Hungary residence by investment

Hungary presents an enticing destination for those seeking an exceptional living experience and promising investment opportunities in the heart of Europe. Investors and their families, from outside of the European Union, can now apply for a Hungarian Guest Investor Residence Permit and become long-term, legal residents in Hungary with access to Europe’s Schengen Area.

Benefits of Hungarian residence by investment

• Quick and effective path to European residence
• Live and work in Hungary with visa-free travel within Europe’s Schengen Area
• No minimum stay requirement
• Includes spouse and children under the age of 18
• Any investment property purchased can be income-generating

Requirements for the Hungary Guest Investor Residence Permit:

A third-country citizen, as well as their spouse and children under 18, can obtain a Guest Investor Residence Permit by investing in one of the following options:

1. Real Estate Investment Fund:

The acquisition of investment certificates, issued by a real estate fund registered with the National Bank of Hungary, for at least EUR 250,000

The following conditions apply:

• At least 40% of the net asset value of the real estate fund must comprise investments in residential real estate within Hungary. This means that while the fund may invest in commercial real estate, a minimum of 40% of its assets must be in Hungarian residential property
• Investors are required to hold the investment certificate of the real estate fund for a minimum of five years
• Only fund managers with a financial license, who adhere to pre-established investment principles outlined in the fund management policy, are permitted to establish a real estate fund
• Fund managers must hold either a site security certificate or be registered with the Constitution Protection Office in order to engage with guest investor visas

2. Real Estate Acquisition: From 1 January 2025

Acquisition of uncontested, strictly residential property located in Hungary, with a minimum value of EUR 500,000

The following conditions apply:

• Property must be strictly residential; commercial or industrial properties are ineligible
• Property must be free of disputes, encumbrances, and claims
• Upon property acquisition, a five-year prohibition on sale or encumbrance must be registered in the land register
• The property must be exclusively owned by the applicant for five years, or jointly with family members (spouse, minor children), with the main applicant holding a minimum property share of EUR 500,000
• A property transfer tax of 4% applies, calculated based on the property's market value.
• Investors may rent out the property and Hungary's personal income tax on rental income is capped at 15%

3. Donation to a Hungarian Public Trust:

Monetary donation of, at least, EUR 1 million to an institution of higher education operated by a public trust performing public functions

The applicant must not have any Schengen Information System alerts, expulsions, or bans on entry and stay, nor pose a threat to public order, security, or national security. The immigration authority will also consult Hungary's law enforcement and national security services regarding the application.

Procedures and time frame of the Hungary Guest Investor Residence Permit

An applicant must obtain a Guest Investor Visa and declare their commitment to one of the investment options during the visa application process, although finalizing the investment is not mandatory at this stage.

Once they have received the Guest Investor Visa, the applicant must travel to Hungary, where they will complete their investment within three months and apply for a Guest Investor Residence Permit with the immigration authority or via the electronic platform, Enter Hungary, within 93 days of their initial entry into Hungary. Along with the application, proof of investment must be provided. Once all the requirements are met, no further travel to Hungary is necessary.

The applicant, and their qualifying spouse and children, will receive a long-term residence permit valid for 10 years, and renewable for a further 10 years with a maintained investment.

The application processing time is approximately 21 working days.

Acquiring Hungarian citizenship after the Hungary Guest Investor Residence Permit

A guest investor can become eligible for permanent residence in Hungary by lawfully living there for three years prior to application. When applying after 1 January 2025, passing a cultural written exam in Hungarian will also be required. The possibility of citizenship follows permanent residence, usually after living in Hungary for at least eight years, although exceptions may apply for Hungarian minor children or spouses. Passing a Hungarian cultural exam remains mandatory.