Hungary Golden Visa: Fast Track to EU Residency

The Hungary Golden Visa, officially known as the “Hungarian Guest Investor Program,” provides an exceptional opportunity for non-EU nationals to secure a long-term residence status in the heart of Europe, specifically in Budapest. This Budapest residency permit program allows investors to enjoy several significant benefits by investing in Hungarian real estate, either directly or through a designated fund, or by making donations to educational and cultural endeavors. Launched on January 1, 2024, and open for applications from July 1, 2024, the Hungary residency by investment scheme has become an attractive option due to its flexibility and numerous perks¹. The golden visa issuance is for an impressive 10 years and includes easy renewability thereafter, allowing for family inclusion and freedom to travel within the Schengen Area².

Key Takeaways

The Hungary Golden Visa program starts on January 1, 2024.
Invest a minimum of EUR 250,000 in real estate to qualify¹.
Issued residence permit is valid for 10 years.
Program includes family unification.
Allows visa-free travel within the Schengen Area².
Flexible investment options: real estate fund, property purchase, or donations.

Introduction to the Hungary Golden Visa Program

The Hungary Golden Visa Program, reintroduced in 2024, is designed to attract global investors and top talent by leveraging Hungary’s economic and lifestyle appeal. This program offers a streamlined process that allows investors to acquire EU residency through various investment options.

Hungary permanent residency program

Background of the Program

The Hungary Golden Visa Program serves as a successor to the government bond-based residency initiative that operated from 2013 to 2017. Rebranded and relaunched, the program now emphasizes flexibility and efficiency, ensuring a quick, four-week permit issuance for qualifying investors. It offers three primary investment avenues: €250,000 in a Real Estate Investment Fund, €500,000 for Real Estate Acquisition, or a €1 million donation to Hungarian higher education³⁴.

Program Objectives

The primary goals of the Hungary Golden Visa Program are to stimulate economic growth within the country and provide valuable opportunities for investors. By participating in the Hungary immigrant investor program, investors are granted a 10-year residency permit, which can be extended. Importantly, the program allows family members—including spouses, minor children, and parents—to benefit from residency as well³⁴.

The Hungary permanent residency program also facilitates investors to live, work, and study in Hungary, as well as access healthcare and education services. The opportunity to include family members and the provision to retrieve invested capital after five years, albeit with a requirement to reinvest for residency extension, are significant advantages³.Hungary permanent residency program.

Benefits of the Hungary Golden Visa

The Hungary Golden Visa presents numerous advantages for investors seeking European residency through Hungary investment immigration. Key benefits include residency perks, family inclusion, and convenient Schengen Area travel. These aspects make this program particularly appealing to non-EU individuals looking for a smooth pathway into Europe.

Residency Perks

The Hungary Golden Visa program provides a swift and efficient process for obtaining residency. Investors can acquire residency in as little as six months with a minimum investment of €250,000, offering flexibility without the requirement for continuous physical presence in the country, making it ideal for global mobility⁵. Hungary offers one of the lowest personal income tax rates in the EU at 15% and a corporate tax rate of 9%⁵. Moreover, the Hungarian healthcare system is recognized for its high standards and affordable costs, placing it 29th in the 2022 World Index of Healthcare Innovation⁵.

Family Inclusion

The Hungary investment-based residency program extends its benefits to family members, including spouses, minor children, and dependent parents. This feature significantly eases the process for families, granting them access to excellent healthcare and education systems in Hungary. Hungarian universities are home to five institutions ranked among the top 1000 worldwide according to the QS World University Rankings 2024, providing high-quality educational opportunities for children of residents⁵.

Hungary investment-based residency

Schengen Area Travel

Another significant advantage of the Hungary investment immigration program is visa-free access to the Schengen Area. This allows Hungarian Golden Visa holders to travel freely within 26 Schengen countries for up to 90 days within any 180-day period, considerably enhancing travel convenience for business and leisure⁵. With the upcoming launch of a new program in July 2024, Hungary aims to attract more non-EU investors by offering a 10-year residence permit through specific investment options, further facilitating travel within the Schengen Zone⁶.

For those looking to learn more about the benefits and specifics of the Hungary Golden Visa, you can visit their official site here. The Hungary investment-based residency program’s flexibility and comprehensive family inclusion rank it highly among global residency options.

Investment Options for the Hungary Golden Visa

The Hungary Golden Visa Program offers a variety of investment options tailored to meet diverse investor needs. These options not only secure a pathway to residency but also provide numerous benefits, including family inclusion and visa-free travel within the Schengen Area.

Real Estate Investment Fund

One of the popular investment avenues is contributing a minimum of €250,000 to a Real Estate Investment Fund. This option offers investors the opportunity to participate indirectly in the Hungarian real estate market while fulfilling the investment requirement for the Hungary Golden Visa program⁷. The holding period and return on investment depend on the specific fund’s terms and conditions, designed to attract international investors looking for a streamlined approach to securing a Budapest residency permit.

Real Estate Property Purchase

An alternative is the direct purchase of residential property, requiring an investment of €500,000 with a holding period of five years. This investment not only meets the criteria for the Hungary Golden Visa but also allows investors to own a tangible asset in Hungary’s vibrant real estate market⁸. This option can be especially appealing for those who prefer owning and managing property directly, providing a significant benefit for those who wish to establish a foothold in Budapest while working towards Hungary citizenship by investment.

Budapest residency permit

Educational and Cultural Donations

The most substantial investment option involves a €1 million non-refundable donation to support educational, scientific research, or artistic activities in Hungary. This investment not only fulfills the requirements for obtaining the Hungary Golden Visa but also contributes significantly to the country’s development and cultural heritage⁹. Such donations provide an expedited route to gaining the Guest Investor Residence Permit and securing long-term residency for the investor and their family.

Each of these investment options offers a unique pathway to a Budapest residency permit and subsequent eligibility for Hungary citizenship by investment. Investors can choose the avenue that best aligns with their financial strategy and personal preferences, ensuring a tailored and efficient approach to accessing the benefits of the Hungary Golden Visa program⁸.

Eligibility Criteria

The Hungary Golden Visa program is accessible to a diverse global audience, making it an attractive option for potential investors seeking Hungarian residency requirements. To qualify, applicants must meet several important criteria to demonstrate their suitability for the program.

Age and Nationality Requirements

Applicants must be over the age of 18 and hold a valid passport. There are no specific nationality restrictions, allowing the program to welcome individuals from various countries and backgrounds. This inclusive approach makes Hungary an appealing destination for international investors interested in the Hungary economic residency program.

Clean Criminal Record

Ensuring the safety and security of Hungary is paramount. Applicants must provide evidence of a clean criminal record. This requirement helps maintain the integrity of the Golden Visa program by attracting law-abiding individuals who will contribute positively to the community. For more details on maintaining personal safety while in Hungary, visitors can refer to the travel advisory provided by the U.S. government¹⁰.

Financial Viability

Demonstrating financial viability is crucial for individuals seeking to apply for the Hungary Golden Visa. Applicants must be able to meet the investment criteria without recourse to public funds, showcasing their ability to make meaningful economic contributions to Hungary. This helps ensure that the program attracts genuine investors who are capable of supporting the Hungarian economic residency landscape.

Hungarian residency requirements

Educational Level	Admissions Criteria
Bachelor’s Degree	High school diploma, possible entrance exam¹⁰
Master’s Degree	Photocopy of Bachelor’s degree, possible entrance exam¹⁰
PhD	University degree equivalent to a Master’s, completion of 240 credits in 4 years¹⁰

Financial criteria further extend to the minimum salary thresholds set for various visa programs. For instance, the minimum salary threshold for the EU Blue Card in Hungary in 2024 is set at 9,283,788 HUF annually, with exceptions for certain professions having a lower threshold at 7,427,028 HUF annually¹¹. Such benchmarks are essential for maintaining a high standard for economic residents while ensuring the program aligns with Hungary’s economic goals.

Application Process

The Hungary Golden Visa application involves a series of well-defined steps designed to streamline your path to residency. This process can be smoothly navigated by adhering to the outlined stages and ensuring all necessary documentation and investments are accurately handled.

Hungary residency by investment

Initial Steps and Documentation

The initial phase of the Hungary Golden Visa application requires candidates to gather and submit pertinent documentation. This includes a valid passport, not older than ten years with two blank pages, and a passport-sized photo following specific requirements¹². Additionally, travel health insurance with a minimum coverage of €30,000 is required¹². An essential part of this phase is the submission of a cover letter detailing the purpose of the visit, along with presenting a flight itinerary and confirmed accommodation¹². Supporting documents such as bank statements for the last three months are necessary to demonstrate financial viability¹².

Hungary residency by investment applicants should ensure the completeness of their documentation by including various copies of their passport pages, IDs, travel insurance, return flight ticket, and marriage certificate when applicable¹².

Investment Completion

After the initial documentation phase, applicants move on to the investment completion stage. Prospective residents are required to sign an investment agreement and, depending on their chosen investment option, secure either a financial statement showcasing sufficient funds or an investment fund share certificate¹³. Another viable path involves presenting a real estate purchase contract, confirming the procurement of a property within Hungary¹³. These investment activities are crucial as they directly align with the core objectives of the Hungary Golden Visa application.

Final Residency Permit Application

Upon successful investment, the final step is the submission of the residency permit application. This stage involves further verification of submitted documentation and investments. The processing timeline for the final residency permit generally spans three months¹². Upon approval, successful candidates are initially granted a 5-year residence card, which can be renewed for another five years, facilitating long-term residency in Hungary¹². It’s important to note that the residency permit allows for seamless entry and living in Hungary, ensuring that applicants can exercise their residency rights without undue delay.

Understanding and following these steps meticulously is crucial to achieving success with the Hungary Golden Visa application, ensuring a smooth transition to acquiring Hungary residency by investment.

Residency and Tax Implications

The Hungary permanent residency program offers numerous advantages, particularly in terms of taxation. For tax residents, Hungary provides a favorable taxation environment. In Hungary, tax residents comprise Hungarian citizens with permanent or habitual residence in the country and individuals who spend at least 183 days in Hungary exercising their right of residence¹⁴. This is crucial for those considering the Hungary permanent residency program, as staying in Hungary for over 183 days a year might subject one to Hungarian tax jurisdiction.

Moreover, tax residents also include individuals with permanent residence status, stateless persons, those with primary ties through family and business relations, and entities established under Hungarian law, such as European public limited-liability companies¹⁴. Trust funds managed under fiduciary asset management contracts are treated as resident taxpayers¹⁴.

Hungary permanent residency program

However, it’s important to consider that Hungary taxation for residents encompasses the worldwide income for Hungarian tax residents. The termination of the tax convention for the avoidance of double taxation between the United States and Hungary marked a significant change¹⁵. As a result, Hungary no longer exempts income derived from employment and real estate rentals in the US from Hungarian tax liability, impacting taxation on personal income, corporate tax, and transfer pricing¹⁵. Tax liability on interest income, dividends, and capital gains will no longer be reduced by tax paid in the US when derived by Hungarian tax resident individuals¹⁵.

Additionally, Hungarian companies’ real estate income from the US will be included in the Hungarian corporate income tax base following the termination of the treaty¹⁵. Corporate income tax liability will now extend to US entities with a permanent establishment in Hungary, affecting construction, mining activities, and service supply terms¹⁵. Therefore, for those engaging with the Hungary permanent residency program, understanding these tax implications is essential for effective financial planning and compliance.

For detailed information on tax residence certificates for individuals and corporate tax and dividend tax for entities, resources are available on the National Tax and Customs Administration of Hungary’s website¹⁴. For further assistance, Ms. Edit Kucsera, the Chief Expert of the National Tax and Customs Administration of Hungary, can be contacted via email at [email protected]¹⁴.

Pathway to Citizenship

Embarking on the journey towards Hungarian citizenship through the Golden Visa program offers several distinct advantages. Those who secure residency can eventually initiate the Hungarian naturalization process, paving the way for full citizenship and the associated benefits.

Naturalization Requirements

The Hungarian naturalization process requires applicants to reside in Hungary for a minimum of eight years. This residency period is a critical component for investors and their families aiming to immerse themselves in Hungarian society and culture fully. Additionally, dual citizenship is permitted under Hungarian law, allowing individuals to maintain their original nationality while embracing Hungarian citizenship¹⁶.

Another pathway to Hungarian citizenship is through descent. This approach is notably streamlined, involving the establishment of a direct ancestral link to at least one parent or grandparent who was a Hungarian citizen. In certain cases, the eligibility can extend back to great-grandparents, and there are no generational limitations for tracing lineage to Hungarian ancestry¹⁷. Applicants must provide various documents, such as birth certificates, marriage certificates, and other pertinent records, to substantiate their claims¹⁷.

Hungarian Language Test

A key element of the Hungarian naturalization process is passing a Hungarian language test. Mastery of the Hungarian language is essential for integration into the community and for fulfilling the naturalization requirements. According to Hungarian law, personal documents like birth and marriage certificates might need to be provided in translated form if they are not originally in Hungarian, English, French, or German¹⁶.

This language proficiency demonstrates a commitment to becoming a part of Hungarian society, further solidifying the bond between the individual and the country. Furthermore, the journey towards citizenship not only opens up the privileges of holding an EU passport but also reinforces a sense of identity and belonging within Hungary.

Living in Hungary

Opting for residency in Hungary offers numerous advantages, especially regarding the quality of life and living expenses. Hungary provides a blend of affordability and high living standards, making it an attractive destination for Golden Visa investors.

Cost of Living

Hungary maintains a lower cost of living, approximately 40—50% lower than in countries like Germany, France, or the US¹⁸. Monthly expenses for utilities such as heating, electricity, water, and garbage range from €100—200¹⁸. Rent for a one-bedroom apartment in Budapest ranges from €300 to €600 per month, while other cities like Eger, Szeged, and Györ offer rent between €250 to €500¹⁹. Additionally, Hungary’s currency, the forint, provides greater purchasing power for foreigners¹⁸.

Healthcare and Education

Hungary boasts a robust healthcare system and numerous educational institutions, contributing to a high standard of living. The country is home to excellent universities, attracting students to cities like Budapest, Szeged, and Debrecen¹⁹. The availability of high-quality healthcare services makes it favorable for families and individuals alike.

Quality of Life

The overall Hungary quality of life is enhanced by its safe environment and well-maintained infrastructure. Hungary is ranked 14th in the Global Peace Index 2024, highlighting its safety¹⁸. Major cities like Budapest offer numerous job opportunities, especially in IT, healthcare, and engineering sectors, making it a magnet for skilled professionals¹⁹. English is widely spoken, particularly in urban areas like Budapest, facilitating easier integration for expatriates¹⁸. Additionally, Hungarian cities, with their vibrant culture and historical significance, provide a rich experience for residents.

Success Stories and Testimonials

The Hungary Golden Visa success stories are abundant, showcasing the positive impact the program has on investors and their families. Many applicants have praised the streamlined application process, which significantly reduces the wait time for EU residency status. The approval rate remains high, emphasizing the program’s reliability and attractiveness to international investors.

Investors frequently mention the economic and lifestyle benefits of living in Hungary. The relatively low cost of living, combined with high-quality healthcare and education, makes Hungary an appealing destination for families. Additionally, the ability to travel freely within the Schengen Area is a significant draw, further enhancing the program’s allure.

One such personal experience can be found in the Hungary investment immigration testimonials, where clients recount their seamless journey towards obtaining residency. Positive feedback includes mentions of comprehensive support and tailored solutions provided by consultancies. This not only demonstrates client satisfaction but also highlights the commitment of professionals in guiding applicants through the process.

Hungarian Language Solutions (HLS) has also played a crucial role in many success stories, facilitating language learning for those pursuing citizenship or long-term residency. According to testimonials, HLS has a remarkable success rate in citizenship applications, with many individuals achieving significant language proficiency within a specified timeframe after receiving training²⁰. A notable percentage of students reported feeling more prepared and confident for their citizenship interview after training with HLS²¹.

The personalized instruction and structured lessons provided by HLS are frequently praised. Their approach has led to noticeable improvements in language skills among clients, as evidenced in various success stories²⁰. For those looking to immerse themselves fully in Hungarian culture, the dedication of language trainers like Renata and Julia has been a game-changer.

The stories found in Hungary investment immigration testimonials serve as powerful endorsements of the program’s effectiveness. These accounts are not just about acquiring a visa but also about building a prosperous future in Hungary. Investors and their families continuously express their gratitude for the opportunities provided by the Hungary Golden Visa program, reinforcing its standing as a premier choice for gaining European Union residency.

Conclusion

The Hungary Golden Visa program undeniably offers a straightforward route to obtaining EU residency, making it an attractive option for international investors. By investing in real estate, educational, or cultural donations, applicants can take advantage of Hungary EU residency, which opens doors to numerous benefits such as family inclusion and Schengen Area travel. This program not only addresses the investor’s financial objectives but also enhances their quality of life by providing access to Hungary’s healthcare, education systems, and favorable living conditions.

While acquiring residency through the Hungary Golden Visa, it’s essential to understand the socio-political landscape in Hungary. Nearly 80 percent of the market for political and public affairs news in Hungary is financed by sources decided by the ruling party, and there is only one independent political daily compared to government-controlled regional dailies with a combined circulation of over 200,000²². Additionally, the European Parliament’s report emphasized concerns about the deterioration of democratic norms in Hungary since 2018, including the independence of the judiciary and freedom of expression²³.

Despite these challenges, the potential for obtaining Hungary EU residency through the Hungary Golden Visa program remains a significant draw for global investors. Hungary’s commitment to catering to international investors’ diverse needs ensures it stands out as a welcoming destination. This program is a testament to Hungary’s strategic efforts to foster a robust and investor-friendly environment, underlining the varied Hungary Golden Visa benefits that come with it.

FAQ

What is the Hungary Golden Visa?

The Hungary Golden Visa, also known as the Hungarian Guest Investor Program, is a residency-by-investment initiative for non-EU nationals. It allows investors to secure Hungarian residency by real estate investment, educational and cultural donations, or through a fund.

What are the benefits of the Hungary Golden Visa?

Benefits include visa-free access to the Schengen Area, a flexible residency requirement, tax exemptions for non-residents, and the ability to include family members. It also offers high-quality healthcare, education, and a low cost of living in Hungary.

How much do I need to invest to qualify for the Hungary Golden Visa?

The investment options include a minimum of €250,000 in a real estate fund, €500,000 in residential property purchase with a 5-year holding requirement, or a €1 million non-refundable donation to support educational and cultural projects.

Who is eligible to apply for the Hungary Golden Visa?

Applicants must be over the age of 18, hold a valid passport, have no criminal record, and demonstrate financial viability to meet the investment criteria.

Is there a residency requirement to maintain the Hungary Golden Visa?

No, the Hungary Golden Visa program does not mandate physical residency in Hungary, offering global mobility and flexibility.

How long does the application process take?

The process typically takes around 3 months from initial documentation submission to the final residency permit application. Successful applicants receive an initial 5-year residence card, which can be renewed for an additional 5 years.

Can my family members be included in my Hungary Golden Visa application?

Yes, the program allows for the inclusion of immediate family members, such as spouses, minor children, and dependent parents, under the same residency application.

What are the tax implications for residency through the Hungary Golden Visa?

Non-residents are exempt from certain Hungarian taxes. However, if an investor resides in Hungary for more than 183 days a year, they may be subject to Hungarian tax jurisdiction.

How can I obtain Hungarian citizenship through the Hungary Golden Visa?

To naturalize as a Hungarian citizen, you need to reside in Hungary for at least 8 years and pass a Hungarian language test. This pathway allows you to enjoy all the rights and privileges of Hungarian citizenship, including obtaining an EU passport.

What is the quality of life like in Hungary?

Hungary offers a high quality of life with access to excellent healthcare and education, vibrant culture, safe living conditions, and robust infrastructure. The cost of living is also significantly lower compared to Western European countries.

Are there testimonials from current holders of the Hungary Golden Visa?

Yes, many investors have shared positive experiences, highlighting the ease of the application process, economic and lifestyle benefits, and the value of visa-free travel within the Schengen Area.