Hungary Golden Visa 2024: January Updates on the New Guest Investor Program
January 30, 2024 · Europe · 7 min read
For investors following the Hungary golden visa 2024 developments, the key news is that Hungary’s new residency by investment program is officially named the Guest Investor Program (GIP). The Hungarian government has issued official announcements on its launch.
In late 2023, the Prime Minister submitted to the Hungarian government a draft of a new immigration law that includes the new Hungary residency by investment program. The program is called the Guest Investor Program (GIP). Most recently, the Hungarian government has issued official announcements on its launch.
The GIP is entirely different from Hungary’s former residency by investment program, which was discontinued in 2017. The passage and entry into force of the law are a positive signal for investors. In the early stages, however, investors should be aware of several open questions and rely on official information from reputable sources.
Hungary Guest Investor Program (GIP) requirements
The new rules in Hungary’s immigration law covering residency by investment take effect in stages. The first provisions apply from January 1, 2024. Notably, the provisions on residence permits granted to investors under the new GIP will not take effect until July 1, 2024.
Investors may choose one of the following investment options:
- An investment of €250,000 (approximately US$280,000) in a real estate fund registered with the Central Bank of Hungary (Magyar Nemzeti Bank).
- A direct investment of €500,000 (approximately US$560,000) in residential real estate in Hungary.
- A €1 million (approximately US$1.12 million) donation to an educational institution maintained by a public-interest trust, in support of educational, scientific, and artistic activities.
To maintain their residence status, investors must hold the investment for at least 5 years. There is no minimum stay requirement, which means investors do not need to live in or even visit Hungary to maintain their residence status. Family members of the main applicant, such as a spouse and financially dependent children, are also eligible for a residence permit. Investors may also become eligible to apply for Hungarian citizenship (naturalization) after 8 years of residence in Hungary, subject to passing a test in Hungarian.
Hungary golden visa investment options
1. €250,000 investment in a real estate fund registered with the Central Bank of Hungary
- The investor must hold the investment in a real estate fund registered with the Central Bank of Hungary for at least 5 years.
- A real estate fund may be established only by a licensed fund manager that manages the fund in line with investment principles set out in advance in its management policy.
- Only a fund manager that holds a security clearance or is registered with the Constitution Protection Office may be involved in managing the investor’s fund investment.
- The fund must commit to investing at least 40% of its net asset value in residential real estate projects located in Hungary.
2. €500,000 direct investment in residential real estate in Hungary
- The property must be residential (commercial or industrial property does not qualify).
- The property must be free of disputes, encumbrances, and claims.
- Once the investor acquires title to the residential property, the property may not be transferred or mortgaged. This restriction must be recorded in the land registry for 5 years from the date the purchase agreement is signed.
- A 4% real estate transfer tax, calculated on the property’s market value, is payable on purchase. Investors may rent out the property; Hungarian personal income tax on rental income is 15%.
As of this writing, the Hungarian government has not yet issued final decrees or regulations detailing the investment options or the specific requirements for applicants and their source of funds. The information above reflects the latest updates; IMM Group will continue to share accurate and timely information with investors.
Learn more:
- Hungary’s new Guest Investor Program.
- Hungary residency by investment program (Hungary golden visa).
If you are interested in European residency by investment programs, contact IMM Group or leave your details below. Our experienced advisors will provide detailed guidance and help assess the prospects of your application. We keep your personal data confidential and use the information you provide solely to advise on your family’s case.
IMM Group
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- European residency by investment
- Hungary residency by investment
- Guest Investor Program
- Hungary
- Hungary residency
