While finishing preparations for the launch of the Golden Visa program, the Hungarian government published amendments concerning program conditions. The updates have shed light on which real estate funds will be available to candidates for residency.
General rules for real estate investment funds
Under the updated rules of the Hungary Golden Visa program, to be eligible for participation, a fund must be included in the list of qualified market operators. This list will be maintained and updated by the Constitution Protection Office.
To be added to the list of qualified market operators, a real estate investment fund manager must submit an application and successfully pass a national security screening. The preliminary qualification procedure will involve the following checks:
- a company check;
- a personal check of the fund manager;
- an examination of the economic operator’s field of activity.
Participation requirements for alternative investment funds
Alternative investment funds are funds holding non-traditional assets. Real estate funds fall under this category because their main asset is property rather than stocks or bonds.
An alternative investment fund manager wishing to qualify for the Hungary Golden Visa program must be authorised to manage assets of minimum €100 million.
The threshold increases to €500 million in cases when the fund’s portfolios consist of non-leveraged alternative investment funds. Additionally, such funds should allow exercising redemption rights not earlier than five years of the date of the initial investment.
Conditions for traditional investment funds
Amendments to the law also permit participation of managers of non-alternative, or traditional, investment funds. To qualify, such fund managers must manage a real estate fund with total assets exceeding €600 million.
To ensure that the chosen real estate fund qualifies for the program and to facilitate a smooth application process for the Hungary Golden Visa, candidates should seek the assistance of a trusted Golden Visa partner.
