Hungary red-lighted Golden Visas by real estate investment. Here’s why

The Hungarian government has not yet provided an official explanation. Media reports suggest the decision aims to protect the real estate market from dishonest sellers, rapid price increases, and the risk of a housing crisis.

Portugal, Spain, and Greece have previously made changes to their Golden Visas for similar reasons. Portugal removed the real estate option, Greece raised the investment threshold significantly, and Spain voted to end the investment program.

Property prices in Hungary are rising. The growth rate increased from 1,6% in January to 6,4% by mid‑2024. New properties in Hungary became 14,5% more expensive in the first quarter of 2024 compared to the previous year, while secondary properties went up by 8,2%.

Investors still have two options available. Applications for either option can be submitted immediately.

1. Purchase of real estate fund units — €250,000+. Currently, investments can be made in the Sprint Asset fund, headquartered in Budapest. This fund was the first to receive government accreditation, while four others are awaiting licences.

Investments need to be held for at least five years. After this period, they can be sold, enabling investors to recover their initial outlay.

2. Donation to a higher education institution — €1,000,000+. The money will be used to support education, scientific research, or artistic projects. This investment is non-refundable.

To qualify for a Hungary Golden Visa, investors are required to be over 18, have a legal source of income, and hold citizenship in a country outside the European Union or European Economic Area. The application may include a spouse, children under 25, and parents.

Greece offers investors three investment thresholds, depending on the location of the property:

• €250,000 — for purchasing real estate intended for renovation or conversion into residential use;

• €400,000 — for new properties in most regions of Greece;

• €800,000 — for real estate in Attica, Thessaloniki, Mykonos, Santorini, and islands with a population of at least 3,100 residents.

The minimum area for new properties must be at least 120 square metres. Investors can purchase either residential or commercial real estate.

Malta offers permanent residence in the country through renting or purchasing property. The minimum annual rental cost is €10,000 in the south of Malta and on the island of Gozo, and €12,000 in other regions.

Property purchase requires at least €300,000 in the south of Malta and on the island of Gozo, and €350,000 or more in the north and central regions of the country. The property can be sold, and the investment recovered five years after obtaining permanent residence.

From 1 January 2025, the minimum rental cost will increase to €14,000, regardless of the region. The minimum investment required for property purchases will rise to €375,000.

Spain allows investors to obtain a residence permit by purchasing real estate worth at least €500,000. Hungary had planned to introduce the same threshold. Investors in Spain are eligible to purchase residential or commercial property, either a single unit or multiple properties.

Spain will discontinue its Golden Visa in March 2025. Investors who submit their applications before the program ends will still be able to obtain a residence permit and renew it without restrictions.

1. Visa-free travel to Schengen countries. Holders of Hungary Golden Visa can travel freely within the Schengen Area and stay there for up to 90 days in any 180-day period.

2. Opportunity to work and run a business in Europe. The residence permit allows investors to open businesses, work as self-employed, or take formal jobs in Hungary.

3. Living in an affordable EU country. Hungary has a much lower cost of living compared to many other European countries. Monthly expenses for one person, excluding rent, average €620. For comparison, living in Spain costs around €715 per month.