H
ungary has joined Portugal in abolishing the real estate investment option for its Golden Visa Program. This change means that foreigners will no longer be able to invest at least €500,000 in Hungarian property in exchange for residency in the Schengen area.

    The decision was published in the Hungarian Gazette on December 20 and affects the Guest Investor Program of Hungary (GIP). The GIP offered two routes to residency: investing in approved real estate funds or donating at least €1 million to public education and cultural initiatives. However, the real estate investment option is being phased out due to concerns over Hungary's housing market strain.

    According to experts, this change aims to prevent market instability and protect investors from unregulated real estate purchases. The fund structure used in the GIP offers enhanced protections by allowing only regulated investments in specific sectors, such as residential or commercial property.

    Hungary's move follows Portugal's decision to terminate its real estate investment option from the Golden Visa Program last year. Other European countries, including Spain and Greece, have also taken steps to reform their residency by investment programs. While Spain has abolished its program altogether, Greece is focusing on attracting foreign investors through more productive ventures rather than real estate investments.