Hungary Golden Visa: Costs, Terms and Benefits

The Hungary Golden Visa is an investment program that allows foreigners to obtain European residency. The investor can include their spouse, children, and parents in the application.

Investment options. Applicants can choose one of two fields:

• purchase of real estate fund units — €250,000+;

• donation to an institution of higher learning — €1,000,000+.

Originally, the program was set to allow applicants to invest in residential properties starting January 1st, 2025. The minimum amount under the option was €500,000. However, this pathway was abolished before it could be implemented, on December 20th, 2024, nearly six months after the program was launched. The Hungarian government announced the changes in the country’s official gazette, Magyar Közlöny.

Upon making the investment, applicants and their families are granted residence permits in Hungary, which allows them to live, work, and study in the country.

Residence permit renewal. After 10 years, investors can renew their permits for the same period. In three years of living in Hungary with a residence permit, investors can apply for permanent residency.

Benefits. The Hungary Golden Visa program offers several benefits, including visa-free travel within the Schengen Area, access to healthcare and education in Hungary, and the ability to live and work in a European Union member state.

Eligibility criteria include having a clean criminal record, demonstrating financial stability, and providing proof of health insurance, in addition to the investment.

The main applicant for the Hungarian Golden Visa must:

• be over 18 years old;

• have a valid travel document;

• confirm investment;

• have sufficient funds for travel, food, and accommodation for the whole stay in Hungary;

• have a legitimate income source;

• not be subject to deportation or prohibition of entry to Hungary;

• not threaten the state policy, national security, or health interests of Hungary;

• be a non-EU and non-EEA citizen.

No matter the chosen option, the investor must rent or buy housing in Hungary to secure a registered address required for residency.

Family members that the investor can include in the application include:

• a spouse;

• children under 18;

• unmarried adult children under 25 who are university students and financially dependent on the main applicant;

• parents financially dependent on the main applicant.

Dependent children aged 18 to 25 receive a three-year residence permit, extendable for another three years, instead of a 10-year permit. Dependent parents must have a pension as their only source of income.

US citizens, whether a main applicant or their dependents, are required to hold a second citizenship to be eligible for the Hungary Golden Visa.

The list of documents to apply for a Hungary Guest Investor Visa and a residence by investment includes the following:

1. Valid travel document.

2. Two photos.

3. Health insurance.

4. Written intention to fulfil the investment condition.

5. Documents confirming the legality of the income.

6. Bank statements.

7. CV for each family member over 18.

8. Marriage and divorce certificate, if applicable.

9. Birth certificates, if applicable.

10. Completed and signed residence permit form when applying for residency.

11. Share certificate if purchasing real estate fund units, provided after preliminary approval of the candidate.

12. Certificate from the institution of higher learning if donating.

Applicants can invest in Hungarian real estate by purchasing units from local investment funds. These funds must invest specifically in real estate, and the investment certificates should be registered with the Magyar Nemzeti Bank — the Hungarian National Bank.

Requirements. The investment cannot be redeemed for at least five years. The fund needs to be listed as a qualified market operator by the Constitution Protection Office. At least 40% of the fund’s assets have to be allocated to residential real estate in Hungary. The share certificate must have a five-year maturity period and a unit value of at least €250,000.

By March 2025, the Hungarian government has accredited two funds: Gravitas Hungary and Sprint Asset. Several other funds are awaiting licences.

Additional costs to Hungary Golden Visa real estate fund option are:

• €65,000 — administrative fee for a family of up to four people, such as the spouse and children under 18;

• €10,000 — for each additional family member, starting with the 5th person;

• €15,000 — for each child over 18;

• €5,000 — subscription fee, covering the initial processing and registration of the applicant’s participation in the fund.

The annual maintenance fee is 2.5% of the investment amount. This fee is charged for the ongoing management of the investment and covers the administrative and operational costs related to the investment in the real estate fund.

Applicants can contribute €1,000,000 to a higher education institution that is part of the Foundation for the Management of Assets in the Public Interest. This non-refundable donation supports education, scientific research, or artistic creation.

The following universities are among the most prestigious in Hungary and are eligible for the Hungary Golden Visa financial donation:

• University of Debrecen;

• University of Szeged;

• University of Pécs;

• Corvinus University of Budapest;

• Szechenyi Istvan University;

• University of Miskolc;

• University of Pannonia;

• Obuda University.

These institutions are well-known for their academic excellence, research, and international reputation. The full list of approved higher learning institutions is available on the National Directorate-General of Aliens Policing website.

Permanent residency. Foreigners can obtain Hungary permanent residency after 3 years of living in the country with a residence permit. To qualify for permanent residency after the Golden Visa, applicants must also meet the following criteria:

• prove a clean criminal record, sufficient means of subsistence, a place of accommodation in Hungary;

• purchase comprehensive healthcare insurance;

• not leave Hungary for more than 4 consecutive months or for more than 270 days in total during these 3 years;

• pass a language test on Hungarian.

Citizenship. Eight years after getting permanent residency, a foreigner becomes eligible to apply for citizenship by naturalisation. To maintain a permanent residence permit during those 8 years, they should not leave Hungary for more than 6 consecutive months.

In addition to meeting the residence requirement, applicants for Hungarian citizenship must demonstrate proficiency in the Hungarian language and pass a citizenship test.

If Golden Visa holders give birth to a child in Hungary, the child qualifies for citizenship after 5 years of continuous residence with a permanent residence instead of 8 years.

Citizens of Hungary can travel to over 171 countries without obtaining a visa in advance. For example, to enter the USA, Canada, or Australia, a Hungarian citizen only needs an Electronic Travel Authorisation.

Dual citizenship. Hungary allows holding multiple passports, so one will not have to renounce their first citizenship after naturalisation unless their country of origin requires them to do so.

1. Residency in Europe. The Hungary Golden Visa program provides a pathway for non-EU citizens to obtain residency in Hungary, a member state of the European Union. This residency grants individuals the right to live, work, and study in Hungary, as well as travel freely within the Schengen Area.

2. Favourable tax environment. Hungary has one of the lowest income tax rates in Europe at the flare rate of 15%, as well as the lowest corporate tax in Europe at 9%. Hungary also has signed tax treaties with numerous countries to avoid double taxation.

3. No physical residency requirement. Unlike Cyprus and Portugal residency programs, the Hungary Golden Visa does not require participants to reside in Hungary for a minimum amount of time each year. This flexibility allows individuals to maintain their residency status while living elsewhere if desired.

4. Family reunification. The Hungary Golden Visa program extends to family members, including spouses, dependent children, and parents. This means that the main applicant can include their family in the residency application, providing them with the same rights and benefits.

5. Potential path to citizenship. While the Hungary Golden Visa program initially grants temporary residency, participants may eventually be eligible to apply for permanent residency or citizenship after meeting naturalisation requirements, such as a period of continuous residency.

6. Affordable cost of living. Hungary generally has a lower cost of living compared to most European countries. Housing, groceries, transportation, and leisure activities are often more affordable, allowing residents to maintain a comfortable lifestyle. The estimated monthly expenses for a family of four amount to €2,300, excluding rent. A single individual will pay €640, excluding rent.

7. Rich cultural heritage. Hungary boasts a rich cultural heritage, with a vibrant arts scene, historical landmarks, and traditional festivals. Residents have access to world-class museums, theatres, music performances, and architectural marvels such as the Buda Castle and the Parliament Building in Budapest.

8. High-quality healthcare. Hungary has a well-developed healthcare system, with modern hospitals, clinics, and medical facilities. Both public and private healthcare services are available, providing residents with access to high-quality medical care at affordable costs.

9. Education opportunities. Hungary is home to several prestigious universities and educational institutions, offering a wide range of programs and courses in various fields. The University of Szeged is Hungary’s leading internationally ranked education institution, accredited by the European Higher Education Area (EHEA).

10. Safe and stable environment. Hungary ranked 14th most peaceful nation in the world under the Global Peace Index report. The country is known for its safety and political stability, making it a secure place to live and raise a family. Low crime rates, efficient public services, and a strong rule of law contribute to a peaceful and stable living environment.

11. Natural beauty. Hungary boasts picturesque landscapes, including the scenic Danube River, beautiful lakes such as Lake Balaton, and lush countryside dotted with vineyards and thermal springs. Residents can enjoy outdoor activities such as hiking, cycling, and water sports in these stunning natural settings.

Personal income tax is levied at the rate of 15%. This category includes any sources of income an individual might have, such as:

• salary,

• capital gains,

• crypto transactions,

• dividends,

• interest income.

The income tax in Hungary is one of the lowest in the EU, and in certain cases, a deduction is applied, so it is possible to optimise taxes further.

Corporate tax rate is 9%, the EU’s lowest. Hungarian tax residents pay corporate tax on their worldwide income, while non-resident businesses are only required to pay tax on the income from their activities in Hungary.

VAT rate in Hungary is 27% and is usually included in the prices of goods and services. For dairy products, the tax is an 18% rate. For medical products, books, and newspapers, the tax rate is 5%.

Property taxes include stamp duty, VAT for the primary real estate, and annual building and land taxes. Local governments define rates of these taxes, which may depend on the area in square metres or the market value of the property.

The stamp duty for the title transfer rate is 4% for the amount under 1 billion forints, or €2.6 million, and 2% for the exceeding amount. The stamp duty must be paid no later than 90 days after the purchase and closure of the sale deal. VAT for primary real estate is 5% and is usually included in the property price.

Tax relief. Hungary has entered into numerous tax treaties, also known as double taxation treaties, with various countries, such as the UK, Australia, Canada, China, and Singapore. These treaties aim to prevent double taxation of income earned by individuals and companies with cross-border activities.

Double taxation treaties typically cover taxes on income, including personal income tax, corporate income tax, and sometimes other types of taxes, such as capital gains tax and withholding tax.

The cost of living in Hungary can vary depending on the city or region you’re in and your lifestyle choices. Generally, Hungary is considered to have a relatively affordable cost of living compared to many Western European countries. Here are some typical expenses you might encounter in Hungary.

Housing. The cost of housing can vary significantly depending on the location and type of accommodation. In cities like Budapest, the capital, rent for a one-bedroom apartment in the city centre could range from €500 to €800 per month, while outside the city centre, it might be somewhat cheaper.

Food. Groceries are generally affordable in Hungary, especially if you shop at local markets and supermarkets. Eating out at restaurants can also be reasonably priced compared to Western Europe. A meal at an inexpensive restaurant might cost around €6 to €15, while a three-course meal for two at a mid-range restaurant could cost around €30 to €75.

Transportation. Public transportation in Hungary, especially in Budapest, is efficient and relatively inexpensive. Monthly passes for public transportation in Budapest typically cost around €22 to €25. Taxi fares are also relatively affordable compared to Western Europe.

Utilities. The cost of utilities such as electricity, heating, water, and garbage varies depending on the size of your accommodation and your usage. On average, utilities for a typical apartment could range from €90 to €200 per month.

Healthcare. Hungary has both public and private healthcare systems. Public healthcare is generally more affordable, especially if you have social security coverage. Private healthcare services are also available at higher costs.

Entertainment and leisure. The cost of entertainment and leisure activities, such as going to the cinema, visiting museums, or participating in recreational activities, can vary. Budapest offers a wide range of cultural and recreational opportunities at various price points.

1. The Hungary Golden Visa program offers a pathway for non-EU citizens to obtain residency in Hungary through investments starting at €250,000, with options to invest in real estate funds or donate to a higher education institution.

2. Investors can include their family members in the application, and the Golden Visa provides benefits like visa-free travel within the Schengen Area and access to EU healthcare and education.

3. After 3 years, investors can apply for permanent residency and may qualify for citizenship by naturalisation after 8 years.

4. The program has no minimum residency requirement, offering flexibility for investors to live outside Hungary.