Hungary’s rolling out the welcome mat for non-EU and non-EEA investors with its new Hungary Golden Visa Program, a path to residency through investment that kicked off on July 1, 2024. This initiative is stepping in for the previous residency by investment scheme, offering a trio of investment options to secure residency and a slew of benefits for investors and their families.
It’s designed to boost the economy and attract reputable individuals keen to tap into the growth opportunities within Hungary’s borders. With streamlined procedures and the promise of visa-free Schengen Area travel, the Hungary Golden Visa represents a fresh chapter in the nation’s strategy to encourage global investment partnerships while strengthening its economic landscape.
The New Hungary Golden Visa Program
Purpose and Objectives of the Program
The Hungarian Government has rolled out the New Hungary Golden Visa Program, which commenced on July 1, 2024. This initiative steps in as the successor to the previously discontinued permanent residency by investment program of 2017. The program’s launch is a strategic move to draw in non-EU and non-EEA investors by offering them a chance to gain residency in Hungary through investment.
The program is carefully crafted to cater to individuals who are over 18, have a legitimate source of income, and have a clean police record, ensuring that the investors are of high standing and contribute positively to the country.
Expected Impact on the Hungarian Economy
The New Hungary Golden Visa Program is expected to significantly impact the Hungarian economy. By funneling investments into real estate funds registered with the Hungarian National Bank and the property market, the program aims to stimulate economic growth and development.
The option to invest in residential property will open up from January 1, 2025, which is likely to give the real estate sector an additional boost.
Moreover, the program’s goal to attract affluent individuals who can contribute to the economy aligns with Hungary’s broader economic strategy. The inclusion of donations to higher educational institutions as an investment option highlights the government’s commitment to enhancing the educational landscape and fostering innovation.
The program’s strict criteria for applicants, including the need for a clean police record and legitimate income, are designed to ensure that the benefits to the Hungarian economy come from the integration of reputable and financially stable individuals.
The new legislation, effective from March 1, has expanded the number of residence permits and imposed stricter conditions on third-country nationals, reflecting a careful approach to immigration that balances national interests with economic incentives.
Benefits Of The Hungary Golden Visa Program for International Investors
The Hungarian Golden Visa program offers a range of attractive benefits for international investors seeking residency in Europe. Here’s why this program stands out:
1. Visa-Free Travel Across the Schengen Area
Investors holding a Hungarian residence permit can enjoy visa-free travel throughout the Schengen Area, staying in member countries for up to 90 days within a 180-day period. This facilitates easy access to countries such as Austria, Italy, and France, with cities like Vienna just a three-hour drive from Budapest.
Budget-friendly flights to major European cities like Milan and Paris are available, often costing just USD 22-40 (€22–37) without luggage, with travel times of only 2–3 hours.
2. Investing After Visa Approval
One of the program’s unique features is the ability to invest after receiving visa approval. Initially, applicants are granteda D visa, known as the Guest Investor Visa. A thorough Due Diligence check is conducted by the Migration Office, ensuring that if the investor is cleared for a visa, the risk of residency refusal is minimal.
This means your investment is safeguarded, and you can confidently proceed with your plans without the fear of unnecessary financial loss.
3. Relocate to Europe with Your Family
The Hungary Golden Visa allows investors to relocate to one of Europe’s most developed and affordable countries with their families, including spouses and children. Hungary ranks 14th in the Global Peace Index 2024, highlighting its status as a safe haven. Furthermore, Hungarian residents can enter the country even when borders are closed to tourists, ensuring a secure environment for their loved ones.
4. Low Cost of Living
Hungary offers a cost-effective lifestyle, with prices for groceries, entertainment, and property significantly lower than in many other European countries. In Budapest, property prices per square meter start at USD 4,040 (€3,700), compared to over USD 8,083 (€7,400) in cities like Copenhagen. This affordability extends to everyday expenses, making Hungary an attractive option for those seeking quality living at a reasonable cost.
5. Easy Banking Access
As a Hungarian resident, you can easily open accounts and deposits in both local and international banks with minimal documentation. Typically, all you need is a passport and a residence permit card, simplifying the process of managing your finances across Europe.
6. Work and Business Opportunities
Residence permit holders can work and establish businesses in Hungary and throughout Europe. Investors and their family members can be employed or even serve as CEOs of their companies, providing a robust platform for professional growth and business development.
7. Access to Quality Healthcare and Education
Hungary is renowned for its high-quality medical care and education. The country is a hub for medical tourism, offering affordable yet top-tier dentistry and aesthetic surgery, with prices 40–70% lower than in the UK and Scandinavian countries. Additionally, according to QS World University Rankings 2025, Hungary boasts 11 universities ranked in the top 1,500 worldwide. Graduates can pursue careers in the EU, USA, and UK, opening doors to international opportunities.
8. Tax Optimisation
Hungary offers favorable tax conditions for investors, making it an attractive destination for those looking to optimize their tax obligations. The country’s tax policies provide potential savings and incentives, enhancing the financial appeal of obtaining residency.
9. Flexible Investment Options
Investors can choose from three primary options:
- Purchasing real estate fund units for a minimum of USD 273,000 (€250,000).
- Acquiring residential property worth at least USD 546,000 (€500,000).
- Making a significant donation of USD 1,092,310 (€1,000,000) or more to a Hungarian higher education institution.
These investments secure residency and allow you and your family, including your spouse, minor children, and parents over 65, to benefit from the associated privileges.
The residency status is renewable every ten years and can be upgraded to permanent residency after five years of full-time residence in Hungary. Furthermore, after a five-year holding period, investors have the option to withdraw their capital, adding a layer of financial security and potential investment recovery to the program.
10. Streamlined Application Process
The application process for the Hungarian Golden Visa is designed to be efficient, with approvals typically granted within 4 to 8 weeks. This swift timeline makes it a practical and attractive option for those seeking a rapid route to European residency.
Eligibility Criteria
Financial Requirements
To qualify, you must also consider additional costs, such as legal, application, and processing fees, which are essential for your financial planning.
Residency Requirements
The Guest Investor Residence Permit offers the option to reside in Hungary. However, it is not a prerequisite for maintaining the permit. This permit allows for travel within the Schengen Area for up to 90 days within any 180-day period. For those desiring a more permanent connection, citizenship may be pursued after eight years of residence, which can be either temporary or permanent.
Background Checks and Security Clearances
Applicants must undergo thorough background checks and security clearances. The process culminates in the submission of biometrics and the issuance of residence permit cards.
Eligibility for Family Members
Eligibility extends to your immediate family, with provisions for children over 18 who are financially dependent, unmarried, and enrolled in educational programs. Including additional dependents may incur extra fees.
How to Apply for the Hungarian Golden Visa Program
Applying for the Hungarian Golden Visa Program involves a series of well-defined steps, each designed to ensure a smooth and efficient process for obtaining residency. Here’s how you can apply:
1. Preliminary Due Diligence
Begin the application process with a preliminary due diligence check conducted by certified compliance officers with expertise in Anti-Money Laundering practices. This confidential check identifies any potential risks of application denial. It helps minimize them, providing you with an early assessment of your eligibility for the residence permit.
2. Document Preparation
Once preliminary checks are complete, you will receive a list of necessary documents for your Guest Investor Visa application. You must provide the originals, which legal experts will translate and notarise. This document preparation phase typically takes around two weeks.
3. Guest Investor Visa Application
With your documents in order, you can apply for a Guest Investor Visa. This visa is valid for up to six months, allowing you to travel to Hungary to fulfill the investment condition and apply for a residence permit during this period.
4. Traveling to Hungary and Fulfilling the Investment Condition
Upon obtaining the Guest Investor Visa, you will have up to 93 days to travel to Hungary and meet the investment criteria. You can choose to invest in real estate fund units, purchase property, or make a donation to a higher education institution. If you opt for fund units or a donation, you will also need to buy or rent a residential property, as a registered address in Hungary is required to obtain a residence permit.
5. Applying for a Hungarian Residence Permit
After fulfilling the investment condition, apply for a Hungarian residence permit in person at the regional office of the National Directorate-General for Aliens Policing. Alternatively, you can apply online via the Enter Hungary platform, which is mandatory if your attorney-in-fact is a legal representative or entity. The application process typically takes a few days, after which you can schedule an appointment with a migration office if approved.
6. Submitting Biometrics and Receiving Your Residence Permit Card
Once your application is approved, visit the migration office at your appointed time to submit your biometrics, provide your passport, and take a photo of your residence permit card. This step is crucial for the issuance of your permit card, which will be mailed to your specified address within 21 days.
7. Extending Your Residence Permit
As the expiration date of your residence permit approaches, you will have the opportunity to extend it, ensuring continued residency in Hungary. Be sure to comply with all renewal requirements and timelines to maintain your residency status.
Processing Times and Fees
The Hungarian authorities strive to process applications within 90 days. The cost varies depending on the number of dependents and the chosen investment path. Applicants should budget for legal, application, and processing fees.
Once granted, the residency permit confers several advantages, such as visa-free travel within the Schengen zone and the absence of tax liabilities for non-residents. Property ownership alone does not guarantee residency; investments must meet the criteria set by the Hungarian authorities. The inclusive program allows applicants from various countries to be recognized as dual citizens.
Necessary Documentation for Hungary Residency by Investment
Applying for the Hungry Guest Investor Visa and residency by investment involves compiling a thorough set of documents to demonstrate your financial stability and fulfillment of investment requirements. Here is a list of essential documents you will need to provide:
- Valid Passport: Your passport must be valid for at least 12 months at the time of application.
- Recent Photographs: Two recent passport-sized photographs (3×4 cm) taken within the last month.
- Health Insurance: Proof of comprehensive health insurance coverage for yourself and any accompanying family members.
- Investment Intent Confirmation: A written statement confirming your intention to meet the investment requirements set by the Hungarian government.
- Proof of Income Legitimacy: Documents demonstrating the legal source of your income, ensuring transparency and compliance.
- Bank Statement: A recent bank statement showing a sufficient cash balance to support your residency application and investment.
- CVs for Family Members: The application includes a curriculum vitae for each family member over the age of 18.
- Marriage Certificate: If applicable, provide a marriage certificate as proof of relationship.
- Birth Certificates: If applicable, provide birth certificates for any children included in the application.
- Residence Permit Application Form: A completed residence permit application form is required when applyingfor residency.
Additional Documents for Residency Permit:
When applying for a residence permit, you must also provide documentation proving the fulfillment of your chosen investment condition:
- Real Estate Fund Units: A share certificate if investing in real estate fund units.
- Property Purchase: A purchase and sale agreement for real estate if acquiring property as part of your investment.
- Educational Donation: A certificate from a higher education institution if you are making a donation to a Hungarian university.
Additionally, you must present evidence of your financial sustainability and accommodation arrangements in Hungary, such as boarding service agreements or property ownership documents.
Family members can be included in your application, and marriage and birth certificates are required to verify relationships. There is an option to include children over 18 and parents without needing to prove dependency, though this may incur additional fees.
Rights and Privileges Granted
Residency Rights and Limitations
The GIP provides a long-term residency option, valid for ten years and renewable thereafter. It’s essential to remember that the Golden Visa doesn’t directly lead to citizenship; it’s primarily a residency initiative.
Access to Healthcare and Education
Participants will gain access to Hungarian healthcare and education systems, enhancing the appeal for families and individuals seeking a high standard of living. This access extends to certain family members of the principal permit holder.
Travel Benefits within the Schengen Zone
Permit holders can travel visa-free to other Schengen Area countries for up to 90 days within any 180-day period, facilitating business activities or leisure travel across Europe without the need for separate visas.
Path to Permanent Residency and Citizenship
The GIP provides a pathway to permanent residency after five years of continuous full-time residence. Subsequently, after eight years of residence, which can be temporary or permanent, you may be eligible to apply for Hungarian citizenship, provided you meet certain requirements, including passing a language-based examination on constitutional studies.
Economic Opportunities
Investment Opportunities Specific to the Program
The GIP, officially known as the Guest Investor Residence Permit, offers a variety of investment opportunities tailored to prospective residents. These options qualify residents for residency and open doors to the European market.
The program is designed to be one of the most accessible and expedient residency programs in Europe. It has the added advantage of including your spouse, children under 18, and parents over 65 without the need for dependency proof.
Real Estate Investments and Their Benefits
Hungarian real estate investment is particularly attractive due to the country’s robust property market. Budapest, the nation’s capital, has been experiencing some of Europe’s highest residential property price growth rates.
Values have been increasing by 12% to 18% annually.
This growth is supported by the Hungarian government’s favorable stance towards foreign investment.
Additionally, the rental market in Hungary is stable, offering attractive rental yields between 7% and 12% of the property’s value.
The program’s unique feature allows you to secure your residency visa before completing the real estate purchase, providing a flexible and secure investment path.
Starting a Business in Hungary as a Golden Visa Holder
For entrepreneurs, the GIP serves as a gateway to establishing a business within the European Union. Hungary offers a variety of legal structures for company formation. Limited Liability Companies (Kft) and Joint Stock Companies (Rt) are the most common.
The program grants the right to live, work, and study in Hungary. This is beneficial for business owners looking to manage their operations locally. Moreover, no language, education, or physical residency requirements make it easier for you to focus on your business ventures.
Economic Outlook for Investors in Hungary
Hungary’s economic landscape presents a mixed picture for investors.
While the country’s GDP contracted in 2023, a gradual recovery is anticipated. Forecasts predict a GDP growth of 2.4% in 2024 and 3.5% in 2025.
The recovery is expected to be driven by an increase in households’ purchasing power and more relaxed financing conditions. However, you should be aware of the challenges. These include the projected elevated government deficit and a slight increase in the debt-to-GDP ratio.
Additionally, investment may be restrained in 2024 due to fiscal consolidation efforts and an overcapacity in the commercial real estate sector. Despite these challenges, the GIP continues to offer significant benefits, including the potential for lifelong residency after a ten-year period, which is renewable for life.
Chart Your Path with the Golden Visa
With the New Hungary Golden Visa Program, the path to European residency becomes more accessible and tangible for global investors. Opening doors to a wealth of opportunities, this program is poised to satisfy the aspirations of those seeking a high standard of living, educational advancement for their families, and a robust investment terrain.
Whether your sights are set on the bustling cityscapes of Budapest or you’re interested in the diverse economic potential that Hungary has to offer, this program is your golden ticket. The anticipated infusion of investor talent and capital is setto not only redefine the Hungarian economy but also to offer a new haven for international residents. Embrace the promise of a new lifestyle and business prospects with Hungary’s warm welcome laid out in gold.
