Hungary has announced the revival of its golden visa program, offering a residency permit to those who invest in expensive property in the country. The move comes six years after the previous program was shut down due to corruption allegations. Under the new "guest-investor program," individuals who invest a minimum of €250,000 ($271,000) in local property funds or €500,000 in Hungarian real estate will be eligible to apply for a 10-year, renewable residency permit.
The government has also introduced an alternative option for obtaining residency permits through donations worth at least €1 million to public trusts established to oversee universities. This new program aims to attract wealthy investors and bolster Hungary's economy.
The previous golden visa program, which granted residency and unrestricted EU travel to individuals who purchased €300,000 worth of government bonds, was marred by controversy. It led to a surge in migration from China and Russia and was closed down amidst allegations of corruption and insufficient vetting of applicants, potentially allowing spies into the EU.
Golden visa programs have faced criticism across Europe, with some attributing them to exacerbating housing crises. Portugal recently shut down its program due to soaring real estate prices, and Ireland followed suit earlier this year.
Hungary's golden visa program is part of Prime Minister Viktor Orban's wider immigration policy. Orban has maintained a strong anti-immigrant stance, and immigration has become a signature issue during his decade-long tenure. The government's decision to reintroduce the program comes as critics accuse them of loosening regulations to address the country's labor shortage by allowing non-EU workers to enter Hungary.
The Hungarian government estimates that the economy needs around 500,000 new workers to meet rising demand. The surge in battery industry investments, positioning Hungary as one of the top global producers, has highlighted concerns about filling factory lines. The golden visa program is expected to attract investors who can contribute to the country's economic growth while also helping to address the labor shortage.
By reviving the golden visa program, Hungary aims to stimulate investment in the real estate sector and generate revenue to offset the record cash-flow based budget shortfall. The program holds significant potential for attracting individuals seeking long-term residency in the EU through property investment, while also supporting Hungary's economic development in the process.