Hungarian PM Orban Orders Sale of 20,000 Residency Bonds for EUR 250,000 Each
Hungarian politics are heating up as Prime Minister Orbán’s primary challenger, Péter Magyar of the Tisza Party, has accused the government of planning to sell 20,000 more residency bonds. This move, according to Magyar, is an attempt by the government to inject funds into the state budget and regain the upper hand ahead of the 2026 general elections. Recent polls show Tisza leading Fidesz by over 500,000 popular votes.
Magyar has criticized the plan to issue more residency bonds, citing concerns about indebting future generations. With the EU development and RRF funds frozen due to rule-of-law issues, the government is looking for ways to secure funding. The proposed issuance of residency bonds for EUR 250,000 each could result in a debt of EUR 5 billion, burdening each Hungarian with HUF 200,000. Magyar alleges that Orbán is acting out of fear of losing his lead in the polls and is prioritizing his own interests over those of the Hungarian people.
In response to Magyar’s claims, Economy Minister Márton Nagy and his Ministry have denied the allegations, labeling them as distractions aimed at diverting attention from other issues. The ministry has dismissed Magyar’s accusations as unfounded and damaging to Hungary’s reputation.
The controversy surrounding residency bonds is not new, as a similar program operated between 2013 and 2018 faced criticism for favoring foreign investors, particularly from China and Muslim-majority countries. The scheme, which required investors to purchase state bonds worth EUR 300,000, resulted in significant profits for companies involved in the program. However, a shadow committee found that the state incurred significant losses, with taxpayers ultimately bearing the burden.
Despite the controversies surrounding the residency bond program, the government recently launched the Hungarian Golden Visa Programme in 2025. This new initiative offers investors the opportunity to obtain a Schengen visa by investing in a Hungarian property fund or supporting a Hungarian foundation university with a significant sum of money. The decision to exclude real estate investments worth EUR 500,000 may be a strategic move to prevent property market inflation.
As tensions continue to rise in Hungarian politics, it remains to be seen how the government and opposition parties will navigate these challenges leading up to the upcoming elections.
