New era for investors: Golden Visa Law enters into force in Hungary
From January, Hungary enters the international competition for third-country investors with renewed vigour, as the Golden Visa Law comes into force. In this way, Hungary would like to attract non-EU investors.
According to an expert interviewed by Economx, Hungary is trying to create as favourable an economic and legal environment as possible for the investments concerned.
Golden Visa Law enters into force
Act XC of 2023 entered into force in January 2024. Its beneficiaries are third-country nationals, specifically non-EU and non-EEA nationals. For them, new visa and residence permit rules and opportunities have been opened up, Gergely Gábor Szabó, an expert at Bán, S. Szabó, Rausch & Partners Law Firm, told Economx.
Hungary has thus created a new regulatory environment that is more favourable than before. With this new law, Hungary has entered international competition, as other countries are also trying to attract investors: in this case, EU Member States are trying to attract investors from third-world countries.
The golden visa is granted if the investment conditions set out in the law are met, and the residence permit can be applied for on presentation of this visa.
What is a golden visa for?
The golden visa entitles the holder to stay for more than 90 days within a period of 180 days, as well as to multiple entry and to apply for a residence permit for visiting investors. Once the latter is obtained, the person concerned may move freely throughout the Schengen area.
The maximum period of validity of a residence permit for a visiting investor is 10 years. It can be extended for a further 10 years. In fact, the Hungarian legal system also allows for family reunification if the investor holding the golden visa and residence permit so wishes.
Gergely Gábor Szabó pointed out that since the investment conditions are strict, anyone who makes such a financial sacrifice is certainly not looking for a few days of tourism in Hungary, but has serious intentions.
Investment conditions
Once in possession of the Hungary Golden Visa, the person concerned must make one of the following investments within three months of entering Hungary:
- Acquisition of EUR 250,000 worth of investment units issued by a real estate fund registered by the National Bank of Hungary and meeting the other conditions set by law.
- Acquisition of ownership of an unencumbered residential property located in Hungary with a value of at least EUR 500,000, subject to the registration of a prohibition of alienation and encumbrance for a period of 5 years from the date of sale.
- The third option is to make a financial donation of at least EUR 1 million to a higher education institution run by a public trust with a public-service mission to support teaching, scientific research or artistic creation.
In response to a question from Economx, Gábor Szabó said that when applying for a visa, the investor must prove that he has a “legal source” of funds corresponding to the investment.
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How paradoxical. Our Politicians monetizing access to the European Union and Schengen.
Appears to FOCUS predominantly on the “broad” word of Property – investment, ownership of.
It will appeal but as to the “quality” of its attraction to be investors or titled owners of property in Hungary that’s the un-known.
It’s Orban / Fidesz growing “alignment with Russia & China – that gives sizable questioning as to it’s INVITATION.
If I have correctness in the principal AIM of this introduction to the Golden Visa Law centered on PROPERTY, let it be FACTUALLY stated :
(1) – we know the FALL in the past 18 months plus in the Real Estate / Property Market say a “mean” of 15% -18%.
(2) – we know the on-going decline trend of the Hungarian Economy.
(3) – we know the on-going pressure on the Forint / huf.
(4) – we know the internal & external pressures on the present Prime Minister of Hungary – Victor Mihaly Orban – his Government.
(5) we know that the Real Estate & Property Market “environment” in Budapest & Hungary – remains SATURATED with weight of sellers over buyers.
(6) – we know that Interest Rates will NOT be lowered – borrowings of money for whatever purpose in Hungary will NOT get CHEAPER.
(7) – we know the vacancy rates of residential and corporate office buildings in our capital Budapest, indicates they are at a level that statistically represent all time highs or near.
(8) – rental of residential property & office space – wrongfully RISES.
(9) – we know we BUILD on and ON – apartments, flats, houses, hotels, warehouse storage.
WHO are the buyers going to BE ???
(10 – we know 15 years plus the decline in the population of Hungary – death numbers yearly outnumber “new” born.
(12) -we know we are an “ageing” Society.
(13) – we know the blatant LIE in past days from the Prime Minister – Victor Orban to all citizens in Hungary – his National Address of the “Coming Home” of DNA Hungarians returning to live & work again in Hungary.
(14) – we KNOW the FRAGILITY of Hungary’s Membership in the European Union and N.A.T.O.
(15) – we know the disintegration of FRIENDSHIPS in Europe & Globally, a FACTOR through the Orban Governments “Stance” opposition, rejection of DEMOCRACY.
(16) – we know the “rapidness” of relationships with Russia & China, both under rule of COMMUNISM.
Hungary, the Government are “Exhausted” to spend on Investment.
Hungary – the “ideology” driven by Victor Mihaly Orban and the Finance Minister – Mihaly Varga – totally disregard building CAPITAL into the componentry of the Hungary Economy.
Hungary – the PRESSURIZATION on us as a country, an “ageing society” gargantuan number of investment, up-grades to the NEEDS of every day Hungarians – public services, schools / Education, hospitals, public transport, and “others” – that the Orban Government does NOT have the FUNDS to INVESTMENT – improve CORE public componentry’s in the day to day life of all Hungarians, which will WORSEN.
Hungary – inflation remains – “Out of Control” – that PERSONIFIES the opinion – that NOTHING is going to get cheaper in Hungary.
If we believe – Russia & China will GROW being our BANKERS facilitating us with the billions of what-ever currency they would USE, to IMPROVE over-all quality of life in Hungary – to Hungarians – just read history as it NEVER lies because THIS just won’t HAPPEN.
It sounds like there is no reason that every adult over 20 should not be buying their own home. Or at least land to build on. That there are so many properties on the market makes it a goldmine for those starting their independant lives. I’m 71 and just bought my 6th property and will be starting to build come Spring. Never thought I’d buy myself a chainsaw despite owning every form of construction power tools that they make more or less, but here I am with one bought last July to clear the lot of trees for wider open available space. As a woman who takes responsibility to grow my life thru healthy physical work while also building equity in myself, I have just one point to make regarding inviting outside investement thru property aquisition. The locals will eventually not be able to afford it, even if they are not drunks, druggies and other scourge on society. With less and less adults replacing themselves as a basic responsibility for their senior years safety and economic growth, the great Magyar nation will be in the minority within their own borders. Quick money now, inservitude later.