Hungary is set to resurrect its Golden Visa Program, bringing back a lucrative opportunity for foreign investors that had been dormant since its closure in 2017. What sets this revival apart is the groundbreaking addition of a "guest-investor visa" category, targeting individuals involved in strategically significant investment projects. This visa acts as a gateway for those seeking residence status in Hungary.

Extended Residency Privileges

The proposed visa promises an extended stay in Hungary for a decade, with the potential for an additional ten-year extension, offering a remarkable period of stability and continuity for eligible investors.

Framework and Draft Bill Overview

A comprehensive framework for the Residency by Investment program has been presented by the Hungarian government in a draft bill submitted to parliament. This bill encompasses regulations governing immigration for third-country nationals aspiring to settle in Hungary.

Central to this bill is the introduction of the "guest-investor visa" designation, catering to individuals associated with projects deemed strategically significant by the government, as reported by Reuters.

Historical Context of Hungary's Golden Visa

Hungary initially introduced its Golden Visa program on January 1, 2013, maintaining its availability until March 31, 2017. Originally, wealthy foreigners could secure residency by investing a minimum of €250,000. Subsequently, the government revised the investment threshold to €300,000.

During its active years from 2013 to 2017, the program yielded a substantial influx of €1.4 billion and garnered 3,649 approved temporary residence permits, according to figures released by the EU Commission on investor residence programs.

Previous Program Statistics

Hungarian authorities received a total of 6,621 investor residence requests during the program's duration. Among these, 4,794 applicants obtained permanent residence permits, while 1,827 applications faced refusals or rejections.

Revisions and Qualification Criteria

Under the proposed reinstatement, achieving the classification of a "strategically important project" could be accomplished through an investor's acquisition of a Hungarian real estate fund share worth €250,000 or property investments amounting to €500,000 within Hungary.

European Investment Program Dynamics and Concerns

Golden Visa and Golden Passport programs significantly contribute to the economies of respective nations. However, these programs have faced scrutiny due to reported irregularities, including money laundering and corruption, raising security concerns.

European Landscape of Residency Programs

Several European countries, including Spain, Montenegro, Portugal, and Greece, host renowned residency and citizenship acquisition programs. 

These programs, highlighted in a report by Henley and Partners last year, continue to attract international interest despite ongoing debates regarding their governance and potential risks.

FAQ

1. What is Hungary's Golden Visa Program?

Hungary's Golden Visa Program is an initiative that grants residency to foreign investors who fulfill specific investment criteria within the country. This program offers an opportunity for non-EU citizens to obtain residency in Hungary through investment.

2. Why is Hungary reviving its Golden Visa Program?

The Hungarian government aims to attract foreign investment and stimulate economic growth by reintroducing the Golden Visa Program. The revival includes a new category, the "guest-investor visa," targeting strategic investment projects.

3. What does the "guest-investor visa" entail?

The "guest-investor visa" is a special category introduced in Hungary's Golden Visa Program. It acts as a prerequisite for applying for residence in Hungary and allows holders to stay in the country for ten years, extendable by an additional ten years.

4. What are the investment requirements for Hungary's Golden Visa?

Investors seeking residency through Hungary's Golden Visa Program may be required to invest in Hungarian real estate or participate in government-approved strategic investment projects. For instance, acquiring a real estate fund share worth €250,000 or investing in real estate worth €500,000 within Hungary could qualify an investor for the program.

5. How has the Golden Visa Program impacted Hungary historically?

During its previous operation from 2013 to 2017, Hungary's Golden Visa Program attracted substantial foreign investment, amounting to €1.4 billion. This led to the approval of numerous temporary and permanent residence permits, contributing significantly to the country's economy.