Photo: Brian Cohen
The conditions for obtaining a “golden visa” from Hungary under the new program, which will begin to operate on July 1, 2024, have been published.
The main thing
- A residence permit for 10 years with the right to extend for the same period, together with the applicant, will be received by the spouse and children under 18 years of age;
- the document will give the right for running a business;
- there is no need to invest immediately, the applicant is given 3 months to select an object after submitting the application;
- citizenship is granted after 8 years (it is important to know the Hungarian language and the basics of the constitution).
Grounds for obtaining a residence permit through investment:
- purchase of residential real estate worth at least 500 thousand €,
- purchase of real estate fund certificates worth at least 250 thousand €,
- donation of at least €1 million to a higher education institution.
Purchase of residential real estate worth at least €500 thousand
Purchase of residential real estate worth at least 500 thousand € (+4% tax on property transfer). The property must be strictly residential (commercial or industrial properties are not permitted).
The property must be undisputed, free from encumbrances and claims. When acquiring ownership of housing, a ban on alienation and encumbrance of residential property must be registered in the land registry within five years, counting from the date of conclusion of the purchase and sale agreement.
Residential real estate must be owned for five years exclusively by the person applying for a residence permit, although joint ownership of housing by one or more family members (spouse, minor children) is allowed.
The legislation does not exclude the possibility of an investor to use real estate, for example, by renting it out for rent. In Hungary, income tax on rental income is limited to 15%.
To renew the residence permit, the applicant must maintain an investment of at least €500 thousand in the property for which the permit was originally issued. However, if the property has been sold (after a five-year holding period) or if the investment in the property no longer amounts to €500 thousand, then a new investment of sufficient value must be demonstrated at the time of application for renewal.
Purchase of investment certificates of a real estate fund in the amount of at least 250 thousand €
Purchase of investment certificates issued by a real estate fund registered with the National Bank of Hungary for an amount of at least 250 thousand €. In this case, the investor must retain the certificate for at least 5 years. It is worth considering that at least 40% of the net asset value of a real estate fund must be invested in residential real estate projects implemented in Hungary.
The authorities can extend the residence permit if, at the time of filing the application, the applicant still has an investment certificate in a real estate fund in the amount of €250 thousand. However, the legislation does not require that this be the same certificate as at the time of the initial application.
Donation of at least €1 million to a higher education institution
Making a monetary donation to in the amount of at least 1 million euros to a higher education institution under the management of a state public fund.
A residence permit gives its holder the right:
- to stay in the territory Hungary;
- carry out business activities;
- be an executive director of a company;
- get a local job.
The above options ensure that a person who has a residence permit can carry out almost any economic and business activity in Hungary.
Tax rules
A person who has a residence permit will not be considered a tax resident of Hungary, provided that the person will spend less than 183 days in Hungary during any 12-month period.
Published: 02/02/2024