What is the Hungary Golden Visa
In November of 2023, Hungary pleasantly surprised the investment migration field by announcing the relaunch of a Golden Visa in 2024, similar to the one Hungary had between 2013 and 2017. The upcoming program is called the Guest Investor Program.
Investors will be able to get a residence permit and move to Hungary by fulfilling one of the following conditions:
- buy bonds of real estate investment funds for €250,000;
- purchase property for €500,000;
- make a charitable donation of €1 million to the public trust.
The Golden Visa grants investors the right to apply for a residence permit for 10 years. The status can be renewed once for 10 more years.
Permanent residence for life in Hungary can be obtained by residing in the country for 183 days a year for 3 years.
Hungarian citizenship can only be granted by naturalisation. The condition is to reside in Hungary for 8 years and leave the country for no more than 45 days a year. Knowledge of the Hungarian language and history is mandatory.
If you don’t plan to live in a foreign country for 8 years to get citizenship, there's an alternative — a passport by investment in the Caribbean. While these passports unlock fewer travel destinations compared to Hungary, investors can still enjoy visa-free travel to the Schengen Area, the UK, and China.
The real estate option is on the table
What sets Hungary apart is the opportunity to buy real estate to live in and have it as a pathway to the Golden Visa. Compare it to some other popular residency by investment programs in Europe: Portugal no longer issues permits for purchasing property, and Greece has tightened its policies in this regard.
Property prices in Hungary are considered one of the most affordable in the European Union.
Hungary has every right to set the standard for one of the most sought-after Golden Visas in the European Union due to the variety of investment property.
Examples of real estate in Hungary
Affordable investment amount
According to the Hungarian parliament’s official website, the minimum investment needed to qualify for a Hungary Golden Visa is €250,000. The amount is valid for purchasing bonds of local real estate funds.
Buying property as a form of investment starts at €500,000. However, it is yet to be announced whether investors will be able to rent it out or eventually sell it.
The most expensive way to get a residence permit in Hungary is to make a charitable donation. The minimum investment amount in this case is €1 million.
Extended availability
The Hungary Guest Investor Visa and a residence permit are expected to be open to all nationalities. There are no restrictions based on the country of origin yet, which makes the upcoming program appealing.
No minimum stay is also implied; investors might not need to reside in Hungary to keep their residency. Considering that a residence permit is issued for 10 years, this is a significant advantage.
No tests or exams are expected. Foreigners won’t have to pass any exam in the Hungarian language to get their status. But if an investor wants to get a Hungarian passport in the future, they should start learning Hungarian — a naturalisation procedure requires knowledge of the language and the history of the country.
Appealing tax regime
Hungary is one of the most tax-friendly countries in the European Union, with an income tax of 15%. Compare it to Greece, where income can be taxed at a 45% rate.
To become a tax resident, a foreigner should spend at least 183 days a year in Hungary. Tax residents of Hungary pay taxes on worldwide income, whereas non-residents are only taxed on the income sourced in Hungary.
Tax rates for individuals in Hungary:
- an income tax — 15%;
- a capital gains tax — 15%;
- a withholding tax on dividends, interest, and royalties — 15%;
- social security contributions — 18.5%;
- inheritance and gift taxes — 18% is the standard rate, 9% is for residential properties;
- VAT — 27% is the standard rate, 18% and 5% are charged on some goods and services.
Lower cost of living
Hungary might be one of the most affordable states in the European Union. According to crowd-sourced databases, the overall cost of living in Hungary is lower than in Spain, Portugal or Greece.
The average expenses for a single person in Hungary are the following:
- a rent fee for a one-bedroom apartment per month — €430;
- utilities per month — €140;
- home Internet and mobile services per month — €20;
- groceries per month — €350;
- a monthly ticket for local transport — €25;
- gas, 1 litre — €1.5.
A family of four needs at least €3,000 per month with rent included. Prices for renting property with three bedrooms start at €700 and depend on the location. A single person needs €1,500 a month in Hungary with rent included. A one-bedroom apartment in Budapest costs at least €400 per month.
The perks of being a resident in the European Union
As a Schengen Area country, Hungary offers its residents more freedom in terms of travelling. Holders of a Hungarian residence permit can spend up to 90 days within 180 in any other Schengen Area state.
Another significant advantage is the opportunity to live, work, and study in the European Union. Suppose an investor got a residence permit in Hungary; in this case, they would be able to visit the country freely, and their children could be enrolled in local schools and universities with no student visas.
A path to Hungarian citizenship
Hungarian citizenship is granted by naturalisation. To apply for a passport, foreigners need to:
- obtain permanent residency in Hungary after three years of legally residing there;
- spend 8 years in Hungary with a permanent residence permit and a registered address;
- prove the knowledge of the Hungarian language and history.
However, it’s yet to be determined whether naturalisation rules will apply to Golden Visa holders and whether they will be able to obtain citizenship.
Residency for all the family
Previously, Hungary issued Golden Visas for the investor’s spouse, financially dependent children under 28, and parents. All of them were given permanent residency for life.
There is reason to suppose that the new-look Golden Visa will be family-friendly as well since a significant part of wealthy foreigners consider getting residency abroad to secure their families’ future.
Fast and secure procedure
European countries tend to tighten the conditions of residency by investment programs. But the silver lining is that Hungary might end up introducing a quicker and safer procedure to obtain a residence permit.
Most importantly, the investment condition can be fulfilled after the applicant receives the Guest Investor Visa.
As it is currently known, the terms of the program do not require investors to spend any time in Hungary after obtaining the 10-year residence permit. Moreover, the application process itself should take up to 2—3 months before the issuance of residence permit cards.
Requirements for a Hungary Guest Investor Visa
The requirements for Golden Visa applicants are yet to be published. But, based on other European residency by investment programs, an investor can be expected to:
- be over 18, with no criminal record and of good health;
- have a legal stable income sufficient to cover the expenses on food, accommodation, and travel during the validity period of their residency.;
- provide a valid reason why they want to move to Hungary;
- buy an insurance policy for all family members included in the Golden Visa application.
- not have any restrictions on entering the Schengen Area, nor should they be listed in any criminal databases, e.g., Interpol’s.
How to get a Hungary residency by investment: a step-by-step procedure
Presumably, the new Hungary Golden Visa will have a convenient and fast procedure, which can take 2—3 months.
Immigrant Invest conducts a Preliminary Due Diligence check to reduce the denial risk to 1%.
The procedure is mandatory, confidential, and only requires a passport.
Immigrant Invest lawyers compose a list of the documents needed for a visa and a residence permit and assist in translation and notarisation. Additionally, they apply on behalf of the investor and await approval.
If the application is approved, the investor will receive the Guest Investor Visa first. It allows them to spend 90 days out of 180 in Hungary.
Within 93 calendar days from the date of their first entry to the country with a Guest Visa, the investor is required to make an investment of their choice. After that, they are ready to apply for a residence permit.
Immigrant Invest lawyers assist in applying for a Hungary residence permit. The application processing only takes 2–3 business days.
After approval, the investor can book an appointment to take photos and submit biometrics.
The investor and family members should visit the migration service to submit fingerprints and take photos. The resident permit cards will be sent to the applicant’s address in Hungary within 21 days.
Residence permits will be valid for 10 years. Investors are able to renew them for 10 more years.
Other ways to become a resident of Hungary
Until the new Investor Visa is in place, there is no other path to obtaining residency by investment in Hungary. The previous program did allow investors to become residents for purchasing property for as low as €155,000, but it was disabled in December 2023. However, there are still options for digital nomads, financially independent persons, and entrepreneurs.
Financially independent people can move to Hungary if they can demonstrate savings of at least €15,000 sourced outside Hungary. This includes salary from a foreign company, pensions, dividends, rent income, etc. This type of visa is valid for 2 to 5 years.
Hungary’s Digital Nomad visa, also referred to as the White Card, was launched in 2021. Single digital nomads with an income of at least €2,000 per month can apply and get a residence permit for 1 year. Entrepreneurs and self-employed individuals can also apply for a 3-year residence permit, extendable for the same period upon expiry.
What is known about Hungary Golden Visa so far
- In 2024, Hungary will issue Golden Visas once again, 6 years after the previous residency by investment program was cancelled.
- The renewed Hungary Golden Visa will offer three options: buying bonds, purchasing property, or making a charitable donation. The minimum investment amount is €250,000.
- Hungary will probably launch one of the most popular residency by investment programs in Europe since there is a demand for European property and residence among investors worldwide.
- Investors will be eligible to apply for a residence permit for 10 years, renewable for 10 more. A permanent residence for life is available if an investor resides in Hungary for 183 days a year for 3 consecutive years.
- Foreigners can only obtain Hungarian citizenship by naturalisation: residing in Hungary for 8 years and only leaving it for no more than 45 days a year. If that’s too long, a passport by investment in the Caribbean is a solid alternative.
Frequently Asked Questions
Hungary is to launch a Golden Visa in 2024. Other residency by investment programs of Hungary were disabled.
According to the Hungarian parliament’s official website, investors will be able to obtain a 10-year residence permit with the possibility of an extension for the same period. The minimum investment amount is €250,000.
After a residence permit, foreigners can also qualify for permanent residence in 2 years and for citizenship in 8 years.
There is no citizenship by investment program in Hungary, but investors can get a Hungarian passport by naturalisation. The first step is to get a residence permit by investment.
After receiving a residence permit, investors are able to apply for permanent residence — but only if they have resided in Hungary for 183 days a year for 3 years in a row. Permanent residence in Hungary is granted for life.
To qualify for a passport, foreigners must reside in Hungary for 8 years and only leave it for up to 45 days a year. Additionally, they will need to demonstrate knowledge of the Hungarian language and history.
Currently, there is no permanent residence by investment programs in Hungary. However, starting in 2024, foreigners can obtain a residence permit by investment and apply for permanent residence in three years.
Yes, they can; until December 2023, Hungary issued residence permits for purchasing property. This option will be available once again from 2024. The minimum investment amount will be €250,000.
From 2024, wealthy foreigners will be able to get a residence permit by investment in Hungary. One of the options is buying property for €500,000.
The requirements for the Hungary Golden Visa applicants are yet to be announced. But considering common sense and previous Golden Visa rules, an applicant should be expected to:
- be over 18 and have a valid passport and no criminal record;
- have no restrictions on moving to the European Union or be of no danger to Hungary;
- have a stable legal income and insurance and be able to support all family members included in the Golden Visa application.
