 years, and upon expiry you will be able to extend it for another 10 years.
What kinds of documents can I use as proof of funds?
A proof of funds is typically issued by your bank. Since banks are institutions of high credibility, documents issued by them are accepted as valid.
The proof of funds usually has to verify not only that you own those funds, but that they are readily accessible to you. Some typical examples include:
- Banks statements
- Investment account statements
- Balance certificates
- Letters from financial institutions
Preventing money laundering
When asking for your proof of funds, the Immigration Office has to make sure you have acquired those funds by legal means. This is to ensure that you are not trying to come to Hungary to evade the law where you live, and that you can be expected to follow local laws once in Hungary.
Some typical proofs of source of income include:
- Labor contract – if your income is from employment
- Company extract and financial statements – if you are taking dividends from your business
- Documentation of inheritance or gifts, together with proof that the donor acquired those funds legally in the first place
Transparency and trust in residency
When you apply for residency, you will become a new member of a community. Providing the above listed documents before admission builds trust in you while also ensuring that residency programs are not exploited by individuals seeking to evade legal scrutiny.
At the same time, rigorous verification processes ensure that only legitimate applicants can get residency, which enhances the attractiveness of the target country. This is especially true in the case of investment residency programs like the Hungarian guest investor residency program (or “golden visa” program), where credibility is a key element.
Investment residency with Helpers
Helpers Hungary provides business, immigration, and investment services with 20 years of experience. Do you need help with either? We would be happy to offer you our expertise, our extensive local know-how, and our network of local providers to make your residency application as worry-free as possible.
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The post What is a proof of funds in the Hungarian golden visa program? appeared first on HELPERS.
