Hungary

Hungary Investment Immigration Programs Overview

The Hungarian Guest Investor Program, known as Hungarian Golden Visa Program, encourages third-country investors to apply for a guest investor residence permit that can, in practice, be referred to as a golden visa, which is a common expression in international jargon, although the legislation does not use this term.

The rules regarding the program have been subject to some amendments throughout this process, but overall this Hungarian Golden Visa offers its applicant 10 + 10 years of residency in Hungary with an opportunity to earn profit from the investment made by them.

The maximum validity period of a guest investor residence permit is 10 years, renewable for a maximum period of 10 years. The Guest Investor Program is designed for third-country nationals whose stay is of national economic interest to Hungary. The term national economic interest covers one of the below investments that the applicant should perform:

Acquiring investment certificates issued by a real estate fund registered by The National Bank of Hungary, in the amount of at least EUR 250,000.

Monetary donation of at least EUR 1 million to an institution of higher education operated by a public charity foundation.

Before the new year, the Hungarian government made a significant change in the program and cancelled the direct real estate investment option. So now acquiring ownership of residential property located in Hungary is not an option. This change was made just days before the real estate investment option would be valid on the 1st of January, 2025.

So, now the program offers two pathways to the 20 years of residency in Hungary. Investment fund and monetary donation.

For the investment fund option:

The investor shall hold the real estate fund's investment certificate for five years. At least 40% of the fund's net asset value must be invested in residential real estate projects realized in Hungary. In addition, only fund managers who hold a Hungarian site security certificate or are registered with the Constitution Protection Office can qualify for this purpose. Only those fund managers who qualify as an alternative investment fund manager (AIFM) under Act XVI of 2014 on Collective Investment Trusts and Their Managers and on the Amendment of Financial Regulations (CITA) and who are authorized to manage alternative investment funds (AIF) in which the value of assets under management.

a) Exceeds a threshold of EUR 100 million in total (including assets created through leverage), or

b) Exceeds a threshold of EUR 500 million in total, where the portfolio of AIF comprises AIFs that are not financed through leverage and in whose cases no redemption rights shall be exercised within five years from the original investment into the various AIFs.

Apart from the above, fund managers shall also act, qualifying as an investment fund manager under CITA, to manage a real estate fund in which the total value of assets under management exceeds a threshold of EUR 600 million.

Currently there is only one government-approved fund available, and it seems that the Hungarian government shifted its focus solely to the fund option. Which in fact may provide a more regulated and easy process.

Also, the recent changes indicate that the investors can now invest in lands and residential properties under development. Another important point is that if the property is owned by a real estate fund, it will not be considered part of the program, even if it meets the conditions mentioned in the act and will not qualify as an investment.

The whole immigration procedure has two main steps. As a guest investor, the first step towards obtaining a residence permit is to apply for a guest investor visa. After obtaining a guest investor visa, applying for a guest investor residence permit will be possible. When applying for a visa, the applicant shall declare they hold or plan to hold at least one of the above investments. Thus, at this stage of the procedure, it is not necessary to possess an investment; it is sufficient to commit. In such a case, three months are available to invest, reckoned from the date when the applicant entered the territory of Hungary with a guest investor visa. The validity period of a guest investor visa cannot exceed six months. 

The guest investor visa shall become invalid once the guest investor has obtained a residence permit. Following the procedural rules, once the applicant has a guest investor visa, they must travel to Hungary and can only subsequently apply for a guest investor residence permit. No further travel to Hungary is necessary. In the second phase, there has also been a slight change with the new revision: after the first arrival to Hungary with the Golden Visa or without the visa, if the applicant is not needed to have a visa, within 30 days the applicant should submit the residence permit application to the authority—in person or through the Enter Hungary portal. It must be noted that only the application for the residence permit must be made within this short period of time. The applicant can submit the proof of investment later. The guest investor residence permit can be extended to spouses and minor children.

A person holding a guest investor residence permit shall not be considered a Hungarian tax resident, provided that such person spends less than 183 days in Hungary in any 12 months. The renewal does not require the applicant and their family members to stay in Hungary during the previous ten-year period. Extension shall be possible for ten years. The renewal of the guest investor residence permit is

possible if the applicant holds EUR 250,000 worth of investment certificate in the real estate fund (the legislation does not require the same certificate which was purchased as at the time of the initial application). For grants provided to foundations, an extension can be requested automatically.

Mobility

Hungary is a member of the Schengen Area, so residents enjoy the right to travel freely across the region. For travel outside the Schengen Area, residents must rely on their passports.

New Hungarian citizens can expect to receive a passport that is among the world’s strongest: it is ranked 9th in the world and offers visa-free travel to 178 countries.

Country

Hungary was hit hard by the 2008 financial crisis, but it returned to stability following a $25 billion EU and IMF bailout, and its economy continues to grow steadily. With a free health service, free university education, and high public investment in infrastructure and innovation, Hungary is an attractive location for businesses, especially those planning to trade with other European Union states. According to the Global Best To Invest 2023 survey Hungary finished first among the countries of the Eastern European region. Hungarian politics has, in recent years, been dominated by right-wing representatives.

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