Hungary Residency by Investment Program

Hungary Residency by Investment Program

Hungary’s Residency by Investment Program, commonly known as the Golden Visa or Guest Investor Program (GIP), offers a unique pathway to secure long-term residency in the heart of Europe. As of its relaunch in July 2024, the program provides a variety of flexible investment options, allowing global investors a streamlined route to residency, visa-free Schengen access, and the possibility of permanent residency or citizenship over time.

In this article, we’ll cover the benefits of Hungary’s program, the different investment routes available, application requirements, and why Hungary’s residency option is a leading choice for investors looking to establish a European presence.

Consultation

Why Choose Hungary’s Residency by Investment Program?

  1. Prime European Access: The Hungary Golden Visa grants visa-free travel across the Schengen Zone, covering most EU countries, which is highly advantageous for business and leisure travelers alike.
  2. Low Cost Compared to Other EU Programs: Hungary’s minimum investment starts at €250,000, making it one of the more affordable European Golden Visa programs. This contrasts with other countries where investments may start from €500,000 or higher.
  3. Long-Term, Renewable Residency: The Golden Visa offers a 10-year residence permit that can be renewed indefinitely, allowing applicants to enjoy life in Hungary or establish a base in Europe without having to reapply annually.
  4. Flexible Living Arrangements: Unlike many residency programs, Hungary’s Golden Visa has no minimum stay requirement. This feature offers flexibility for investors who may not want to relocate full-time but still wish to maintain a European residency.
  5. Favorable Tax System: Hungary’s low corporate tax rate (9%) and double-taxation agreements with over 80 countries make it attractive for investors managing businesses or income abroad.

Investment Options for the Hungary Golden Visa

The Hungary Guest Investor Program offers three main investment pathways, allowing flexibility based on the investor’s goals and budget:

1

Real Estate Fund Investment

  • Investment Amount: €250,000;
  • Details: By investing in a government-approved real estate fund, investors can secure residency without directly managing property. The funds are typically used to support real estate development and related projects.
2

Direct Real Estate Purchase

  • Investment Amount: €500,000;
  • Details: This option allows investors to purchase property directly in Hungary, often a popular choice due to Budapest’s attractive real estate market. This path is ideal for those looking to combine residency with tangible property assets.
3

Public Trust Donation

  • Investment Amount: €1 million (non-refundable);
  • Details: This option requires a significant charitable donation to a public interest trust. While it is the most expensive option, it offers a straightforward way to secure residency, with no obligations tied to real estate management.

Each investment route is designed to cater to different investor needs, from those seeking a passive investment through funds to those desiring a personal stake in Hungary’s real estate market.

Eligibility and Requirements

To apply for Hungary’s Golden Visa, applicants must meet certain criteria:

  • Age: All primary applicants must be at least 18 years old.
  • Clean Criminal Record: Proof of no criminal history is required.
  • Financial Proof: Applicants must demonstrate the financial means necessary to make the investment and sustain themselves.
  • Health Insurance: Proof of health insurance coverage is necessary for all applicants.
  • Family Inclusion: Spouses, minor children, and financially dependent parents can be included in the application, though additional fees apply.

The entire application process is straightforward and can generally be completed within 4-8 weeks, making it one of Europe’s fastest residency routes.

Pathway to Permanent Residency and Citizenship

While the Golden Visa itself is a long-term residency permit, it offers a pathway toward permanent residency and, eventually, citizenship:

  • Permanent Residency: After five years of continuous residence in Hungary, investors are eligible to apply for a permanent residency permit. This permit is issued for life but requires ID renewal every five years.
  • Citizenship: After holding permanent residency for three additional years (eight years in total), applicants can apply for Hungarian citizenship. This requires passing a Hungarian language test and demonstrating knowledge of Hungarian constitutional studies. Hungary permits dual citizenship, allowing investors to retain their original nationality.
  • EU Freedom of Movement: Upon becoming a citizen, investors gain the right to live, work, and study anywhere in the European Union.

Advantages of Choosing Hungary

Hungary’s location, low cost of living, and appealing lifestyle make it an ideal choice for those looking to enjoy European residency without a high price tag. Here are a few additional reasons why Hungary stands out:

  • Affordable Cost of Living: Hungary offers a relatively low cost of living compared to other EU nations, making it ideal for expats and families. Housing, dining, and daily expenses are more affordable, especially outside of Budapest.
  • Dynamic Expat Community: Budapest has a thriving expat community and ample social opportunities, easing integration for newcomers.
  • Rich Culture and Heritage: Hungary’s cultural vibrancy, with its historic cities, music, festivals, and cuisine, offers newcomers a rich cultural experience.
  • Top-Quality Healthcare and Education: Residents have access to Hungary’s high-standard healthcare system and educational facilities, making it a family-friendly choice.

How to Apply for Hungary’s Golden Visa

  1. Initial Consultation: Start with a consultation to assess your eligibility and determine which investment option aligns with your goals.
  2. Prepare Documentation: Gather necessary documents, including proof of financial stability, a clean criminal record, and proof of investment funds.
  3. Submit Application: Once your documents are ready, submit your application through the Hungarian authorities or a trusted immigration law firm. This includes providing biometric data, such as fingerprints, and paying associated administrative fees.
  4. Approval and Residency Permit Issuance: The standard processing time is approximately 4-8 weeks. Upon approval, you will receive a 10-year residence permit, granting you the freedom to reside in Hungary and travel within the Schengen Zone.

Conclusion: Invest in Hungary for Long-Term European Residency

Hungary’s Golden Visa Program offers a streamlined, affordable pathway to European residency through flexible investment options, tax advantages, and minimal residency requirements. Whether you seek a Schengen-accessible base, real estate opportunities, or a future pathway to EU citizenship, Hungary’s residency program is designed to accommodate a range of investor needs.

Ready to take the next step? Contact our legal team for a tailored consultation on securing your future in Hungary and discovering the benefits of European residency by investment.

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