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Hungarian golden visa investment options explained

Hungarian golden visa investment options explained

Hungary’s Golden Visa program is set to start in July 2024. It offers three ways for investors to get 10-year residency in the EU for themselves and their immediate family. While all the details aren’t finalized yet, we know a lot already.

Options for the Hungarian Golden Visa

If you want to live, work, and do business in Hungary for 10 years with your family, you have three choices:

  1. Invest EUR 250,000: Buy bonds from a real estate fund approved by the Hungarian National Bank (MNB).
  2. Invest EUR 500,000: Buy residential real estate in Hungary.
  3. Donate EUR 1 million: Give to a designated educational or cultural institution.

No matter which option you choose, there is no minimum stay requirement in Hungary. This means that when the 10 years are up, you will be able to renew your residency even if you did not spend too much time in Hungary.

Also, you will not automatically become a tax resident unless you spend more than half of your time in Hungary (that’s over 90 days in any 183-day period). But if you earn money in Hungary, you will pay taxes there.

The government will provide more details about each option soon. But for now, here is what we know about the investment choices:

1. EUR 250,000 investment in a real estate fund

  • The fund must be approved by the Hungarian National Bank
  • At least 40% of the fund’s portfolio must be residential real estate projects in Hungary
  • You must keep the bonds for at least 5 years

You can sell the bonds after 5 years, but if you want to renew your residency after 10 years, you’ll need to make another qualifying investment.

2. EUR 500,000 investment in residential real estate

  • The property must be only for living, not for business or industrial use
  • It must have clear ownership with no disputes or mortgages
  • You cannot sell the property for 5 years, and this must be stated on the deed
  • You can own the property alone or with family members
  • If you are not planning to live there, you can rent it out

You will have to follow the usual rules for buying property in Hungary, like getting a permit from the local government and paying a 4% tax on the property’s value. If you rent it out, you’ll pay taxes on that income too.

After 5 years, you can sell the property, but to renew your residency after 10 years, you will need to buy another qualifying property.

3. EUR 1 million donation

  • The donation must go to a higher education institution managed by a public foundation
  • The institution must be involved in higher education, scientific research, or artistic activities
  • A list of specific institutions will be announced later

Since this is a donation, you cannot get the money back. However, if you want to renew your residency after 10 years, you will not need to show any extra proof that you still meet the requirements.

Want to learn more? Watch this space

With 20 years of experience, our team would be happy to help you take your next step towards EU residency. We will post about new information as soon as it becomes available, but you can get touch with us already to make sure you will not miss the opportunity.