In December 2023, the Hungarian Parliament passed a bill to reform the immigration system. Act XC of 2023, which entered into force on 1 January 2024, introduced the guest investor residence permit effective 1 July 2024, initiating the relaunch of the Hungarian “Golden Visa” and presenting new opportunities for those seeking long-term residence in a European nation through investments.
The restructuring builds on the success of their previous programme, which brought EUR 1.4 billion from January 1, 2013, until March 31, 2017. In the same time period, 4,794 residence permits were issued through the Golden Visa program.
An attractive pathway to a European residency
The past year has seen it evolve into an even more attractive option. From July 2024, investors were allowed to apply for a ten-year residency permit in Hungary, which offers easy access to the EU and Schengen zone. According to IMI Daily, this new program is currently the most attractive investment residency option in the EU for several reasons.
Firstly, the program offers three investment options with a minimum investment of just EUR 250,000. The investment must be maintained for only five years and comes with a 10-year residency and visa-free access to the Schengen zone. The residency is renewable after the initial ten years and includes eligibility for spouses and children under 18. Furthermore, family members can join through reunification, and the investor and their family can maintain the permit without residing in Hungary. Additionally, they are free to work and start a business. Perhaps one of the most notable advantages is the streamlined timeline, as processing times are much shorter than other popular EU programs, with a typical procedure taking only a few months.
In addition to the EUR 250,000 investment in real estate funds primarily registered with the Hungarian National Bank, HNWIs can also make a EUR one million donation to a designated educational or cultural institution maintained by a public interest trust foundation. The option to purchase real estate property is no longer an option and was removed late last year.
Important things to know
Despite the initial excitement surrounding its launch in July 2024, the process has been slow. While investors could apply for the guest investor visa, the investment options were not yet immediately available. The first investment option in the program, which involves a EUR 250,000 investment in a real estate fund, must have at least 40% of the fund’s portfolio allocated to Hungarian residential real estate projects. The fund must be registered with the Hungarian National Bank (MNB), and a special license must be required to participate in the program. Only recently, investors could only apply for the guest investor visa based on a promise to invest, as no licenses had been issued for the fund.
This changed on 29 October 2024, when the first license was granted. As a result, participants can now proceed with their investment and residency applications for themselves and their families. With more applications in the pipeline, new licenses are expected to be approved by early 2025, offering investors additional options.
The easiest route to European Citizenship
All residency holders in the Golden Visa Program will now qualify to apply for the process of which will take approximately one year. Applicants do not need to live in the country to do so and do not need to become tax residents. There is also no language test for adult children; however, it is not yet clear if there will be a basic language test for adults. The Hungarian Permanent Residency essentially offers a lifelong residency, which allows applicants to live and access education, healthcare, and work anywhere in Europe.
Why 2025 Is a Strategic Time to Apply
As we look ahead to 2025, Hungary’s Residency by Investment (RBI) Program stands out as a prime choice for non-EU nationals seeking European residency, with updates emphasising inclusivity. Whether your goals include diversifying investments, establishing a European base, or securing a future for your family, Hungary’s residency by investment program offers compelling advantages. However, navigating the complexities of investment migration requires expertise.
At Citizenship Invest, we specialise in guiding clients through the updated Hungary Residency by Investment Program. Contact us today to explore your options and begin your journey toward European residency.
