Real estate funds in the Hungarian Golden Visa Program
In the Hungarian Golden Visa Program, you have 3 options to gain 10+10 years of EU residency: investment in a real estate fund, investment in actual residential real estate, or donation to an institution of higher education. Here you can get an overview of how real estate funds work, and what you need to keep in mind if you want Hungarian residency through this type of investment.
Understanding investment funds
When you invest, you are buying something with the hope of making a profit. Investing in a fund means purchasing a package of various assets along with other investors, managed by a fund manager. This approach reduces the risks and responsibilities of individual investments while still aiming for profitability.
Real estate funds
In a real estate fund, the primary assets are related to real estate. The portfolio can include shares in real estate companies, property rights, securities, derivatives, and both domestic and foreign real estate. For the new Hungarian Golden Visa program, at least 40% of the portfolio must consist of Hungarian residential real estate projects.
The role of fund managers and bonds
An investment fund operates as a separate legal entity managed by a fund manager. The fund manager handles all administrative tasks, including bond distribution, usually for a small percentage of the profits.
Shares in a fund are represented by bonds. Investors are not required to purchase an entire fund but can buy specific bonds. For the Hungarian Golden Visa program, this means bonds worth at least EUR 250,000.
Investment certificate
After making your investment by paying the nominal value to the fund manager, you will receive an investment certificate. This document is crucial for your guest investor residency application.
The investment certificate will include details about the fund manager, the investment fund, and the owner. It will verify your purchase and your eligibility for the Golden Visa Program. The certificate should list the nominal value of your investment, the ISIN ID (security code), and the serial number of the unit you purchased, as well as additional information.
Golden visa investment: EUR 250,000
To sum, you will qualify for the Hungarian Golden Visa program if you invest in a real estate fund, and purchase bonds worth at least EUR 250,000. Additionally:
- The fund must be registered with the Hungarian National Bank (MNB).
- At least 40% of the portfolio must be Hungarian residential real estate projects.
- You must hold the bonds for at least 5 years.
The residence permit you receive will be valid for 10+10 years. To renew your residency after the first 10 years, you must meet the original conditions. This means if you sell your bonds after 5 years, you need to purchase another portfolio before applying for residency renewal to maintain your eligibility.
Choosing the right investment for you
The Hungarian Golden Visa program offers three routes to residency:
- EUR 250,000 investment in a real estate fund
- EUR 500,000 purchase of residential real estate
- EUR 1 million donation to a designated public institution (such as higher education or research)
Before you make a choice, consider your available funds, your plans in Hungary, your tax residency, and your risk tolerance (even if all options are considered safe and profitable). If you need assistance, contact us for a consultation with one of our experts. We are here to answer your questions and help you make the best decision.
Helpers is Hungary’s leading provider of business, investment, and immigration services. We have almost 20 years of experience providing tailored solutions to our clients from all around the world. We would be more than happy to help you get started in Hungary.
DISCLAIMER: The information on this page is provided as general information only and it reflects the personal opinion of the authors. Nothing on this website constitutes investment advice or an investment offer as defined by Act CXXXVIII of 2007 (“Investment Service Act”), 4.§. (8) and (9). The content should not be used for financial or investment decisions, and it is not a personalized investment analysis. The information is provided without warranty of any kind. The authors, publishers and editors take no responsibility for any direct and indirect damage resulting from the use of the content of this site.
