The Hungarian real estate market is experiencing a notable surge in both demand and supply. As of the first quarter of 2024, demand has increased by 16% compared to March 2023, and the availability of housing has grown by 8%. Hungary now offers a pathway to residency through its “Golden Visa” program, allowing individuals to obtain residency by purchasing property in 2024.
In this article, we will explore the primary criteria and steps involved in obtaining Hungarian residency through real estate investment.
Requirements for Buyers and Their Families
To be eligible for the “Golden Visa” program, prospective investors must meet several conditions:
Investor Requirements:
• Must be at least 18 years old.
• Must not hold citizenship of any EU country.
• Must have a clean criminal record.
• Must have valid health insurance.
• Must not be subject to any personal sanctions from the EU, USA, UK, or Canada.
• Must provide documents proving eligibility for visas for their spouse and minor children.
• Individuals over 18, as well as parents and grandparents, can obtain residency through family reunification procedures.
Property Requirements
The property purchased for residency purposes must adhere to the following criteria:
• Minimum value of €500,000.
• The property must be free from mortgages and encumbrances.
• The property can be sold after five years.
• Only ready-to-occupy properties on the secondary market are eligible; properties under construction are not accepted.
• The property must be registered in the Hungarian Land Registry.
• The minimum living space requirement is 6 square meters per family member.
Residential properties for the “Golden Visa” can only be purchased from January 1, 2025. Properties bought before this date cannot be used for the program. As the option to buy property is still in development, applicant criteria may be subject to change.
It’s important to note that there will be an appraisal to determine any discrepancies between the actual market value and the purchase price declared in the application.
Costs Involved in Purchasing Property
Besides the property cost, buyers must also cover various taxes and fees:
• Property transfer tax on secondary market purchases: 4%
• Annual property tax on private homes: 1–1.5%
• Fixed tax on rental income: 16%
Required Documents
To obtain residency through property purchase in Hungary, applicants must provide several documents proving identity, property ownership, and financial stability. These include:
• Residency application form.
• Valid passport.
• Applicant’s photograph and biometric data.
• A sales contract, signed by a lawyer, for a residential property worth at least €500,000.
• Proof of financial means to live in Hungary.
• Health insurance proof.
Steps to Obtain Residency in Hungary Through Property Purchase
Residency applications can only be submitted within Hungary. Before obtaining residency, applicants must secure a guest investor visa, valid for up to six months. With this visa, applicants can submit their residency application within 93 days. The steps are as follows:
1. Arrive in Hungary with a guest investor visa and select a property.
2. Purchase the property.
3. Prepare necessary documents: application form, personal documents with translations, proof of meeting investment conditions.
4. Submit the residency application. Documents can be submitted remotely.
5. Undergo fingerprinting at the immigration office to receive residency cards. Cards can be collected in person or by an authorized representative.
Extending Residency After Property Purchase
Residency obtained through property purchase can be extended, provided all conditions are met, including holding a valid residency permit. Applicants must demonstrate financial stability and compliance with immigration regulations to successfully renew their resident status. If an applicant plans to extend residency after 10 years and has exited the initial investment, they must reinvest in property.
The Hungarian real estate market offers a promising opportunity for those looking to invest and obtain residency. With its growing demand and structured investment program, Hungary is an attractive destination for property investors seeking a new home in Europe.
