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The Investment Migration Insider professional platform has published the guidance on new regulations of Hungary’s Golden Visa program, which the authorities call the “Guest Investor Program”. These rules will come into force on July 1, 2024.
The first step to obtaining a guest investor residence permit is to submit an application for the appropriate visa. In other words, the process is two-stage: you can apply for a guest investor residence permit only after receiving a guest investor visa.
The guest investor visa allows a stay of more than 90 days and multiple entries within 180 days. The validity of a guest investor visa cannot exceed two years. The visa becomes invalid once the investor receives a residence permit.
Guest investor visas can be issued to third-country nationals whose stay is of national economic interest.
The property must be strictly residential (commercial or industrial properties are not permitted).
The property must be uncontested and free from encumbrances and claims.
When applying for a visa, the applicant must demonstrate that he owns or plans to make one of the above investments. Thus, at this stage of the procedure it is not necessary to already have an investment; it is enough to make an appropriate commitment. In this case, three months are provided for making the investment, counting from the date of entry of the applicant into the territory of Hungary with a guest investor visa.
In addition to the above, the applicant must also prove that he has a legal source of funds for the investment, and these funds must be available or transferred to the territory of Hungary. The latter applies only to future investments if the investor undertakes to make them within three months.
The Hungarian government will issue a decree establishing requirements for proof of health care and financial insurance for third-country nationals.
The applicant must not be subject to a Schengen Information System alert, expulsion or prohibition of entry and stay, and must not be a threat to public order, security or public health in Hungary. The immigration authority must also seek the opinion of Hungary’s law enforcement and national security authorities regarding the guest investor visa application.
The processing time for immigration procedures is 21 days. The review period begins on the working day following the day the application is received by the authority.
Guest investor residence permits can only be obtained by applicants who have a valid guest investor visa.
The validity of the residence permit of the invited investor will be 10 years with the possibility of extension for a maximum period of 10 years and for the same purpose only. The validity period of the guest investor residence permit may exceed the validity period of the applicant’s travel document.
The main applicant can extend his or her guest investor residence permit to immediate family members: spouses and minor children.
Although the guest investor residence permit does not allow additional family members to join, such as dependent parents, siblings, and direct relatives, all these categories of family members can obtain a Hungarian residence permit through separate procedures if they are unable to care for themselves for health reasons. This residence permit is valid for up to three years.
Thus, the holder of a guest investor residence permit can carry out almost any economic and entrepreneurial activity in Hungary.
The applicant must submit an application for a Guest Investor Residence Permit to the immigration authority directly or through its electronic platform (Enter Hungary) no later than 93 days from the date of first entry into Hungary on a guest investor visa.
The applicant must, within three months of entering Hungary, provide proof through the Enter Hungary portal that he has completed one of the investments.
In accordance with the procedural rules, having received a guest investor visa, the applicant is required to travel to Hungary and only subsequently can apply for a guest investor residence permit. No further travel to Hungary is required.
A person holding a guest investor residence permit will not be considered a Hungarian tax resident provided that such person spends less than 183 days in Hungary in any 12-month period.
Immigration authorities may extend the residence permit of the guest investor if, at the time of application, the applicant still holds an investment certificate in a real estate fund worth €250,000. However, the law does not require that this be the same certificate as at the time of the original application.
If the first application is for a direct purchase of a property, then in order to obtain an extension the applicant must maintain an investment of at least €500,000 in the property for which the permit was originally issued. However, if the property has been sold (after a five-year holding period) or if the investment in the property no longer amounts to €500,000, a new investment of sufficient value must be demonstrated at the time of application.
For grants awarded to foundations, the applicant may request an automatic extension.
The extension does not require the applicant and his family members to provide proof of residence in Hungary. The extensions are possible for up to 10 years.
Holders of a guest investor residence permit can obtain permanent residence status in Hungary through a national residence card.
The National Residence Card is issued to a person whose residence and livelihood in Hungary are guaranteed and who is insured for a full range of medical services or who can clearly cover the costs of health care services even in the absence of such coverage.
To obtain a national residence card, the individual must already have a residence permit (for example, a guest investor residence permit) and have resided in Hungary for at least three consecutive years before submitting the application.
Leaving Hungarian territory for periods of less than four months at a time does not constitute a break, provided that the total duration of such absence does not exceed 270 days in any three-year period.
The National Residence Card is only issued if the applicant's long-term residence is in the interests of Hungary and the applicant meets the conditions for social cohabitation. The government will issue a separate decree regulating the issuance of national residence cards and the conditions of social cohabitation.
After eight years of confirmed residence, a person can apply for naturalization to become a Hungarian citizen.
During the naturalization procedure, proof of permanent residence and livelihood in Hungary, as well as clean criminal record are required. An additional requirement is that, as a rule, applicants must pass a basic constitutional knowledge examination conducted in Hungarian.
Source: Investment Migration Insider
Photo by Kate Kasiutich on Unsplash
