Hungary is a developed country in Eastern Europe with high quality of living to foreign investors. Hungary became a member of the European Union on 1 May 2004 and officially joined Schengen area in December 2007. Hungary uses Forint as national currency, however euro is widely used and accepted all over Hungary. Budapest is a charming capital on the banks of Danube river, visited by millions of tourists every year.

Hungary ran the Golden bond residency scheme from 2013 and 2017 . But, in Nov 2023, Hungary has reopened the Golden visa program, introducing a “Guest investor visa” program to revive the real estate market, providing residence permits to foreigners to invest in luxury real estate properties. The Guest investor permit applications will be accepted by hungarian authorities starting from July, 1 2024.

Legislation

The President of Hungary has signed the T/6097 decree on Guest investor visa (“vendégbefektető vizum”) and now has been published in official gazette on 21.12.2023 officially becoming a law, thus officially opening the Hungarian golden visa program for property investment in Hungary.

The Hungary Guest Investor Program was launched based on to a Bill passed by parliament, on the entry and residence of third country nationals.

Benefits

– Best Golden Visa in Europe
– Fastest growing property market.
– Low corporate tax rates (9%)
– Free movement in Schengen area
– Attractive Investment destination in Europe.
– Major Trade hub with Excellent flight connections.
– Path to Hungarian Citizenship

Guest Investor Program

Guest Investor Visa

The Guest investor visa can be obtained by a third-country citizen whose entry and stay is of national economic interest in view of his investments in Hungary, or who submits a written undertaking that he undertakes to “implement an investment of a certain amount and type within three months of entering Hungary with a guest investor visa”. They must apply for this visa at Hungarian consulate in their country.

Guest Investor Permit

A Guest investor residence permit for guest investors may be granted to a third-country national whose entry and stay in Hungary is in national economic interest due to his/her investments realised in Hungary. Application for the issuance of a residence permit may be submitted only in Hungary. For those who received Guest investor visa, they must arrive in Hungary within 30 days they must collect the Residence permit issued to Guest investors.

Eligible Investments

The following are eligible investments for Guest investors

1. Real Estate Investment Fund (REIF)

Acquisition of investment bond certificates of at least EUR 250,000 issued by a real estate fund registered with the Hungarian National Bank. Investment must be kept for 5 years and residence permit issued for 10 years with another ten year extension.

List of Approved Funds

The following funds are approved by Immigration office eligible for Guest investor applications. The minimum investment required under the law is EUR 250,000 locked for 5 years.

1. Sprint Real Estate Investment Fund (Approved on Oct 29,2024)

2.Real Estate Property (opens Jan 1, 2025)

Investment in residential real estate with a value of at least EUR 500,000, located naturally in the geographical territory of Hungary, registered in the real estate register according to the topographical number. Investment must be kept for 5 years and residence permit issued for 10 years with another ten year extension.

Properties purchased on or after Jan 1, 2025 will be eligible for Golden visa. 

3. Monetary Donation

A monetary donation of at least EUR 1,000,000 to a higher education institution maintained by a public interest trust foundation performing a public task for the purpose of supporting educational, scientific research, artistic creative activities.

How to Apply

Third country nationals must file their applications through Enter Hungary platform first to get appointment for in person visit and biometrics before the competent regional directorate of NDGAP as per the applicant’s place of accommodation. 

The National Directorate-General for Aliens Policing will process applications starting from 2024. The Guest investors will receive a residence permit indefinitely valid for upto 10 years with another ten year extension on the pre-condition that investment is maintained. Family members also qualify for same validity.

Application Stages

The Hungarian guest investor visa program comprises of several stages from initial application to investment to citizenship. The processing time is approximately 4-6 months.

1. Initial stage
   • Due diligence check
   • Document collection
   • Application package preparation
   • Payment of the Professional and Legal fees
   • Timeframe: depends on client
2. Entry visa application
   • Appointment request
   • Personal visit to the Hungarian Consulate
   • Approximate time to receive the visa: a month.
3. Investment (starting also with the Initial stage)
   • Document collection
   • Account opening by the financial institution
   • Signing of the custody agreement during the personal visit to Hungary
   • Transferring the €250,000 fund investment, the custody account opening fee of €2,000 and the 5-year custody account maintenance fee of €2,300 to the fund distributor
   •  Approximate time for the account opening process: max. 2 months.Special rule: Client has 90 days for executing the investment after the entry visa is issued (if coming from a visa-required country) or from the entry to Hungary (if coming from a non-visa country).

4. Residence permit application
   • Applying for the residence permit either in person, or electronically (in this case client needs to come personally for the biometrics within 15 days after submission)
   • Approval and issue of the residence permit
   • Approximate time for the delivery of the residency card: 3 months.
5. Family reunification (after the main applicant receives the residency permit)
   • Appointment request at the consulate
   • Family members apply personally at the consulate for family reunification permit
   • Approval and issue of the residence permit
   • Residence permit card should be received by applicant(s) in Budapest personally.

Required Documents

The following are full comprehensive list of documents required to file the application at the Aliens police immigration authority. Please prepare accordingly.

Note some documents (eg. criminal record certificate, birth, marriage certificates) require apostile to be accepted in Hungary. Documents not in english must be translated in Hungary (embassy) or by Hungarian Office for Translation and Attestation (OFFI)

1. General documents

1. Initial documents

• Full copy of a valid passport
• proof of bank account balance to cover travel expenses
• declaration on voluntary departure in case a decision of refusal is made
• in the case of a legal representative, a power of attorney issued under the name of the legal representative

2. Documents proving the purpose of residence

• a certificate of the purchase of the investment fund share from the real estate fund manager registered by the Hungarian National Bank or from the distributor of the investment fund share of EUR 250 000 issued under the name of the third-country national
  Or
  a contract of sale and purchase, countersigned by a lawyer, concerning a residential property with a value of at least EUR 500 000, located in the geographical territory of Hungary and registered in the Land Registry of Hungary under its parcel identification/topographical LOT number, free and clear of all liens, claims and encumbrances
  Or
  a certificate of an institution of higher education maintained by a public trust foundation with a public-service mission that the higher education institution has received a grant of at least EUR 1 000 000 from the third-country national to support the educational, scientific research or artistic creation of the third-country national
• a certificate of the purchase of the investment fund share from the real estate fund manager registered by the Hungarian National Bank or from the distributor of the investment fund share of EUR 250 000 issued under the name of the third-country national
  Or
  a contract of sale and purchase, countersigned by a lawyer, concerning a residential property with a value of at least EUR 500 000, located in the geographical territory of Hungary and registered in the Land Registry of Hungary under its parcel identification/topographical LOT number, free and clear of all liens, claims and encumbrances
  Or
  a certificate of an institution of higher education maintained by a public trust foundation with a public-service mission that the higher education institution has received a grant of at least EUR 1 000 000 from the third-country national to support the educational, scientific research or artistic creation of the third-country national

3. Documents proving your means of subsistence

Proof of income issued by the tax authority for the previous year
And/Or
employer’s certificate for regular income from abroad
And/Or
tax authority certificate for regular income from abroad
And/Or
certificate issued by a financial institution regarding a bank account managed in Hungary or abroad

4. Documents proving the accommodation

• residential lease contract
• a document regarding the courtesy use of accommodation and the consent of the usufructuary (if the property is in usufruct)
• a document proving ownership of the apartment
• proof of accommodation booked and paid for
• a declaration guaranteeing the applicant’s accommodation
• a copy of the real estate sales contract and the decision of the competent capital or county government office authorising the acquisition of the real estate

5. Documents proving the completeness of health care

• a copy of the social security card issued by the Hungarian authorities
• a business health insurance policy entitling you to full health cover and proof of payment of the insurance premium
• a statement of bank account balance to cover any possible medical expenses

Residence Condition

No requirement to live permanently in Hungary as long as the investor maintains their investment. They need to come to Hungary for biometrics once infront of immigration office and for renewals. Those applying from abroad need to apply for long term “D” national visa to come to Hungary to receive their residence cards.

Hungary Property Market

The real estate prices in Hungary, particularly in capital Budapest, is the still low compared other major European cities, makes it attractive for foreigners to invest in properties. The Property prices in capital floats around EUR 2,500 to EUR 3,000 in downtown districts of 5 and 6. Lake Balaton area is super popular with Germans, French, Brits and other europeans.

Property taxes

Companies or legal persons can also buy properties.. Buying an apartment in Hungary is a straight forward process. The paper work for this is always prepared by the lawyer when the contract of sale is signed with usual 10% deposit and sale registered in 30-60 days.

• Registration costs – 4%
• Lawyer fee 1%
• Broker commission – (Paid by seller)
• VAT 5% (only for newly built properties)

Note: If you buy a land and construct a house on it within 4 years, property tax can be reduced to 0%.

Best Locations – The top locations to buy a property in Hungary are

• Budapest (Downtown districts I, II, III, V, VI, VII, IX, XI) and most expensive Districts XII and XIV
• Lake Balaton Riviera (Siófok, Balatonfüred, Balatonalmádi, Keszthely, Zamárdi, Balatonkenese and Fonyód )
• Other Cities ( Debrecen, Szolnok, Pecs, Gyor, Szeged, Eger)

Capital Gains Tax

Capital gains tax is applicable when a property is sold within 5 years of purchase. The rate is 27% for residents and 32% for non-residents. If a property is sold after 5 years of purchase, then the rate is reduced to 20%.

Income Tax from rental income can vary from 15% to 35%.

Wealth Taxes

There is no net wealth/worth taxes in Hungary. The general inheritance and gift tax rate is 18%, and a preferential 9% tax rate applies to residential property.

Permanent Residency

Hungary grants two types of permanent residence permits to foreigners based on habitual residence. The National residence permit is granted after 3 years of living and EC permanent residence after 5 years of continuous living without absence.

Hungarian Citizenship

Investors can naturalize for citizenship with PR status after 8 years of residence (spend majority time in Hungary). Applicants must have no criminal record, satisfy necessary subsistence and also pass civic and hungarian language test.

Hungary Passport

The Hungarian passport (“Útlevél”) is a powerful EU  travel document with visa free access to 186 visa free countries in the World.

The Hungarian government has relaunched the golden visa program in 2024. The Hungary guest investor visa scheme (aka golden visa) is currently open for foreign investors, who make property investment in Hungary. Foreign investors can receive a ten year residence permit based on national economic interest for their investments.

FAQs

Below are frequently asked questions. If you have any questions, please contact us for a free consultation.

Who are eligible for Hungary Guest Investor Program?

Under the Guest investor program, third-country nationals are eligible to be granted a residence permit (golden visa) for guest investor, whose entry and stay in Hungary is in national economic interest due to his/her investments realised in Hungary. EU/EEA/Swiss/Andorra nationals cannot apply.

Is the program open and currently receiving applications?

Yes, the program accepting applications from Jul 1, 2024.

What are the benefits of the program?

Foreign investors who make a qualifying investment can enjoy the following benefits.

– Immigrate to Europe to a safe, peaceful country with high living standards.
– Residence card issued for 10 years.
– Live, Study, and Work in Europe.
– Free movement in the Schengen area.
– No minimum residence conditions.
– Refundable real estate investment with annual returns.
– Minimum 5 year investment period
– Hungarian citizenship (EU) after 8 years of living.

What is the legal background?

The President of Hungary has signed the T/6097 decree on Guest investor visa (“vendégbefektető vizum”) and has been published in official gazette on 21.12.2023 adopted new Immigration law from Jan 1, 2024 on the entry and exit of third country nationals, thus officially opening the Hungarian golden visa program for property investment in Hungary.

Do i need to rent/own a place for residence?

Yes, you need to rent a place to live, as required by immigration office to issue residence permit.

• residential lease contract,
• ·a document on accommodation provision by courtesy,
• ·a document in proof of ownership of the residential property,
• ·a document in proof of the reservation of accommodation and payment for it.

Can i work in Hungary as Guest investor?

Yes no restrictions.

Investor – The residence permit for guest investors entitles its holder to pursue activities independently, for remuneration or act as a chief executive of a business organisation, cooperative or other legal entity established for the purpose of gainful activity.

Family – The Residence permit family reunification entitle their holder to perform actual work for or under the direction of others, for remuneration, under contract for employment relationship.

What are the conditions for investment?

You must within 3 months after entering Hungary that you have completed the committed investment. Certification of the realised investment will be examined by NDGAP authority.

Where can I apply in Hungary?

If you already hold a Schengen visa or visa free entry, application can be filed at National Directorate of Aliens Policing (NDGAP Immigration authority), as per your place of accommodation for biometrics and collection of residence document. The facial photograph and fingerprint of the applicant is taken and signature specimen of the applicant is recorded within 15 days from the date of receipt.

Do I need to live in Hungary?

No. There are no minimum residence conditions specified.

What is the processing time?

The procedural administration: 21 days, but please expect unto 3-4 months until receiving residence card.

Can I appoint a proxy or authorised person?

Yes you can appoint a lawyer or legal person to represent your case with the immigration authority.

Can stateless people apply?

Yes, they can, under the relevant laws.

What are the conditions of extension of Guest investor permit?

The extension residence permit is only possible if you are a holder of a valid residence permit for guest investor at the time of application submission. please note that an application for the extension of a residence permit is to be submitted at least 30 days prior to the date of expiry of the issued residence permit.

Conditions must be met

• if the investment on the basis of which the residence permit was issued was an investment fund share, the applicant is required to have the investment at the time of application submission,
• if the investment on the basis of which the residence permit was issued was ownership interest over a real estate property, then the applicant continues to have ownership interest over the property based on which the residence permit was issued with a value of at least EUR 500 000, or if the applicant no longer has ownership interest over the property based on which the residence permit was issued, or the value of the ownership interest over the property is less than EUR 500 000, the applicant has a new real estate investment meeting the same conditions at the time of application submission,
• if the investment on the basis of which the residence permit was issued was provision of a financial donation, the extension of the residence permit may be granted without further investments realised.

What is the validity period of residence permit?

Validity period of the document is granted in 10 years, and it may be extended for another 10 years (only once) for the same purpose.

For how long I can visit other Schengen countries?

Maximum 90 days in 180 day period for visits, business, study, tourism only. For stays more than 180 days (eg. Study) you must apply for a separate residence permit in that country.

Who are eligible family members?

A family member of a person in possession of a investor residence card can include

• the spouse of the third-country national (including registered partner under Act XXIX of 2009),
• the minor child (including adopted and foster children) of a third-country national and his/her spouse,
• the dependent minor child (including adopted and foster children) of a third-country national where this third country national has parental custody,
• the dependent minor child (including adopted and foster children) of the spouse of a third-country national where the spouse has parental custody,
• a person having and exercising parental custody of a minor Hungarian child and living in the same household with the minor

qualify as family member. A residence permit for the purpose of family reunification shall be issued to the third-country national child born in Hungary of a third-country national residing in Hungary with a residence permit.

What if my application is refused?

The refusal decision may be appealed within 8 days of delivery, submitted to the authority of first instance, or at the Hungarian diplomatic or consular foreign mission where the application was submitted.