Hungary offers an attractive option for individuals seeking a remarkable living experience and lucrative investment opportunities in Central Europe. Investors and their families from outside the European Union can now apply for a Hungarian Guest Investor Residence Permit, granting them long-term legal residency in Hungary and access to the Schengen Area of Europe.

Key Advantages of the Hungarian Residency by Investment Program

Benefits include:

• Fast and efficient route to obtaining European residency
• Ability to live and work in Hungary, along with visa-free travel throughout the European Schengen Area
• No minimum stay requirement for residents
• Eligibility extends to spouses and children under 18
• Any purchased investment property can serve as a source of income

Eligibility Criteria for the Hungary Guest Investor Residence Permit

A prospective applicant, along with their spouse and children under 18, can apply for a Guest Investor Residence Permit by fulfilling one of the following investment options:

1. Real Estate Investment Fund:
   • Purchase investment certificates from a real estate fund registered with the National Bank of Hungary for a minimum of EUR 250,000.

Conditions:

1. • At least 40% of the fund’s net asset value must be invested in residential real estate in Hungary. This implies that while the fund can invest in commercial properties, a minimum of 40% of its assets should be allocated to residential properties within Hungary.
   • Investors are required to retain the investment certificate for a minimum of five years.
   • Only fund managers with a valid financial license who comply with established investment principles can create a real estate fund.
   • Fund managers must possess either a site security certificate or be registered with the Constitution Protection Office to engage with guest investor visas.

1. Real Estate Acquisition (Effective from January 1, 2025):
2. • Purchase uncontested, strictly residential properties in Hungary valued at a minimum of EUR 500,000.

Conditions:

1. • The property must be exclusively residential; commercial or industrial properties are not eligible.
   • The property must be free from disputes, encumbrances, and claims.
   • Upon acquisition, a five-year prohibition on sale or encumbrance must be recorded in the land register.
   • The property must be solely owned by the applicant for five years or jointly with family members (spouse, minor children), with the primary applicant holding at least a EUR 500,000 share in the property.
   • A property transfer tax of 4% is applicable, calculated based on the property’s market value.
   • Investors are permitted to rent out the property, with Hungary’s personal income tax on rental income capped at 15%.

1. Donation to a Hungarian Public Trust:
2. • Make a monetary donation of at least EUR 1 million to a higher education institution operated by a public trust fulfilling public functions.

Additionally, the applicant must not have any alerts, expulsions, or entry bans recorded in the Schengen Information System, nor pose a threat to public order, security, or national safety. The immigration authority will consult with Hungary’s law enforcement and national security services regarding the application.

Process to Obtain the Hungary Guest Investor Residence Permit

An applicant must first secure a Guest Investor Visa and indicate their intention to pursue one of the investment options during the visa application process; however, completing the investment at this stage is not required.

After receiving the Guest Investor Visa, the applicant must travel to Hungary, where they are expected to finalize their investment within three months. They should then apply for a Guest Investor Residence Permit through the immigration authority or via the electronic platform, ‘Enter Hungary’, within 93 days of their initial arrival in Hungary. Along with their application, they must provide evidence of their investment. Once all conditions are satisfied, no additional trips to Hungary are necessary.

The applicant, along with their eligible spouse and children, will be granted a long-term residence permit valid for 10 years, which can be renewed for another 10 years, provided the investment is maintained.

Process to Obtain Hungarian Citizenship after the Hungary Guest Investor Residence Permit

A guest investor can qualify for permanent residency in Hungary by legally residing there for three years before submitting their application. Starting from January 1, 2025, applicants will also need to pass a written cultural exam in Hungarian. Citizenship can be pursued after obtaining permanent residency, typically requiring a minimum of eight years of residency in Hungary, although exceptions may be made for Hungarian minor children or spouses.