At the end of 2023, the Hungarian government announced the upcoming launch of the residency by investment program. One of the options offered to investors is a real estate purchase for at least €500,000.
According to recent information, candidates for residency by property investment have to meet the conditions as follows:
- an investor has obtained permission for purchase from a competent government authority;
- an investment property is residential and free of any encumbrances and claims;
- a 5-year prohibition on alienation and encumbrance is imposed on the property upon purchase;
- an investment property is owned exclusively by an applicant for five years after obtaining residency.
If all the conditions are met, the applicant is granted Hungarian residency for 10 years. The status can be extended for the same purpose only. This means that a real estate investor must maintain the property on which the permit was initially granted. In the case when the property was sold after 5 years of ownership, the applicant has to show a new investment of sufficient value.
The law does not prohibit renting the investment property out. In this case, the investor will have to pay an income tax at a 15% rate.
The Hungary Golden Visa program provides two other investment options, except for property purchase:
- investment in real estate fund units registered with the National Bank of Hungary — €250,000+;
- non-refundable donation to an institution of higher education — €1,000,000+.
As per the program rules, Hungary residency by investment is obtained in two steps. First, an applicant gets a Guest Investor Visa that allows travelling to Hungary. An applicant is not required to possess the investment by the moment of visa application; a written declaration of the intention is enough.
After obtaining the Guest Investor Visa, the applicant must go to Hungary to make the investment and apply for a residence permit. The law obliges the investor to fulfil program conditions within 93 days from the first entry to Hungary with the Guest Investor Visa. Once residency is granted, the visa becomes invalid.
