HUNGARY

Benefits of Hungarian Residence by Investment

• Expedited and efficient route to European residency
• Reside and work in Hungary with visa-free travel across Europe's Schengen Area
• No mandatory minimum stay requirement.
• Coverage extends to spouse and children under 18
• Potential for income generation from invested property

Requirements for the Hungary Guest Investor Residence Permit: A third-country citizen, along with their spouse and children under 18, can secure a Guest Investor Residence Permit through investment in one of the following avenues:

Real Estate Investment Fund:

Acquisition of investment certificates issued by a real estate fund registered with the National Bank of Hungary, totaling at least EUR 250,000. Conditions:

• Minimum 40% of the real estate fund's net asset value must be invested in residential properties within Hungary.
• Investors must retain the investment certificate for a minimum of five years.
• Only fund managers with financial licenses adhering to predefined investment principles can establish real estate funds.
• Fund managers must possess a site security certificate or be registered with the Constitution Protection Office to engage with guest investor visas.

Real Estate Acquisition Effective from January 1, 2025

Purchase of uncontested residential properties in Hungary, valued at a minimum of EUR 500,000. Conditions:

• Properties must be exclusively residential; commercial or industrial properties are ineligible.
• Properties must be free from disputes, encumbrances, and claims.
• A five-year prohibition on sale or encumbrance must be registered in the land register upon acquisition.
• The property must be solely owned by the applicant for five years or jointly with family members (spouse, minor children), with the main applicant holding a minimum property share of EUR 500,000.
• A property transfer tax of 4% is applicable based on the property's market value.
• Investors can lease out the property, with Hungary's personal income tax on rental income capped at 15%.

Donation to a Hungarian Public Trust

• Monetary donation of at least EUR 1 million to a higher education institution operated by a public trust performing public functions.

Applicants must have no Schengen Information System alerts, expulsions, or entry and stay bans, and should not pose a threat to public order, security, or national security. The immigration authority will consult Hungary's law enforcement and national security services regarding the application.

Procedures and Time Frame of the Hungary Guest Investor Residence Permit:

To obtain the Guest Investor Visa, applicants must declare their commitment to one of the investment options during the visa application process. However, finalizing the investment is not compulsory at this stage.

Upon receiving the Guest Investor Visa, applicants must travel to Hungary, where they have three months to complete their investment. Within 93 days of their initial entry into Hungary, they must apply for a Guest Investor Residence Permit through the immigration authority or via the electronic platform, Enter Hungary. Alongside the application, proof of investment must be provided. Once all requirements are fulfilled, further travel to Hungary is unnecessary.

Successful applicants, along with their qualifying spouse and children, will be granted a long-term residence permit valid for 10 years, renewable for another 10 years with a sustained investment.

The application processing time is approximately 21 working days.

Applicants are also eligible to apply for a Guest Investor Residence Permit if they have a 90-day visa-free stay in the Schengen area or if they already possess a valid residence permit in Hungary.

Acquiring Hungarian Citizenship after the Hungary Guest Investor Residence Permit:

A guest investor can qualify for permanent residence in Hungary after lawfully residing there for three years before the application. Effective from January 1, 2025, passing a cultural written exam in Hungarian will also be mandatory. Citizenship eligibility typically follows permanent residence, typically after residing in Hungary for a minimum of eight years, although exceptions may be applicable for Hungarian minor children or spouses. Passing a Hungarian cultural exam remains a prerequisite.