Unexpected changes in Hungarian law for investors

In December 2023, the Hungarian government published a new law promising the possibility of obtaining a residence permit through investments in real estate. For an entire year, we anticipated that the law would come into effect on January 1, 2025, as highlighted in bold on the Hungarian Immigration Service's website.

At the beginning of January, the information on the website was updated, stating that investors must purchase real estate within three months of holding the investor visa, instead of the previously promised one year. Considering that any foreign real estate buyer is required to request approval from the relevant authorities, a process that takes 60 days, such a short period for selecting investment property seems inadequate. Not to mention that many individuals face restrictions in using bank accounts, and transferring funds to a foreign account often takes much longer—if it is possible at all.

After Trump's inauguration, information regarding the possibility of obtaining an investor visa through the purchase of real estate disappeared from both the immigration website and the law itself. Coincidence? – I don’t think so. Without any notifications, the paragraph in the already-adopted law concerning investments in real estate worth 500,000 euros was removed.

Currently, the investment program is available to investors willing to make a non-refundable contribution of one million euros to an educational institution in Hungary or those purchasing investment shares issued by a real estate fund registered with the National Bank of Hungary for a minimum of 250,000 euros. The sole intermediary authorized to arrange the acquisition of the investment package is Sprint Asset Hungária Alapkezelő Zrt. and Gránit Alapkezelő Zrt.

Additionally, the government has published an exact list of educational institutions eligible to participate in the investment program. These include the Budapest University of Economics, Corvinus University, the Hungarian University of Agriculture and Life Sciences, the University of Theatre and Film Arts, the University of Physical Education, the Hungarian Dance University, the University of Veterinary Medicine, the Moholy-Nagy University of Art and Design, Semmelweis University of Medicine, Mathias Corvinus Collegium, John von Neumann University, the University of Pannonia, the Old Buda University, Széchenyi István University, and universities in Sopron, Dunaújváros, Debrecen, Szeged, Miskolc, Nyíregyháza, Tokaj-Hegyalja, and Pécs.

The Immigration Service has extended the validity of the preliminary investor visa to six months, providing more time for completing the investments. Applicants must apply for a residence permit within 30 days of crossing the Hungarian border. Let us hope that the changes to the law are not final and that citizens of third countries will have the opportunity to obtain long-term residence in EU countries through the purchase of real estate in Hungary.

On January 3, 2025, Spain’s investor golden visa, which had been established in 2013 to attract talent and investments following the 2008 financial crisis, was abolished. The investor visa program had faced significant criticism from the European Union. The push for reforms originated from a 2019 European Commission report, which characterized such programs as a "threat to the security of the EU." The report recommended that member states either eliminate these programs entirely or significantly restrict them.

In response, several countries, including the United Kingdom, the Netherlands, Austria, and Ireland, terminated or restricted similar visa programs. Portugal closed its real estate investment program in 2023. Currently, Italy, Greece, Malta, and Cyprus remain the only EU countries where "golden visa" programs are still in operation.