Hungary is on the brink of implementing an overhauled Golden Visa program, slated to kick off on July 1, 2024. This revamped initiative, officially dubbed the "Residence Permit for Invited/Guest Investor," represents a strategic move by Hungarian authorities to attract foreign investors and stimulate economic growth through targeted investment in the country.
With the global landscape of investment migration evolving rapidly, Hungary aims to position itself as an attractive destination for affluent individuals seeking residency opportunities in Europe.
The forthcoming Golden Visa program marks a significant milestone in Hungary's endeavour to leverage foreign investment for economic development. Scheduled to come into effect in mid-2024, the program's rollout follows meticulous planning and consultation with stakeholders to ensure its alignment with national objectives and international standards.
At its core, the Golden Visa program operates on a two-stage process, necessitating prospective investors to first secure a guest investor visa before proceeding to apply for a residence permit. This dual-phase approach streamlines the application process while ensuring that only committed investors progress to the residency stage. The guest investor visa allows for extended stays exceeding 90 days and multiple entries within a specified period, offering flexibility to investors.
1. Investment Certificates: Investors can opt to purchase investment certificates issued by registered real estate funds sanctioned by the National Bank of Hungary. These certificates, valued at a minimum of €250,000, represent a passive investment avenue with the potential for attractive returns over time.
2. Direct Real Estate Ownership: Alternatively, investors may choose to acquire direct ownership of residential properties located within Hungary. With a minimum investment threshold of €500,000, this option offers investors tangible assets and the prospect of capital appreciation in Hungary's burgeoning real estate market.
3. Monetary Donations: For philanthropically inclined investors, the program extends the option to make a charitable contribution of at least €1 million to a higher education institution managed by a public foundation. This altruistic gesture not only benefits the investor but also contributes to the advancement of education and research within Hungary.
Each investment option comes with its set of conditions and requirements aimed at ensuring compliance with regulatory standards and safeguarding the integrity of the program. For instance, investors opting for investment certificates must commit to retaining ownership for a stipulated period, typically five years, while adhering to prescribed investment guidelines set forth by the issuing real estate funds. Similarly, investors engaging in direct real estate acquisitions must navigate stringent ownership and registration protocols to validate their investment.
Prospective investors must furnish comprehensive documentation substantiating their eligibility and commitment to the program's investment criteria. Proof of legal sources of funds for investment, along with a detailed investment plan outlining the proposed utilization of funds, is imperative at the visa application stage. Additionally, applicants must demonstrate their intent to fulfil the investment obligation within the prescribed timeframe, typically three months from entry into Hungary.
Successful applicants are awarded a 10-year residence permit, providing a pathway to long-term residency and stability within Hungary. This permit affords holders the freedom to engage in a myriad of economic activities, including business operations, employment, and educational pursuits. Furthermore, immediate family members can be included in the permit, facilitating family reunification and fostering a sense of community among investors.
Beyond residency, the Golden Visa program offers a clear trajectory towards permanent residency and citizenship for eligible participants. Holders of the guest investor residence permit can pursue permanent residency status in Hungary through the acquisition of a national residence card, obtainable after three years of uninterrupted residence. Subsequently, after eight years of confirmed residency, individuals may apply for Hungarian citizenship, subject to meeting specified criteria and successfully passing a constitutional knowledge examination.
Hungary's revamped Golden Visa program represents a progressive step towards harnessing foreign investment to drive economic prosperity and foster international cooperation. By offering a compelling array of investment options and streamlined residency pathways, Hungary endeavours to position itself as a preferred destination for discerning investors seeking residency in Europe. As the program unfolds, it is poised to unlock new opportunities for growth and innovation, catalyzing Hungary's evolution into a vibrant hub for global investment and entrepreneurship.