The latest updates to the Guest Investor Residency Programme

Csaba Magyar
Crystal Worldwide Law Firm, Budapest
csaba.magyar@crwwgroup.net

This article outlines the Hungary’s Guest Investor Programme, known as the Hungarian Golden Visa Programme, and explains that latest updates.

In Hungary, the residency by investment scheme is nothing new. Before the so-called ‘Golden Visa’ programme, it was possible to obtain permanent residency by purchasing Hungarian Residency Government Bonds. This programme ended after seven years in July 2024 when the Hungarian Guest Investor Programme was launched. Based on this programme, third-country national investors are encouraged to apply for a guest investor residence permit which in practice, can be referred to as a ‘Golden Visa’, a common expression in international jargon, although the legislation does not use this term.

The programme’s rules have been subject to some amendments throughout this process, but over all, this Hungarian Golden Visa offers its applicants a ten plus ten years of residency in Hungary with an opportunity to profit from their investment.

Hungarian Guest Investor Programme regulations

Before obtaining a Guest Investor Residence Permit applicants must first apply for a Guest Investor Visa. This is granted to third-country nationals who wish to invest in Hungary. The visa application is submitted through the Hungarian Consulate of the applicants’ home country. The validity period of the Guest Investor Visa is six months and becomes invalid once the Guest Investor Residence Permit has been obtained.

Guest Investor Visa eligibility criteria

The Guest Investor Visa can be issued to the third-country nationals, whose proposed stay in Hungary is deemed of considerable national economic interest. For the stay to qualify as such, applicants shall make or declare a commitment to invest in one of the designated pathways outlined by the Hungarian government.

If the applicant chose the latter, after their first arrival into Hungary the applicant should submit the residence permit application to the Authority within 30 days – either in person or through the Enter Hungary platform. Current legislation only allows this short time period for submitting an application, the investment can be completed after the submission and the proof of investment can be provided later. It is important to highlight that the applicants must show they have sufficient source of funds for the investment and the source must be legitimate.

There were previously three investment options available for the programme, but before the start of 2025 the Hungarian government made a significant change, cancelling the direct real estate investment option. The programme now offers two pathways to the 20-year residency: investment fund or monetary donation.

Acquiring investment certificates from a real estate fund

Investing in a real estate fund regulated and registered by the Hungarian National Bank is a means of obtaining a Guest Investor Visa. This option requires the applicant to invest at least €250,000 in approved investment certificates issued by the real estate fund. The stipulations for the investment are:

• the investor is required to retain possession of the investment certificate for a minimum of five years;
• only a fund manager possessing a valid financial licence and adhering to a pre-determined fund management policy may establish such a fund;
• the fund manager is approval by the Constitution Protection Office; and
• a minimum 40 per cent of the net asset value of the real estate fund is required to be allocated to residential real estate project within Hungary.

There is currently only one government approved fund available. It appears that the Hungarian government is shifting its focus solely onto the fund option, which in fact may provide a more regulated and easier process.

The recent changes also indicate that investors can now invest in land and residential properties under developments. Another important point is that if the property is owned by a real estate fund, it will not be considered part of the programme, even if it meets the conditions mentioned in the Act, it will not qualify as an investment.

Donating to a higher education institution

A third-country investor can also qualify for a Guest Investor Visa by donating at least €1m to a state-recognised higher education institution in Hungary. The institution shall be managed by a foundation engaged in public functions.

Additional eligibility requirements

Guest Investor Visa applicants must provide proof of sufficient financial resources to cover living expenses and healthcare for themselves and their dependents, if applicable. They are not permitted to be listed in the Schengen Information System (SIS) for alerts concerning expulsion or entry bans, nor should they pose a threat to public order, security, and health or national security.

It is worth mentioning that the timeframe for the adjudication of immigration applications is a maximum of 21 days, commencing on the business day following receipt.

Guest investor residence permit regulations

This permit is obtainable by holders of a Guest Investor Visa who fulfil the conditions stipulated in the legislation. Unlike the residence permit obtained via state bonds from 2013–17, the Guest Investor Residence Permit does not afford permanent residency. Instead, it allows the applicant to:

• stay in Hungary for a long period, typically up to ten years, which may surpass the validity period of the applicant’s travel document;
• extend the permit’s validity period only once and for the same duration (ten years) and purpose as the initial application;
• engage in entrepreneurial and business activities;
• act as a company’s executive officer.

These benefits extend to the applicant’s immediate family (spouse and minors).

Eligibility for the Guest Investor residence permit

As stated, the applicant must have a valid Guest Investor Visa to qualify for a Guest Investor Residence Permit. Investors can only apply after arriving in Hungary, and are required to submit their application within the first 30 days of entry.

Applicants are also required to submit proof of investment within the visa validity period (as mentioned above, they can submit the proof of investment later) if they have only declared commitment to invest via one of the designated pathways. Permit holders are not required to enter or stay in Hungary during the ten-year period.

Eligibility for Guest Investor residence permit renewal

A holder of a Guest Investor Residence Permit may qualify for a single ten-year extension of their original permit if they:

• fulfil conditions specific to their initial investment option;
• have not been found guilty of any criminal offences or broken any immigration regulations during their stay in Hungary; and
• can provide evidence of sufficient financial resources to cover living expenses and healthcare for themselves and (if applicable) their dependents.

There are a few issues to consider regarding the initial investment. If the investment is via a real estate fund, the investment certificate does not need to be the same as initially submitted but of an equivalent or greater value. Applicants whose initial qualification was through a donation are eligible to an automatic renewal of their permit.

Qualifications for the National Residence Card

Permanent residency is available via National Residence Card. Any holder of a Guest Investor Residence permit is eligible for the national residence card if they have lived and maintained themselves in Hungary for at least three years before the application date. The guest investors are not required to stay in Hungary but in the case of their intention to obtain a permanent residency, the applicant is required to reside there.

The threshold for interruption of stay is considered to be four months at any one time, but the total duration of such breaks may not exceed 270 days during the three years. Applicants must also demonstrate their ability to continue supporting themselves and meet the conditions for social cohabitation.

Hungarian citizenship regulations

Once approved for the National Residence Card, the applicant must hold their residence permit and live in Hungary for further five years before applying for Hungarian citizenship by naturalisation. In addition to the National Residence Card, applicants must provide proof of livelihood and not have a criminal record. They must also pass an exam in basic constitutional knowledge using Hungarian language skills.

Tax implications

Holders of Guest Investor Residence Permits are not considered tax residents if they spend less than 183 days in Hungary during any 12-month period. This means that holders of Guest Investor Residence Permits are not automatically subjected to Hungarian taxation but are subject to specific tax laws based on their initial investment. The yield obtained from the real estate fund is subject of 15 per cent personal income tax in Hungary.