On January 1, 2024 Hungary, a country steeped in history and culture, re-launched its “Golden Visa” program. This initiative is designed to attract global investors, offering a pathway to residency through strategic investments.
Unlike the previous attempt in 2017, this revamped program will ensure transparency, and guard against the pitfalls that led to its closure amidst a corruption scandal.
The Guest Investor Program
The new Guest Investor Program (GIP) presents three distinct options for potential investors:
- Real Estate Fund Certificates: Invest EUR 250,000 in real estate fund certificates.
- Property Investment: Spend a minimum of EUR 500,000 on property within Hungary.
- Philanthropic Endeavors: Contribute EUR 1 million to a Hungarian university for educational, scientific, or artistic activities.
Upon approval of the application, successful investors will be granted a two-year visa. During the period that the two-year visa is valid, a residence permit for ten years will be processed. Importantly, the Hungarian “Golden Visa” doesn’t require physical residency in Hungary, but offers the right to travel freely within the Schengen Area, along with access to local healthcare and education.
According to the Henley & Partners Passport Index, Hungarian passport ranks in the top 10 and provides visa-free access to 188 countries worldwide, including the EU, Japan, Hong Kong, Australia, the United States, and Canada.
Hungarian citizenship through naturalization becomes attainable after residing for 5 years with permanent residency. On average, the entire process takes around 8 years, as a prerequisite is spending a minimum of 3 years with temporary residency.
The new legislation marks a significant step in Hungary’s efforts to attract international investors. However, full operation of the program may be in place closer to the end of 2024. This is to allow time for the development of necessary procedures and the establishment of a supervisory body.
Background of the Golden Visa
Hungary’s decision to reintroduce the Golden Visa program follows the closure of its previous iteration in 2017. The earlier program, which was marred by corruption allegations and inadequate scrutiny, granted residence permits for the purchase of government bonds worth €300,000.
This led to a surge in immigration from Russia and China, which sparked concerns about security and espionage threats within the European Union, ultimately culminating in its discontinuation.
The Hungarian Housing Market
Against this revamped and rejuvenated backdrop, Hungary’s housing market is poised for a potential resurgence. According to JamesEdition data, luxury homes for sale in Hungary currently have an average listing price of approx. $1,100,000, ranging from $490,000 to $13,100,000.
The average price per square meter stands at $6,000/sqm, with 223 luxury homes currently available for sale, averaging 182 ㎡ in size.
Popular regions for potential investors and homeowners in Hungary include Pest County, Veszprem, Fejer, Jasz-Nagykun-Szolnok, and Komarom-Esztergom. Budapest, particularly in District V., District II., District VI., and District XII., also emerges as a key area for those exploring the Hungarian real estate landscape.
As Hungary invites global investors to explore the benefits of its Golden Visa program, the country opens its arms to those seeking its unique blend of historic charm, cultural richness, and investment potential. The reintroduction of the program is predicted to reshape Hungary’s real estate market, and attract a diverse range of international investors all eager to secure their spot in this European gem.
