In an effort to attract both foreign investment and global talent, the Hungarian government has recently relaunched its Golden Visa program, now known as the “Hungarian Guest Investor Program” (GIP).
Hungary has become a popular choice for those seeking to relocate to the European Union due to its relatively low cost of living compared to other states. The Hungarian Golden visa offers non-EU nationals a fast-track path to long-term residency in Hungary and the European Union
What is the “Guest Investor Program” (GIP) or Hungay Golden Visa?
The Guest Investor Program (GIP), also known as Hungary’s Golden Visa, was reintroduced on July 1, 2024, allowing non-European Union (EU) and European Economic Area (EEA) nationals to obtain residency in Hungary through investment. This program aims to attract foreign investment and provide residency benefits, including visa-free travel within the Schengen Area.
One of the key advantages of the Hungary Golden Visa is the ability to include family members in the application. Spouses, minor children, and even dependent parents can be granted residency under the family reunification provisions. This allows families to establish a secure and stable life in Hungary, with access to the country’s high-quality healthcare and education systems.
The Guest Investor Residence Permit granted through the Hungary golden visa program offers a range of benefits to its holders. These include:
- Visa-free travel within the Schengen Area, allowing for seamless movement throughout Europe
- No minimum stay requirements, providing flexibility in terms of residency
- Exemption from tax obligations for non-residents
- The right to live, work, and conduct business in Hungary
- Potential pathway to Hungarian citizenship after 8 years of continuous residency
While the Guest Investor Residence Permit is initially valid for 10 years, it can be renewed for an additional 10-year period, effectively granting long-term residency in Hungary. After 5 years of continuous residency, holders can apply for permanent residency, which offers even greater stability and freedom.
Furthermore, the GIP provides a potential pathway to Hungarian citizenship. After 8 years of continuous residency in the country, investors can apply for naturalisation, subject to passing a Hungarian language proficiency test and demonstrating adherence to the country’s cultural and constitutional principles.
What is the Eligibility Criteria for the Hungary Golden Visa?
To be eligible for the Hungary Golden Visa, applicants must meet a set of specific requirements. Applicants must:
- be non-EU/EEA citizens,
- aged 18 or above,
- and have a clean criminal record.
The Hungary Golden Visa program is available to a wide range of nationalities, including those from the United States, Russia, and Iran.
To be eligible, the applicant must be able to satisfy the investment criteria for the program. The GIP offers three distinct investment avenues for prospective applicants to choose from:
Real Estate Investment Fund
Investing a minimum of €250,000 in a state-approved real estate investment fund, with a mandatory holding period of at least 5 years.
Real Estate Acquisition
Purchasing a residential property in Hungary valued at €500,000 or more, which must be maintained for a minimum of 5 years.
Charitable Donation
Making a non-refundable donation of €1 million to a higher education institution in Hungary, with the purpose of supporting scientific research or artistic activities.
What is the Application Process for the Hungarian Golden Visa?
The Hungary golden visa program application process involves several steps, beginning with obtaining the initial Guest Investor Visa. This temporary visa, valid for up to 6 months, allows applicants to enter Hungary and fulfil the investment requirements. Once the investment is made, the applicant can then apply for the 10-year Guest Investor Residence Permit, which can be renewed for an additional 10-year period.
The application process is streamlined, with a processing time of approximately 4-8 weeks. Applicants must provide a set of documents, including proof of investment, financial statements, and personal identification. The Hungarian authorities conduct a thorough due diligence check to ensure the legitimacy of the investment and the applicant’s background.
What are the Advantages of Investing in Hungary?
Hungary’s GIP offers a range of compelling advantages that make it an attractive option for global investors:
- Affordability: Hungary boasts a significantly lower cost of living compared to other European countries, with property prices, groceries, and entertainment costs often half the price of destinations like Norway, Denmark, and Italy.
- Accessibility: The program’s streamlined application process and minimal residency requirements make it one of the most accessible Golden Visa programs in Europe.
- Economic Stability: Hungary’s economy has shown resilience in recent years, with a stable political environment and a favourable tax regime that includes a flat income tax rate of 15% and a corporate tax rate of just 9%.
- Quality of Life: Hungary is renowned for its rich cultural heritage, diverse natural landscapes, and world-class healthcare and education systems, offering a high quality of life for residents.
- Schengen Access: The Guest Investor Residence Permit grants holders the ability to travel visa-free within the Schengen Area, providing unparalleled mobility and connectivity throughout Europe.
Our Toughts
Hungary’s revamped Golden Visa program, the Guest Investor Program, presents a unique opportunity for non-EU nationals seeking to establish a presence in Europe. With its wide range of investment options, streamlined application process, and generous family benefits, the GIP offers a strategic pathway to long-term residency and potential citizenship in Hungary.
If you are retiring abroad, starting a business, looking to obtain a second citizenship, or would like to request for more information about the Hungary investment visa , please contact your local HLG office here for more details.
Founded in 1992, Harvey Law Group (HLG) is a leading multinational law firm with offices across Asia, North and South America, Europe, Africa, and the Middle East to cater to your specific needs for immigration and beyond.
Frequently Asked Questions
What is the Hungarian Golden Visa program?
The Hungary Golden Visa program is designed to attract foreign investors by offering them residency in exchange for investment. This initiative aims to stimulate the economy while providing investors and their families with access to the European Union. The new program offers a 10-year residence permit, which can be renewed indefinitely, making it an attractive option for those looking to establish a foothold in Europe.
Who is eligible for the Hungarian Golden Visa?
To be eligible for the Hungarian Golden Visa, applicants must be non-EU/EEA citizens, aged 18 or above, and have a clean criminal record. The program is open to a wide range of nationalities, including those from the United States, Russia, and Iran.
What are the investment options for the Hungarian Golden Visa?
The Hungarian Golden Visa program offers three investment options: 1) Investing a minimum of €250,000 in a state-approved real estate investment fund, 2) Purchasing a residential property in Hungary valued at €500,000 or more, and 3) Making a non-refundable donation of €1 million to a higher education institution in Hungary.
How long is the residency permit valid?
The Guest Investor Residence Permit granted through the Hungarian Golden Visa program is initially valid for 10 years and can be renewed for an additional 10-year period, effectively granting long-term residency in Hungary.
Can family members be included in the application?
Yes, the Hungarian Golden Visa program allows applicants to include their spouse, minor children, and even dependent parents in the application, providing family members with the same residency rights and privileges.
What are the benefits of the Hungarian Golden Visa?
Key benefits of the Hungarian Golden Visa include visa-free travel within the Schengen Area, no minimum stay requirements, exemption from tax obligations for non-residents, the right to live, work, and conduct business in Hungary, and a potential pathway to Hungarian citizenship after 8 years of continuous residency.
How long does the application process take?
The application process for the Hungarian Golden Visa is relatively streamlined, with a processing time of approximately 4-8 weeks, provided that all required documents are submitted, and the investment condition is met within the specified timeframe.
Can the investment be financed?
Yes, financing options may be available for the investment required under the Hungarian Golden Visa program, depending on the specific investment avenue chosen and the applicant’s financial circumstances.
What are the potential risks and considerations?
Potential risks and considerations include investment risks, strict compliance requirements, tax implications, and the additional requirements for the citizenship pathway, such as language proficiency and cultural integration.
