The Hungarian “golden visa” will officially start working on July 1. The new program can be considered the “successor” of the old one, which was closed in 2017. However, that program was not particularly in demand, but the current one is awaited with particular impatience. While other countries are closing opportunities for investment immigration, a new one is emerging in the center of Europe. What Hungary offers investors and how to act in practice?
The official new program “Visiting Investor Visa” will start on July 1, 2024. It implies issuance of a ten-year residence permit with guaranteed renewal for a second term in exchange for one of the following investments.
Option 1. Acquisition of €250 thousand investment units in real estate funds registered with the National Bank of Hungary
Only real estate funds from the list of qualified market operators under the authority of the Office for the Protection of the Constitution with an asset portfolio of at least €100 million can participate in the program. To be fair, this register has not yet been formed and it will take time to create it. So far, with a high degree of probability, we can talk about only one fund that will definitely be able to participate in the program.
Important! The term of asset retention by the Hungarian fund is five years. But since it is obvious that the main goal of most investors is not profitability, but participation in the program and the ability to easily withdraw from the investment, it is assumed that the holding period of the unit will be shorter than the period of validity of the residence permit card.
Option 2. Purchase of residential real estate in any region of Hungary for a minimum amount of €500 thousand.
In the program can participate only ready-made objects, i.e. projects under construction are not suitable for obtaining a residence permit. Claim to the status of resident will only be able to those property owners who will issue a certificate of ownership after January 1, 2025. In fact, to come and select an object to participate in the program can be now, but the deal and apply for a residence permit – only after January 1 next year.
Why postponed the most interesting option for investors? Obviously, Hungarians were not ready for the launch from a bureaucratic point of view. With real estate, especially secondary real estate, it is more difficult to do this than with the more regulated segment of funds.
The program does NOT have restrictions on the nationality of applicants, and Russians can also apply. The compliance procedure is formally the same for all participants, without being tied to the selected option.
Please note! When buying real estate, there may be restrictions not related to the rules of the program.
Option 3. A €1 million donation to a higher education institution under the auspices of public interest asset management funds
This investment option is the least attractive as it does not offer a return on the invested capital.
What will be required of program participants. The applicant must prove that he/she:
- has no criminal record
- is not a politically exposed person
- is not under sanctions
There is nothing new here – these conditions are similar to the rules of all “golden visa” programs of other countries.
Who can receive a residence permit together with the main applicant
To apply for a “golden visa” together with the investor the following are elegible:
- Spouse
- Children (financially dependent and unmarried)
- Parents of both spouses (financially dependent)
What to do to obtain a “golden visa” of Hungary
First of all, it is advisable to undergo a KYC background check. Lawyers will check for criminal records, source of income, etc. The verification process takes a few days. Sign a legal support contract with an immigration consultant and – start preparing documents.
Here is a basic list
- Statement of intent to make an investment
- Passport
- Certificate of income
- Certificate of registration
- Certificate of no criminal record
- Medical insurance
- Marriage and birth certificates for children
- Bank statement on availability of funds for living in Hungary
- A copy of the rules of all “golden visa” programs of other countries.
The applicant must then apply for a D-type Visitor Investor Visa at the nearest consulate or embassy in their place of residence. The visa approval process now takes about two weeks. Having received the visa, it is possible to enter the country, after which the investment must be made within three months.
Then the applicant receives a certificate – proof of investment, applies for a residence permit – and waits. It is not clear yet how long the application will take. The optimistic forecast is two to four weeks.
And the final stage – obtaining a residence permit. The resident card is promised to be issued within a month.
