New era for investors: Golden Visa Law enters into force in Hungary

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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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