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Hungary has officially launched its residence by investment program, known as the "Golden Visa," starting from July 1, 2024.
This program offers foreign investors a strategic and fast-track route to a long-term residence permit, with privileged access to the Schengen area.
In addition to representing an attractive financial opportunity, this scheme is a major asset for entrepreneurs and families wishing to establish themselves permanently in Europe.
What are the investment options?
The residence permit is accessible to non-EU citizens making a significant economic investment in Hungary.
Currently, there are two options available for investors seeking to obtain a Hungarian Golden Visa:
- Investment in a Local Real Estate Fund
Investors must place a minimum of 250,000 EUR in an accredited real estate investment fund registered with the Hungarian National Bank. At least 40% of the fund's assets must be dedicated to residential real estate in Hungary. This investment is locked for a minimum duration of 5 years.
There are currently two accredited investment funds, each differing in approach and management, but both are professionally managed and supervised by public authorities.
Thanks to our local partner, we have already had the opportunity to meet with the management teams of both funds in recent weeks, giving us all the necessary parameters and criteria, pricing, and procedures to effectively and transparently submit an application.
- Donation to a Public Interest Foundation
Another, less attractive option is to make a donation of at least 1,000,000 EUR to an academic institution managed by a public interest foundation with a state mission. These funds will support education, scientific research, and artistic or creative activities.
What is the validity period of the Hungarian Golden Visa?
The residence permit obtained through the Golden Visa is divided into two phases:
- First, a 6-month residence permit is granted to the investor. During this period, the visa conditions are reviewed, the source of funds is analyzed, and the investor's criminal background is scrutinized by Hungarian authorities based on information exchanged with the authorities of the investor's country of residence. This step also includes opening a bank account and providing proof of the investment transaction.
- If the visa is validated at the end of this 6-month period, the investor and their family are granted a 10-year residence permit, renewable once for an identical period.
What are the benefits of this Golden Visa?
One of the main attractions of the Hungarian Golden Visa lies in the flexibility of its residence conditions. Unlike other similar programs in Europe, it does not impose any strict physical residency requirements in Hungary. The investor can thus maintain their international activities while enjoying European resident status.
Moreover, the program facilitates family reunification: spouses, minor children, and other direct dependents can also obtain a residence permit under this procedure or based on existing European legislation.
Obtaining the Hungarian Golden Visa also paves the way to permanent residence and then naturalization. After a period of continuous residence, investors can apply for a national or European permanent residence card. This status can subsequently lead to Hungarian citizenship, thereby offering a European passport to beneficiaries and their families.
In addition to the ease of movement within the Schengen area, other benefits include the possibility of establishing a business in Hungary, enjoying a lower cost of living compared to other European countries, and accessing an attractive tax system. Indeed, with a 15% personal income tax rate and a 9% corporate tax rate, Hungary offers one of the most competitive tax regimes in Europe.
Conclusion
In conclusion, the Hungarian Golden Visa program represents a unique opportunity for investors from non-EU countries who wish to establish themselves permanently in Europe and secure a stable future for their families. As other countries phase out this option (e.g., Spain starting in April) or reduce the appeal of their systems (e.g., Portugal), Hungary, with its growing economy and real estate market, offers an alternative and more attractive solution.
Thanks to its network of international and Hungarian partners and its extensive experience in immigration and international taxation, Vanbelle Law Boutique guides you through every step of the process, from preparing your application and obtaining your residence permit to optimizing your tax situation. We provide personalized support and comprehensive care to maximize your chances of success.
