guest investor residence permit

New permit type from 2024: Guest investor residence permit

One of the significant innovations of the new immigration law entering into force from 2024 is the creation of a type of permit that non-EEA citizens can obtain by investing in Hungary. The Hungarian government was originally supposed to provide the opportunity from 1 July 2024, but with the amendment of the law that entered into force on 11.05.2024, the possibility of obtaining a guest investor residence permit has been extended to 01.01.2025. The amendment also had a minor impact on the detailed rules relating to obtaining a permit.

In our article we summarize all the important information on how to get this favorable permit, which is also a type of permit that exists in several countries, known as Golden Visa.

What is a guest investor residence permit?

The only condition for obtaining authorisation is the fulfilment of one of the investment opportunities provided for by law. By investing, the non-EEA investor and his/her family members obtain a residence permit for 10 years, which has a particularly long validity period compared to other types of residence permits available for third-country nationals.

What kind of investment can be made to obtain a guest investor residence permit?

  1. Purchase of €250,000 investment units from a real estate fund registered by the MNB. The real estate fund manager must be included in the list of qualified market participants.
  2. Purchase of €500,000 worth of residential property – in the case of residential real estate investment, it is still not clear whether an investment of €500,000 is acceptable for obtaining a permit by adding up the value of several residential properties.
  3. A donation of €1,000,000 to a higher education institution maintained by a public interest trust foundation, which is non-refundable.

Among the investment options , the purchase of residential real estate will probably be the most popular investment, since in addition to being a valuable investment, the owner can also utilize the purchased property, for example by renting. To obtain a guest investor residence permit, the aliens police authority will only accept real estate purchased after 01.01.2025. Ownership of the purchased property may also be registered in favour of the investor and his/her family members who are also applying for a guest investor residence permit. In the case of an investment in residential real estate, the property cannot be alienated for 5 years, i.e. the sale or gift of the property is restricted or mortgaged.

What are the advantages of a guest investor residence permit?

  1. Long-term residence permit valid for 10 years, renewable
  2. Family can also apply together
  3. Residence in Hungary is not a condition for obtaining and retaining a permit
  4. In case of residence in Hungary, both the investor and his/her family member are entitled to work or engage in self-employed activities without restriction
  5. Visa-free travel to Schengen member countries

Guest investor visa

A new, special type of visa, the Guest Investor Visa, is available to third-country nationals who wish to apply for a guest investor residence permit in Hungary area of the investment. This visa is valid for up to 6 months and confers multiple entries into Hungary territory. There are no restrictions on the length of stay in Hungary.

The visa may be applied for at the consulate if the applicant declares that he already holds one of the investments required for obtaining the permit or declares his intention to invest. In case of investment intention, the applicant must prove that the amount of legal origin required for the investment is available, available and transferable in Hungary territory, and the investor must undertake to make one of the investments within 3 months of entry with a visa.

The inclusion of a guest investor visa prior to the submission of the residence permit application may also be used by third-country nationals who are not subject to a visa requirement. In this case, you have three months more time to implement the investment.

Application process

At the time of application, proof of the realisation of the investment shall be required.

The application must be submitted within 93 days of first entry into the Hungary territory or of the completion of the investment.

A citizen of a non-visa country can enter as a tourist in order to carry out the investment and apply for a guest investor residence permit. A citizen of a country subject to visa requirements must apply for a so-called guest investor visa before investing and submitting a guest investor residence permit, which is issued by the office with a validity of 6 months, within this validity period the investor has the opportunity to complete the investment and then submit the application for a guest investor residence permit within 93 days.

When applying for a residence permit for a guest investor based on a real estate investment, the aliens police authority may request the expert opinion of a real estate expert and may refuse to issue or renew the permit if it is established that there is a striking imbalance between the purchase price and the value of the property. In this case, the aliens police authority, acting on behalf of the Hungarian State, shall order the cancellation of the prohibition on alienation and encumbrance.

The deadline for considering the application is 21 days.

The validity of the issued guest investor residence permit may exceed the expiry date of the applicant’s passport.

Possibility of renewal of permit

The guest investor residence permit may be extended for another 10 years.

The extent of actual residence in Hungary shall not affect the validity or renewal of the guest investor residence permit.

An extension is possible without further investment if the basis for obtaining the permit was immovable property and ownership continues to exist on the same property, and if the permit was obtained based on a monetary donation. In order to renew a guest investor residence permit obtained with an investment ticket, it is again necessary to purchase investment units in the amount of EUR 250,000.

The guest investor residence permit cannot be exchanged for another type of residence permit in Hungary.

Possibility of permanent residence

Although a guest investor residence permit is issued with a long validity of 10 years, it is not equivalent to a right of permanent residence. It is still an open question whether it is possible to apply for a national or EU long-stay card if you have a guest investor residence permit.

How can we help?

We help you through the entire process of obtaining a guest investor residence permit. Among the investment opportunities, we primarily help our clients with full administration in the field of real estate investment:

  1. Our real estate team helps the client choose the perfect property from a wide range of properties that also meet the requirements of a guest investor residence permit.
  2. Legal administration related to the sale, until registration of ownership.
  3. Preparation of documentation for obtaining a guest investor residence permit, submission of an application, monitoring of the application process until the issuance of the permit.

If you would like to obtain a 10-year guest investor residence permit with this attractive Hungarian investor program, please contact our office at the contact details on the website and contact us.

Follow us on Facebook or LinkedIn to get instant updates on our new articles.