HungaryResidency By Investment

Overview

Hungary launched a new Residency by Investment (RBI) program, known as the “Guest Investor Program,” in late 2023 and it’s expected to become fully operational in 2024.
This new European ‘Golden Visa’ scheme offers 3 different investment avenues for non-EU nationals and their family members to obtain a residence permit in Hungary:

Investment of at least EUR 250,000 into Hungarian Property Funds;
Purchase of real estate in Hungary valued at least EUR 500,000, and maintain ownership for at least 5 years;
Charitable donation of at least EUR 1 million to the Hungarian Public Trusts

Initially, foreign investors will be granted a two-year Guest Investor visa, allowing multiple entries into Hungary and a stay of up to 90 days within 180 days. Investors must fulfill the preferred investment route within three months from the initial entry. After the accomplishment of the investment, the Guest Investor Visa will be annulled and the investor will be granted a residence permit in Hungary.

Residence Permit Validity

The residence permit issued through the ‘Guest Investor Program’ is valid for 10 years, with an option of an extension for 10 more years. Hungary ‘Golden Visa’ holders are not required to physically reside in the country to maintain their residency, but they must maintain the investment and registered address.

Family Inclusion

Investors can extend their Guest Investor residence permit to their immediate family members, including spouses and children under the age of 18. Dependent parents, siblings, and direct-line relatives may obtain residence permits in Hungary, valid for up to 3 years, through separate procedures.

Eligibility

Applicants for the Hungary’s ‘Guest Investor Visas have to comply with the following criteria:

Demonstrate proof of good health
Have enough financial means to accomplish the preferred investment
Must not be subject to a Schengen Information System (SIS) alert, expulsion, or ban on entry or stay
Not be a threat to public order and security in Hungary

The application process involves Due Diligence checks, and applicants must provide evidence of sufficient funds to finalize the investment and regular income for residing in Hungary: EUR 27,000 for the main applicant and EUR 16,000 for each dependent. These funds must be present in the account at the time of applying for the residence permit.
The program does not ban any nationality. It is open to any non-EU citizen, including Russians, Belarusians, and Iranians.

Benefits

Visa-free travel

Visa-free access to the EU’s Schengen Area for up to 90 out of 180 days.

Simple and Fast Procedure

Attaining a residency in Hungary typically takes around 2-4 months. No interview or language test, and education or managerial experience is required.

Hedge Against Instabilities

A second home in the EU can hedge against socio-political or economic turbulences and future uncertainties.

EU Tax Heaven

Hungary has one of the most liberal Tax Code in the EU: Corporate tax is just 9% and income tax is 15%.

Healthcare & Education

Access to premium healthcare and education institutions after getting a residence permit in Hungary.

High Living Standards

Residents in Hungary enjoy a secure environment and a high-quality lifestyle.

Investment Options

Non-EU nationals and their immediate family members can obtain residence permits in Hungary by making one of the following investments, which corresponds to the national economic interest of Hungary:

Investment of at least EUR 250,000 into Hungarian Property (Real Estate) Funds

Investors must keep their investment for at least 5 years. At least 40% of the net asset value of the Property Fund must be invested in residential realty projects in Hungary.

Purchase of real estate in Hungary valued at least EUR 500,000

The property must be strictly residential (commercial premises do not qualify). The property must be undisputed, without any encumbrances or claims against it. Loan funds can’t be used for the transaction.
The Land Register office must issue a prohibition on alienation and encumbrance of the property for 5 years.
Investors have to keep the investment for at least 5 years.
The property transfer tax of 4% is payable, calculated according to the market value of the property.
The new Hungarian legislation allows investors to utilize the realty by renting it out (the tax on rental income in Hungary is set to 15%).

Donate at least EUR 1 million to the Hungarian Public Trusts

The investment is non-refundable and funds must be allocated for an institution of higher education operated by a Public Trust, conducting public functions.
The validity period of residence permits obtained through the donation option can be prolonged automatically.

Applicable Fees

Application processing state fee	EUR 30,000
Due diligence & professional services fees	EUR 30,000 per family (two adults and all minor children) + €10,000 per additional adult dependent
Legal fees for a real estate transaction	0.5-1%
Sales tax	4%
Stamp duty	EUR 135
Visa application fee	EUR 110 per applicant

Application Process

Step 1 : Internal Due Diligence and Qualification Assessment

Bayat Legal Services’ compliance team will conduct an internal due diligence check, which entails a background security screening of the applicant, Preparation of KYC (Know Your Client) and a qualification assessment.

Step 2 : Study the Application and Agreement Signing

Bayat Legal Services will meticulously analyze the client's case. Once this is done, the client will proceed to sign a retainer agreement with the firm. Subsequently, Bayat Group will curate a customized list of necessary documents – recognizing that each client's situation is unique – to facilitate the application preparation process.

Step 3 : Obtaining an Initial Guest Investor Visa

Bayat Group will assist in applying for the initial Guest Investor Visa, needed to perform all procedures related to the Golden Visa process. Applications can be filed through the electronic platform Enter Hungary, no later than 93 days from the date of first entry with the Guest Investor Visa. Hungarian authorities conduct official Due Diligence checks. The processing can last up to 21 days. After the application approval investors are required to submit biometrics data and receive the initial residency card in person.

Step 4 : Making the Preferred Investment

Applicants need to finalize the selected investment option.

Step 5 : Approval & Transaction Accomplishment

Investors need to make a full investment within 90 days after the first entry in Hungary with the ‘Guest Investor Visa. All applicable fees should also be covered.

Step 6: Residence Permit Issuance

After completing the investment, Hungarian authorities will automatically convert the Guest Investor Visa into the Guest Investor Residence Permit. This permit is valid for up to 10 years, with the option of prolonging it for another 10 years. ID cards can be renewed as long as property ownership and a valid address in Hungary are maintained