The Hungarian government is planning to relaunch its Golden Visa program. This program has been closed since 2017. Six years after accusations of corruption forced the government to terminate a golden visa scheme akin to this one, Hungary will now grant resident permits to those who buy pricey real estate in the EU member state. Here’s more about this news.
Real Estate Investors In Hungary To Get Residency Permit
According to legislation submitted by the administration of Prime Minister Viktor Orban, those who invest at least €250,000 ($271,000) in local property funds or €500,000 in Hungarian real estate are eligible to apply for a 10-year renewable residency card in Hungary under the “guest-investor program.”
Contributions to “public trusts,” which the government established to regulate institutions, must total at least €1 million in order to qualify. In 2017, Hungary terminated a comparable initiative. That one allowed buyers of €300,000 worth of government bonds to become residents and travel freely around the EU.
An increase in migration from China and Russia was caused by the initiative. It was shut down as a result of media allegations alleging that applications were not thoroughly vetted and that this allowed spies to join the EU.
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Golden Visas For European Countries
There is controversy around golden visas for European countries. Such residency schemes are accused by some of exacerbating the housing crunch. Portugal terminated a program this year due to a sharp increase in real estate prices, especially in Lisbon. Ireland terminated the program on February 15.
The legislation that Orban claims is a component of his tough-on-immigration policy includes Hungary’s program. The nationalist prime minister, whose anti-immigrant stance has held him in office for more than ten years, has made this problem his hallmark.
The government was criticized by opposition parties for relaxing laws earlier this year, which made it possible for workers from non-EU nations to enter Hungary in order to address a labour shortage. This led to the introduction of the bill. It also coincides with Orban’s efforts to increase revenue following this year’s record cash-flow-based budget deficit. (As per Financial Express)
Unlawful Activities Led To The Closure
According to the government’s own estimate, the economy needs 500,000 more workers to keep up with demand. Concerns about filling factory lines are especially raised by an increase in investments in the battery industry, which is expected to position Hungary as one of the top producers in the world.
The economies of the nations in which European investment projects like the Golden Visa and Golden Passport are implemented greatly benefit from them. However, they often caused security concerns because it was reported that they were involved in a number of illegal activities, including money laundering and corruption.
According to a study released last year by Henley and Partners, the most well-known European countries for these kinds of efforts are Spain, Montenegro, Portugal, and Greece. Currently, a number of European countries permit foreign nationals to get residency and citizenship through these programs.
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