Hungary abolishes 'golden visas': what does this mean for investors?

In recent years, “golden visas” have become a popular tool for attracting foreign investment to the European Union. However, Hungary has decided to abandon this practice, which was a surprise move for many potential investors.

Let’s figure out what exactly happened and how it will affect the possibilities of obtaining a residence permit in this country.

What are Golden Visas?

Golden visas are a program that allows foreign nationals to obtain a residence permit in exchange for investing in the country's economy. This usually involves purchasing real estate worth a certain amount. Hungary had planned to launch its Golden Visa program on January 1, 2025, offering investors the opportunity to obtain a residence permit by purchasing residential properties worth at least €500,000. However, the country reportedly abandoned the idea before the official launch.

Although there has been no official comment from the Hungarian government, experts suggest that the decision is linked to several factors. Firstly, it is a desire to protect the real estate market from unscrupulous sellers. The real estate market in Hungary, as in other countries, can face problems related to fraud and price gouging.

Secondly, Hungary, like other countries such as Portugal, Spain and Greece, is seeing rising house prices, which could be triggered by an influx of foreign investment. The abolition of the Golden Visa program could help stabilize the market and make housing more affordable for locals.

Despite the abolition of the “golden visas”, Hungary offers other options for foreign investors who want to obtain a residence permit. The following options are currently available:

1. Real estate investment funds: Investors can obtain a residence permit by investing at least 250,000 euros in real estate investment funds. This option allows them to participate in the management of the property and receive rental income.

2. Donation to a higher education institution: Another option is to donate at least 1,000,000 euros to one of Hungary’s higher education institutions. This not only provides an opportunity to obtain a residence permit, but also supports education in the country.

Conditions for obtaining a residence permit

Hungary offers a residence permit for up to 10 years, which is a significant advantage for investors. A spouse, children up to 25 years old and parents can be included in the residence permit application, making this program especially attractive for families.

The abolition of the Golden Visa program in Hungary was a surprise move, but the country still offers attractive opportunities for foreign investors. If you are interested in obtaining a residence permit in Hungary or other EU countries, it is recommended to consult with the experts at Mercury Group.

Stay tuned, and we will inform you about new details regarding obtaining a residence permit in Hungary and other countries.