Hungary Residency by Investment: Invest in European Future

Obtain Hungary Residency by Investment: Your Guide

In 2017, the government introduced the Hungary Residency by Investment program to offer non-European Union nationals the opportunity to acquire a temporary residence in Hungary by investing in the investment options published by the government. The amendment in 2014 in the Hungary Law Act of 2023 was made on the general rules on the entry and residence of other country nationals, and changes were made to the investment option to obtain a residence permit in Hungary. Hungary ended up being a member of the European Union in 2004 and joined the Schengen Area in 2007.

The Hungary residency by investment program is also known as the Hungary Golden Visa, which is an amazing opportunity to obtain residency in Europe. This program offers a range of benefits which make it a compelling choice for individuals seeking long-term residency in a European country. The program is one of the quickest and most affordable gold visa programs in Europe. It is one of the unique choices as it is the only EU program that permits investors to complete the real estate purchase after their residency visa application has been accepted.

Overview of Hungary’s New Golden Viss Program Guest Investor Residency Permit

Hungarian Parliament finalized the much-anticipated immigration regulation, presenting the innovative Golden Visa formally termed as the Guest Investor Residency Permit. Hungary's accession to the European Union in 2004 has made it a sought-after destination for those seeking to reside within the European Union. The new Hungary Golden Visa, additionally referred to as the Hungarian Guest Investor Program, offers exciting opportunities for potential applicants. This program offers an exceptional path to EU residency, including extensive investment alternatives, family reunification advantages and long-term residency rights for global investors.

Requirements For the Hungary Golden Visa Program

The Hungary golden visa program provides specific requirements to make the individual eligible for the program. These requirements provide the foundation of the investment journey, and to take part in Hungary's residency by investment program, individuals need to understand the procedure for acquiring a Hungary residency by investment. The investment requirements for 2024 include three new investment opportunities. The applicant must choose from any investment options to obtain residency by investing €250,000 in a Real Estate Investment Fund, €500,000 in Real Estate Residential Property and €1 million in Non-Refundable Public Trust Donation. In addition to the above investment requirements, applicants will certainly additionally be required for a selection of legal, application and processing fees. These will vary depending on the number of family members applying and the investment opportunity chosen by the applicants.

Benefits of Hungary Residency by Investment

The program provides countless benefits to its individuals:

• A fast and reliable route to residency in Europe.
• The long-term residency, which can be renewed every 10 years.
• The visa-free travelling within the EU Schengen area.
• There are no minimum stay requirements.
• There are no tax obligations for individuals.
• Freedom to reside in the country.
• Applications are required to get approved within 4-8 weeks (about 2 months). 

Why Choose Hungary?

Hungary is ranked among the top 30 most frequently visited countries. Hungary's allures lie in its inherent ease of living, universal healthcare system, high-quality education and learning, affordable living, and high degrees of safety and security, making it an appealing option for a residence in the heart of Europe. Additionally, added advantages consist of:

• Efficient application procedure with an opportunity to lower the number of travel
• Inclusion of dependent children and parents.
• Attractive real estate and opportunities in business investment.
• Member of the Schengen area, the European Union and NATO
• Powerful and well-respected passports with visa-free travelling to over 170 countries.

Investment Options in Hungary Residency by Investment

The Hungary Golden Visa Program can be obtained by choosing the below investment option:

1. Real Estate Fund

The minimum amount required to choose the real estate fund investment option is Euro 250,000, and the following conditions apply to the real estate fund investment option stated below:

• The fund must be registered by the Hungarian National Bank
• The investment portfolio should consist of at least 40% of the investment portfolio of residential real estate funds realized in Hungary.
• The investor must hold the real estate funds for at least 5 years, and then the investors can sell their real estate after 5 years.
• However, if the individual wishes to renew the residency with an investment after ten years, now they should make another investment that matches the requirements.

2. Residential Real Estate

The minimum amount required to choose the residential real estate investment option is Euro 500,000, and the following conditions apply to the investment in residential real estate:

• This investment option is strictly for the residential property.
• For five years, the residential property cannot be sold.
• The investor will become the sole owner of the property, or they can share the ownership with the members of the family.
• If the investors do not intend to stay on the property, then they can rent the property out.
• The investor needs to ask the local municipality for a purchase permit and 4% of the property transfer tax needs to be paid.
• After five years the investor is allowed to sell the property and if the investor needs to renew the residency after ten years then they must purchase other residential property which matches the requirement of this investment option.

3. Non-Refundable Public Trust Donation

The minimum amount required to choose donation as the investment option is to contribute Euro 1 million to the institutions that decide on cultural or educational platforms.

• The institution has to be managed by a public foundation.
• The institution must be a part of higher education, which is related to research and creative tasks.
• This donation has no reimbursement so the investor and if the investor wants to renew their guest investor residency after ten years, then the investor can easily opt for this investment option.

4. Venture Capital Investment

Hungary residency by investment programs encourages investment in venture capital funds or startups so the investor is required to invest a minimum amount in qualifying funds or startups to be eligible for the residency by investment.   

5. Bank Deposit

Some programs may allow applicants to deposit a particular amount of funds right into a Hungarian bank account as an investment. The funds are normally required to be maintained in the account for a specified period to qualify for residency.

What Is the Duration of the Residency Permit Through the Hungary Golden Visa?

The program is made to offer applicants with an exceptional 10-year residency permit. Moreover, the temporary residence permit can be extended for another 10 years.

Who can obtain a Hungarian residency through investment?

The requirements to obtain the Hungary residency by investment are given below:

1. Main Applicants

• Clean criminal record
• Have at least Euro 250,000 in financial assets to invest.
• The investment must be made within 90 days (about 3 months) of approval.

2. Partner

• Marriage certification
• Clean criminal record

3. Minor Children

• Dependent children below the age of 18
• Birth certification

4. Parents

• Parents above the age of 65 years old.

Hungary Golden Visa Program in 2024

The Hungary golden visa program in 2024 made it possible to apply for a long-term residency permit with a validity of 10 years. The program is called a Guest Investor Residence Permit. The individual can renew the permit permanently. Furthermore, the individuals can also upgrade the permit to permanent residence if the individual reside in Hungary full-time for five years. The new Hungary Golden Visa Program is not a citizenship-by-investment program. As well as there is no direct connection to citizenship in Hungary.

Family Member's Applications to Hungary Golden Visa Program

The applicant can include their spouse or children under 18 in their residency by investment application. If the applicant's children are more than 18, then the children can also be easily included in the residency through investment benefits. But in this situation, your children need to prove their financial dependence and study, and the children need to be unmarried. The applicant can also include their parents when they apply for the residency by investment only in the situation when the parents should be 64 years or older by opting for the relevant investment options and paying the extra fees.

Residency Permit in Hungary

Non-EEA nationals can also apply for a Hungarian residence permit. A non-EEA national wishes to stay and operate in Hungary, be independent, or establish a business. In that case, the individual can be eligible for a Hungarian residence permit. There are various requirements to obtain a residency permit in Hungary, such as the residence permit for employment, studies, family reunification or entrepreneurship, because each category has its sets of criteria and documents. The applicant is also required to submit their application to the Hungarian documents with documents apart from the general documents. The individual also needs to submit a job offer for employment permits or acceptance into a Hungarian education institution for the study permit. The residency permit has a validity of three years, and it can be renewed for three more years if an individual as a resident still conducts an economic activity. After obtaining the residence permit, the individuals. After five years of continuous residence in Hungary, the individual can also apply for an EC Permanent residence card, and after eight years of residence, whether temporarily or permanently, the individual can also apply for Hungarian citizenship.

Hungary Residency by Investment: Eligibility Criteria

The eligibility criteria for Hungary residency by investment are given below:

1. Investment Requirements

Applicants need to make a qualifying investment in Hungary. This typically entails acquiring government bonds or buying an approved venture, business or real estate project.

2. Financial Stability

Applicants must show appropriate sufficient financial means to support themselves and any kind of dependents throughout their stay in Hungary. This might involve providing proof of income, assets or other financial resources.

3. Clean Criminal Record

Applicants need to have a clean criminal record and may need to provide a police clearance certificate or similar documentation from their home country. 

4. Medical Insurance

Applicants are typically required to have medical insurance coverage for the duration of their residency in Hungary.

5. Good Health

While not constantly explicitly specified, the applicant must be in good health to qualify for residency.

6. Conformity with Immigration Laws

Applicants need to adhere to all Hungarian immigration laws and regulations consisting of providing accurate information and completing all Documentwork.

Enterslice Offers a Range of Services in Hungary Residency by Investment

Enterslice offers a range of services in Hungary for residency by investment. These services commonly consist of:

1. Advisory

Enterslice provides expert consultation to individuals interested in obtaining residency in Hungary through investment. This involves understanding the client’s requirements, explaining the legal procedure, and providing advice on choosing the most suitable investment option.

2. Investment Guidance

Enterslice assists the client in identifying and evaluating investment opportunities that meet the residency needs. This may involve real estate investment, government bonds, and business establishment.

3. Documents Assistance

The company assists individuals with the preparation and submission of all needed documents for the residency application process. This consists of collecting financial records, obtaining background checks and completing application forms.

4. Application Processing

Enterslice manages the entire application procedure on behalf of the individuals, connecting with appropriate authorities and guaranteeing that all demands or requirements are satisfied promptly.

5. Compliance

Once residency is acquired, Enterslice gives ongoing assistance to ensure compliance with Hungarian immigration laws and regulations. This may involve renewing residency permits, reporting modifications in scenarios, or addressing any issues that may arise.

6. Due-Diligence

Enterslice conducts thorough due diligence on investment opportunities to ensure that they fulfil the demands for acquiring residency in Hungary. This entails analyzing the variety of investment projects, analyzing legal documents, and identifying any potential risks related to residency by investment.

7. Tax Planning

Enterslice provides customized tax obligation preparation methods to enhance the monetary elements of residency through financial investment in Hungary. This consists of guidance on tax obligation implications connected to the picked financial investment lorry plus assistance on structuring financial investments in a tax-efficient way.

8. Documents Preparation

Enterslice helps investors prepare all required paperwork called for Hungary Residency by investment application. This consists of gathering investment proof or evidence identification documents, financial statements and also any kind of various other documentation required for the application.

9. Legal Representation

Enterslice offers legal presentations to individuals throughout the residency application process, including representing in negotiations with government authorities and handling any legal issues that may arise.

10. Citizenship Planning

For individuals thinking about obtaining Hungarian citizenship then Enterslice offers strategic planning together with support on the needs and eligibility criteria. This might consist of guidance on the residency period, language efficiency, as well as combination demands.

Steps to Obtain the Hungary Residency by Investment

To acquire Hungary residency by investment through investment, the following steps are typically involved:

1. Examination

Enterslice performs examinations by our experienced team having specialization in residency by investment in Hungary. They will provide an overview of the process, eligibility criteria and investment options which fit best with the requirements of the individuals.

2. Select Investment Option

Select an eligible investment option according to Hungarian immigration regulations. This might consist of purchasing real estate, government bonds, or establishing an organization.

3. Due Diligence

Conduct comprehensive due diligence on your selected financial investment alternative and the selected investment options to ensure they meet the requirements set by Hungarian authorities. This might entail confirming the authenticity of the investment opportunity as well as evaluating any type of connected threats.

4. Choosing Investment Options

The individual makes the required investment in the chosen investment option. This generally includes transferring funds to a designated Hungarian Bank Account or purchasing eligible assets.

5. Prepare Documentation

Gather all essential documents needed for the Hungary residency through the investment application process. This might consist of evidence of investment, financial statements, background checks and a valid passport.

6. Submit Application

The individual submits the Hungary residency by investment application to the Hungarian authorities in addition to all needed documents. The application will usually be processed by the Hungarian Immigration and also Asylum Office.

7. Biometric Data Collection

Upon the application, the individual may be required to visit a designated office to provide biometric data such as fingerprints and passports. 

8. Wait for Approval

After submitting the documents, the individuals need to wait for the application to be processed. The processing time can differ depending on numerous factors; however, it might take a few months to receive approval.

9. Get Residency Permit

Once your application is approved, the individual will certainly be provided with a residency permit to stay in Hungary. This permit may be valid for a specified period and gets renewed after a certain duration as stated in the requirements.

Benefits of Obtaining Hungary Residency By Investment

Acquiring Hungary residency by investment provides various benefits to individuals, such as:

Accessibility to Schengen Zone

Hungary becomes part of the Schengen Zone, which enables residents to travel freely within the Schengen Area comprising 26 European countries without the requirement for extra visas or border controls. This helps with easy travel for business, leisure, and family purposes within Europe.

Residency Rights

Residency by investment grants individuals and their families the right to reside in Hungary lawfully for an extended period, generally renewable after a specific period. This provides security together with safety and security for those looking for a long-term presence in Hungary.

Business Opportunities

Hungary offers a favourable business environment with opportunities for investment and entrepreneurship. Residency by investment opens up doors to explore business ventures, expand existing operations, or access European markets through Hungary’s strategic locations.

Quality of Life

Hungary boasts a high quality of life with budget-friendly living costs, excellent healthcare facilities, and a rich social heritage. Residency by investment enables people as well as family members to appreciate the advantages of residing in a dynamic European country with a diverse range of cultural activities.

Tax Benefits

Hungary offers a favourable tax regime for residents including various incentives and exemptions for investors and entrepreneurs. The Hungary residency by investment may enable individuals to benefit from these tax advantages such as reduced personal income tax rate and exemption on incomes of certain types.

Path to Citizenship

The Hungary residency by investment offers a path to citizenship if the individual has lived in Hungary for 8 years then they can apply for citizenship.

No Minimum Stay Requirements

The Hungary residency by investment requires no minimum stay requirements by individuals.

Necessary Papers Required to Obtain the Hungary Residency by Investment

The Documents required to obtain the Hungary residency by investment are stated below:

Application Form

The completed and signed application form for the residency.

Passport

There is a requirement for photocopies of all the applicant’s passports.

Passport Photos

The two passport photos for all the applicants need to be submitted.

Marriage and Birth Certificates

The certified copy of any relevant marriage or birth certificate.

Proof of Clean Criminal record

The documents provide the absence of a criminal record from the country of residence.

Bank Statement

The bank statement is provided by Hungarian or international financial institutions.

Certificate of Income

The certificate of the income of the individuals, which is issued by the tax authority, needs to be submitted. This can also include bank statements, proof of income and other documents to demonstrate the ability to make the investment required for the residency program.

Documents on Hungarian Accommodations

The residential lease agreement contract, or evidence of appointment, proof of payment for reservation.

Investment Documents

The documents related to the investment the individual is making to qualify for residence.

Medical Insurance Records

Proof of health insurance coverage for the duration of the stay in Hungary and a medical examination to ensure the applicant’s health.

Tax Benefits from Hungary Residency by Investment

Hungary Residency by Investment can provide numerous tax advantages to investors. Among the substantial benefits is the favourable tax obligations for individuals holding Hungarian residency. Hungary has a flat personal income tax rate of 15%, which is considerably lower compared to many other European Countries. In addition, Hungary provides different tax obligation rewards as well as exemptions to citizens, consisting of tax breaks for certain types of income, such as dividends and capital gains. In addition, Hungary has a local or territorial tax system implying that the individual is taxed only on income earned within Hungary’s Borders. Furthermore, Hungary has a double taxation treaty with many countries, which helps investors or individuals avoid or minimize double taxation on income earned globally. In addition, Hungary offers various investment incentives and tax breaks for certain types of investments.

Difference between Hungary Residency by Investment and Permanent Residency

The major distinction between Hungary's residency by investment program and also permanent residency is the legal status and legal rights given to the individuals.

Residency by Investment

Hungary's residency by investment program allows individuals to obtain temporary residence rights in Hungary by making a qualifying investment in the country. This investment can take numerous forms, such as purchasing government bonds, real estate or investing in business. Residency obtained via investment generally gives individuals and their families the right to live in Hungary for a specific period, which is renewed after a certain duration as long as they maintain the qualifying investment and comply with the program requirements. 

Permanent Residency

Permanent residency, on the other hand, gives individuals the right to reside forever in a country without the demand for renewal. In Hungary, permanent residency can be obtained through various ways, such as family members reunification, work, or long-term residence. The permanent residents enjoy most of the rights and benefits allotted to the citizens of Hungary. They might additionally have the alternative of applying for citizenship after certain eligibility criteria, such as residency duration and language efficiency.

To sum up, while both residencies by investment, as well as permanent residency, enable people to stay in Hungary, residency by investment offers temporary residency rights based on a qualifying investment whereas permanent residency offers indefinite residency rights without the need for renewal and may lead to the citizenship eligibility in the future.