Dual Citizenship and Hungary's Golden Visa: Eligibility Explained

Can Dual Citizens Generally Apply for the Golden Visa?

Dual citizenship itself does not automatically disqualify an individual from applying for Hungary’s Golden Visa. However, eligibility largely depends on the specific combination of citizenships held.

Eligibility Criteria:

• Nationality: Applicants must be citizens of countries outside the EU and EEA.
• Age: Applicants must be at least 18 years old.
• Clean Criminal Record: A clean criminal record is mandatory.
• Health Insurance: Applicants must have comprehensive health insurance coverage or demonstrate sufficient funds to cover potential healthcare expenses.
• Financial Means: Proof of sufficient financial means to cover accommodation, living expenses, and return travel is required.

Definition of Third-Country Nationals in Hungarian Law

In Hungarian law, the term "third-country nationals" refers to individuals who are neither citizens (or spouse) of Hungary nor nationals of countries within the European Economic Area (EEA) or Switzerland. This classification encompasses persons who do not possess the right of free movement and residence within the EEA, as well as stateless individuals.

This classification is significant in the context of immigration and residency programs, such as the Guest Investor Visa. This visa is specifically designed for third-country nationals whose entry and stay in Hungary are deemed to be in the national economic interest due to their investments.

Who Has the Right of Free Movement?

European Union Member States:

• Austria
• Belgium
• Bulgaria
• Croatia
• Cyprus
• Czech Republic
• Denmark
• Estonia
• Finland
• France
• Germany
• Greece
• Hungary
• Ireland
• Italy
• Latvia
• Lithuania
• Luxembourg   
• Malta
• Netherlands
• Poland
• Portugal
• Romania
• Slovakia
• Slovenia
• Spain
• Sweden   

European Economic Area Member States (not in the EU):

• Iceland
• Liechtenstein
• Norway

Special Case:

• Switzerland (not an EU or EEA member, but has an agreement granting free movement rights)

This means citizens of all these countries can live, work, study, and retire in any other country on the list without needing a visa or other permission. For instance, individuals holding dual citizenship, such as Russia and Cyprus, are currently ineligible to apply for the Hungarian Golden Visa program.

What are the Rights of Dual Citizens with EU/EEA Nationality?

Dual citizens who hold both EU/EEA nationality and the citizenship of a third country enjoy unique rights and obligations under Hungarian and EU law. Their status is primarily governed by their EU/EEA nationality, which grants them the right of free movement and residence in Hungary. This right is enshrined in EU law and is further reinforced by Hungarian legislation, ensuring they can live, work, and study in Hungary without requiring a visa or residence permit.

Key points about the rights of dual citizens with EU/EEA nationality:

• Priority of EU/EEA Rights
  As EU/EEA nationals, their legal status in Hungary is predominantly determined by their EU/EEA citizenship. This means that they are not considered third-country nationals under the relevant laws regulating entry and residence.
• Access to Residency Without Visa Requirements
  EU/EEA nationals, including dual citizens, are exempt from needing a guest investor visa or other permits typically required for third-country nationals. They can freely enter and reside in Hungary as per the rights established in Section 16 (2) of Act XC of 2023.
• Exclusion from Third-Country National Programs
  Because they hold EU/EEA nationality, they are not eligible for programs such as the guest investor visa, which is strictly reserved for third-country nationals. Hungarian legislation explicitly states that this visa category is unavailable to individuals with EU/EEA citizenship.
• Application of Dual Citizenship
  While their third-country nationality does not restrict their rights under EU/EEA citizenship, it may still be relevant for other legal or diplomatic matters. For example, their third-country citizenship might impact taxation, property ownership, or consular assistance in non-EU countries.

What About Former Hungarian Citizenship?

Individuals who previously held Hungarian citizenship but are currently non-citizens are eligible for Golden Visa, however there is a pathway to reacquire Hungarian citizenship under Hungarian law. The primary method is through re-naturalization, as outlined in Section 5 of Act LV of 1993 on Hungarian Citizenship. To be eligible for re-naturalization, applicants must:

• Maintain a clean criminal record: They must be of good character, with no ongoing criminal proceedings in Hungary.
• Demonstrate Hungarian language proficiency: Applicants are required to prove their ability to communicate in Hungarian.
• Ensure national security compliance: Their naturalization should not pose a threat to Hungary's public or national security.

Additionally, applicants must pass an examination on constitutional fundamentals, unless exempted by law. Exemptions are available for individuals who:

• Are under limited legal capacity or are legally incapacitated.
• Have obtained a degree from a Hungarian-language educational institution.
• Are over 60 years old at the time of application.
• Have a permanent and irreversible health condition that prevents them from taking the exam.

It's important to note that the standard residency requirements applicable to general naturalization do not apply to re-naturalization applicants. This facilitates a more straightforward process for former Hungarian citizens seeking to regain their citizenship.

Conclusion

In conclusion, Hungary's Golden Visa program offers a unique pathway to dual citizenship for those looking to invest in a secure, centrally located EU country. Beyond the straightforward application process, the program provides a wealth of benefits, including long-term residency, family inclusion, and access to Hungary's vibrant economy and lifestyle. Whether you are seeking to expand your business opportunities, secure world-class education for your children, or take advantage of Hungary's low tax rates, the Golden Visa is a comprehensive solution. By choosing Hungary, applicants not only gain access to the European Union but also enjoy the stability and opportunities of one of Europe’s most investor-friendly nations.

Want to consult with an Hungarian immigration expert lawyer about your specific situation? Contact us today!