15 pros and cons of a Hungary Golden Visa: reasons to obtain a Hungarian residence permit

The Hungary Golden Visa is a residence permit granted in exchange for an investment of at least €250,000. It is available to non-EU and non-EEA nationals who undergo Due Diligence and can verify the legality of their income.

Investors receive residence permits valid for ten years, with the right to extend them for another ten years. If they have bought real estate, they must keep it to maintain their status. A charitable donation allows for an automatic extension.

There are many benefits that the Hungarian investment program offers to those who want to secure resident status in Europe:

• the right to live in Hungary;

• visa-free travel around the Schengen Area;

• a path to Hungary permanent residency and citizenship;

• the right to work and do business in Hungary;

• access to European bank accounts;

• the option to invest in real estate;

• safety of the investment;

• the long validity period of a residence permit;

• family inclusion;

• a convenient process;

• no residency requirements.

Residents can live in Hungary for as long as their residence permit is valid. They can also enter the country under any circumstances, even if the borders are closed to tourists.

Hungary is considered one of the most affordable countries in Europe and one of the safest countries in the world. It is also known for its stable political climate, high-quality healthcare, low taxes, rich historical heritage, and natural wonders.

One of the most notable things about Hungary is its low corporate tax — 9%, the lowest rate in Europe. Personal income tax is also low — 15%, while in some other European states, it can reach 55%. The country is also home to eight UNESCO World Heritage sites.

There are many attractive places to live in Hungary, allowing each person to choose the most suitable city or region.

Budapest is great for entrepreneurs and people looking for good jobs, as it is the largest city in the country with many career and business opportunities. Smaller towns like Szentendre, Érd, Budaörs, or Budakeszi are excellent choices for those who would like to live away from the hustle and bustle of the big city but still be able to reach Budapest in less than an hour.

Debrecen is suitable for students because it has several universities, including an internationally recognised medical school.

Balatonfüred and Veszprém are good choices for nature lovers, as they are located near Lake Balaton and Bakony Hill. They are also suitable for retirees and families who wish to have a peaceful lifestyle. People residing in these cities can enjoy outdoor activities such as hiking and kayaking.

Pécs is ideal for cultural enthusiasts. This city, founded in the 2nd century BC, boasts many historical buildings and museums.

Hungary is part of the Schengen Area. Thus, its residents can enter all other Schengen states visa-free. There are 29 such states, including Hungary. The allowed period of stay is 90 days within every 180-day period.

Visa-free entry generally means that no border controls exist between countries comprising the Schengen Area. However, travellers can sometimes be subject to border checks. Even so, they do not need visas and are only required to provide their residence permits.Malta

Permanent residence. Hungary Golden Visa holders can obtain permanent residency after three years of living in Hungary. The requirement is not to stay outside the country for more than 270 days in total during those three years.

Permanent residence status is granted for life, meaning its holders do not need to renew it every few years. Although the residence cards must be extended every five years, this process is faster and easier.

Citizenship. After eight years of continuous living in the country, residents can apply for citizenship. To be eligible, they must not spend more than 45 days outside the country annually during their entire residency period. Additionally, they are required to pass an exam on the Hungarian language and the nation’s history.

Hungarians can travel to 171 countries visa-free, access social and health benefits, vote in elections and pass their nationality on to future generations. Hungary also allows dual and multiple citizenships, so new citizens do not need to renounce their other passports.

Holders of Golden Visas can work and run a business in Hungary without a special work permit. Although they are not allowed to be employed in public services, other opportunities are open to them. Personal income tax in the country is one of the lowest in Europe at 15%.

In 2024, Business Name Generator named Hungary the best country in the world for starting a business. The portal considered factors such as the corporate tax rate, which is 9%, and the required period for launching a company, which in Hungary is 7 days.

Hungarian and EU authorities provide business incentives, such as training, research, and development subsidies.

Hungary’s GDP is expected to increase by 35,41% between 2024 and 2029, boosting consumer spending and contributing to the currency’s strength and overall economic stability.

Opening bank accounts in Hungary and the EU is generally easier for residents than for foreigners without this status. They need to provide fewer documents and are less likely to be refused.

Personal account. To open a personal account, the resident must submit their residence permit. Sometimes, they might also be required to provide proof of accommodation in Hungary and their Hungarian phone number.

Corporate account. Opening a corporate bank account requires the applicant to provide the company’s registration documents.

The largest banks in Hungary are:

• OTP Bank;

• Erste Bank;

• UniCredit Bank;

• CIB Bank;

• Raiffeisen Bank;

• MagNet Bank.

In 2024, Global Finance magazine named OTP Bank the best bank in Central and Eastern Europe. Other notable banks in Europe include CaixaBank in Spain, Commerzbank in Germany, Lloyds Bank in the UK, and HSBC in Malta.

Under the Hungary Golden Visa Program, investors can buy a residential property if they obtain permission from the Hungarian Land Registry. The minimum allowed value of the property is €500,000.

The real estate must be kept for at least 5 years after signing the sale and purchase agreement. After this period, it can be sold at a profit, as prices on Hungarian real estate are continuously rising. For example, in 2018, a new dwelling could be purchased for HUF 27.6 million (roughly €70,000), while in 2022, it cost HUF 55.7 million (roughly €140,000).

Moreover, property prices in Hungary rise almost twice as fast as the average in the EU.

With their own real estate in Hungary, investors can always move to the country permanently or visit it just for holidays without the hassle of looking for accommodation.

When obtaining the Hungary Golden Visa, the investor first receives the Guest Investor Visa, which doesn’t require making an investment. With this visa, the foreigner enters Hungary and applies for a residence permit.

Before granting the applicant the Guest Investor Visa, the Migration Department conducts Due Diligence. If this check is successful and the Guest Investor Visa is issued, the risk of the investor not obtaining a residence permit afterwards is significantly reduced.

This rule protects applicants from losing invested money.

In contrast, foreigners applying for the Portuguese, Spanish, and Greek Golden Visas must invest before their application for a residence permit is approved.

The Hungary Golden Visa is granted for 10 years, and its holder remains a resident if they continue meeting the eligibility criteria.

The residence permit can be extended once for the same period. In total, Hungary Golden Visa holders become residents of the country for 20 years.

In comparison, the Portuguese Golden Visa must be renewed every two years. The Italian Golden Visa is initially granted for two years and then for three years.

Each investor can add their close family members to the application. This includes:

• a spouse;

• minor children;

• parents if they are financially dependent on the investor or their spouse.

When filing an application, the investor will need to submit evidence of their relationship with the included persons, as well as proof that they would provide financial support and housing.

Family members obtain residence permits alongside the investor and have the same rights.

Foreigners with Hungary Golden Visas don’t need to live in the country permanently to maintain their status. They can come to Hungary for holidays or just to renew their residence permits and submit biometrics.

However, if Golden Visa holders plan to obtain Hungarian permanent residency or citizenship, they must live in the country continuously.

Obtaining the Hungary Golden Visa will assumably take around six months. The applicant doesn’t need to get a job, enrol at a university, or find another reason to get a residence permit. The only requirement is to make an investment.

The applicant also doesn’t need to pass any language or cultural tests.

The Hungary Golden Visa Program offers three investment options:

• purchase of investment fund units for at least €250,000;

• real estate purchase for at least €500,000;

• charitable donation of at least €1,000,000.

Purchase of investment fund units. When purchasing the units, the applicant chooses Hungarian funds that invest in real estate projects. The investment certificates issued must be registered with the Hungarian National Bank. This option will start operating on January 1st, 2025. Real estate purchased before this date won’t qualify for the program.

Real estate purchase. The applicant must obtain permission from the Land Registry and then buy residential real estate. Aside from the minimum cost of €500,000, there are no requirements regarding the location within Hungary or the size of the property.

Real estate or fund unit investments can be redeemed five years after the purchase.

Charitable donation. If the applicant decides to make a charitable donation, they choose a higher education institution that is part of the Foundation for the Management of Assets in the Public Interest. The donation supports education, scientific research, or artistic activities.

Eligibility criteria. The investor must be over 18, have no criminal record, and be able to prove the legality of their income.

Documents. The applicant submits the following documents:

• a completed application;

• a valid passport;

• birth certificates for the investor and all family members;

• a marriage certificate, if applicable;

• recent passport-size photos;

• health insurance;

• a written confirmation of intent to meet investment requirements;

• proof of the legality of income;

• a bank statement showing sufficient funds;

• CVs for each family member over 18.

Fees. In addition to making the investment, the foreigner pays €110 for the issuance of the Guest Investor Visa and €40 per document for certification at the consulate. The cost of applying for a residence permit in person is HUF 39,000 (€100); if the application is filed online, the fee is HUF 24,000 (€61).

When buying real estate, the investor also pays a stamp duty:

• 4% — for properties under HUF 1 billion (€2.6 million);

• 2% — for an amount exceeding HUF 1 billion (€2.6 million).

The fees for legal, realtor, and notary services are up to 5% of the price of the real estate. The VAT of 5% is usually included in the initial cost of the new property.

1. The process is not fully remote. During the procedure, the investor must come to Hungary at least once to submit biometrics, make an investment, and file an application for a residence permit.

2. The investment threshold for real estate purchases is rather high. The applicant must invest at least €500,000 in real estate to obtain residency in Hungary.

In comparison, the Greek Golden Visa is granted to people who purchase property valued at €250,000 and Cyprus permanent residency is issued to people who buy real estate for €300,000.

3. Due Diligence is strict. Investors and their family members over 16 undergo Due Diligence, which involves thorough background checks and scrutiny of the financial history and sources of funds. However, thoughtful preparation of documents can reduce possible delays and added stress.

4. This investment program is new. The process of obtaining the Hungary Golden Visa may be subject to changes. New, unexpected details and regulations might arise that can affect the terms and conditions of the program, investment thresholds, and the benefits provided.

1. Low cost of living. Hungary is one of the most affordable states in the EU and is less expensive than Northern, Western and some Southern European countries.

One person needs around €650 per month without rent to maintain a moderate standard of living, while a family of four requires at least €2,200. Renting a one-bedroom apartment in Hungary costs €350 to 500 per month, and the price of a three-bedroom apartment is €600 to 800. The average cost of basic utilities is €140 for an apartment with three bedrooms.

Generally, the cost of living and renting apartments in countries like Germany, Sweden, or Italy is 1.5 to 2 times higher.

2. Safety. According to the Global Peace Index 2023, Hungary ranks 18th out of 163 countries mentioned, which is higher than Norway or Sweden. The country has a low crime rate, and the possibility of being assaulted or robbed is minimal.

3. High quality healthcare. Hungary has universal healthcare that is funded by obligatory contributions from salaries. As a result, many medical services are offered free of charge or at a discount.

For instance, people with government health insurance can receive free treatment from any doctor who has a contract with the National Institute of Health Insurance Fund Management. Minors, seniors, and pregnant women don’t pay for dental care.

Hungary is known for medical tourism, as medical services there are affordable and of high quality. The country mainly specialises in dental, ophthalmological, and orthopaedic services and cosmetic surgery. Budapest is often called a “Spa City” due to the numerous thermal baths located all over it.

Hungarian residents can obtain a free European Insurance Card, which allows them to get treatment in other EU countries under the same conditions as locals.

4. Central location in Europe. Hungary borders Austria, Czechia, Slovakia, Ukraine, Romania, Croatia, and Slovenia, and it is easy to travel to all these countries by car or bus. For example, it takes 2.5—3 hours to get to Vienna, Austria’s capital, and 4 hours to reach Zagreb, Croatia’s capital, from Budapest, Hungary.

Budapest has two international airports, which serve flights within Europe and to other parts of the world, such as Dubai or Shanghai.

Flying around Europe is affordable; for example, a ticket from Budapest to Milan in Italy can cost as little as €20.

5. Access to first-rate education. Five Hungarian universities are on the list of the top 1000 best universities in the world, according to the QS World University Rankings 2025. They are Eötvös Loránd University, University of Szeged, University of Debrecen, Budapest University of Technology and Economics, and University of Pecs.

Many higher education institutions offer courses in both Hungarian and English.

To cover the costs of studying in Hungarian universities, students can obtain the Stipendium Hungaricum scholarship or take a loan from the Hungarian Student Loan Centre. Some universities also provide their own scholarships, such as the SZTE Start Scholarship at the University of Szeged.

Hungarian students can participate in the student mobility program Erasmus+, which allows them to study at partner universities in other European countries. Erasmus+ participants are exempt from tuition fees at foreign universities.

6. Large community of expats. More than 400,000 people living in the country are foreigners, making up 4% of the Hungarian population.

Many international events are held in Budapest, such as speaking clubs, networking events, and master classes, where expats can meet both foreigners and locals.

Due to Budapest being an attractive city for expats and tourists, English is widely spoken there.

7. Rich cultural heritage and natural beauty. Hungary boasts a rich cultural heritage influenced by the Roman and Ottoman Empires and the Austro-Hungarian monarchy. These influences are reflected in the country’s architecture, cuisine, and traditions.

Budapest, the capital, epitomises this blend with its grand neoclassical buildings, ornate baroque churches, and the majestic Parliament building along the Danube River. Other places of interest include Buda Castle, Fisherman’s Bastion, and Eger Castle.

The country has picturesque lakes, including Lake Balaton, Central Europe’s largest freshwater lake. The Bükk and Mátra mountain ranges provide ample opportunities for hiking and exploring caves. The Puszta, or Great Hungarian Plain, offers a unique, sweeping landscape home to traditional horse shows and the Hortobágy National Park.

1. There are many benefits to the Hungary Golden Visa: it provides an opportunity to live in Hungary and travel visa-free around the Schengen Area, offers a path to Hungarian permanent residency and citizenship, and grants the right to work and conduct business in Hungary and the EU.

2. The Hungary Golden Visa is also advantageous because it can be obtained for a duration of 10 years within just six months.

3. Some disadvantages are that it is not a fully remote process, the relatively high investment threshold for a property purchase, strict Due Diligence, and the possibility of changes to the program as it is new.

4. Foreigners can obtain the Hungary Golden Visa by purchasing investment fund units for at least €250,000, buying real estate for at least €500,000, or making a charitable donation of at least €1,000,000.