Hungary’s Golden Visa has become an attractive choice for investors seeking European residency. With its strategic location, flexible investment options, and straightforward application process, Hungary provides a viable path to both residency and citizenship in the European Union. Zlata Erlach, Head of the Austrian office, Caribbean Investment Programs Expert at Immigrant Invest, explains why Hungary residence permit by investment is among the best golden visa programs.
Hungary Golden Visa Overview
Hungary Golden Visa allows non-EU nationals to obtain residency by investment with a minimum investment of €250,000. Investors get a residence permit for 10 years with the right to renew it for another 10 years.
Hungary has a favourable business climate, with a competitive corporate tax rate of 9%, one of the lowest in Europe. This makes it an attractive destination for investors looking to establish or expand their business operations within the European Union.
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Introduced to attract foreign capital, this program offers residency to individuals and their families in exchange for a financial contribution. Unlike other programs, Hungary’s approach emphasises both flexibility and investment security.
Hungary offers a more streamlined and accessible process than many of its European counterparts. Applicants benefit from fewer bureaucratic hurdles and enjoy easier access to the EU, Schengen Area, and long-term residency status.
Hungary Golden Visa Requirements
Eligibility criteria. To qualify for Hungary’s Golden Visa, applicants must meet a few key requirements. First, they must be non-EU nationals. They must also commit to a qualified investment, usually in government bonds or real estate. Applicants should be able to show a clean criminal record and adequate financial stability to support themselves and their families during their stay in Hungary.
Application for family members. Hungary’s Golden Visa program allows applicants to include immediate family members: spouses and dependent children and parents. This feature is a strong draw for investors looking to relocate with their families while securing education and healthcare benefits in Hungary and the EU.
Additional documents required. Besides proof of investment, applicants need to provide evidence of a valid passport, comprehensive health insurance, and proof of residence in Hungary, such as a lease agreement or property ownership. Applicants should also provide bank statements that demonstrate their financial capacity to live in Hungary without requiring state assistance.
Investment Options
Real estate investment. Applicants can purchase real estate in Hungary for €500,000 and more, which not only helps them meet residency requirements but also opens up potential rental or resale income opportunities. Hungary’s real estate market has seen steady growth, providing a stable and lucrative option for investors.
Fund units purchase. The original structure of Hungary’s Golden Visa included an option to invest in government bonds of €250,000 and more. Although this option has seen adjustments over time, some investors still favour this method due to its lower risk profile and the government-backed guarantee.
Other investment opportunities. Beyond real estate and bonds, Hungary occasionally offers other pathways, such as donation to an institution of higher learning — €1,000,000.
These options give investors flexibility based on their financial goals and preferences.
Real Estate Trends in Hungary
In recent years, Hungary’s property market has experienced consistent growth, particularly in urban areas such as Budapest. Investors benefit from relatively low property prices compared to other European capitals, making it a cost-effective option with high potential for capital appreciation.
The demand for rental properties in cities also remains strong, ensuring steady income for those opting for buy-to-let strategies.
How to Apply for Hungary Residency by Investment
The process to apply for Hungary’s Golden Visa starts with selecting an investment option that meets the program’s criteria. Applicants will need to gather necessary documents, which include
- applicant identification;
- proof of investment;
- police clearance.
The next step involves submitting these documents to Hungarian authorities for review.
The application process typically takes around 6 months, with fast-tracked services available in some cases. Once approved, applicants receive temporary residency, which can lead to citizenship after 11 years.
After receiving temporary residency, Golden Visa holders can reside in Hungary and travel freely within the Schengen Area. Permanent residency becomes an option after three years, provided the investor maintains their original investment and complies with residency requirements.
Many investors choose to work with legal firms that specialise in Hungary’s Golden Visa program. These experts help navigate the paperwork, ensure compliance with legal requirements, and maximise the chances of approval. They can also provide insights into tax implications and other long-term planning aspects of residency.
Pathway to Hungary Permanent Residence and Citizenship
Permanent residency requirements. After three years of holding a Hungary Golden Visa, investors can apply for permanent residency. To qualify, applicants must demonstrate continuous residency in Hungary, although there is some flexibility in terms of physical presence. Permanent residency provides greater stability and removes the need for visa renewals.
Citizenship by naturalisation. While Hungary does not offer direct citizenship by investment, Golden Visa holders can apply for naturalisation after eight years of living in Hungary with a permanent residence permit. During this time, they must learn the Hungarian language and meet additional criteria set by the government. For many, this is the final step toward full EU citizenship, granting them unrestricted access to live, work, and travel across the Union.
Conclusion
Hungary’s Golden Visa program stands out for its flexibility, reasonable investment thresholds, and clear path to residency and citizenship. Investors who are looking for a straightforward way into the European Union, with the potential for solid financial returns, will find Hungary to be a prime option.
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