Hungary’s Golden Visa Program To Drop Property Investment Option

Hungary is following in Portugal's footsteps by removing the real estate investment option from its Golden Visa Program.

This decision, effective before January 1, 2025, will no longer allow wealthy foreigners to invest at least €500,000 in Hungarian properties in exchange for residency.

Hungary relaunched its Golden Visa program earlier this year and is now known as The Guest Investor Program (GIP).

The Guest Investor Program currently offers paths to Hungarian residency:

Investment in approved real estate funds for a minimum €250,000
Purchase residential property worth €500,000.
Donations to public initiatives for at least €1 million towards education and culture.

However, the removal of the direct real estate investment route signals a significant shift in Hungary's approach to attracting international investors.

Why Hungary Is Removing Real Estate Investments

The decision comes amidst concerns over Hungary's strained housing market. Managing Director of Discus Holdings, Laszlo Kiss, cited housing market challenges as a key reason behind the move. Similarly, Armand Arton, President and CEO of Arton Capital, emphasised that market stability and avoiding risks seen in other countries were driving factors:

“Allowing only the fund to invest in real estate is a much more regulated way to ensure transparency and stability, whether in residential or commercial sectors.”

Other European nations like Portugal, Greece, and Spain have faced similar issues, with unregulated property investments driving up housing prices and reducing affordability for locals.

Following Europe's Lead

Hungary’s decision echoes Portugal’s recent move to eliminate real estate investments from its Residency by Investment Program, aimed at mitigating the housing crisis.

Meanwhile:

Spain: Recently decided to terminate its Golden Visa Program altogether.
Greece: Redirecting foreign investments into more productive ventures beyond real estate.

These changes reflect a growing trend among European countries to prioritize sustainable investments over speculative property purchases.

What This Means for Golden Visa Applicants

If you're considering Hungary's Golden Visa Program, the upcoming changes make it critical to explore the remaining investment options. The program now focuses on regulated fund investments, offering better protections and transparency for investors.

The transition highlights Hungary’s intent to balance economic benefits with social responsibilities, aligning with broader European trends. Wealthy investors will need to adapt their strategies, focusing on new pathways that comply with evolving regulations.

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