Hungary Introduces Guest-Investor Program for Residency Permit

Six years after closing a similar golden visa initiative amid corruption allegations, Hungary is set to unveil a revamped residency program, enticing investors with an opportunity to secure a long-term stay in the European Union nation.

This new initiative named the “Guest-Investor Program” a strategic move by Prime Minister Viktor Orban’s government to attract foreign investment while addressing immigration concerns.

It is important to mention here that the previous golden visa program granted residency and unfettered travel in the EU to buyers of €300,000 of government bonds, leading to a surge in migration from China and Russia.

However, it was closed following concerns about lax vetting of applicants and potential security risks.

Hungary Guest-Investor (Golden Visa) Program

Hungary’s newly launched Guest-Investor program also known as Golden Visa, aims to address these concerns by implementing stricter vetting procedures and limiting the number of visas granted annually.

The government also hopes to attract investment in Hungary’s growing economy, which is in need of 500,000 new workers to meet rising demand, particularly in the battery manufacturing sector.

Program Details

Investment Requirements:

• €250,000 in local property funds
• €500,000 in Hungarian real estate
• €1 million donation to designated educational or cultural institutions

Residency Permit:

• 10-year renewable residency permit for investors and family members
• No minimum stay requirement

Benefits:

• Visa-free travel within the Schengen zone
• Access to Hungarian education and healthcare
• Right to work in Hungary

Also Read: Hungary Tightens Work Visa Requirements for Third-Country Job Seekers

Criticism and Concerns

The golden visa program has been criticized for fueling housing crises and driving up property prices in other European countries. Portugal and Ireland have both shut down their golden visa programs in recent years due to these concerns.

In Hungary, the program has also drawn criticism from opposition parties who argue that it contradicts Orban’s anti-immigration stance. Orban has defended the program, stating that it is part of his efforts to attract investment and boost the economy.

Despite the criticism, the government is optimistic about the program’s potential to attract investors and stimulate economic growth. The program is expected to take effect in early 2024.