First Real Estate Fund Approved by Hungary Guest Investor Program for Residency Investors

The Hungarian government has recently announced its First Real Estate Fund approved by the Hungary Guest Investor Program, introducing the SPRINT Hungary Real Estate Development and Investment Fund as of October 29, 2024.

This approval, coming ten months after the program's initial launch, marks a critical development, as the GIP previously lacked any authorised investment options. This delay had created a bottleneck for prospective investors who were eligible but awaiting an approved investment vehicle to proceed with their applications.

Investment Options for a Real Estate Fund in Hungary

To qualify as fund managers within the GIP, applicants must pass stringent security and financial requirements set by the Hungarian government. Each fund must be certified by the Constitution Protection Office as a “market operator” through a rigorous national security screening process—a requirement introduced shortly before the program's July launch.

Beyond security, managers of alternative investment funds need to demonstrate substantial financial robustness, overseeing assets worth at least €100 million, or €500 million for funds without leverage, and adhering to a five-year minimum investment period. Non-alternative fund managers also have high standards to meet, requiring a minimum fund value of €600 million.

The GIP offers investors several channels to obtain Hungarian residency:

• €250,000 investment in real estate funds,
• €500,000 residential property purchase,
• or a €1 million donation to higher education initiatives that support public interest activities.

Approved investors and their families are granted a ten-year residence permit, covering spouses and children. With the approval of the SPRINT fund, investors holding valid six-month visas can finally move forward with their €250,000 investments, provided they enter Hungary within the visa’s validity and complete their investment within three months of arrival.

According to Mo Shaban, Sales Director at Helpers Hungary, this approval is a major milestone as additional funds are still “in the pipeline” but not expected to receive authorisation until the new year.

While four more funds are awaiting licensing, no specific timeline has been provided. This new development, however, offers a positive outlook for the GIP, enabling investors to proceed after months of delays and setting the stage for further fund approvals that will enhance the program’s attractiveness to foreign investors.