Hungary offers a residence permit by real estate investment, providing an accessible pathway for high-net-worth individuals looking to secure residency in Europe. This article explains the entire process, from eligibility requirements to the application steps.
Elena Kozyreva, Managing Director for Real Estate projects, Investment Programs Expert at Immigrant Invest, will talk about the benefits of obtaining Hungary residence permit by property investment.
What is Hungary residence by real estate investment
Hungary’s residence by real estate investment allows non-EU/EEA citizens to obtain a 10-year residence permit by purchasing residential property for at least €500,000. This option will be available starting January 1, 2025.
Alternatively, investors can choose to invest in real estate funds with a minimum of €250,000. Both options require obtaining a Guest Investor Visa, followed by fulfilling the investment within 93 days to apply for residency.
Hungary residence by property investment allows foreigners to buy residential or commercial property to qualify for residency. The property must meet specific requirements, but the process is relatively straightforward for those willing to invest in Hungarian real estate.
Eligibility criteria
Who qualifies for the program. The program is open to non-EU citizens who have sufficient financial means to invest in Hungarian property. Applicants must be over 18 years old and have a clean criminal record.
No requirement to live in Hungary full-time. You do not need to reside in Hungary permanently to maintain your residency status. The residence permit offers flexibility for those who wish to keep their main home elsewhere while still enjoying the benefits of Hungarian residency.
Financial stability. Applicants are also required to demonstrate that they have enough resources to support themselves and their dependents without needing social assistance from Hungary. This ensures that only those with sufficient financial backing are eligible for the program.
Investment requirements
Minimum investment amount. The real estate investment requirement for the Hungary Golden Visa program is a minimum of €500,000 for purchasing residential property.
Property location matters. While you can purchase property across Hungary, investing in Budapest or major cities increases the likelihood of meeting market value expectations. These locations also provide better long-term rental and resale potential.
Ownership type. You must fully own the property. Joint ownership with a spouse or family member is allowed, but all parties must meet eligibility criteria.
Associated costs. In addition to the property price, investors must account for additional costs like notary fees, legal fees, and property taxes, which can range between 4% to 8% of the purchase price.
List of documents
Gathering the necessary documentation is a crucial part of the process. Below is a list of required documents:
- Proof of property purchase. A deed or purchase agreement for the property you’ve invested in.
- Proof of funds. Bank statements showing you have the financial means for the investment.
- Passport. A valid passport with at least six months of remaining validity.
- Clean criminal record. You must provide a police clearance certificate from your home country.
- Health insurance. Proof of health insurance valid in Hungary.
- Proof of address. Utility bills or a rental contract in Hungary if applicable.
Ensure all documents are translated into Hungarian and officially certified where required.
How to apply for Hungary residence by property investment
The process of applying for Hungarian residency by real estate investment is straightforward if followed carefully. Below is a guide on how to apply:
- Find a property. Start by identifying a suitable property that meets the investment requirements.
- Purchase the property. Complete the transaction by purchasing the property and securing legal ownership.
- Prepare your documents. Gather and translate the necessary documents, ensuring they are up to date and properly certified.
- Submit your application. Apply for residency at your local Hungarian consulate or immigration office.
- Attend an interview. You may be required to attend an interview as part of the process, either in Hungary or at a Hungarian consulate.
- Receive your permit. If approved, you will be issued a residence permit, allowing you to live and work in Hungary.
The process typically takes 5 months from start to finish.
While the process can be handled independently, many investors choose to work with immigration lawyers or investment consultants to ensure all requirements are met and avoid delays.
9 advantages of Hungary RP by real estate investment
1. Access to the Schengen Area. Hungary is part of the Schengen Area, allowing you to travel freely across 29 European countries without the need for additional visas.
2. No residency requirement. You are not required to live in Hungary full-time to maintain your residency, offering flexibility for investors with global commitments.
3. Pathway to permanent residency. After 3 years of holding a residence permit, you can apply for permanent residency in Hungary.
4. Affordable investment compared to other countries. Hungary’s real estate prices are generally lower than in Western Europe, making this one of the most cost-effective options for gaining European residency.
5. No language requirements. Unlike some other residency programs, you do not need to speak Hungarian to qualify.
6. Tax benefits. Hungary offers a favourable tax regime, with one of the lowest flat personal income tax rates in the EU at 15%.
7. Stable and growing real estate market. Hungarian real estate has shown steady growth in value, particularly in cities like Budapest, making it a sound investment choice.
8. Family inclusion. Your spouse and children can also obtain residency under your application, allowing your entire family to benefit from living in Hungary.
9. Potential for rental income. If you do not plan to live in Hungary full-time, you can rent out your property, providing an additional stream of income.
Conclusion
Securing a Hungary residence permit via real estate investment offers numerous advantages, from access to the Schengen Area to long-term financial growth through property ownership. The process is relatively simple, with clear eligibility criteria, straightforward investment requirements, and multiple benefits. For investors looking to establish a foothold in Europe, Hungary presents an attractive and affordable option.