There are three different options for third-country nationals to obtain the Guest Investor Residence Permit (formerly known as Golden Visa Hungary). One of them is the acquisition of investment units for at least EUR 250,000, issued by a real estate fund registered with the National Bank of Hungary. 

What conditions must the real estate fund meet and what are the requirements for a real estate fund manager?

First of all, at least 40% of the net asset value of the real estate fund must comprise investments in residential real estate within Hungary. What it truly means is that while the fund may invest in commercial real estate, there’s a minimum of 40% of assets, that must be in Hungarian residential property. 

Hungarian regulations also set requirements for the fund management. A key requirement for these funds is that the fund manager must be registered as a designated market operator and authorized to manage an Alternative Investment Fund (AIF) with assets exceeding EUR 100 million. In cases where the AIF is unleveraged and does not allow investors to redeem their shares for a minimum of five years, the asset value must be over EUR 500 million. If the fund manager is not entitled to manage an AIF, they must manage at least one fund with assets exceeding EUR 600 million. These requirements add an extra layer of security and compliance, ensuring that the funds operate within the legal framework.

There is also a regulation concerning the investors: the holding period, which means the investors are required to hold the investment certificate of the real estate fund for a minimum of five years. This long-term commitment aligns with the fund’s strategy to grow and stabilize returns over time, allowing investors to benefit from the appreciation of real estate assets and rental income.

Hungary Guest Investor Program offers a compelling opportunity for those looking to enter the European real estate market, by giving a Guest Investor Residence Permit for investing in a Hungarian real estate investment fund. If you decide to invest in Hungary and buy real estate fund units in order to obtain a residence permit, our lawyers will provide you with comprehensive assistance and representation. As real estate lawyers we help you in buying the suitable real estate fund units. For further information, or if you have any questions regarding this topic, please contact our office.