Hungary Golden Visa: how to get a Hungarian investment residency?

The Hungary Golden Visa program was launched in July, 2024, as ruled by the Hungarian National Assembly.

Investors from non-EU and non-EEA countries can obtain a 10-year residence permit.

There are two options to participate in the program:

• investing €250,000 in a local real estate investment fund;

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

The investor receives a six-month Guest Investor Visa that allows 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 must 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 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. Obtaining residency takes about 5 months, including the time to get a Guest Investor Visa, investing, and receiving a permit.

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 25, and parents can get residence permits.

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. However, US citizens are required to have second citizenship to buy shares of an accredited investment fund.

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 Golden Visa terms, there are two investment options for foreigners who want to become Hungary residents:

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

• €1,000,000 as a charitable donation to a higher education institution in Hungary.

Purchasing fund units. The real estate fund must get accredited by the government to qualify for the Golden Visa. The first accredited fund is SPRINT, a private closed-end fund whose main objective is to increase capital through the growth in property value and regular income generation.

The fund’s primary investment targets include residential real estate, logistic complexes, hotels, and offices. Most of these are located in Hungary. Other tools include debt securities, government bonds, collective investment schemes, and derivatives for capital protection and yield generation.

The fund issues three classes of shares — A, B, and C, with Class C having the first priority in yield distribution. It is specifically Class C shares that are suitable for residence permits by investment.

The fund is managed by SPRINT ASSET Hungária Zrt. The management fee is 2.5% of the net asset value annually, accrued and paid quarterly.

The expenses on Hungary Golden Visa with purchasing fund units are the following:

• €250,000+ to purchase shares;

• €65,000 is an administrative fee that covers a family of up to four members, including the spouse and children under 18;

• €10,000 is an administrative fee per dependent, starting with the 5th applicant;

• €15,000 is an administrative fee per child over 18;

• €5,000 is a subscription fee.

Donating to a higher education institution requires making sure the institution is operated by a trust foundation that serves the public interest and performs public tasks. Contributions aid in supporting education, scientific research, as well as artistic and creative endeavors.

Housing expenses. If the investor buys fund units or donates to an educational institution, they still must rent or buy housing in Hungary to ensure a registered address required for residency. For example, renting an apartment with one bedroom in the centre of Budapest costs €600 per month. The average price per square metre is €3,700.

Hungary offers more than 20 paths to residency, with employment, study, and family reunification being the most common ones. Besides, there are specific terms for people willing to do business in Hungary or work remotely from the country.

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.

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.

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 — €1.50;

• kindergarten per month — €300;

• international primary school — €9,200 per year.

There is no minimum stay requirement for the Hungary Golden Visa, 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 was relaunched in 2024. Investors can obtain 10-year resident permits but are not required to spend any period in the country.

2. The applicants first receive a Guest Investor Visa that allows them to spend 90 days out of 180 in Hungary. Only after that, they 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. Another investment option is 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.