The Hungarian Golden Visa – the next trending tool for global mobility and wealth planning?
Dr Gergely Bajcsay
by Dr Gergely Bajcsay
While in effect since 01 July 2024, after certain legislative adjustments, the Hungarian Golden Visa program is about to be accelerated in early 2025.
The program could be a great tool to obtain permanent access to the European Union (EU) for the holder of the golden visa, an investor’s residence permit. Golden Visa programs are quite popular in Europe because of the Continent’s benefits. However, this Hungarian opportunity could be more than just a tool in itself since it offers economic advantages with Hungary’s low tax rates, the benefits of the Schengen Zone, and the splendid city of Budapest. All together this provides a mixture which puts Hungary on the map for global mobility and wealth planning purposes.
Through the Golden Visa program investors are able to obtain a 10-year residence permit in Hungary, which allows them to travel visa-free to the EU and Schengen area member states. Family members may also apply in the course of family reunification – i.e. the spouse and minor children of the investor are also eligible for the permit. Unlike other types of residence permits, the golden visa permit will be valid for 10 years and can be renewed on expiry even if the holder has not spent any time in Hungary. The only condition to prolongate is to maintain the investment.
The Hungarian Immigration Authority approves the application, and we expect the Authority to conduct the standard and internal background check as they do according to their standard procedures and pursuant to XC Act of 2023.
Investors have two options to choose from:
Investment ticket: The purchase of EUR 250,000 investment tickets from a Hungarian real estate fund registered with the National Bank of Hungary (MNB).In such cases the investor should, at least for 5 years, have an investment fund share issued by a real estate fund whose net asset value comprises a minimum 40% of investments in residential real estate in Hungary, and whose real estate fund manager is listed in the register of qualified market operators under Act XXX of 2016 on Procurement for Defence and Security Purposes.
Donation: A EUR 1 million contribution supporting a designated higher education or cultural institution. To justify this approach, a certificate, must also obtained from the higher education institution maintained by a public trust with a public-service mission certifying that the higher education institution has received a financial donation from you of at least EUR 1 million to support educational, scientific research, or artistic creation activities.
The Golden Visa procedure requires an in-person presence in Hungary and includes the following main steps.
First a special entry visa must be obtained, and it is mandatory for the investor to enter Hungary. Application for a visa for guest investors should be made before a Hungarian Consulate officer in the applicant’s country of permanent or habitual place of residence, or nationality.
The procedural fee for issuing a guest investor visa is EUR 110. A guest investor visa for is valid for up to 6 months, and may be used and within that 90 days stay. The existence of sufficient funds must be verified upon application. A Hungarian address for the stay for that period need to be presented as well.
Application for a residence permit for guest investors should be submitted by the latest on the 30th day from the date of first entry into Hungary, with the special visa for guest investors submitted before the competent Regional Directorate of Immigration Authority. Proof is required of having fulfilled one of the investments undertaken.
In the case of an investment ticket visa route, the applicant is required to present to the immigration authority a document, issued by the securities account manager, that credibly substantiates that the guest investor:
Has deposited the investment fund shares referred to in Section 22 (9) of Act XC of 2023 in a securities sub-account blocked for at least 5 years on the basis of the guest investor’s order; and
Has exempted the securities account manager from the obligation of confidentiality with respect to the procedure relating to the purpose of the account blocking.
The time period for the procedural administration of the Immigration Authority is 21 days.
In addition to mandatory attachments and enclosures, the Immigration Authority may request the submission of further documents for clarification of facts of the case or to implement other procedural reviews.
The residence permit for guest investors entitles its holder, and their family members, to pursue activities independently for remuneration, or to act as a chief executive of a business organisation, cooperative, or other legal entity established for the purpose of gainful activity.
Should you or your client be interested in a tool that safeguards their flexibility of free movement and wealth planning for the future, contact your Hungarian XLNC member any time or let’s discuss the details in person during the Monte Carlo conference.
Dr Gergely Bajcsay is the founder of Bajcsay & Partners Law Firm. The firm as an outsourced legal department supports its clients in their daily corporate operations including commercial, employment, IP, debt management, and litigation matters, and also assists in M&A transactions and venture capital investments. The firm works with private individuals providing services in relation to estate planning, real estate matters, trusts and family offices, and global mobility. Contact Gergely.
XLNC member firm Bajcsay & Partners Law FirmBudapest, HungaryT: +36 30 2565991
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