Hungary golden visa 
Residency in return for investment gives Hungary a forte for foreign investors and thus became an attractive country to foreigners who would like to integrate into the European Union. The Hungarian “Golden Visa” program had some changes in the last years; nevertheless, it remains one of the most advantageous options for foreign citizens. Further in this article, we will closely look at the legal aspects of the program, applicant requirements, and some variant prospects for investment.
The Golden Visa program was first introduced in Hungary in 2013, through which foreign investors could obtain Hungarian residency in exchange for buying Hungarian government bonds. However, in 2017, this program, in the form it took then, was put on hold, and today investment options that come with residency have changed. Starting in 2024, an updated version of the program – targeted at attracting investment in real estate, business, and in general, into the economy – is set to start operating in Hungary.
Major Categories of Investors Eligible for Residency
| Category | Description |
|---|---|
| Investments in Real Estate: | Investment in real estate in Hungary is one of the main methods of obtaining residency. Due to the fact that the government bond program is no longer available, real estate investment can be the alternative means to secure residency. |
| Business Creation or Investment: | Foreign citizens creating new businesses or investing in existing enterprises in Hungary can also apply for residency. This can involve starting a new business or expanding already established projects. |
| Investment in Strategic Sectors: | Hungary actively encourages investments in the priority areas of technology, innovation, and environmental projects. Residency can be granted to investors in these industries upon meeting specific legal requirements. Only those foreign citizens who satisfy the minimum financial conditions will be granted residency through investment. For instance, if the investment is being done in the form of real estate, a minimum amount of at least €200,000 has to be invested, though the exact requirement might vary with the region and type of property. Legal Explanation: This minimum investment threshold must attract only such investors in whose hands more contribution is possible towards the country’s economy. Investment in real estate or business encourages economic development and infrastructure in Hungary. In the case of opening a business or investing in an already operating enterprise, investors are obliged to create jobs for citizens of this country. The minimum amount of jobs is designated in accordance with the particularities of the business yet most successful projects include creating at least 5 jobs. Legal Justification: The creation of jobs is a very important term of the program, designed to support the labor market and economic stability in the country. This provision confirms the economic input of the investor into the country’s development. |
| Business Plan: | The business plan should provide a detailed description of the project and the implementation method, including financial forecasts, and estimate the contribution to the economy of Hungary in the case of either establishing an enterprise or investing in an already operating one. Legal Justification: The business plan is a basic document through which the authorities may be able to review the feasibility of the project and its economic viability. It also needs to prove that the sums invested will be used in the creation of jobs and economic development. Legal source of funds for all investors: This can include bank statements, tax returns, and other financial statements to prove that the capital was legally acquired. Legal Justification: Hungary is a part of the European Union, and thus it should correspond to international standards for money laundering and financial crimes. In this sense, verification of the legal source of the investor’s funds should be an indispensable condition in order to protect the country’s economic system. In order for the investor not to lose his resident status, he needs to stay in Hungary for a certain amount of time during a year, at least 183 days, showing real involvement in the life of this country. Legal Rationale: The requirement of residency should be one that would aid in minimizing the abuse of the Golden Visa program and ensure that the investor is indeed settling with the economy and society of that country. |
Application Process
Preparation of Documents:
Investors need to provide some documentation: passport, proof of investment, financial reports, business plan—in some cases, and certificate of no criminal record. All these documents need to be translated into Hungarian and notarized.
The application has to be submitted either to the Hungarian Consulate in your home country or directly to the Migration Services in Hungary. The documentation should be complete, including a full set meeting all the legal requirements of the program.
The migration authorities of Hungary review the submitted documents. This will involve checking the legal source of the funds and the feasibility of the investment project. This is expected to take 2 to 6 months.
After approval, the investor obtains a temporary residence permit for 1-3 years, which, in turn, can be extended. To be able to extend the permit, the investor has to fully meet all the conditions of the Program: business maintenance and financial obligations.
Benefits of the Program for Foreign Investors
The residence acquired through investment in Hungary automatically allows the investor and their family members to travel freely throughout the Schengen Zone countries without additional visas.
Access to the European Market: Hungary, as a member of the European Union, provides investors with the opportunity to do business throughout the EU, opening significant prospects for business expansion.
Transparent Legal System:
Hungary provides investors with a transparent and stable legal environment, protecting their rights and minimizing legal risks related to business activities. In general, Hungary offers relatively low taxation compared to other countries, so it is attractive for foreign investors in terms of tax optimization. A 9% corporate tax rate is the lowest in the EU.
In a few years, after residency and successful business operation in Hungary, investors can apply for permanent residency and, consequently, citizenship. This opens all the rights of EU citizens to them.
The Hungarian Golden Visa program offers foreign investors, including citizens of non-EU countries, great opportunities to obtain residence permits through investments into real estate and business development in the country’s economy. The legal requirements of the program include the minimum investment amount required, job creation, and proof that funds come from a legal source, all to make sure that it targets only serious investors who can make substantial contributions to the economic development of Hungary. Besides, the substantial advantages accruing from the program include access to European markets, tax benefits, and the possibility of obtaining Hungarian citizenship, all of which turn the current program into one of the most attractive in Europe.
Benefits of the Hungary Golden Visa
The Hungarian Golden Visa program is one of the most effective ways to get residency through investment, creating vast opportunities for foreign nationals to integrate with the European Union. Even though this closed down in 2017, a new update in 2024 has opened up new advantageous conditions toward investors in getting residency through serious capital investments in the country’s economy. The article below describes the primary legal and economic benefits available to foreign investors under the Hungarian Golden Visa program.
| Aspect | Legal Grounds | Advantage |
|---|---|---|
| Legal Grounds | A residence permit obtained through the investment made in Hungary shall grant an entitlement to free travel within the Schengen Zone countries, especially for those with an international business. The rationale behind this is that, upon residency in Hungary, there will be a visa-free capability in most European countries for periods of up to 90 days within any six-month period. | |
| Convenience | The right to free travel in the Schengen Zone of 26 countries makes business trips and personal journeys easier for investors and their families, who can utilize the economic and cultural benefits provided by Europe. | |
| European Market Access | LEGAL FRAMEWORK: As an EU state, Hungary provides foreign investors with access to the integrated European market. On a related note, residence permit holders can work in Hungary or in any other EU state, which serves as an easy and attractive base for the entry of international markets. | Advantage: For foreign investors, this means access to a market of over 500 million consumers, opening up vast opportunities for business expansion and improved profitability. |
| Transparent Legal System and Investor Protection | Legal Basis: As a member of the EU, Hungary boasts one of the most transparent legal environments, in line with European legal principles and protection of private property. Hungarian legislation secures clear regulations concerning business activity and secures the rights of investors, thus shrinking legal risks and offering favorable business conditions. | Advantage: The transparent and stable legal system of Hungary gives confidence to investors in the assurance of their rights and the security of their investment. This is very important for foreign nationals seeking to secure stability over the long term and protect their assets. |
| Low Tax Burden | Legal Basis: Hungary probably has the lowest business tax rate in the European Union, with 9% being the corporate tax. This presents an unparalleled spot for establishment and business expansion plans within the EU. It also has a personal income tax rate of 15%, hence more attractive under tax optimization purposes. | Advantage: Low tax rates provide the opportunity for the investors to substantially decrease the burden of taxation and increase profitability of business, ensuring competitiveness in world markets. |
| Access to High-Quality Social Services | Legal Basis: The applicant and his/her family members have the right to high-quality social services, education, healthcare, and social protection in Hungary due to its residency. The Hungarian healthcare and education systems, represented under European Union law, have ensured a high level of service provision. | Advantage: The investor and family members are accorded access to one of the best healthcare and education systems in Europe; hence, it guarantees an improved quality of life and easy conditions to stay in the country for a long period. |
| Legal Grounds | The Hungary Golden Visa offers residency that is, compared to other EU nations, relatively painless in its application. Residency in a few months is granted upon meeting the requirements for minimum investment. | Advantage: By reducing bureaucracy and giving speed to the process of acquiring residency, the program secures clients who wish to earn residence in the EU as soon as possible. |
| Family Inclusion | Legal Basis: The Hungary Golden Visa program has legally given the cause for residency, not only to be accorded to the investor themselves, but also to extend towards family members, such as a spouse and minor children. The families of investors also enjoy all the rights and benefits accruable, including education, health care, and free movement within the Schengen Zone. | Advantage: The option of the whole family becoming integrated into the European economic and social environment is what this program is especially appealing to for rich investors, in need of ensuring a superior education and way of life for their children. |
| No Restrictive Residency | Legal Basis: One of the advantages of the Hungary Golden Visa program is that there is no rigid residency requirement. It does not put any burden on the investor to necessarily stay in the country for a long period as a residency requirement in maintaining their status. This gives more flexibility, especially for those active in conducting business across different countries. | Advantage: The investors can operate internationally without being tied to permanent residency in Hungary, while retaining their residency rights and having access to European markets. |
| Long-Term Prospects: An Opportunity of Permanent Residency and Citizenship | Legal Grounds: After a number of years of residence in Hungary, investors have the opportunity to apply for permanent residence and later for citizenship. Citizenship is acquired upon eight years of residence; however, this may be exempted on the discretion of the appropriate authority, provided one is actually running his or her business and making sufficient contribution to the economy. | Advantage: Hungarian citizenship opens all rights of an EU citizen in order to freely move, work, or study in any of the EU countries. This is a very important advantage for those who wish to integrate themselves into full rights of European economic and social life. |
The Hungarian Golden Visa Program gives foreign investors a wide range of significant benefits, from free movement in the Schengen Zone and access to European markets, through low tax burdens, up to high-quality social services. It offers legally protected routes to residency with very low bureaucratic hurdles, together with long-term residency and possible access to full citizenship. These advantages make Hungary a bright destination for foreign investors seeking to invest in the European Union to have their hands on economic and social resources.
Eligibility Criteria Required for Hungary Golden Visa Program
The Hungary “Golden Visa” program offers the opportunity for foreign investors to obtain residence in return for making substantial investments in the economy. An initial scheme based on the purchase of bonds issued by the state was suspended in 2017 but will be revived in 2024, with its focus on investment in real estate and the economy. The main legal criteria that a foreign citizen must fulfill so that he or she can be granted residence in exchange for investment are highlighted below.
Main Categories of Eligible Applicants
| Category | Description |
|---|---|
| Real Estate Investors | Applicants in the main category are foreign nationals buying real estate in Hungary. The minimum investment amount in real estate shall be adequate to ensure the economic significance of the investment. |
| Entrepreneurs and Business Founders | Foreign nationals who establish a business or invest in existing enterprises may be eligible for residency. It is essential that the business contributes to the country’s economic development and job creation. |
| Investors in Strategically Important Projects | Hungary actively attracts investments in key economic sectors such as innovation, technology, and ecology. Citizens investing in state-supported projects may also obtain residency through this program. |
Main Legal Requirements of the Hungary Golden Visa Program
| Requirement | Description |
|---|---|
| Minimum Investment Amount | There is one major pre-requisite for the program: a candidate should provide for at least minimum investment requirements. The sum of minimum investment will differ in accordance with the method of obtaining residency chosen:
Legal Basis: The minimum investment amount is set to attract serious investors who can make a significant contribution to the country’s economic development. |
| Job Creation | The law requires foreign nationals to create employment for local Hungarian nationals for the establishment of a new business or investment in existing companies. Although the law does not make specific reference to the number, to be qualified, successful projects have to be based on at least 5 to 10 jobs that will be created, depending on the nature of the business. Legal Basis: The creation of jobs is one of the main criteria for the program to contribute to the economic growth and employment of the country. This criterion shows that the investor’s contribution is valued and real to the socio-economic development of Hungary. In order to apply for residency through the creation of business or investment in strategic projects, a foreigner should provide a detailed business plan. It should include a description of the project and its objectives, among other things:
Legal Reasons: A business plan is an essential document on the basis of which the Hungarian authorities can evaluate whether the project is viable or beneficial to the economy. Investments for which a good business plan can be submitted have a greater chance of residence.
Legal Grounds: Given that Hungary is a part of the European Union, it is compelled to follow strict international standards in combating money laundering and financing terrorism. All financial transactions must be transparent to avoid breaches by illicit financial flows. |
| Residency Requirements | Residency in Hungary for at least a certain number of days in a year is required to retain the status of resident. In general, at least 183 days of residence are required, confirming the investor’s active involvement in the life of the country. Legal Basis: This will prevent abuses of the program by investors that will not actively involve themselves in the country, only using it for visa privileges. |
| Compliance with Tax Legislation | Foreign investors obtaining residency in Hungary are liable under the obligation of compliance with local taxation legislation. Hungary has favorable tax conditions, such as a low corporate tax rate of 9%, which attracts businesses to the country. Legal Basis: Tax payment is one of the major requirements for all residents of the country. Investors should observe tax legislation to maintain residency and avoid conflicts with tax authorities. |
Residency Application Process
- Preparation of documents
Investors must gather a complete set of documents, which include the passport, financial reports, proof of investments, a business plan if available, and a certificate of a criminal record. Such documents are to be translated into Hungarian and notarized.
The residency application can be submitted either through a Hungarian consulate or directly to the immigration authorities of that country. All legal requirements regarding the preparation and submission of the documents must be fulfilled.
The immigration authorities of Hungary review all the submitted documents in great detail. This includes evaluating the investor’s financial capability and legality of the source of funds. This review process may take several months.
- Temporary Residency
It involves the issuance of a temporary residence permit valid for 1-3 years, renewable upon successful processing of the application. Extension, however, is subject to compliance with all the conditions of the program, including retaining the investment and maintaining the conditions imposed on job creation.
Advantages of the Hungary Golden Visa Program
Free Movement within the Schengen Zone
Access to the European Market
Low Tax Rates
Opportunity for Permanent Residency and Citizenship
Who Is Eligible for the Hungary Golden Visa?
The Golden Visa of Hungary guarantees residence in exchange for investment activity in the economy for foreign investors. While the traditional golden visa program related to investments in the government bonds was abolished in 2017, it is expected that Hungary will restart the program in 2024 with new conditions taking into account the attraction of investments both in real estate and business. The following paper outlines the category of individuals who apply for a Hungary Golden Visa, with further details about the legal requirements for participation in the program.
Among the important categories that come under residency through Golden Visa, foreign investors making investment in Hungarian real estate will be included. The minimum amount required for a foreign investor to be able to join the program is €200,000. The property needs to be in Hungary and of economic interest.
Legal Basis: Hungarian law on residency allows foreign nationals to obtain residency, provided they invest a considerable amount in the economy, including in real estate. It is also fundamental in this context that the investments promote local economic development.
A foreigner who opens an enterprise or invests in an already existing one in Hungary can also get residency. It means establishing new and investing in already existing companies in every field of economic life. The main requirement is to provide employment for Hungarian citizens.
Legal Basis: The Golden Visa program seeks to attract investors who can establish or support a successful business that would contribute to economic growth and job creation. A project shall be analyzed upon submission of a business plan.
The Hungarian Golden Visa program focuses on attracting investment in the priority sectors of the economy, such as high technology, innovation, renewable energy, and ecological projects. Such cases may provide a residency visa to citizens who invest in these fields in the case of fulfilling the requirements.
Legal Basis: Hungarian law underlines the attraction of investors who can contribute positively to the economic life by investing in strategically important sectors. Such projects will be supported by the government, which means that for foreigners, the acquisition of residence will be easier to attain.
Foreign entrepreneurs willing to expand their international operations to the European market may consider Hungary as a strategic hub to enter EU markets. They can take advantage of the Golden Visa program by means of investment in the Hungarian economy through the establishment or expansion of a business.
Legal Basis: As a member of the European Union, Hungary offers investors access to European markets. Residency in Hungary allows businesses to operate not only within its borders but also in EU countries, providing significant advantages for international entrepreneurs.
Requirements for Obtaining the Hungary Golden Visa
| Requirement | Description |
|---|---|
| Minimum Investment Amount |
In return, the Hungary Golden Visa program requires foreign investors to invest in specific forms approved by the government. The minimum amount for investment depends on the investment type. Real Estate Investments: The minimum required investment in this type of investment is €200,000. • Business Investments: The minimum investment required is contingent upon the scale of the project and can start from €250,000. Legal Basis: Hungarian legislation provides that an investment has to be substantial and economically justified. The minimum amount of investment is determined in a way that only those investors could apply who have the potential to contribute to improving the economic situation of the country. This means that foreign nationals who will establish businesses in the country have to create at least new jobs for Hungarian nationals, but the number varies from 5 to 10 depending on the business type. Legal Basis: The creation of jobs is a key demand of the program for employment support, and simultaneously a boost to economic growth of the country. This condition helps ensure the sustainable development of Hungary’s economy. |
| Proof of Legal Origin of Funds |
All applicants must provide documentation proving the legal origin of the funds intended for investment. This includes:
Legal Grounds: Hungary takes steps internationally toward the eradicating of money laundering and financing terrorism. Proof of the legal source of funds is hence another primary requirement to ensure financial transparency within the program. |
| Business Plan |
This requires a comprehensive business plan from the applicant including the goals of the project, development strategy, the number of jobs to be created, and prospective economic impact for the country in case of residency through business investment. Legal: A business plan, on which Hungarian authorities are supposed to assess the viability of the project and its possible contribution to the economy. Projects that are successful receive priority consideration for residency approval. |
| Residency in Hungary |
In this respect, applicants are obliged to have residence for at least 183 days every calendar year in Hungary, demonstrating that the investor accepts active commitment for his participation in Hungarian affairs or conducting business or management of his investment within the country. Legal Grounds: The above condition aims at blocking the use of the program for the purposes of visa benefits only and without any actual contribution to the national economic and social life. |
Application Process
Preparation of documents:
A complete set of documents has to be submitted, which should contain a passport, financial documents, proof of investment, a criminal record certificate, and a business plan-just in case. The documents must be translated into Hungarian with further notarization.
The application needs to be submitted to the Hungarian Consulate in the country of residence of the applicant or through local migration authorities in Hungary. All the legal requirements for the documents should be met.
The Hungarian migration authorities check all the documents submitted very carefully. The whole process might take a few months, depending on the project’s complexity and the amount of information submitted.
Residence TMP will be issued. Upon successful application review, the applicant gets a temporary residency permit valid for 1-3 years, renewable. To renew, all program conditions must be continuously satisfied.
The Golden Visa Hungary offers foreign investors unrivaled opportunities to secure residency through investment either in real estate or business. Their main category of eligible candidates involves real estate investors, business founders, and investors in the strategically important fields of the economy. Legal requirements for joining the Program vary from meeting specific minimum investment amounts to job creation requirements, proof of the legal origin of invested funds, and so on and so forth. The advantage most sought after is standing in a better position with access to European markets, which thereby unfolds an opportunity to receive Hungarian citizenship.
Changes in the Hungarian Golden Visa in 2024 – 2025
Budapest, the capital of Hungary, hosts a residency through investment program known as the Hungary Golden Visa, previously available to foreign citizens. Over recent years, it has undergone some important changes. After the suspension of the government bond investment program in 2017, it is ready to start again in 2024-2025 with new conditions to attract foreign investors in some strategic industries of the economy. Changes to the Hungary Golden Visa program will be discussed in depth, along with legal requirements and prospects for investors over the coming years.
Main Changes to the Hungary Golden Visa Program in 2024-2025
| Change | Description | Legal Basis |
|---|---|---|
| Main Focus on Real Estate and Business Investments | One of the salient features of the program for the years 2024-2025, compared with the investment requirements previously adopted, is a shift in focus away from government bonds and onto real estate and business investments. The new program will give foreign investors the opportunity to gain residency through an investment either in Hungarian real estate or by establishing a company within the country. | Critical reviews and legal risks led to a freeze of the government’s bond program in 2017. The face of the program is now real investment in the economy, with the purchase of property and the establishment of businesses in tune with European standards, destined for a much greater impact on economic growth in Hungary. |
| Higher Minimum Investment Amount | The updated minimum investment amount that is required for the new Hungary Golden Visa program in 2024-2025 will be higher. In this regard, applicants will have to invest at least €250,000 in a residency visa through real estate investment while for business projects it may be as high as €300,000, depending on the sector. Over time, the new version of the Hungary Golden Visa program has come to focus on attracting investments in the following key economic sectors of the country: Technology and innovation; Green energy and ecology; Infrastructure projects. Investors who invest in these sectors enjoy the benefits of speedy processing for residency applications and more tax benefits and government support. | The minimum investment amount has been increased with the view to attract serious investors who would be in a position to have a considerable contribution towards the economy of Hungary. This is in tandem with the general trend in the European Union that sees the tightening of residency by investment programs. Hungary, along with other EU member states, is committed to actively moving towards green technologies and sustainable development. Investments in those industries contribute to the growth of the economy, and its conditioning makes the country interesting for foreign investors who are interested in long-term projects. |
| Stricter Verification of the Legality of Funds | From 2024, there will be stricter needs concerning the verification of the legality of the funds used for investing. A private investor shall show the financial documents which prove the legal origin of his capital in detail and which shall consist of tax returns, bank statements, and income reports. | Enhanced scrutiny over the legality of funds is linked to Hungary’s international commitments to combat money laundering and terrorist financing. This requirement aims to ensure financial transparency in the program and protect the country’s economic system. |
| Mandatory Job Creation | Starting from 2024-2025, the investors who open businesses in the framework of the Golden Visa will have to provide at least 10 jobs for locals. In such a way, it corresponds to and supports the labor market, providing social stability. | Job creation is a critical element of the country’s economic policy. This program condition not only stimulates economic growth but also reduces unemployment, ensuring social stability. |
| Updated Residency Requirements | Starting in 2024, for the maintenance of residency, investors will need to be in Hungary for at least 183 days annually. Such a fact would surely confirm the active participation of investors in the life of the country and their integration into the economy. | The purpose of this condition is to prevent abuse of the program, when investors use it only for visa benefits, without bringing any real contribution to country life or investment in its economy. |
Application Process Considering Changes
- Preparation of DocumentsInvestors have to prepare a full set of documents, which include a passport, financial reports, proof of investment, a certificate of criminal record, and a business plan, if applicable. All of these documents need to be translated into Hungarian and notarized.
- Submission of ApplicationThe residency application should be forwarded to the Hungarian embassy in their country of residence or, with the assistance of local migration authorities in Hungary. It is necessary to follow all the legal conditions regarding document preparation.
- Application ReviewHungarian migration authorities thoroughly check all the documents submitted. A review process can take several months depending on a project’s complexity and the volume of information provided. Under the new programme, applications connected with investments within the priority economic sectors are subject to accelerated consideration.
- Temporary Residency Permit IssuanceAfter the successful processing of an application, an applicant is offered a temporary residency permit valid for 1-3 years and renewable. To renew it, all conditions of the program have to be ongoingly complied with, including investments and job creation.
Benefits of the Updated Hungary Golden Visa Program
- Free Movement in the Schengen AreaThe residency obtained through investment in Hungary grants the investor and their family the right to travel freely within the Schengen Area without the need for additional visas.
- Access to European MarketsAs a member of the European Union, Hungary provides investors access to a vast European market, opening significant opportunities for international business.
- Tax IncentivesHungary offers one of the lowest corporate tax rates in the EU at 9%, making the country attractive for starting and running a business.
- Government Support for Investors in Priority SectorsInvestors in priority fields, such as in technology, green energy, and ecology, can count on supplemental tax benefits, subsidies, and support on the part of the government.
- Route to Permanent Residence and CitizenshipLater on, following several years of residence in Hungary and having successful business operation here, it is possible for investors to apply for permanent residency, and then for Hungarian citizenship, which includes the acquiring of rights of an EU citizen.
The changes in the Hungary Golden Visa program are directed towards attracting big investors in long-term projects, such as increasing the minimum investment, straits on job creation, and verification of the legality of funds. This program has impressive advantages: free movement in the Schengen Area, access to European markets, and tax incentives. All these changes make Hungary even more attractive for foreign investors willing to invest in the economy of this country and to obtain residency in one of the centers of the European Union.
Changes in the Hungarian Golden Visa in 2024 – 2025
Budapest, the capital of Hungary, hosts a residency through investment program known as the Hungary Golden Visa, previously available to foreign citizens. Over recent years, it has undergone some important changes. After the suspension of the government bond investment program in 2017, it is ready to start again in 2024-2025 with new conditions to attract foreign investors in some strategic industries of the economy. Changes to the Hungary Golden Visa program will be discussed in depth, along with legal requirements and prospects for investors over the coming years.
Main Changes to the Hungary Golden Visa Program in 2024-2025
- Main Focus on Real Estate and Business Investments
One of the salient features of the program for the years 2024-2025, compared with the investment requirements previously adopted, is a shift in focus away from government bonds and onto real estate and business investments. The new program will give foreign investors the opportunity to gain residency through an investment either in Hungarian real estate or by establishing a company within the country.
Legal Basis: Critical reviews and legal risks led to a freeze of the government’s bond program in 2017. The face of the program is now real investment in the economy, with the purchase of property and the establishment of businesses in tune with European standards, destined for a much greater impact on economic growth in Hungary.
- Higher Minimum Investment Amount
The updated minimum investment amount that is required for the new Hungary Golden Visa program in 2024-2025 will be higher. In this regard, applicants will have to invest at least €250,000 in a residency visa through real estate investment while for business projects it may be as high as €300,000, depending on the sector.
Legal Basis: The minimum investment amount has been increased with the view to attract serious investors who would be in a position to have a considerable contribution towards the economy of Hungary. This is in tandem with the general trend in the European Union that sees the tightening of residency by investment programs.
Over time, the new version of the Hungary Golden Visa program has come to focus on attracting investments in the following key economic sectors of the country:
- Technology and innovation;
- Green energy and ecology;
- Infrastructure projects.
Investors who invest in these sectors enjoy the benefits of speedy processing for residency applications and more tax benefits and government support.
Legal Basis: Hungary, along with other EU member states, is committed to actively moving towards green technologies and sustainable development. Investments in those industries contribute to the growth of the economy, and its conditioning makes the country interesting for foreign investors who are interested in long-term projects.
- Stricter Verification of the Legality of Funds
From 2024, there will be stricter needs concerning the verification of the legality of the funds used for investing. A private investor shall show the financial documents which prove the legal origin of his capital in detail and which shall consist of tax returns, bank statements, and income reports.
Legal Basis: Enhanced scrutiny over the legality of funds is linked to Hungary’s international commitments to combat money laundering and terrorist financing. This requirement aims to ensure financial transparency in the program and protect the country’s economic system.
- Mandatory Job Creation
Starting from 2024-2025, the investors who open businesses in the framework of the Golden Visa will have to provide at least 10 jobs for locals. In such a way, it corresponds to and supports the labor market, providing social stability.
Legal Basis: Job creation is a critical element of the country’s economic policy. This program condition not only stimulates economic growth but also reduces unemployment, ensuring social stability.
- Updated Residency Requirements
Starting in 2024, for the maintenance of residency, investors will need to be in Hungary for at least 183 days annually. Such a fact would surely confirm the active participation of investors in the life of the country and their integration into the economy.
Legal Basis: The purpose of this condition is to prevent abuse of the program, when investors use it only for visa benefits, without bringing any real contribution to country life or investment in its economy.
Application Process Considering Changes
- Preparation of Documents
Investors have to prepare a full set of documents, which include a passport, financial reports, proof of investment, a certificate of criminal record, and a business plan, if applicable. All of these documents need to be translated into Hungarian and notarized.
The residency application should be forwarded to the Hungarian embassy in their country of residence or, with the assistance of local migration authorities in Hungary. It is necessary to follow all the legal conditions regarding document preparation.
Hungarian migration authorities thoroughly check all the documents submitted. A review process can take several months depending on a project’s complexity and the volume of information provided. Under the new programme, applications connected with investments within the priority economic sectors are subject to accelerated consideration.
- Temporary Residency Permit Issuance
After the successful processing of an application, an applicant is offered a temporary residency permit valid for 1-3 years and renewable. To renew it, all conditions of the program have to be ongoingly complied with, including investments and job creation.
Benefits of the Updated Hungary Golden Visa Program
Free Movement in the Schengen Area
Access to European Markets
Tax Incentives
Government Support for Investors in Priority Sectors
Route to Permanent Residence and Citizenship
The changes in the Hungary Golden Visa program are directed towards attracting big investors in long-term projects, such as increasing the minimum investment, straits on job creation, and verification of the legality of funds. This program has impressive advantages: free movement in the Schengen Area, access to European markets, and tax incentives. All these changes make Hungary even more attractive for foreign investors willing to invest in the economy of this country and to obtain residency in one of the centers of the European Union.
Hungary Golden Visa for Pakistanis
The Hungary Golden Visa used to be one of the most sought-after programs that granted residency in return for investment. This scheme provided a residency option in Hungary for foreign nationals, including Pakistanis, who provided substantial financial contributions. However, it must be underlined that the Hungary Golden Visa program was officially closed in 2017. That notwithstanding, there are still other alternative ways through which a Pakistani citizen may obtain residency for Hungary; examples of these include residency through investments in other programs or Schengen zone countries.
This article will seek to discuss, for legal clarity, some of the major talking points that characterized the now-dormant Hungary Golden Visa program, and maybe other available options for Pakistani nationals who intend to get residency in EU countries.
The Golden Visa program in Hungary was issued in accordance with the Foreign Citizens Residence Act, which gave an opportunity to get temporary or permanent residency on the basis of investment. The government’s aim was to attract foreign investment in Hungarian government bonds for the economic development of the country.
Investor Requirements
- Investment:
The minimum investment requirement of the program was €300,000 investment in Hungarian government bonds with a holding period of a minimum of 5 years. In return, temporary residence would be given to the investor and family that could be renewed and converted to permanent residency.
- Application Procedure:
To be able to join the program, applicants had to file their applications through Hungarian government-accredited investment agencies. Conclusively, upon filing the application and confirmation of the investment, the residency for 5 years was granted to the investor and his family.
Program Benefits
- Free Movement:
Golden Visa holders had the right to travel freely within the Schengen Area.
- Residency Options:
Applicants could reside in Hungary during their residency period without any obligation to permanent residence.
- Citizenship:
In the case of Golden Visa, after 8 years of residency in Hungary, applicants were able to apply for Hungarian citizenship.
Program Suspension:
In 2017, the Hungarian government decided to close the Golden Visa program due to political and economic considerations. The program was facing criticism regarding the potential risks related to transparency and proper legal vetting of its applicants.
Alternative Options for Pakistani Citizens
Even though the Hungarian program was shut down, for Pakistanis, there was still a way to have other EU residency programs through investment in the following countries:
- Portugal:
Other visas include the Golden Visa, still in force from Portugal, which confers residence in exchange for various investment schemes, such as the acquisition of real estate, the creation of jobs, or the financing of a fund. It is one of the most attractive programs for foreign investors seeking residency that enables them to travel freely throughout the Schengen Area.
- Greece:
The Greek Golden Visa program is one of the most accessible in Europe, granting residency through real estate purchases from €250,000.
- Spain:
The Spanish Golden Visa program also provides for residency via investment in real estate or other forms of investments from €500,000 onwards.
- Cyprus and Malta:
These countries have investment programs that grant citizenship or residency, subject to investments in real estate, funds, or enterprises.
Legal Aspects a Pakistani Citizen Will Go Through While Applying for Residency
A Pakistani citizen applying for residency through investment programs of other EU countries will have to keep in mind many legal aspects while doing so, which include:
- Due Diligence:
This implies that, for applicants, a rather elaborate vetting process is done in all countries offering Golden Visas within the EU. That would involve the sourcing of income and funds used for investment, background checks for criminal records, and possible sanctions.
- Tax Residency:
This will include understanding tax residency upon residency in any EU country. Depending on the period of stay and economic interest in the country, a Pakistani national will automatically be regarded as a tax resident and would have to declare his or her income and assets.
- Application Process:
The Golden Visa application process involves Pakistani citizens either through translation of various documents or notarization and legalization of the same, including personal attendance at interviews.
Although the Hungarian Government has closed its Golden Visa program, a Pakistani can try his luck with the rest of the European countries for residency in lieu of investment. It is highly imperative to investigate all the legal aspects of the programs and needs thereof and take legal support for the successful processing of the applications.
Hungary Golden Visa for Nepali Citizens
The Hungary Golden Visa program, until 2017, allowed foreign investors, including Nepali citizens, to reside in the country through government bond investment. This uniquely designed mechanism attracted capital to the Hungarian economy and, in return, provided residency within the European Union to the investor and his family.
The Golden Visa program was suspended in 2017 for political and economic considerations. This article discusses the legal framework of the erstwhile Hungary Golden Visa program and alternatives available for Nepali citizens to obtain residency through other investment programs in European Union countries.
Key Features of Hungary’s Golden Visa Program
| Legal Framework: | The Hungarian Golden Visa was issued under the Foreign Citizens Residence Act, more commonly known as Act II of 2007 on the Entry and Stay of Third-Country Nationals. Foreign nationals were granted the right to temporary residency in cases of investment in Hungarian government bonds. It might be subject to renewal and authorization for permanent residency application at a later stage. |
| Investment Requirements: |
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| Residency Application Procedure: |
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| Benefits of the Program to the Applicant: |
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| Program Suspension: | In 2017, the Hungarian government decided to suspend the program. Among the main reasons for suspension were political and social debates over the appropriateness of residence in exchange for investment. The government felt that the program had achieved its economic objectives and its further running was not in the interest of national security. |
Alternative Investment Residency Programs for Nepali Citizens
Third-country nationals seeking to live in the European Union may consider residency by investment in other European Union countries following the termination of the Hungarian Golden Visa program. This is a good option for individuals looking for residence in the EU and free movement within the Schengen Zone.
- Portugal:Among the different programs, the most sought-after residency investment programs include the Golden Visa by Portugal. The investment in property purchases should be at least €500,000 or €350,000 in investments that contribute to the restoration of cultural heritage. Nepalese citizens can gain residency and have the possibility to move freely within the Schengen Zone, as well as receiving an opportunity for obtaining citizenship in 5 years.
- Greece:Greece has one of the easiest programs in the EU, and this is with a minimum amount of €250,000 for the purchase price of the property. This program allows residency for 5 years, which can be renewable, together with free movement in the Schengen Zone.
- Spain:The Spanish Golden Visa program allows for residency through the purchase of property from €500,000 and upwards, investments in a business, or the creation of jobs. The Spanish residency-by-investment program allows applicants to apply for citizenship after 10 years of residency.
- Malta and Cyprus:These countries offer investment programs which grant residency and even citizenship, on the condition that the applicant makes huge investments in real estate, government bonds, or in the economy of the country.
Also, the investment visa application process for Nepali nationals, apart from lawful aspects of the origin of the invested money, is heavily reliant on due processing and administration of documents. This includes the collection and submission of required documents, such as proof of the lawful origin of funds invested in the business development project, translations of documents, and legalization of those translations.
All the programs across the EU countries would require an applicant’s scrutiny, hence analysing their financial activities, sources of income, and criminal record checks. In this regard, Nepali citizens must be prepared for due diligence, which is often extensive to satisfy program requirements.
By obtaining residency, Nepalese citizens may become tax residents in the country where they acquire residency. This would mean that they would have to file their income and assets in that particular country. Any tax obligations or requirements should be researched well in advance to avoid any unexpected tax implications.
Although the Hungary Golden Visa Program was closed, there is still a possible way for Nepalese to choose another country in the EU to apply for residency against investment. These programs enjoy unparalleled access to European markets for free movement and residence within Schengen countries.
Golden Visa of Hungary for Bangladeshi Nationals
The Hungary Golden Visa is otherwise called the Hungary Residency Bond Program, which provided an opportunity for residency in Hungary against substantial financial investments into government bonds. This has been one of the most popular options among foreign nationals, especially for Bangladeshi citizens, in investing in residency in the European Union. The most important thing that one should remember is that the program was officially closed in 2017.
However, other programs in the EU are open to Bangladeshi residents for residency in exchange for investment. This article would consider the erstwhile legal aspects of the Hungary Golden Visa program before it was closed and alternative options now available to Bangladeshi citizens for obtaining residency in the EU.
Legal Aspects of the Hungary Golden Visa Program
- Legal Framework:
The Hungarian Golden Visa program was ruled by a law based on the Foreign Citizens Residence Act: Act II of 2007 on the Entry and Stay of Third-Country Nationals. This allowed foreign nationals to have temporary residence with investments in Hungarian Government Bonds. The program attracted a significant number of foreign investors, providing benefits such as free movement within the Schengen Zone and the opportunity for permanent residency.
- Investment Requirements:
- Minimum Investment Amount: The program imposed a minimum investment of just Hungarian government bonds valued at €300,000, which should be in the form of a five-year loan and whose amount is to be refunded to the investor on maturity.
- Extra Charges: In addition to the amount meant for the investment, the applicant had to pay an administrative charge ranging from €40,000 to €60,000. Included herein is the cost of processing the application and services of the licensed intermediaries.
- Application Procedure:
- Authorized Agencies: Bangladeshi citizens, as all other foreign applicants, have to send the documents through the accredited government agencies in Hungary. The agencies will undertake the work of the process, right from the verification of the origin of funds of the applicant to submitting the documents.
- Residency Status: On receipt of all the documents and verification of investments made, Bangladeshi nationals were granted a temporary residency permit for 5 years. This status was renewable, and it was also convertible to permanent residency upon completion of the stipulated period of residence.
- Program Benefits:
- Free Movement within the Schengen Zone: The ability to travel freely within the Schengen countries was one of the main reasons foreign investors, including Bangladeshi citizens, were attracted to, as it aided business and personal travel across Europe.
- Permanently Resident and Citizenship: Participants in the program would have permanent residency in a couple of years. Furthermore, applicants were in a position to apply for citizenship after 8 years of residency in Hungary.
- Program Suspension:
In 2017, the Hungarian government decided to suspend the Golden Visa program. This decision was influenced by both internal political reasons and external security considerations. The program faced criticism from the opposition and public, leading to its closure.
Alternative Options for Bangladeshi Citizens
Although the Golden Visa program in Hungary has been shut down, some EU countries have retained their residency programs through investment. These are also accessible to Bangladeshi citizens and open up opportunities for residency and further citizenship.
Portugal:
Greece:
Spain:
Malta and Cyprus:
Legal Issues of the Application Process for Bangladeshi Citizens
- Due Diligence Procedure: All the EU states that provide residency in exchange for investment perform due diligence checks on applicants. Bangladeshi nationals will have to prepare documents that prove the legal source of their funds and pass a reliability check that includes analysis of financial documents and verification against criminal records.
- Tax Residency Rules: Bangladeshi residents may turn out to be tax residents of the country of applied residency, depending on the program for which one has applied. This could lead to a declaration obligation and taxation of worldwide income in certain countries.
- Documentation Properly Arranged: Citizens of Bangladesh have to ensure that all the documents for residency submitted are translated and legalized with due importance given to the particular EU country. This might include notarization and apostille.
While the Golden Visa program in Hungary closed in 2017, there are different residency programs through investment available to Bangladeshi citizens in EU countries. Unique opportunities for Bangladeshi citizens now exist to obtain residency within the EU, with free movement in the Schengen Zone and a path to citizenship.