A first among EU residency programs, Hungary has officially launched its 10-year Golden Visa on July 1, 2024. Known as the Hungary Investor Visa, this program marks a significant evolution in Europe’s residency by investment landscape, offering unprecedented long-term stability for non-EU and non-EEA citizens. Here’s a detailed look at what the new Golden Visa involves and the benefits it holds.
Historical Context and Legislative Evolution
In November 2023, Hungary’s government proposed new legislation aimed at attracting global investors by providing them with a long-term residence permit. Previously, the country offered temporary residency through a minimum real estate investment of €155,000. A permanent residency program was also in place until 2017 but was subsequently phased out. With the new Investor Visa, Hungary is shifting towards a unique long-term offering which will set the program apart compared to other EU Golden Visa alternatives.
New Investment Thresholds and Options
Under the new Investor Visa, investors have several options to qualify:
- Investment in Real Estate Funds:
Investors will be able to qualify by investing a minimum of €250,000 in real estate funds, which must be accredited by the Hungarian National Bank. - Purchase of Real Estate:
Alternatively, investors can also qualify by investing a minimum of €500,000 in residential properties. This option mandates assessments by licensed valuators.
** The option to invest in real estate will only be available from January 1, 2025 – therefore, the acquisition of ownership can only occur from January 1, 2025, and ownership acquired before this date will not be eligible for participation in the program. - Donation to Educational Institutions:
Another pathway available to investors is the option to donate €1,000,000 to a Hungarian higher education institute. This contribution will support the educational sector, fostering advancements in science, arts, and research.
Application Process:
To engage in the investment opportunities, investors will have to first obtain a Guest Investor Visa, which will now be valid for six months instead of two years. This visa will allow the investor to enter Hungary and complete their investment, which must be done within three months after entry.
Following the investment, the process to secure a residence permit is streamlined, typically taking 6-8 weeks. Importantly, this permit is renewable after ten years, subject to ongoing compliance with all legal requirements.
Strategic Benefits of the Hungary Golden Visa
Enhanced Mobility: The Golden Visa grants extensive travel freedom within the Schengen Zone, facilitating easy access to numerous European destinations. This is ideal for investors seeking to leverage Hungary’s central location for business or leisure.
Family Inclusion: Investors can relocate with their families, leveraging Hungary’s high safety ranking – 17th globally according to the 2023 Global Peace Index – and its welcoming community.
Economic Advantages: With living costs significantly lower than several European countries, Hungary offers an economically viable option for relocation. Real estate prices in Budapest are also particularly attractive – starting at €3,700 vs €7,400 in Copenhagen for example – providing a cost-effective investment in a European capital.
Business Opportunities: Throught the Golden Visa, investors and their family members will be able to obtain employment and establish businesses within Hungary.
Healthcare and Education: Hungary is known for its excellent healthcare and educational facilities, with competitive pricing in medical tourism and 11 universities ranked in the top 1,500 globally in 2023.
Favorable Taxes: The country’s low income tax rate at 15%, and corporate tax rates at 9% are highly appealing, providing significant tax advantages for residents.
Secure Your Hungary Golden Visa with Soland
Are you considering relocating to Europe? Hungary’s 10-year Golden Visa is an apt choice, offering not only diverse investment avenues and significant mobility benefits, but also a high quality of life and economic efficiency in the heart of Europe. As such, it represents a unique and compelling opportunity for investors aiming to establish a European base in a stable, welcoming, and culturally rich country. This program is expected to be highly sought after, providing a secure and profitable pathway to European residency.
