After several months of delays, the Hungarian National Bank (MNB) has finally approved the first investment fund under the new Guest Investor Visa Program (AKA the new Hungarian Golden Visa).
In addition, according to various industry sources in Hungary we’ve spoken with, an additional 4 funds’ applications are currently being considered, with approvals expected by early 2025.
In order to be eligible for participation in the scheme, the funds’ portfolios have to include 40% exposure to eligible Hungarian real estate projects, in addition to other rigorous licensing requirements.
In the run-up to the first fund’s approval, we have had at least 400 enquiries from foreign applicants.
One of the reasons for that is the program’s relatively low price tag (the minimum fund investments requirement, going into 2025, is just €250,000, which ties with the Greek Golden Visa’s pricing for Conversion Properties.
In addition, the Hungarian Guest Investor Program offer exceptionally fast approvals (6-8 weeks), a 10-year residency permit validity, and a pre-approval step before applicants’ capital have to be committed.
(The minimum hold period is 5 years, however we are advising our clients not to exit the fund until such time as they’ve renewed their residency permits.)
The Guest Investor Program’s €500,000 Real Estate Purchase option was expected to go live in the first quarter of 2025 as well. But various Hungarian industry practitioners believe that this option’s launch, too, will be delayed, given the delays on the real estate fund approvals.
The Guest Investor Program’s delays were not related to the ongoing court case between Malta and the European Commission over the former’s Citizenship By Investment Program.
But the likely outcome of a Malta win will no doubt serve as a boon to both the Hungarian Guest Investor Visa and other Golden Visa Programs.
Given that applicants for the Greek Golden Visa Program, as in Portugal, are now facing delays of up to 2 years or more, we expect demand for the new Hungarian Golden Visa Program to be massive.
Clients who are serious about locking in an excellent European Plan B, along with the benefits of visa-free EU travel and exposure to Hungary’s real estate market, are encouraged to get in touch soon to start their applicants before application volumes start creating processing delays.
For more information on the approved fund option and the Guest Investor Program, speak to one of our experts today.