In November of last year, the Hungarian government announced an unprecedented programme of granting residence permits for investments. Legally, it came into effect on July 1, 2024. The program grants the relocatee a residence permit for a period of 10 years.
Holders of a Hungarian resident card can freely visit the EU and the Schengen area. However, the benefits for investors who have obtained a residence permit do not end there.
Why It Could Be the Most Attractive Programme in Europe.
Currently, there are no equivalent programs in Europe to the one that started in Hungary in the summer of 2024. And it has more than enough advantages:
- It offers three different formats of capital investment in the national economy.
- The minimum investment amount is 250,000 euros.
- The investment retention period does not exceed 5 years.
- The investor receives a residence permit for 10 years (with the right to extend it).
- The investor's immediate family members are eligible for a European resident card.
Another undeniable advantage is the review of documents from an applicant applying for a residence permit in Hungary without unnecessary bureaucratic formalities. The authorities plan to make a decision on the candidate within 1-2 months from the date of application submission. Once approved, the investor can expect to receive a resident card of a European country. This card allows the holder to study, work, and conduct business in Hungary.
The updated program provides for the following investment formats:
- Real estate fund (at least 250,000 euros);
- Residential property, which is later transferred into personal ownership (at least 500,000 euros);
- "Targeted" donations aimed at providing financial support to local universities or cultural institutions (at least 1 million euros).
The housing investment option will only become effective from 1.01.2025, so if you plan to buy a flat in Budapest or another Hungarian city before this date, the transaction will not be counted as an investment in the national economy. If an investor buys an apartment in 2025, he or she may not dispose of it for the next 5 years. Also during this period, the property must not be under encumbrance.
Who Can Participate
In addition to the investor, the closest relatives of the investor may also apply for a Hungarian residence permit. These include, in particular, the spouse and minor children. Applicants for a residence permit must meet certain requirements. They must not have any bans on entry or exit from the Schengen area. The residence permit is issued to candidates without a criminal record who do not pose a potential threat to public order in the European state.
What to Begin with
A relocatee applying for a residence permit in Hungary must initially apply for a Guest Investor Visa. The entry permit is issued for a maximum period of 2 years and during this period all bureaucratic formalities related to obtaining a Hungarian residence card must be fulfilled.
Step-by-Step Procedure
The process of obtaining a "Hungarian" residence permit occurs in several stages. To legally cross the border of a European country, it is necessary to obtain a guest investor visa.
At the first stage, it is sufficient to confirm readiness to participate in the program that was announced by the Hungarian authorities last fall.
All sources of income must be legal. An investor is required to invest money in a particular project within 3 months of entering the European country. To confirm their intentions, the applicant makes a deposit. The issuance of the "Guest Investor Visa" often does not exceed 21 days from the submission of documents to the consulate.
In the second stage, the relocatee deals with bureaucratic formalities and fulfills their investment obligations in practice. The process of obtaining a residence permit ("Guest Investor Residence Permit") involves submitting the relevant application and documents confirming the investment of capital in one of the possible segments of the economy.
Options for Obtaining a Residence Permit
Hungarian authorities offer foreigners a standard set of grounds for obtaining a residence permit. Relocators moving to the European country for purposes such as studying, employment, family reunification, marriage to a Hungarian citizen, or implementing business projects can apply for temporary resident status. Purchasing real estate is another option for obtaining a residence permit. The standard validity period of the residence permit does not exceed 5 years. Those working remotely can apply for the "White Card," which is considered a type of residence permit. This document is valid for 1 year and can be extended.
It is also chosen by those who want to practically explore the national culture and language. The residence permit with the "For Other Purposes" designation is issued for 1 year and allows for multiple crossings of the Hungarian border.