Hungarian Government Approves First GIP Fund, Four More to Follow in 2025

On October 29, 2024, the Hungarian government authorized its first real estate investment fund, the SPRINT Hungary Real Estate Development and Investment Fund, for the Guest Investor Program (GIP). This marks a significant milestone, as the GIP launched in July 2024 without any approved investment options.  

To qualify for the GIP, fund managers must meet strict standards. The Constitution Protection Office must certify each manager as a “market operator” through preliminary national security checks. This requirement, announced shortly before the GIP’s launch, created a delay in the program’s initiation.

Beyond security screening, alternative investment fund managers must oversee assets worth at least €100 million (or €500 million for unleveraged funds) and maintain a minimum five-year investment period. Non-alternative investment fund managers must manage real estate funds exceeding €600 million in value.

Mo Shaban, Sales Director at immigration consultancy Helpers Hungary, explains that while visa applications have been accepted since July, investors were awaiting the availability of actual investment vehicles.

With the government’s approval of the first fund, investors holding valid six-month visas can now proceed with their €250,000 investment. They must enter Hungary within the visa validity period and complete the investment within three months of entry.

The GIP offers eligible investors and their families Hungarian residency through three investment options:

• €250,000 investment in real estate funds
• €500,000 investment in residential property
• €1 million donation to higher education institutions supporting public interest activities

Successful investors receive a ten-year residence permit, which extends to their spouse and children. Shaban estimates that investors can obtain their permits within a few weeks of completing the investment.

Four additional investment funds are currently awaiting approval. However, the government has not provided a specific timeline for their authorization. Shaban anticipates that these applications are in progress but unlikely to be approved before the new year.