Hungary Removes Real Estate Option from Guest Investor Program

Hungary's government removed the €500,000 real estate investment option from its Guest Investor Program (GIP), as reported in the December 20 issue of the Hungarian Gazette.

This decision comes just days before the option was set to launch on January 1, 2025, and less than six months after the program's debut in July 2024.

Alternative Investment Routes for Hungary’s Golden Visa

The program now offers two pathways for investors seeking Hungary’s Golden Visa:

1. Investment in Real Estate Fund Units

This pathway requires an investment of at least €250,000 in real estate fund units. Investors can choose from government-accredited funds, such as the Sprint Asset Fund in Budapest.

The investments must be held for five years, after which investors can sell their units and recover the capital. Additional funds are expected to gain accreditation in the near future.

2. Donation to Higher Education Institutions

This option involves a €1,000,000 non-refundable donation. The funds contribute to education, scientific research, and artistic projects, aligning with Hungary’s cultural and academic goals.

To qualify for either pathway, applicants must be at least 18 years old, possess a legal source of income, and hold citizenship outside the EU or EEA. Applications can also include spouses, children under 25, and parents.

Objectives Behind Removing Real Estate from Guest Investor Program

The government has not officially commented on the decision. However, reports suggest it aims to protect the real estate market from dishonest sellers, prevent rapid price increases, and mitigate the risk of a housing crisis.

Hungary’s property market witnessed significant growth in 2024, with property prices increasing by 6.4% by mid-year compared to 1.6% in January. New properties saw a year-over-year price hike of 14.5% in the first quarter, while secondary properties rose by 8.2%. The government favours fund-based investments as they provide more regulated and controlled avenues for allocating foreign capital, particularly in the residential and commercial property sectors.

Will Hungary's GIP Still Be the Path to Permanent Residency?

As of now, the Hungarian government has approved only one fund under the Guest Investor Program (GIP). To proceed, applicants must submit their residence permit applications within 30 days of their first legal entry into Hungary.

The program continues to offer its original benefits, including renewable ten-year residence permits. Additionally, successful applicants may qualify for permanent residency after three years, providing a stable and attractive pathway for long-term settlement in Hungary.