Hungary

Hungary Investment Immigration Programs Overview

The provisions of the new Hungarian Immigration Act enter into force in several phases, but several parts of the rules are effective from 1 January 2024.
Based on the new law, third-country investors are encouraged to apply for a guest investor residence permit which 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 residence permit offered to guest investors will enter into force on the 1st of July 2024. The Immigration Act also delegated the Hungarian government the power to set forth by decree the procedural rules and conditions for applying for a guest investor visa. Currently, this government decree has not yet been adopted. We will update our webpage once the government decree would be published.

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 of Hungary. The term national economic interest covers one of the below investments that the applicant should perform:

1. Acquiring investment certificates issued by a real estate fund registered by The National Bank of Hungary, in the amount of at least 250,000 euros.
2. Acquiring ownership of residential property located in Hungary, with a minimum value of EUR 500 000.
3. Monetary donation of at least 1,000,000 euros to an institution of higher education operated by a public charity foundation.

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 100 million euros in total (including assets created through leverage), or

b) Exceeds a threshold of 500 million euros 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 600 million euros.

In the case of direct real estate investment, only residential property is accepted (commercial or industrial property is not eligible). The residential property shall be non-contested and free of encumbrances and claims. The investor is restricted to selling the real estate within five years, which circumscription shall be recorded in the Hungarian land register. The applicable legislation allows the investor to rent out the real estate. This option will be available from January 1, 2025.

How to apply for Hungary’s Guest Investor Program?

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, the applicant shall apply to the immigration authority for a residence permit for guest investors no later than 93 days from the date of first entry into the territory of Hungary with a guest investor visa.

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). In the case of renewal based of direct real estate investment, the applicant shall have an investment of at least EUR 500 000 in the real estate. However, if the property has been sold (after the five-year holding period), a new investment of a sufficient value shall be held at the time of 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. 

Updated by Csaba Magyar & Uglobal Staff

Powered by Froala Editor