The new law on immigration in Hungary, which entered into force on January 1, 2024, is still at the implementation stage; One of the key changes concerns the country’s residence permit through real estate investments; How much money now needs to be invested, and what are the requirements for facilities? What will the holders of “golden visas” receive, and what stages do they need to go through on the way to a residence permit card? We have prepared fresh material with answers to these questions.
The new Hungarian immigration law provides for a separate program for investors – the Guest Investor Program (GIP), or in another way – the “Golden Visa”. The scheme is similar in many ways to similar ones in other countries. In fact, it allows wealthy foreigners to obtain a 10-year residence permit (with the right to extend it for another 10 years) when buying an apartment or house worth 500,000 euros or more. Thus, the investment threshold has equaled that required for a “golden visa” in Spain and Greece (although an increase is expected there in popular areas).
Unlike the Greek program, GIP is also available for citizens of Russia and Belarus.
What opportunities does the golden visa offer?
- Live and travel in the EU.
- To do business in Hungary, to be the founder of a company.
- It is not necessary to live in the country.
- It is not necessary to become a tax resident (if you are in Hungary for less than 183 days a year).
In addition to the main applicant, the spouse receives a residence permit, as well as children under 18 years of age.
Ways to participate in the program
- An investment of at least 500,000 euros in residential real estate (plus a 4% tax on the transfer of ownership rights).
- Investment of 250,000 euros in investment certificates from the real estate fund. They will need to be preserved for 5 years.
- A donation of at least 1 million euros to a higher education institution managed by a public foundation.
Of course, the most realistic option is real estate. It was possible to obtain a residence permit when buying an apartment earlier. But the amount required was much more modest (200,000 euros), and the residence permit card was issued for only 3 years with the right to extend, unlike the current 10-year one, also with the right to extend.
What are the requirements for real estate under the Golden Visa program?
- Only residential properties.
- Only one object (for example, 2 apartments for 500,000 euros cannot be bought).
- Only the secondary market, not a new building.
- Not on credit. Loans are generally not given to foreigners in Hungary.
Important condition: the real estate on the basis of which the residence permit was obtained cannot be sold for 5 years. However, it can be rented out (paying 15% rental income tax).
Please note that a foreigner needs to get permission from officials to buy any real estate in Hungary! We talked about this in the article.
Stages of participation
Step 1.
If you do not have a Schengen visa, you apply to the Hungarian Consulate in your country for an investor’s guest visa. You must first fill out an application in accordance with the form established and posted on the Immigration Service’s website. The investor must confirm that he has 500,000 euros for the purchase of real estate, as required by the conditions. You will need an account statement from a bank, you can use a Russian one. With a guest visa, you are allowed to come for 90 days during one half-year. It is assumed that the foreigner uses these 3 months to find a suitable object and conclude a purchase and sale contract.
The acceptance of applications for an investor’s guest visa was supposed to start on March 1, 2024. However, it is not yet known whether the consulates have already started working under the new scheme. Its implementation is underway, and there may be the usual delays in such cases.
If you already have a Schengen visa, then you enter Hungary using it and proceed immediately to step 2.
Step 2.
The search for an apartment and the conclusion of a contract of sale.
Important! The contract must contain the phrase “the object is under encumbrance in favor of the state for 5 years.” This means that it cannot be sold for 5 years without losing its status.
Step 3.
At the end of your three-month stay in Hungary for the purpose of investment, you go to the immigration office to apply for a residence permit. You can do this online if you speak Hungarian.
It is necessary to have with you:
- contract for the purchase of real estate;
- medical insurance policy;
- an extract from a Russian bank stating that you have funds to stay in the country for the first year (10,000 euros).
The Immigration office will begin accepting documents for a residence permit under the Golden Visa program from July 1, 2024.
The period of consideration of the application and registration of the card: 10-21 days.
Step 4.
If your visa has expired, you return to your country and wait for a call from the Hungarian consulate. Next, you will need to fly to the country and pick up the coveted document.
You can also leave a power of attorney for an immigration agency employee in advance. He will receive a residence permit card for you, and then hand it over at a convenient time.
What’s next?
- After 5 years, the property can be sold, your status will remain yours.
- The residence permit card is allowed to be extended again after 10 years for the same period.
- Three years after obtaining a residence permit, you can apply for a national residence card and then permanent residence.
- After 8 years of living in Hungary, you have the right to apply for citizenship of the country by naturalization. However, it will be necessary to confirm the possession of Hungarian and knowledge of the constitutional foundations of the country.
Other ways to obtain a Hungarian residence permit
Hungary gives foreigners many opportunities to legally reside on its territory. Of course, they are all much less expensive. The most common types of residence permits are based on employment, university studies, and family reunification. The digital nomad visa, or White Card, is popular, which can be obtained by remotely working employees of foreign companies with a monthly income of 2,000 euros.
By the way, according to a recent study, Hungary is the easiest country for immigration in the world. The comparison was based on such parameters as the number of immigrants, the difficulty of obtaining a visa, the necessary vaccines, language requirements and much more.
According to the latest data from the Immigration Service (OIF), about 430,000 foreigners already have a Hungarian residence permit, including work or study permits.
Thank you for your help in preparing the material:
Ilona Chick, Company Manager Perfect Invest Hungary Ltd, a real estate and immigration expert in Hungary
Sources:
SchengenVisaInfo.com
IMI
Fragomen
TTW
Photo: depositphotos.com
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