In 2024, a new opportunity emerged in Hungary for foreign investors: the guest investor visa and residence permit. Due to its favorable conditions, the program is often referred to as the “Hungarian Golden Visa”. As the applicable law has been amended multiple times since it was first issued, this article provides an overview of the current conditions under which a residence permit can be obtained.
Holding this VISA allows investors and their families to apply for a guest investor residence permit, which grants them the right to reside in Hungary and travel freely within the Schengen area for 10 years -extendable up to 20 years. Unlike other countries, such as Portugal, Hungary does not require prior residence to apply. The entire process is expected to be completed within 6-8 weeks under an expedited procedure, and the program is broadly available to applicants of almost any nationality.
Guest Investor Visa
The first step toward obtaining a residence permit is securing a guest investor visa. This special visa allows multiple entries and permits stays exceeding 90 days within a 180-day period, providing eligibility to apply for a residence permit.
According to the applicable law the visa is available to third-country nationals whose entry and stay in Hungary are deemed to serve national economic interests due to their investments in the country. In practice, this means the applicant must meet the following criteria:
- Declares that it will own € 250 000 of units from a real estate fund – which comply with specific rules and eligible for this purpose – registered by the Hungarian National Bank (MNB).
- Provide proof that the funds for the investment originate from a lawful source and are either available in Hungary or transferable from a foreign bank account.
- Submit a written commitment to make the investment within six months of receiving the guest investor visa.
The investment certificate is non-tradable, must be registered in the applicant’s name, and must be held continuously for five years.
Unlike the previous regulations, applicants can no longer obtain a residence permit by purchasing Hungarian residential property worth at least €500 000. Initially, this option was postponed until January 1, 2025, but it has now been permanently removed from the program.
In addition to the investment certificate, there is an option to donate €1,000,000 to a public-interest asset management foundation maintaining a higher education institution for the purpose of supporting educational, scientific, research, or artistic activities.
Application process
Applications for the guest investor visa must be submitted to the consular officer of the applicant’s country of citizenship or permanent residence. The visa is valid for 6 months.
Guest investor residence permit
Once in possession of the guest investor visa, applicants can apply for a residence permit. The new guest investor residence permits grant investors the right to reside and engage in business activities in Hungary for up to 10 years.
The application must be submitted within 30 days of the applicant’s first entry into Hungary, whether with the guest investor visa or visa-free. (Previously, this deadline was 93 days.) Following this, the applicant has six months also from the date of entry to prove their investment to the immigration authorities.
Holding a guest investor residence permit allows the investor to engage in economic activities, seek employment, and pursue studies in Hungary. Additionally, it grants visa-free travel within the Schengen area without requiring a separate visa for each EU country.
The permit can be renewed for an additional 10 years and may remain valid even beyond the applicant’s passport expiration date.
The guest investor residence permit also extends to the investor’s family members, including spouses, dependent children, and dependent parents. In certain cases, siblings and direct relatives may also qualify if their health condition necessitates it.
Path to citizenship
The guest investor residence permit not only provides long-term residency but can also serve as the first step toward Hungarian citizenship. After 8 years of lawful and actual residence – and passing a language and cultural test – investors and their family members may also apply for Hungarian citizenship, thereby becoming full-fledged Hungarian and EU citizens.
Tax benefits for guest investors
Hungary offers a competitive tax environment for guest investors. One of the most significant advantages is the corporate tax rate of 9%, one of the lowest in Europe. Personal income tax is uniformly set at 15% regardless of the income. Additionally, Hungary has numerous double taxation treaties, allowing foreign income to be taxed under favorable conditions.
