Hungary’s Dual Citizenship Reform: Balancing National Sovereignty with Investment Migration
In April 2025, Hungary’s Parliament passed its 15th constitutional amendment, allowing the government to suspend certain dual...
Hungary’s Dual Citizenship Reform: Balancing National Sovereignty with Investment Migration
In April 2025, Hungary took a decisive step in redefining the boundaries of citizenship and investment migration. Through its 15th constitutional amendment, Parliament granted the government the authority to suspend the citizenship of certain dual nationals for up to ten years under specified conditions.
1. The New Rules: Targeting Non-EU “Risk Nationals”
The amendment specifies that non-European Economic Area (EEA) dual nationals — those outside the EU, Switzerland, Norway, Iceland, and Liechtenstein — may have their Hungarian citizenship suspended if deemed a potential threat to public order or national security.
According to the Hungarian Central Statistical Office (2024), approximately 320,000 citizens hold dual nationality, with 68% also possessing non-EU passports. This places more than 210,000 individuals in the law’s potential scope.
While the measure has been framed as a security safeguard, it also serves as a clear signal: Hungary intends to tighten identity governance while maintaining economic openness.
2. The Dual-Track Strategy: Identity Control Meets Investment Openness
The legislation explicitly excludes EU nationals, aligning with Hungary’s recent policy direction of encouraging intra-EU investment flows.
On the migration side, Hungary’s Investment Residency Programme, introduced in 2013 and relaunched in 2024, continues unaffected. The programme allows applicants to secure a 10-year residence permit via a minimum €250,000 investment in a government-designated real estate fund.
Key programme advantages include:
Approval-before-investment structure, reducing upfront capital risk.
No residency requirement, with visa-free travel to 29 Schengen countries.
Streamlined application process, short approval times, and full family inclusion.
Access to EU-standard healthcare and education from day one.
To date, over 18,000 families have used this pathway, making it a key driver in Hungary’s property and investment markets.
3. Market Reaction: Concerns and Confidence
Despite the tighter nationality rules, investor appetite appears resilient. In the month following the amendment’s announcement, enquiries about Hungary’s Golden Visa rose by 23%.
This mirrors a broader European trend: governments are pairing stricter identity regulation with enhanced investment channels. For many global investors, the stability of a long-term residency right — coupled with the EU’s mobility and business advantages — outweighs the potential for future citizenship complexity.
4. Strategic Implications: A New Governance Model
Hungary’s approach illustrates a “dual-layer governance” model:
Open to capital: Maintain competitive investment migration schemes.
Firm on identity: Use constitutional tools to safeguard sovereignty.
This reflects the geopolitical reality of 2025, where EU states must balance internal cohesion with external competitiveness in the global residency and citizenship market.
Conclusion: Security and Opportunity in Parallel
The question for the future is whether Hungary can maintain this balance — securing national interests while continuing to attract international investors. As EU policy harmonisation and global competition for talent and capital intensify, Hungary’s model may become a reference point for other European states.
For investors, the message is clear: the residency door remains open, but citizenship will be governed with heightened scrutiny. Acting under the current rules ensures access to one of Europe’s most cost-effective and flexible EU residency options while benefiting from Hungary’s strategic location and growing economic role.
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