15 key benefits and disadvantages of the Hungary Golden Visa

What is the Hungary Golden Visa?

The Hungary Golden Visa allows foreign investors and their families to obtain Hungarian residency in exchange for significant investments in the economy. This residence permit provides an opportunity to live and work in Hungary, as well as travel freely within the Schengen Area.

There are two investment options available under the Hungary Golden Visa program:

• purchase of real estate funds units for at least €250,000;
• charitable donation of at least €1 million to a higher education institution.

The selected real estate fund must be registered with the Hungarian National Bank. As of April 2025, the Hungarian government has granted accreditation to two funds: Gravitas Hungary and Sprint Asset. Several other funds are still awaiting licences.

Charitable contribution to a higher education institution must support Hungarian education, sports, or the arts. The chosen institution must be supervised by a public interest management foundation.

11 Hungary Golden Visa benefits in brief

The Hungary Golden Visa offers several advantages to investors and their families. These benefits include long-term residency in a European country, more travel freedom, and opportunities for investment. Below are the key benefits of the Hungary residency by investment:

1. Opportunity to live in Hungary.
2. Visa-free travel across the Schengen Area.
3. Favourable tax environment. 
4. Fast application processing time.
5. Obtaining residency with the family. 
6. No language requirement for residency. 
7. No minimum stay requirement. 
8. Investment opportunities. 
9. Investment after preliminary approval. 
10. Residence permit for 10 years. 
11. Path to Hungary citizenship by naturalisation. 

Opportunity to live in Hungary

The Hungary Golden Visa provides investors and their families the right to live, study, and work in Hungary. The country offers a well-developed infrastructure, excellent public services, and a lower cost of living compared to many Western European countries.

In 2024, Budapest was named one of the most affordable European capitals. According to Mercer Cost of Living City Ranking 2024, Budapest is one of the only 8 cities that combine low costs with a high quality of life. 

Hungary has a high-quality healthcare system that is both affordable and efficient, as well as hot springs and thermal baths. The country also has a strong education system, with five universities ranked among the top-1000 in the QS World University Rankings 2025.

Golden Visa holders can enter Hungary at any time, even if borders are closed to visitors. Investors and their family members can live permanently in Hungary or visit it occasionally. They can choose when and how often to live in Hungary, maintaining ties to their home country or exploring new opportunities in Europe. 

The Hungary Golden Visa also provides the opportunity to establish a safe haven or a “Plan B” residence, ensuring access to a stable country in times of uncertainty or an emergency.

Visa-free travel across the Schengen Area and the EU

Golden Visa holders benefit from visa-free travel to all of the countries within the Schengen Area and the EU, as well as to countries that have open borders with the area.

Investors and their families can move freely across most of Europe for business, tourism, leisure, and healthcare without needing to apply for separate visas. They can stay in the Schengen Area for up to 90 days within any 180-day period.

Full list of visa-free countries for Hungary residents:

1. Andorra
2. Austria
3. Belgium
4. Bulgaria
5. Croatia
6. Cyprus
7. Czechia
8. Denmark
9. Estonia
10. Finland
11. France
12. Germany
13. Greece
14. Iceland
15. Ireland
16. Italy
17. Latvia
18. Liechtenstein
19. Lithuania
20. Luxembourg
21. Malta
22. Monaco
23. Netherlands
24. Norway
25. Poland
26. Portugal
27. Romania
28. San Marino
29. Slovakia
30. Slovenia
31. Spain
32. Sweden
33. Switzerland
34. Vatican City

Favourable tax regime in Hungary

Hungary offers one of the most competitive tax systems in Europe, making it an attractive destination for investors and business owners. The corporate tax rate is 9%, the lowest in the European Union, while personal income tax is a flat 15%. Capital gains and dividend income are also taxed at 15%, making Hungary a tax-efficient option for investors.

Interest income is subject to a 15% tax rate, but in certain cases, this rate can be reduced. Investments held for at least five years may qualify for a 0% tax rate, while those held for at least three years in a long-term investment account may be taxed at 10%.

Hungary does not impose wealth tax, and there are tax benefits for inheritance and property transfers. The general inheritance and gift tax rate is 18%, with a preferential 9% rate for residential property. Transfers between lineal relatives, including spouses, are tax-exempt. Estate transfer tax on real estate is 4% for properties valued up to HUF 1 billion, and 2% on any excess amount, capped at HUF 200 million per property.

Hungary has signed double taxation treaties, or DTTs, with 83 countries, ensuring foreign investors are not taxed on the same income in multiple jurisdictions.

If no DTT applies, Hungarian tax residents are taxed on foreign-source income, but a credit is given for foreign taxes paid, covering up to 90% of the foreign tax burden. For foreign-sourced investment or property income, taxes paid abroad may be fully deducted, but at least 5% Hungarian tax must be paid in the absence of a DTT.

Obtaining residency with the family

The Hungary Golden Visa program permits investors to include their immediate family members in the residency application. This includes:

• spouse;
• children under the age of 18;
• unmarried and financially dependent children under the age of 25, who are studying in university;
• financially dependent parents, with pension payments as the only income source. 

If the investor or any family members are US citizens, they must hold second citizenship in order to apply for the Hungarian Golden Visa.

Family members are granted residence permits with the same validity as the investor’s. The only exception are children aged 18 to 25: they get a 3-year residence permit, which is extendable for 3 more years provided that applicants remain dependent on the investor. 

To include family members, the investor must submit documentation proving their relationship, such as marriage and birth certificates. 

The family will have the same rights to reside in Hungary, access healthcare, and attend educational institutions in the country. Additionally, family members can travel freely within the Schengen Area under the same visa-free privileges as the investor.

No language requirement to obtain residency

The Hungary Golden Visa does not require applicants to speak Hungarian. Investors and their family members receive residence permits without any language proficiency tests or courses. In contrast, applicants for a Hungarian residence permit for studying or employment may need to demonstrate their language skills. 

Investors will need to prove their level of Hungarian if they apply for permanent residency or citizenship by naturalisation in future.

Hungarian is one of the most unique languages in Europe. Belonging to the Finno-Ugric language family, it is different from most other European languages. The language has a logical structure, a rich vocabulary, and 14 vowel sounds, which can be challenging for learners. While difficult at first, learning Hungarian can help investors integrate, build connections, and navigate daily life more easily.

No minimum stay requirement

The Hungary Golden Visa does not require residence permit holders to stay in Hungary for a specific amount of time each year. Investors and their families are not bound by a minimum stay rule, which gives them the freedom to travel or live in other countries. The residence permit remains valid as long as the investment condition is met and the permit is renewed after 10 years.

However, if investors wish to obtain permanent residency or citizenship in Hungary, certain stay requirements must be met. To qualify for permanent residency, the applicant must live in Hungary for at least 3 years under the Golden Visa program. During this period, they must not leave Hungary for more than 4 consecutive months. In total, the investor can spend up to 270 days outside of Hungary over the course of these 3 years.

For citizenship by naturalisation, the investor must continuously reside in Hungary for at least 8 years with permanent residency. During this time, they can not leave Hungary for more than 6 consecutive months.

Investment opportunities in Hungary

The Hungary Golden Visa offers an investment opportunity through real estate funds, requiring a minimum investment of €250,000. The real estate portfolio usually includes residential, commercial, and industrial properties across Hungary. 

Real estate fund investments must be held for at least five years to meet the conditions of the Hungary Golden Visa. During this period, investors can expect potential returns from property appreciation, rental income, or both, depending on the fund’s strategy.

A registered address in Hungary is required to obtain a residence permit, so investors must also buy or rent residential property in the country. Owning property in Hungary provides an asset that could appreciate over time. 

Hungary’s real estate market remains strong, particularly in Budapest and major cities, with demand for residential and commercial properties near business districts and transport hubs. In recent years, the average price of residential properties in Budapest has increased by 5—7% annually, with rental yields in prime locations averaging 4—6%.

Hungary’s financial market, with the Budapest Stock Exchange at its core, offers access to Hungarian equities, government bonds, and investment funds. The Budapest Stock Exchange has seen a rise in market activity, with the Hungarian benchmark index, the BUX, recording a growth of 8.74% since the beginning of 2025.

Investment after the preliminary approval

After receiving preliminary approval for the Hungary Golden Visa and obtaining a Guest Investor Visa, applicants are required to fulfil the investment condition within 3 months before the final residence permit can be issued. This timeframe begins upon arrival in Hungary and submission of the necessary documents. 

Making the investment within this period ensures that it aligns with the program’s criteria and that the applicant meets the requirements for obtaining a residence permit. Once the Guest Investor Visa is approved, the risk of refusal for the residence permit is significantly reduced, providing more certainty for investors.

Residence permit is valid 10 years and renewable

The residence permit granted through the Hungary Golden Visa is initially valid for 10 years, with the opportunity for one extension for the same period. 

Hungary’s 10-year validity is relatively generous compared to other European Golden Visas. For example, the Portugal Golden Visa initially offers a 2-year residence permit, which can be renewed for 2-year periods. Italy offers a 2-year residence permit under its Golden Visa program, with renewals for 3-year periods. 

To extend the Hungary residence permit after 10 years, investors must re-invest in the Hungarian economy if they initially purchased real estate investment fund units. In this case, the investor must buy new units worth at least €250,000. Investors who made a charitable donation of €1 million or more to a Hungarian university can extend their residence permit without making a new investment.

Pathway to Hungarian citizenship by naturalisation

Investors who hold a residence permit under the Hungary Golden Visa program can apply for Hungarian citizenship by naturalisation after meeting specific residency requirements. The total period of living in Hungary must be at least 11 years: 3 years with a Golden Visa, and then another 8 years with permanent residence.

The investor must pass a citizenship test that includes both written and oral elements in Hungarian, demonstrating a basic understanding of the language. Additional requirements include a clean criminal record, sufficient means of subsistence, a place of accommodation in Hungary, and proof of integration into Hungarian society during the residency period.

For children born in Hungary to Golden Visa holders, citizenship eligibility is shortened to 5 years of continuous residence with a permanent residence permit, instead of the standard 8 years required for adults.

Once granted, Hungarian citizenship provides full rights to live, work, and travel freely within the European Union, along with access to social benefits and the ability to participate in Hungarian elections.

Hungary Golden Visa disadvantages

Long path to citizenship. While the Hungary Golden Visa offers a pathway to citizenship by naturalisation, this process takes time. Applicants must hold a Golden Visa for 3 years, obtain permanent residency, and then wait at least 8 more years before applying for Hungarian citizenship. They must also demonstrate basic knowledge of Hungarian and pass a citizenship exam.

Possible future changes to the program. As with any investment program, the Hungary Golden Visa may be subject to changes that could affect eligibility, investment options, or the requirements for obtaining residency.

However, modifications rarely impact those who already hold a residence permit. If the program is discontinued, existing permits are unlikely to be revoked but may not be renewed. Investors should stay informed, as immigration policies can change without prior notice.

Language barrier. While there is no language requirement for residency, those seeking Hungary permanent residency or citizenship must pass a language test. According to CEOWORLD Magazine, Hungarian is the 6th hardest language to learn, making it challenging for non-speakers. 

Moreover, only 25% of Hungarians speak English, so the language barrier could make day-to-day life and integration into Hungarian society more difficult for some investors.

Limited social benefits. Golden Visa holders do not have access to all social benefits available to Hungarian citizens. Certain welfare programmes, such as public healthcare or state pensions, may be restricted. Investors may need to make private arrangements for some of these services.

Hungary Golden Visa requirements and documents

To qualify for the Hungary Golden Visa program, investors must be non-EU and non-EEA nationals over 18 years old, have no criminal record, and demonstrate sufficient funds to support themselves and their family members during their stay in Hungary. Health insurance coverage is also necessary.

The following documents are required for the Hungary Golden Visa application:

1. Passport valid for at least 1 year.
2. Completed application form for a residence permit.
3. Two passport size photos taken within the last month.
4. Documentation proving valid health insurance coverage.
5. Proof of legitimate income.
6. Police clearance certificate from the applicant’s country of residence.
7. Proof of accommodation in Hungary.
8. A statement confirming the intention to fulfil the investment condition, when applying for a Guest Investor Visa.
9. Proof of investment, when applying for a residence permit.
10. Bank statement indicating cash balance.
11. CV for every family member over the age of 18.
12. Marriage certificate, if applicable.
13. Children’s birth certificates, if applicable.

Why is it worth moving to Hungary?

Low cost of living. Hungary offers a significantly lower cost of living compared to many Western European countries. Housing in Budapest is around 60—70% cheaper than in cities like London or Paris. 

Rental for a one-bedroom apartment in the city centre averages €500 per month, while utilities such as electricity, heating, and water cost about €130 monthly. Dining out is also affordable, with a meal at an inexpensive restaurant costing around €10 per person.

High quality of life. Hungary offers a high quality of life, combining affordability, well-developed healthcare, education, and modern infrastructure. In the 2024 Environmental Performance Index, Hungary ranks 31st out of 180 countries, reflecting strong environmental policies and sustainability efforts. 

Budapest, the country’s capital, ranks 32nd out of 173 cities in the Global Liveability Index 2024. The country’s numerous parks, historic architecture, and famous thermal baths contribute to a comfortable and healthy lifestyle.

Business opportunities. Hungary is strategically located in Central Europe, providing access to both Eastern and Western European markets. The country’s corporate tax rate of 9% is the lowest in the European Union, making it an attractive location for businesses. The Hungarian government supports entrepreneurship, offering incentives like EU funding for research and development.

Public transportation. Hungary’s public transportation system is efficient and well-connected, especially in Budapest. The city’s metro, bus, and tram systems are reliable and affordable, with a monthly pass for all public transport costing around €20. 

Hungary’s extensive rail network connects major cities and towns, and train travel is a popular way to commute. Hungary’s public transport infrastructure has been continually upgraded, and Budapest is considered bike-friendly, with dedicated cycling lanes throughout the city.

Safe environment. Hungary is considered one of the safest countries in Europe, with a crime rate lower than the European average. The Global Peace Index 2024 ranks Hungary 14th out of 163 countries, indicating a safe living environment. Budapest is considered a very safe city, even at night, with a low incidence of violent crime.

Stable and growing economy. Hungary has experienced consistent economic growth in recent years, with its GDP growing by 7.1% in 2021. The country’s unemployment rate stands at just 4.7%, reflecting a strong and stable job market. Hungary is a member of the European Union and benefits from access to EU funding and trade agreements, further enhancing its economic stability.

In brief: pros and cons of Hungary Golden Visa

1. The Hungary Golden Visa offers a 10-year residence permit, renewable for another 10 years, with no minimum stay requirement.
2. The program requires a minimum investment of €250,000 in real estate funds or charitable contribution of at least €1 million to a higher education institution.
3. Investors and their families enjoy Hungary Golden Visa benefits such as visa-free travel across the Schengen Area, no language or minimum stay requirement, and fast application processing.
4. Hungary’s low cost of living, safety, business-friendly environment, and strong healthcare and education systems make it an attractive destination for foreign nationals.
5. After 11 years of living in the country, investors can apply for Hungarian citizenship by naturalisation, subject to meeting language requirements.