Hungary’s Golden Visa Programme, relaunched in January 2024, presents a unique opportunity for global investors. As Hungary experiences a surge in eastern investors, drawn by the likes of CATL and Eve-Power establishing factories near German carmakers, this blog post unravels the program’s benefits, eligibility criteria, and the roadmap for a successful application.The program outlines a minimum investment requirement of €250,000.
Applicants must showcase the availability of investment funds and substantiate the lawful origin of these funds. Notably, the incorporation of family members in the application process does not mandate an escalation of the base investment amount. Discover the key aspects of this revitalized initiative and embark on your journey towards securing Hungarian residency.
Hungary, a nation steeped in history and nestled in the heart of Europe, has become an increasingly attractive destination for global investors. The recent surge in eastern investors, notably from Asian battery giants like CATL and Eve-Power establishing their factories near German carmakers, has added a new dimension to Hungary’s appeal. This phenomenon underscores the country’s strategic importance and economic vitality, making it an opportune time for investors to explore the advantages of the Golden Visa Programme.
In a strategic move to attract global investors, Hungary has breathed new life into its Golden Visa Programme in January 2024. This rejuvenation brings with it updated opportunities and streamlined processes, creating an opportune moment for those seeking residency in Hungary. Join us as we navigate the key aspects of this renewed initiative, guiding you through the steps to make the Golden Visa Programme your gateway to European residency.
Golden Visa - The Investor's Road to Hungarian Residency in 2024
Hungarian Golden Visa Investment options
Option 1:
Investment Fund Units
Investment: €250,000 or more
Prospective applicants can choose to engage in the Hungarian real estate market by acquiring units from local investment funds. These funds are dedicated specifically to real estate, and the resulting investment certificates must be officially registered with the Magyar Nemzeti Bank (Hungarian National Bank). It’s important to note that the invested amount cannot be redeemed for a minimum period of five years from the date of purchase.
Option 2:
Real Estate Purchase
Investment: €500,000 or more
For those seeking a direct involvement in real estate, an alternative option is to invest in residential property. However, this avenue requires a higher financial commitment, as the property being acquired must have a minimum value of €500,000. The sales and purchase agreement accompanying this investment stipulates that the property cannot be resold for a minimum period of five years.
Option 3:
Charitable Donation
Contribution: €1,000,000 or more
Applicants also have the option to make a meaningful contribution of €1,000,000 to a higher education institution affiliated with the Foundation for the Management of Assets in the Public Interest. This charitable donation is intended to support crucial areas such as education, scientific research, or artistic creation.
9 Advantages
of the Hungarian
Golden Visa
1. Relocation to Hungary
Golden Visa holders can reside in Hungary throughout the validity of their permit, enjoying unrestricted entry, even during border closures to other foreigners.2. Visa-Free Travel Across Europe
Holders have visa-free access to over 35 European countries, including EU and Schengen nations, with the convenience of staying up to 90 days in any 180-day period.3. Long Validity Period
The Hungary Golden Visa offers an extended validity of up to 10 years, surpassing durations in other EU nations, typically ranging from 2 to 5 years. This can be extended by another 10 years, if the property is still active.4. Real Estate Investment Option
Investors can obtain a residence permit through purchasing residential properties, making it an advantageous choice for those aiming to relocate to Hungary.5. Path to Permanent Residence and Citizenship
Permanent residency is attainable after three years, and eligibility for citizenship arises after an additional eight years, offering global travel possibilities.6. Access to High-Quality, Affordable Healthcare
Hungarian healthcare adheres to EU standards, providing cost-effective services compared to other European countries, with residents entitled to a European Health Insurance Card.7. Attractive Tax System
With a competitive income tax rate of 15%, and corporate Tax of 9%, Hungary provides a tax-friendly environment compared to other European countries.8. Opportunity to Work in Hungary
Golden Visa holders can register a company, pursue self-employment, or engage in employment under a labor contract.9. No Mandatory Stay Requirement
Investors are not obliged to reside in Hungary, offering flexibility for unrestricted entry and exit at their convenience.
How to get
a Hungarian Golden Visa:
The Process
Embarking on the Hungary Golden Visa journey involves a comprehensive application process designed to ensure a smooth transition for investors seeking residency. Here is a step-by-step guide:
A. Initial Consultation and Research (Month 1-2)
- Explore Investment Options: Begin by researching the three investment options – investment fund units, real estate purchase, and charitable donation. Understand the specific requirements and benefits associated with each.
- Consultation with Legal Advisors: Seek guidance from legal professionals specializing in Golden Visa processes to gain insights into the most suitable investment route based on your preferences and budget.
B. Selecting the Right Investment (Month 3-4)
- Evaluate Potential Projects: Assess available investment opportunities within the chosen category, whether it be investment funds, real estate, or charitable donations. If you need a real estate consultant that has your goals in mind: We are buyer’s agents and happy to support you.
- Due Diligence: Conduct thorough due diligence on potential investments, considering factors such as location, returns, and legal implications.
C – Financial Documentation and Proof of Funds (Month 5-8)
- Gather Necessary Documents: Assemble all required financial documentation, including proof of funds, to demonstrate the availability of the minimum investment amount.
- Ensure Compliance: Ensure that the financial documents meet the criteria set by Hungarian authorities to ensure a smooth application process.
D. Application Submission and Processing (Month 9-12)
- Submit Golden Visa Application: Complete the application forms and submit them, along with the necessary documents, to the relevant Hungarian authorities.
- Understanding Processing Times: Familiarize yourself with the expected processing times for the Golden Visa application. Patience is key during this phase, as authorities review and assess the provided information.
E. Monitoring and Follow-Up (Ongoing)
- Regularly Check Application Status: Stay informed about the progress of your application by regularly checking the status with the relevant authorities.
- Addressing Additional Requests: Be prepared to address any additional requests for information or documentation promptly to expedite the processing.
F. Residence Permit Issuance and Beyond
- Approval and Residence Permit Issuance: Upon approval, receive your Golden Visa residence permit, granting you the right to reside in Hungary.
- Consider Permanent Residency and Citizenship: With time spent in Hungary, consider the prospect of obtaining permanent residency after three years and citizenship eligibility after an additional eight years.
Frequently Asked Questions (FAQ) about the Hungary Golden Visa Programme
These frequently asked questions provide essential insights into the Hungary Golden Visa Program, offering clarity on key aspects for prospective investors.
The Hungary Golden Visa Program is a residency-by-investment initiative that allows foreign investors to obtain Hungarian residency through various investment options, including real estate, investment fund units, and charitable donations.
The program offers three main investment options: purchasing investment fund units with a minimum investment of €250,000, buying real estate with a minimum investment of €500,000, and making a charitable donation of €1,000,000 or more.
Yes, family members can be included in the application without necessitating an increase in the base investment amount. Immediate family members, such as spouses and dependent children, can benefit from the residency permit.
No, the investment amount is not refundable. Investors must commit to the chosen investment option for a minimum period, typically five years, as stipulated by the program.
The Golden Visa offers an extended validity of up to 10 years, with the option for renewal for an additional decade, providing investors with long-term residency benefits.
With the Hungarian Golden Visa, you enjoy the privilege of visa-free travel to various countries, primarily within the Schengen Area, which comprises 26 European countries, including Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary (the issuing country), Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, and Switzerland.
For visits to non-Schengen countries like Bulgaria or Montenegro, additional documentation may be required, typically including your residence permit card, a valid passport, hotel booking confirmation, and occasionally a bank statement. Stay informed about specific entry requirements for each country, as regulations can vary, and it’s advisable to check with the relevant embassies or consulates for the most current information for your travel arrangements.
Permanent residency can be sought after three years of living in Hungary, and citizenship eligibility arises after an additional eight years, providing global travel opportunities.
Yes, there is typically a minimum holding period of five years for the purchased real estate, during which it cannot be resold.
It is worth noting that after 5 years there is no tax on the value increase of your property.
Yes, Golden Visa holders have the flexibility to register a company, pursue self-employment, or engage in employment under a labor contract in Hungary.
No, investors are not obligated to reside in Hungary, providing them with the freedom to enter and exit the country as they please while retaining their Golden Visa status.
