Hungary Residency by Investment Relaunched: The New Guest Investor Program
August 15, 2024 · Europe · 8 min read
Hungary residency by investment is back: after closing its previous program in 2017, Hungary has officially relaunched it under an entirely new investment structure and name, the Guest Investor Program (GIP).
Hungary residency by investment is back: after closing its previous program in 2017, Hungary has officially relaunched it under an entirely new investment structure and name, the Guest Investor Program (GIP).
Hungary’s former Golden Visa program allowed nationals of countries outside the European Union (EU) and the European Economic Area (EEA) to obtain permanent residence in Hungary by investing €300,000 in government bonds. That program closed in March 2017. After a long pause, the Hungarian government officially relaunched its residency by investment program under the name Guest Investor Program (GIP), effective July 1, 2024. This is a positive signal for investors seeking European residency, particularly as European countries continue to tighten their program rules.
Hungary Guest Investor Program (GIP): investment requirements
Unlike the previous program, the GIP no longer offers a government bond option. Instead, investors choose one of three investment routes:
1. A €250,000 (approximately US$280,000) investment in a real estate fund registered with the Central Bank of Hungary (Magyar Nemzeti Bank).
- The investor must hold the investment for at least 5 years.
- The fund must commit to investing at least 40% of its net asset value in residential real estate projects located in Hungary.
- The fund manager must hold the required license and meet the eligibility requirements under the relevant legislation, and must be authorized to manage funds with assets under management above €100 million (where leverage is used) or above €500 million (where it is not). A manager of a real estate fund with assets above €600 million may also qualify.
2. A direct €500,000 (approximately US$560,000) investment in residential real estate in Hungary (this option takes effect on January 1, 2025).
- 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.
3. A €1 million (approximately US$1.12 million) donation to a higher education institution maintained by a public-interest trust, in support of educational, scientific, and artistic activities.
Hungary Golden Visa benefits
The investor and family members (a spouse and children under 18) receive a Hungarian guest investor residence permit valid for up to 10 years, one of the longest validity periods among European residency programs. The investment must be held for at least 5 years to remain compliant with program requirements. There is no minimum stay requirement: the investor does not need to live in or visit Hungary to maintain residence status, but must provide evidence of a legal residential address in Hungary (such as a lease agreement or a property purchase agreement).
A Hungarian residence permit allows the investor and family to travel visa-free across the 29 Schengen countries (for stays of up to 90 days in any 180-day period), along with the right to reside, work, and study in Hungary long term. The family can also access social and healthcare services, including public healthcare and free public education for children, on the terms that apply to their residence status. Residence in Hungary can also broaden career and business opportunities within the EU single market, although working in another EU country remains subject to that country’s rules.
The residence permit can be renewed once, for up to another 10 years, provided the investment is still held at the time of renewal (except for the donation route). Alternatively, after 3 years of living in Hungary, the investor may apply for permanent residence, and after 8 years may apply for citizenship by naturalization, subject to passing an exam in Hungarian.
Among the program’s investment routes, direct real estate investment is often seen as the most attractive, given its stability and long-term growth potential. Investors could wait until early 2025, when this route formally takes effect. In the meantime, they could also consider residency by investment programs in other European countries such as Spain, Greece, Malta, or Cyprus, or a U.S. green card, Canadian permanent residence, or Caribbean citizenship by investment.
If you are interested in Hungary residency by investment, contact IMM Group or leave your details below. Our experienced advisors will provide detailed guidance and help assess your application’s prospects. We are committed to keeping your personal data confidential and will use the information you provide only to advise on your family’s application.
IMM Group
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