Invest in a real estate fund and get Hungarian residency for 10 years

What is a real estate fund?

When you make an investment, you are buying something that you hope will turn a profit. When you put your money in an investment fund, you are purchasing a package of various assets alongside other investors, under the supervision of a fund manager. This reduces the risks and responsibilities related to your investment, while you will still turn a profit.

In case of a real estate fund, the main type of asset in the fund’s portfolio is related to real estate. The portfolio may consist of shares in a real estate company, property rights, securities, and derivative transactions as well as domestic or foreign real estate. In case of the new Hungarian Golden Visa program, the portfolio must include at least a 40% share of Hungarian residential real estate projects.

Fund managers and bonds

An investment fund is a separate legal entity which is run by a fund manager. The fund manager takes care of relevant administration, including the distribution of bonds, usually in exchange for a small percentage of the profits.

The shares of a fund are represented by bonds. Naturally, investors are not required to buy an entire fund, only some of the bonds – in the case of the Hungarian golden visa program, this means bonds worth at least EUR 250,000.

Investment certificate

Once you make the investment, that is, pay the nominal value to the fund manager, you should receive an investment certificate. You will need this document to submit together with your guest investor residency application.

The investment certificate should contain information about the fund manager, the investment fund, and the owner, based on which your purchase and your eligibility for the golden visa program can be verified. Accordingly, the data should include the nominal value of your investment, as well as the ISIN ID (security code) and the serial number of the unit you purchased.

Golden visa investment: EUR 250,000

If you want to become eligible for the Hungarian Golden Visa program by investing in a real estate fund, you will need to purchase bonds that are worth at least EUR 250,000. Additionally:

• The fund must be registered by the Hungarian National Bank (MNB)
• At least 40% of the portfolio must be residential real estate projects realized in Hungary
• You must hold on to the bonds for at least 5 years

The residence permit you receive will be valid for 10 years. If you want to renew your residency after that, you will be required to meet the original conditions. This means that if you sell your bonds after 5 years, you need to purchase another portfolio before submitting your residency renewal application to maintain your eligibility.

Is this the right choice for me?

The Hungarian golden visa program offers three routes to residency:

• EUR 250,000 investment in a real estate fund (described above)
• EUR 500,000 residential real estate purchase
• EUR 1 million donation to a designated public institution (of higher education or research)

The right choice for you will depend on several factors, such as your available funds, your plans in Hungary, your tax residency, or your risk tolerance (even though all these options are very safe as well as lucrative). If you need help, feel free to contact us and ask for a consultation with one of our experts. We will be happy to answer your questions.

About Helpers Hungary

Established in 2005, Helpers provides investment, business, and immigration related assistance to foreigners interested in living, working, and doing business in Hungary. With almost twenty years of experience and our extensive local know-how, we would be happy to help you realize your dreams in Hungary and the EU.

Contact us and ask for a consultation now.

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