Hungary Guest Investor Residence Visa

Relaunch of Hungary Golden Visa as Hungary Guest
Investor Residence Visa Program

Table of Contents

  1. What is the eligibility criteria of Hungary Guest Investor Residence Visa Program ?
  2. Process of Hungary Guest Investor Residence Visa
  3. What are the benefits of Hungary Guest Investor Residence Visa Program ?
  4. Some information and fun facts about Hungary
  5. What are the limitations of the Hungary Guest Investor Residence Visa Program ?
  6. FAQs about Hungary Guest Investor Residence VisaProgram.

Eligibility Criteria for Hungary Guest
Investor Residence Visa Program

Eligibility for the Hungary Guest Investor Residence Visa hinges on several key investment options and specific requirements that investors must meet:

  1. Real Estate Investment Fund:
    • Investment Amount: Investors must acquire investment certificates worth at least EUR 250,000 from a real estate fund registered with the National Bank of Hungary.
    • Asset Allocation: At least 40% of the fund’s net asset value must be invested in Hungarian residential real estate, ensuring a substantial focus on the housing market.
    • Holding Period: Investors are required to hold these certificates for a minimum of five years, promoting long-term investment stability.
    • Regulated Fund Managers: Only fund managers with a financial license and either a site security certificate or registration with the Constitution Protection Office can manage these funds, ensuring compliance with investment principles and security protocols.
  2. Real Estate Acquisition (Effective from January 1, 2025):
    • Minimum Property Value: Investors must purchase strictly residential property in Hungary with a minimum value of EUR 500,000.
    • Property Conditions: The property must be free of disputes, encumbrances, and claims, ensuring a clear title.
    • Ownership and Holding Period: The property must be owned by the investor or jointly with family members for at least five years, with the main applicant holding a minimum share of EUR 500,000.
    • Property Transfer Tax: A 4% property transfer tax applies, calculated based on the property’s market value.
    • Rental Income: Investors can rent out the property, benefiting from Hungary’s personal income tax cap of 15% on rental income.
  3. Donation to a Hungarian Public Trust:
    • Minimum Donation Amount: A monetary donation of at least EUR 1 million to a higher education institution operated by a public trust performing public functions is required.

General Eligibility Criteria:

  • Third-Country Citizens: The program is open to citizens from outside the European Union.
  • Security Clearance: Applicants must not have any Schengen Information System alerts, expulsions, or entry bans, and must not pose a threat to public order, security, or national security, as verified by Hungary’s law enforcement and national security services.

These eligibility criteria ensure that investors are committed to substantial, secure, and beneficial investments, aligning with Hungary’s economic and social goals.

Process of Hungary Guest Investor Residence Visa

The procedure and timeframe for obtaining the Hungary Guest Investor Residence Permit are structured to ensure a smooth and efficient process for eligible investors. The key steps and timelines are as follows:

1. Obtaining the Hungary Guest Investor Residence Visa

o Initial Application: Investors must first apply for the Hungary Guest Investor Residence Visa, during which they declare their commitment to one of the eligible investment options. This declaration is required, but the investment does not need to be finalized at this stage. o Travel to Hungary: Once the visa is granted, investors must travel to Hungary to complete the investment process.

2. Completing the Investment:

o Investment Period: After entering Hungary, investors have a three-month window to finalize their investment. This period allows ample time to ensure that all legal and financial aspects of the investment are properly handled. o Proof of Investment: Investors must provide proof of their completed investment when applying for the residence permit. This documentation is critical to demonstrate compliance with the program’s requirements.

3. Applying for the Guest Investor Residence Permit:

o Submission Timeline: Investors must apply for the residence permit within 93 days of their initial entry into Hungary. This application can be submitted to the immigration authority or via the electronic platform to enter Hungary. o Required Documentation: Along with the application, proof of investment and other required documents must be submitted to support the application.

4. Processing Time

o Application Review: The processing time for the residence permit application is approximately 21 working days. During this period, the authorities will verify all submitted information and documents. o Residence Permit Issuance: Once approved, the applicant, along with their qualifying spouse and children, will receive a long-term residence permit valid for ten years. This permit can be renewed for an additional ten years, provided the investment is maintained.

5. Long-Term Benefits:

o No Further Travel Required: After receiving the residence permit, investors are not required to travel to Hungary further unless they choose to. o Permanent Residency and Citizenship: Investors may become eligible for permanent residency after three years of lawful residence in Hungary. Citizenship may follow after eight years, with a requirement to pass a Hungarian cultural exam.

This streamlined procedure ensures that investors can efficiently secure their residency in Hungary while meeting all necessary legal and financial obligations.

Benefits of Hungary Guest Investor Residence Visa Program

Hungary offers an attractive residency by investment program, known as the Hungary Guest Investor Residence Permit, which provides a range of benefits for investors and their families:

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1. Visa-Free Travel

Permit holders can enjoy visa-free travel within Europe’s Schengen Area, facilitating easy and unrestricted movement across many European countries.

2. Residency and Work Rights

Investors and their families gain the right to live and work in Hungary, providing access to Hungary’s robust economy and favorable living conditions.

3. No Minimum Stay Requirement

There is no mandatory minimum stay requirement, offering flexibility for those who may need to travel frequently or reside in other countries.

4. Family Inclusion

The program extends to include the investor’s spouse and children under 18, ensuring that the entire family can benefit from the European residency.

5. Income-Generating Investments

Investments made, particularly in real estate, can generate income. Properties acquired can be rented out, offering an additional revenue stream and taking advantage of Hungary’s favorable personal income tax on rental income, capped at 15%.

6. Long-Term Security

The residence permit is valid for ten years and can be renewed for an additional ten years, providing long-term stability and security for the investor and their family.

7. Pathway to Permanent Residency and Citizenship

After three years of lawful residence, investors may apply for permanent residency. Furthermore, the pathway to citizenship is available after eight years, with certain exceptions for minor children or spouses, though passing a Hungarian cultural exam is required.

8. Strategic Location

Located in the heart of Europe, Hungary offers strategic access to European markets, making it an ideal base for business operations and travel within the region.

Overall, the Hungary Guest Investor Residence Visa program combines the benefits of European residency with flexible and potentially lucrative investment opportunities, making it an attractive option for global investors.

Some Info and Fun Facts About Hungary

Hungary, with its capital in Budapest, has a population of approximately 9.6 million people. The official language is Hungarian, which is unique in Europe as part of the Finno-Ugric language family. Currency used here is the Hungarian Forint (HUF). As of recent data, Hungary boasts a GDP per capita of around $18,000, reflecting its growing economy and integration within the European Union.

  1. Invention Hub: Hungary is known for its numerous inventions and discoveries, including the Rubik’s Cube, the ballpoint pen, and holography.
  2. Thermal Baths: Hungary is famous for its thermal waters. Budapest alone has over 100 thermal springs, earning it the nickname “City of Spas.”
  3. Oldest Metro: Budapest’s Metro Line 1, also known as the Millennium Underground, is the oldest electrified underground railway on the European continent, opening in 1896.
  4. Tokaji Wine: Hungary is home to the world’s first officially designated wine region, Tokaji, which is renowned for its sweet dessert wine, Tokaji Aszú.
  5. Rich Cultural Heritage: Hungary boasts numerous UNESCO World Heritage Sites, including the Buda Castle, the Banks of the Danube, and the Hortobágy National Park.
  6. Unique Language: The Hungarian language, Magyar, is one of the few non-Indo-European languages in Europe and is part of the Finno-Ugric language family, making it distinct from its neighbors.
  7. Lake Balaton: Central Europe’s largest lake, Lake Balaton, is located in Hungary. It’s a popular destination for sailing, swimming, and wine tasting.
  8. Paprika Powerhouse: Paprika, a staple in Hungarian cuisine, is a national spice. Hungary is one of the world’s leading producers of this vibrant red spice.
  9. Architectural Marvels: The Hungarian Parliament Building in Budapest is the third-largest parliament building in the world and one of the most iconic symbols of the country.
  10. Rich Literary Tradition: Hungary has a strong literary tradition with famous writers like Sándor Márai and Imre Kertész, the latter of whom won the Nobel Prize in Literature in 2002.

These fun facts showcase Hungary’s rich history, cultural significance, and contributions to the world.

Limitations of the Hungary Guest
Investor Residence Visa

While offering numerous benefits, also comes with certain limitations that potential investors should be aware of:

  1. High Investment Threshold:
    • The minimum investment amounts are substantial, with the real estate acquisition requiring at least EUR 500,000 and the donation option needing EUR 1 million. This can be a significant financial barrier for some investors.
  2. Long-Term Commitment:
    • Investors must hold their investments for a minimum of five years, whether it’s in real estate or investment funds. This long-term commitment may limit financial flexibility.
  3. Property Restrictions:
    • Only residential properties are eligible for the real estate investment option. Commercial or industrial properties do not qualify, potentially limiting investment opportunities for those interested in different sectors.
  4. Property Ownership Conditions:
    • The property must be free of disputes, encumbrances, and claims, and investors must ensure that it remains uncontested. This can require thorough due diligence and legal checks.
  5. Cultural Exam Requirement:
    • For those seeking permanent residency or citizenship, a Hungarian cultural exam is required, which can be challenging for non-native speakers and those unfamiliar with Hungarian culture and language.
  6. Tax Implications:
    • While Hungary offers favorable tax conditions on rental income, investors must still pay a 4% property transfer tax on real estate acquisitions, which adds to the overall cost of investment.
  7. Security Clearance:
    • Applicants must not have any alerts, expulsions, or entry bans in the Schengen Information System and must pass security checks by Hungary’s law enforcement and national security services.
  8. Regulatory Changes:
    • Immigration and investment regulations can change, potentially affecting the conditions and benefits of the program. Investors must stay informed about any legislative updates.
  9. Non-Residency Flexibility:
    • Although there is no minimum stay requirement, some may see this as a limitation if they prefer or need to spend significant time in Hungary to manage their investments or integrate into the community.
  10. Competitive Alternatives:
    • Other countries offer similar or more attractive residency by investment programs, which might have lower financial thresholds, shorter investment periods, or more flexible terms, making Hungary’s program less competitive in some cases

These limitations should be carefully considered by potential investors to ensure that the Hungary Residence by Investment program aligns with their financial goals and personal circumstances.

10 Frequently Asked Questions on
Hungary Guest Investor Residence Visa

1. What are the primary benefits of the Hungary Guest Investor Residence Visa Program?

o The program offers visa-free travel within Europe’s Schengen Area, the right to live and work in Hungary, inclusion of spouse and children under 18, and the potential for income-generating investments in real estate.

2. What are the minimum investment requirements for the Hungary Guest Investor Residence Visa?

o The minimum investments are EUR 250,000 for real estate investment funds, EUR 500,000 for residential real estate acquisition, and EUR 1 million as a donation to a Hungarian public trust.

3. Is there a minimum stay requirement for the Hungary Guest Investor Residence Visa?

o No, there is no minimum stay requirement, offering flexibility for investors who may need to travel frequently or reside in other countries.

4. What types of properties can be purchased for the real estate investment option?

o Only strictly residential properties are eligible. Commercial or industrial properties do not qualify. The property must also be free of disputes, encumbrances, and claims.

5. How long must the investment be held to maintain the residence permit?

o Investments must be held for a minimum of five years, whether in real estate or investment funds, ensuring a long-term commitment.

6. Are family members included in the residence permit?

o Yes, the program includes the investor’s spouse and children under 18, allowing the entire family to benefit from European residency.

7. What are the tax implications of investing in Hungarian real estate?

o A 4% property transfer tax applies to real estate acquisitions, and Hungary’s personal income tax on rental income is capped at 15%.

8. What are the security clearance requirements for applicants?

o Applicants must not have any Schengen Information System alerts, expulsions, or entry bans, and must pass security checks by Hungary’s law enforcement and national security services.

9. How long does it take to process the residence permit application?

o The processing time for the residence permit application is approximately 21 working days once all required documents and proof of investment are submitted.

10. What is the pathway to permanent residency and citizenship in Hungary?

o Investors may become eligible for permanent residency after three years of lawful residence. Citizenship can follow after eight years, with a requirement to pass a Hungarian cultural exam.

These FAQs provide a comprehensive overview of the key aspects of the Hungary Guest Investor Residence Visa program, addressing common inquiries from potential investors.