Hungary Golden Visa: How to get a Hungarian Investment Residency?

The new-look Hungary Golden Visa program will be launched in July, 2024, as ruled by the Hungarian National Assembly.

Investors from non-EU and non-EEA countries will be able to obtain a 10-year residence permit.

According to the parliament’s official website, there will be three options to participate in the program:

• investing €250,000 in a local real estate investment fund — available from July 1st, 2024;

• purchasing real estate for €500,000 — available from January 1st, 2025;

• donating €1,000,000 to a public trust that supports universities and colleges in Hungary.

How to get a Hungary Golden Visa

The investor will first receive a six-month Guest Investor Visa that will allow them to spend 90 out of 180 days in the country.

Within 93 calendar days after entering Hungary with a Guest Investor Visa, the applicant will have to fulfil the investment condition. These two parts make the path to a 10-year residence permit clear.

Before the changes, applying for the Hungary residency by investment was possible after purchasing real estate worth €155,000. Since December 20th, 2023, it has no longer been a viable option.

Hungary is not the only European country that offers investors a chance to obtain residency. Similar programs with the real estate option are available in countries like Spain, Cyprus, and Greece.

1. Travel freedom. Hungarian residents can spend up to 90 days within 180 in any other Schengen Area state.

2. Opportunity to live, work and study in the European Union. Obtaining a residence permit in Hungary will allow applicants to stay in the country for an indefinite amount of time. Holders of Hungary residence permits can get a job or start a business in the country, while their children can attend schools or enrol in local universities without an additional student visa.

3. No minimum stay requirement. As currently understood, the terms of the program do not stipulate that the investor spends any time in Hungary after obtaining the 10-year residence permit. It probably will not impact their chances of renewing the permit for the same period.

4. Fast application process. The application process could take up to 2 months before the investors receive their residence permit cards.

5. No capital risk. The investment condition can be fulfilled after the applicant receives the Guest Investor Visa.

6. Residency for the whole family. The investor’s spouse and children under 18.

7. No language tests. Applicants will not be required to confirm even basic knowledge of the Hungarian language.

8. Open to all nationalities. Hungary welcomes citizens of all countries except EU and EEA nationals to participate in the program.

9. Path towards citizenship. Foreigners can obtain permanent residency in Hungary after three years of legally residing in the country. Eight years of living in Hungary with a permanent residence permit and a registered address leads to becoming eligible for Hungary citizenship by naturalisation.

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.

To make the first step towards becoming a Hungary resident and obtain the Guest Investor Visa, the applicant must:

• have a valid passport, the documents for a return trip or a transit, and financial means to cover the costs of food, accommodation and travel during the entire period of stay;

• justify the purpose of the entry and stay in Hungary;

• be insured for the full range of medical services or able to cover the costs of medical care;

• not be subject to expulsion or prohibition of entry and residence, or not threaten state policy, public safety, national security or health interests of Hungary;

• also not be subject to a Schengen Information System alert.

The Guest Investor Visa is issued to foreigners whose entry is in the national economic interest due to their investment in Hungary.

If the investor’s country of citizenship has a visa-waiver agreement with Hungary, obtaining a Guest Investor Visa can be omitted.

According to the new terms, there will be three investment options for foreigners who want to become Hungary residents:

• €250,000 as a contribution to a local real estate investment fund;

• €500,000 as a real estate purchase;

• €1,000,000 as a charitable donation to support universities and colleges in Hungary.

The real estate fund must get accredited by the government to qualify for the Golden Visa.

If the investor chooses to buy fund units or donate to an educational institution, they still must rent or buy housing in Hungary to ensure a registered address required for residency.

Real estate eligible fro the Hungary Golden Visa

Hungary, Budapest

€642,000+

Classic three-bedroom apartment, Ujbuda, Budapest

150 m²

3

3

Hungary, Budapest

€593,000 — €946,000

Stylish apartments with city view, First District, Budapest

75 m² — 107 m²

2—3

2—3

Hungary, Budapest

€552,000 — €581,000

Elegant apartments with 4 bedrooms, Eleventh District, Budapest

103 m² — 124 m²

4

4

Entrepreneurs and self-employed individuals can receive a residence permit for a maximum term of 3 years, which can be extended by the same period.

For digital nomads, the residence permit is issued for one year. They must be able to prove a monthly income of at least €3,000.

International students enrolled in a Hungarian school or university can receive a visa valid for one year if they prove basic knowledge of the Hungarian language and pay tuition fees.

Learn about Hungary’s Golden Visa program and the benefits can offer

1. Location. Hungary is situated in the middle of Europe, making it very easy and convenient for locals to travel around the continent. In addition, the country is also an attractive tourist destination thanks to its unofficial status as the spa capital of Europe.

2. Access to healthcare and education systems. Children of Hungary Golden Visa investors can study in public and private schools in the country. The whole family can receive medical treatment in the country. In 2022, Hungary was ranked 29th in the World Index of Healthcare Innovation.

3. Affordable living. The cost of living in Hungary is estimated to be two times lower than in Denmark or Norway and almost 40% lower than in Malta and Italy, other countries with residency programs for foreign investors.

4. Safety. According to the Global Peace Index, Hungary ranks among the 20 safest countries in the world. For context, Norway, Sweden, Spain and Italy are among many countries below Hungary in these rankings.

5. Beautiful nature and rich cultural heritage. The country boasts a range of picturesque landscapes, from Budapest’s urban beauty to the countryside’s tranquillity, including Lake Balaton, the largest lake in Central Europe, and numerous national parks.

Hungarian cultural heritage uniquely blends Eastern and Western influences, showcasing diverse architecture, vibrant folk traditions like the "csárdás" dance, the distinct Hungarian language, famous thermal baths, and cuisine with abundant paprika-flavoured dishes.

Hungary is one of the cheapest European Union countries to live in. According to Numbeo, an average family of four spends €2,264 per month without rent.

Hungary is relatively affordable compared to other European states, making it a desirable option for families who want to settle down in a safe haven. The average expenses for a family of four in Hungary are the following:

• a rent fee for a three-bedroom apartment per month — €740;

• utilities per month — €135;

• home Internet per month — €15;

• groceries per month — €650;

• a monthly ticket for local transport — €25;

• gas, 1 litre — €2;

• kindergarten per month — €320;

• international primary school per month — €664.

There is no minimum stay requirement for the Hungary Golden Visa as currently understood, which means there are also no requirements for the investors to become tax residents in the country.

To become a Hungarian tax resident, one must spend at least 183 days a year in the country. Residents pay taxes on all of their worldwide income; non-residents are only taxed on the income they receive in Hungary.

Tax rates for individuals are the following 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.

1. The Hungary Golden Visa program is relaunched in 2024. Investors will be able to obtain 10-year resident permits but will not be required to spend any period in the country.

2. The applicants will first receive a Guest Investor Visa that will allow them to spend 90 days out of 180 in Hungary. Only after that, they will need to fulfil the investment condition.

3. The minimum investment to participate in the program is €250,000 into a local real estate investment fund.

4. Other investment options are purchasing real estate for €500,000 and donating €1,000,000 to a public trust that supports Hungarian universities and colleges.

5. The Hungary Golden Visa is valid for 10 years, subject to one extending for another 10 years.