Hungary relaunched the residency for investment program in the summer of 2024 after a seven-year hiatus. The previous program was closed in 2017 amid corruption scandals. The new Guest Investor Program (GIP) provides foreign investors with the opportunity to obtain a 10-year residence permit with an investment of 250,000euros or more. Today, Hungary has become one of the most accessible destinations for investment immigration in the European Union.
The new program is based on the Law XC of 2023 “On the General Rules of Entry and Stay of third-country nationals” (Immigration Act). The regulatory act introduces a system of categories of stay: short-term, long-term and permanent. Detailed regulation is carried out through Government Decree No. 35/2024.
Advantages of obtaining a golden visa in Hungary
- Obtaining the status of a resident immediately for 10 years with the possibility of extension for the same period;
- Visa-free travel in the Schengen area;
- Residence for the whole family;
- No accommodation requirements;
- Quick resolution;
- Lack of language requirements;
- Access to European education and healthcare;
- Favorable tax environment (income tax rate of 15%);
- The right to work, conduct business and open companies in Hungary and the EU;
- Access to European banks;
- Relatively low entry threshold;
- The path to EU citizenship;
- Creation of an “alternate airfield”.
Investment options for obtaining a visa
The Hungarian residency program for financial investments offers 2 legal ways. After adjustments in December 2024, only 2 of the 3 original options remained.
Purchase of shares in real estate funds
The main (and most popular) option involves investing 250,000euros in shares of special investment funds registered by the National Bank of Hungary. The funds operate under strict state control. At least 40% of their assets should be invested in residential real estate in the country.
The investor must keep the shares for 5 years. After that, money withdrawal is allowed without loss of residency status. The fund’s choice is limited to the list of organizations that have been reviewed by the Office for the Protection of the Constitution for National Security.
Charitable donations to universities
An alternative method requires a contribution of 1,000,000€ to public universities or scientific institutions. Unlike stock investments, this option does not involve a refund, but provides access to non-financial privileges. The investor can participate in the boards of trustees and receive exclusive partnerships with Hungarian companies.
Minimum investment volume and preservation conditions
The minimum threshold for participation starts from 250,000€ when choosing real estate funds. This is an amount comparable to the cost of a two-room apartment in Budapest. For charitable contributions to universities, the bar is higher – 1,000,000€.
Investments need to be frozen for 5 years. This is the time period for which foundations usually implement construction projects. Early withdrawal from the transaction before the expiration of 60 months entails the automatic loss of residency status. The exception is force majeure. After 5 years, the shares can be sold, while retaining the residence permit until the end of its 10-year term. If a premature sale of shares or withdrawal of a donation is detected, the Migration Department will revoke the residence permit within 30 days.
Additional expenses and taxes
The initial costs include a number of additional charges. The application for residency is charged 110€ per person. Family applicants pay €65,000 for file processing (up to 4 people). A separate fee of 15,000 HUF (about 40€) is charged for the production of a plastic residence permit card. Consular services add €90 for a category C Schengen visa and €14.5 for the visa application center service fee to the budget.
When investing in real estate funds, you will have to pay a stamp duty of 2-4% of the transaction amount. When buying shares for 250,000€, the minimum payment will be 5,000€. The sale of shares after 5 years will require the payment of capital gains tax. The 15% rate is applied to the difference between the initial and final value of assets. However, owning assets for more than 5 years reduces the base by 10% annually, completely exempting from payment after 10 years. Investment fund management costs 2.5% of the investment amount.
Tax consequences of obtaining a visa
The status of a tax resident in Hungary is not linked to the issuance of a “golden visa”. The actual presence is taken into account. Individuals who spend more than 183 days a year in the country are subject to full tax jurisdiction, even if their main business is abroad. Investors who are not in the country during this period retain the status of non-residents with taxation of Hungarian income only.
Requirements for the applicant and family members
The main condition for joining the program remains the confirmation of the legality of the origin of funds. The applicant must submit tax returns for the previous 3 years, account statements, and asset purchase and sale agreements. The candidate must not have a criminal record related to money laundering or terrorist financing. Verification through the Schengen Information System (SIS) excludes persons with entry bans to the EU. Medical insurance with 30,000€ coverage is mandatory.
There are no age restrictions for applicants. However, in practice, preference is given to investors over the age of 23 who are able to confirm a stable income. The monthly minimum is 2,000€ for the main applicant plus 500€ for each family member.
The marriage must be officially registered in any country. If the union is concluded outside the EU, an apostilled certificate with a Hungarian translation is required. Civil marriage can be legalized after moving to the local registry office. Minor children are included in the application automatically, provided that the kinship is confirmed by a DNA test or birth certificate. Adult children under the age of 25 can join only if they study full-time at a Hungarian university. The investor’s parents have the right to residency with proven financial dependence.
Dual citizenship
The country’s legislation does not require the renunciation of a previous passport when obtaining a Hungarian one. The investor retains both passports, unless the legislation of his home country prohibits this. Hungary considers holders of several passports exclusively as its citizens, ignoring their foreign status.
The Golden Visa provides a 10-year residence permit, which is extended indefinitely while maintaining investments. The transition to permanent residence is possible after 3 years of actual residence. Citizenship becomes available after 11 years (3 years of temporary and 8 years of permanent residence). The key condition is the language exam. Simplified naturalization is valid only for ethnic Hungarians.
The procedure for obtaining a residence permit
- Preparation of documents and application for a guest visa. To start the process, the applicant must collect a complete set of personal documents (for himself and family members). A visa permit is issued for a period of up to 6 months.
- Obtaining approval and entering Hungary. After receiving the initial approval, the applicant receives an investor’s guest visa. It allows you to stay in Hungary for up to 6 months, during which it is necessary to fulfill investment obligations.
- Fulfillment of investment conditions. Within 3 months after the first entry into Hungary on a guest visa, the investor must fulfill one of the investment conditions. Evidence of the transfer of funds is provided through the online portal Enter Hungary.
- Applying for a residence permit. After completing the investment activities, the applicant submits documents for a residence permit within 90 days from the date of first entry into Hungary. The application can be submitted through the immigration authorities or the electronic platform Enter Hungary.
- Review of the application and verification of trustworthiness. The Hungarian authorities are conducting a comprehensive review of the applicant. The review process can take up to 90 days. As part of the inspection, special attention is paid to the absence of bans on entry and stay in the EU, as well as the absence of threats to public order and national security.
- Obtaining a residence permit for 10 years. If the decision is positive, the applicant and the family members included in the application receive a residence permit for a period of 10 years. Adult children receive a residence permit for 3 years with the right to extend it for another 3 years.
- Extension or acquisition of citizenship. After 10 years, the residence permit can be extended for another 10 years while maintaining investments. After 3 years of legal residence in Hungary (at least 183 days per year), an investor can apply for permanent residence. After 8 years of permanent residence, the possibility of obtaining Hungarian citizenship through naturalization opens.
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Application processing time
It takes an average of 3-4 months from submitting documents to receiving a plastic residence card. Due Diligence is launched immediately after prepayment of legal services and takes 45 days. Obtaining a guest visa adds 3-4 weeks to the deadline. Foreigners who already have Schengen visas can skip this stage. For the rest, a personal visit to the consulate is required, where the passport with the marks is returned after 10 working days.
Required documents
- A foreign passport valid for at least 12 months from the date of application;
- Two 3×4 cm photographs;
- A completed application for an investor’s guest visa;
- A bank statement confirming the availability of funds for living in Hungary;
- Documents confirming the legality of the source of income;
- Evidence of investments made;
- Medical insurance;
- Certificate of absence of criminal record;
- Marriage certificate (if applicable);
- Documents confirming the presence of a permanent residence address.
Failure and return on investment
The main reason for non-compliance with the request is non-compliance with Due Diligence requirements. Doubts about the origin of the funds are also at the top of the list of reasons for a negative decision. The authorities demand to confirm the legality of each euro. In addition, fake tax returns or income statements are recorded.The appeal is submitted to the Ministry of Foreign Economic Relations and Foreign Affairs within 8 calendar days after receiving the refusal. The investor provides new evidence, asks to attach updated documents and review the case. A second application is allowed 90 days after the final refusal.
Recent changes in the program
Over the past 2 years, the Hungarian investment residency program has undergone significant changes. In December 2024, the parliament excluded direct purchase of real estate from the list of acceptable options. The decision is due to pressure from the European Parliament. The government has also tightened its control over management companies. Now the list of approved operators is formed by the Office for the Protection of the Constitution, not the Ministry of Finance. The duration of the investment action has been reduced from 2 years to 6 months. At the same time, an annual audit of funds was introduced.
Digitalization of the process began in the summer of 2024. Most of the design stages were transferred to the Enter Hungary platform. An important innovation was the introduction of automatic residence renewal. Previously, the procedure required a re-submission of documents, now the residence permit card is updated remotely, subject to the preservation of investments.
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