SIGNIFICANT CHANGES TO THE REGULATIONS GOVERNING GUEST INVESTOR RESIDENCE PERMITS (GOLDEN VISAS)
In late December 2024, noteworthy modifications to Hungarian immigration laws were published in the Hungarian Gazette. These amendments impact both Act XC of 2023 on the General Rules for the Entry and Residence of Third-Country Nationals (hereinafter: "Immigration Act") and Government Decree No. 35/2024 (II. 29.) of 2023 on the Implementation of Act XC of 2023 on the General Rules for the Entry and Residence of Third-Country Nationals (hereinafter: "Implementing Decree"). These changes specifically revise the regulations surrounding guest investors visas and residence permits.
On December 20, 2024, Act LXXXIV was published, resulting in the repeal of several provisions of the Immigration Act related to guest investors' residence permits. Notably, this includes the prior regulations governing the acquisition of ownership of residential properties with a market value of (at least) EUR 500,000 (five hundred thousand euros). As a direct consequence of these changes, investment options that can qualify under the criterion of national economic interest for obtaining guest investor visas and residence permits have been limited to two viable investment avenues.
The justification for the elimination of the residential property acquisition option reflects concerns raised by a group of Members of the European Parliament regarding the acquisition of residential property in Hungary by third-country nationals. This practice was identified as a potential risk factor in the context of investments qualifying for guest investor visas and residence permits.
As a result of this change in the law, future applicants for residence permit in Hungary under the guest investor program will be limited to two specific paths: either acquiring investment units or making a donation to a higher education institution.
On December 31, 2024, Government Decree No. 479/2024 (XII. 31) was also published. This decree includes modifications to the Implementing Decree, aligning it with recent changes of the Immigration Act.
The recent amendments have impacted the specific rules governing the two remaining investment options available to guest investors, as well as the overall framework for investment performance. Due to these amendments, investors who were previously anticipating the legislator's deadline at the beginning of 2025 to finalize their real estate investments for obtaining Golden Visas in Hungary must now reassess their options. With the elimination of the residential property acquisition pathway, they must select from the two remaining investment options.
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[1] The contents of this document are for informational purposes only and do not constitute legal advice.