Should Hungary consider opening the Golden Visa Program again?

First introduced in 2013, Hungary’s Golden Visa program allowed foreign investors to obtain a Hungarian residency permit in exchange for an investment in the country. Initially, it was successful, attracting a significant number of foreign investors to Hungary. However, following concerns about corruption and misuse, the program was suspended in 2017. Now, thanks to the turbulence of the Covid-19 pandemic, questions have arisen about whether Hungary should consider opening the Golden Visa program again. In this article, we’ll take a closer look at the pros and cons, and also explore some of the alternatives for those looking to invest in the country. 

What Was The Golden Visa Program?

Hungary’s Golden Visa program was a residency by investment program that was introduced in 2013. The program offered a way for foreign investors to obtain a Hungarian residency permit in exchange for their investment. Under the program, foreign investment could be used to support economic development. The minimum investment amount varied depending on the type of investment but was typically around €300,000. Often, the investment took the form of a business, government bond, or real estate purchase. 

In exchange, those who invested would be granted a residency permit, which allowed them to live and work in Hungary, and was valid for two years as long as the investment was maintained. After the fifth year of residency, the investor could apply for permanent residency or citizenship, which made the program highly attractive for investors and a great way for Hungary to stimulate economic growth – between 2013 and 2017, Hungary collected €1.14 billion. 

Unfortunately, the program has faced criticism due to concerns about corruption, and as a result it was suspended in 2017. Currently, it is unclear if, or when, the program will be reopened.

Pros Of Reopening the Golden Visa Program

When considering whether Hungary should reopen the Golden Visa program, it’s important have a clear understanding of both the pros and cons. Some of the key benefits include:

• Attracting foreign investment: Foreign investors are often attracted to Golden Visa programs because they offer a way to obtain residency in a country without the need for a job offer or a family connection. In return, the investment they make can be used to support economic development.
• Boosting the economy: The Golden Visa program could also provide a significant boost to Hungary’s economy, as investment can create jobs, stimulate growth, and contribute to the country’s overall prosperity.
• Increasing tax revenue: The tax income from foreign investors who obtain residency could also provide a significant source of revenue for the government.

Cons Of Reopening The Golden Visa Program

While there are a number of pros for reopening the program, there are also some cons that the country is taking into account when it comes to conversations around the Golden Visa.