“Golden Visas” are residency programs offered by various countries. These programs, including the Hungarian Golden Visa, allow individuals to obtain residency in exchange for significant financial investments, typically in real estate, government bonds, or local businesses.
Globally, Golden Visas have become popular for several reasons. For investors, they offer access to new markets, potential tax benefits, enhanced global mobility, and a safety net in case of political or economic instability in their home countries.
Overview of Hungary's Residency by Investment Program
Hungarian Golden Visa Program offers a pathway to a 10-year residency for investors. Through this program, individuals can secure Hungarian residency by purchasing property or making an investment within the country.
Benefits of Hungary's Golden Visa Program
Benefits of Hungary's Golden Visa Program:
1. Visa-Free Schengen Travel:
Investors can enjoy visa-free travel across the Schengen Area, staying in these countries for up to 90 days within a 180-day period.
2. Investment Security:
Investors receive a Guest Investor Visa before making any financial commitment, minimizing the risk of residency refusal.
3. Family Inclusion:
The program allows investors to move to Hungary with their families, including spouses and children under 18, offering a safe and affordable living environment in one of the world's safest countries.
4. Low Cost of Living:
Hungary offers a lower cost of living compared to many European countries, with affordable real estate, groceries, and entertainment options.
5. European Banking Access:
Residency allows investors to open accounts in local and international European banks with minimal documentation.
6. Employment and Business Opportunities:
Investors and their families can work, start businesses, or serve as CEOs in Hungary and throughout Europe.
7. Quality Healthcare and Education:
Hungary provides access to high-quality medical services and education, with several universities ranked among the world's top 1,500.
8. Tax Optimization:
The program offers a quick and effective path to European residency with no minimum stay requirements and no tax obligations for non-residents.
9. Long-Term Residency:
Investors are granted a renewable 10-year residency through the Hungarian Guest Investor Program.
Eligibility Criteria
Hungary’s Golden Visa program, also known as the Hungarian Investment Immigration Program, offers several investment options for obtaining residency. One option is to invest €250,000 or more in a qualified real estate investment fund (please note that this path is currently not available). Another option requires a €1 million non-refundable donation to a public interest trust foundation that supports education, scientific research, or artistic activities. This donation is made to an institution of higher learning maintained by the foundation.
To be eligible for the Golden Visa, applicants must be over 18 years old and hold citizenship from outside the EU and EEA. Applicants can include their spouse and children under 18 in their Golden Visa application. Children over 18 may also be included if they are financially dependent, studying, and unmarried. Parents aged 65 or older can be included without needing to prove dependency. It is advised to include parents after securing the Golden Visa. Additional dependents can be added for an extra fee. The Hungary Golden Visa program has no nationality restrictions, making it available to citizens of countries such as Russia, Belarus, and Iran.
Investment Options
The Hungary Golden Visa program offers three primary investment options:
1. Real Estate Investment Fund:
Applicants can invest a minimum of €250,000 in investment certificates issued by a real estate fund registered with the Hungarian National Bank. Investors must hold these certificates for at least five years.
2. Donation to a Hungarian Public Trust:
A donation of at least €1 million to a public trust foundation operating an institution of higher education is required. This donation supports educational, scientific, or artistic activities. These investment options provide flexibility for obtaining residency, each with specific requirements and conditions to ensure compliance and security.
Application Process
To apply for Hungary’s Golden Visa, the process involves three main phases. First, applicants must apply for a Hungary Guest Investor Visa at their nearest consulate, during which they declare their commitment to one of the investment options, though completing the investment is not required at this stage. Upon receiving the Guest Investor Visa, valid for up to six months, the applicant must travel to Hungary and finalize their investment—either purchasing fund units or making a donation to a higher education institution—within three months of arrival.
After completing the investment, the applicant must apply for a Guest Investor Residence Permit. This can be done either in person at the regional office of the National Directorate-General for Aliens Policing or online through the Enter Hungary platform. If the application is made online, it must be done by the applicant’s legal representative or legal entity.
Once the application is processed and approved, the investor will schedule an appointment with the migration office, where they will provide their passport, original documents, submit biometric data, and have their photo taken for the residence permit card. The Golden Visa residency is valid for 10 years and can be renewed once for the same period. To renew, the investor must demonstrate that the investment conditions have been maintained. Applicants must provide an application form, passport, proof of funds, and additional documents, including a bank statement, evidence of residential address, health insurance, proof of housing ownership or rental, a medical certificate, and both original and photocopied passports. Birth and marriage certificates, as well as a passport-size photo, are also required. Applicants must not have Schengen Information System alerts, expulsions, or entry bans, and must not pose a threat to public order, security, or national security. The immigration authority will consult with Hungary’s law enforcement and national security services regarding the application. The approximate time for approval is 4-8 weeks, while the residency card gets issued in 21 days.
Benefits for family members
Family members who obtain a Hungarian residence permit under the Guest Investor Program can enjoy the same benefits as the main applicant, including:
Visa-free travel to the Schengen Area
Access to Hungarian education and healthcare
Right to work and do business in Hungary
Opportunity to apply for permanent residency after 5 years
These benefits provide family members with a high quality of life, access to excellent services, and the freedom to travel and work within the Schengen Area, making Hungary an attractive destination for the entire family.
Comparison with Other Golden Visa Programs
The residency by investment programs in Hungary, Malta, and Latvia each offer unique benefits and requirements for investors seeking to obtain residency in Europe. Malta offers a robust program with a path to permanent residency, while Latvia's program is similar but requires annual visits.
Each program has its own advantages, making them suitable for different investor needs. Hungary's Golden Visa program offers a broader range of investment options with a longer residency duration and no minimum stay requirements, while Malta's program requires a combination of real estate investment and government contributions, with a shorter residency validity. Latvia's program is characterized by its affordability and straightforward routes to residency through both real estate and business investments, with business investment being as low as 50,000 Euros.
Hungary's Golden Visa program is distinguished by several key features that make it both competitive and appealing:
Low Investment Threshold: Hungary offers one of the lowest entry costs for EU residency, making it a cost-effective choice compared to other European programs.
Extended Residency Validity: The residency permit is valid for 10 years, providing longer-term stability and security compared to the typical 5-year permits offered by many other programs.
No Minimum Stay Requirement: Investors are not obligated to maintain a minimum presence in Hungary, offering flexibility for those who may not wish to relocate immediately.
Fast Processing Time: The application process is expected to take approximately 4-8 weeks, one of the quicker timelines for European residency programs.
Open to All Nationalities: Hungary's program is accessible to nationals from all countries, including those facing geopolitical challenges, such as Russia and Belarus, enhancing its broad appeal.
Strategic Location: Hungary's central European location provides convenient access to other EU countries, along with a rich cultural heritage and high quality of life.
Hungary, Malta and Latvia: Program Comparison
Criteria | Hungary | Latvia | Malta |
Program Name | Guest Investor Visa | Golden Visa | Permanent Residence Program (MPRP) |
Minimum Investment | €250,000 (real estate fund), €1 million (public trust fund) | €50,000 (business) or €250,000 (real estate, government bonds) | €350,000 (property purchase) or €12,000 (property lease) |
Investment Types | Real estate or public trust funds | Business, real estate, government bonds | Real estate, government donation |
Residency Duration | 10 years (renewable once) | 5 years (renewable every 5 years) | 5 years |
Path to Citizenship | Yes, after 8 years with language requirements | Yes, after 10 years with language and history tests | Yes, after 5 years with residency requirements |
Minimum Stay Requirements | None | None | None |
Family Inclusion | Yes, immediate family can apply | Yes, includes spouse and children under 18 | Yes, includes family members |
Processing Time | 3 months | 1-3 months | 4-6 months |
Visa-Free Travel | Schengen Area | Schengen Area | Schengen Area |
Renewal Requirements | Maintain investment | Maintain investment and pay taxes | Maintain investment for the first 5 years |
Language Requirement | None | None | None |
Healthcare Access | Yes, EU healthcare benefits | Yes, EU healthcare benefits | Yes, EU healthcare benefits |
Living Costs | Relatively low (e.g., €750/month for a single person) | Relatively low (e.g., €840/month for a single person) | Higher than Hungary and Latvia, but still affordable |
Residency and Citizenship Benefits
Hungarian residents have the right to live, work, and study in Hungary. They benefit from high-quality education and healthcare, with children eligible for free education. They can travel freely within the Schengen Zone for up to 90 days every 180 days and have the right to establish and run a business.
Pathway to citizenship
To acquire Hungarian citizenship, an individual must reside continuously in Hungary for eight years, demonstrate proficiency in Hungarian, show sufficient means of subsistence, and have a clean criminal record. Dual citizenship is permitted, allowing individuals to retain their previous nationality.
A guest investor may qualify for permanent residence by legally residing in Hungary for three years prior to their application. Starting January 1, 2025, applicants will also need to pass a Hungarian cultural written exam. Citizenship can be pursued after obtaining permanent residence, typically following eight years of residency, though exceptions exist for Hungarian minor children or spouses. The cultural exam remains a requirement.
Hungarian passport holders can live, work, study, and access medical care across all EU states, with visa-free travel to over 170 countries. For visits to the USA, Canada, Australia, and New Zealand, they can obtain an Electronic Travel Authorization (eTA), which is faster and more affordable than a traditional visa. Hungarian citizens can also establish businesses with access to tax incentives and government grants, and open bank accounts in Hungary and other European countries for international transactions.
Hungary, ranked among the safest and most peaceful countries by the Global Peace Index, has low crime rates, including a notably low homicide rate. Situated in central Europe, it offers excellent connectivity, with quick travel times to major cities like Vienna, London, and Paris.
Tax Implications
A person with a guest investor residence permit will not be classified as a Hungarian tax resident if they spend fewer than 183 days in Hungary within any 12-month period.
Personal income tax in Hungary is determined at 15%.
In conclusion, Hungary's Golden Visa program offers a compelling opportunity for investors seeking European residency through investments or donations. This program, which provides a renewable 10-year residency permit, comes with several notable advantages, including visa-free travel within the Schengen Area, access to European banking, and high-quality healthcare and education. With options ranging from investing in real estate funds to making substantial donations to public trusts, Hungary's program offers flexibility and accessibility for a wide range of applicants.
Lusine Sargsyan
Attorney