The Hungarian government has excluded the possibility of direct investment in real estate in the amount of 500,000 euros from its Guest Investor Program (GIP), IMI reports with reference to the Hungarian Gazette.
Thus, there are two ways to participate in the Hungarian version of the "Golden Visa":
- investing 250,000 euros in approved real estate funds; A donation of 1 million euros for public, educational or cultural initiatives.
Laszlo Kiss, Managing Director of Discuss Holdings, explains this radical turnaround by the changing conditions in the country's housing market.
"It might have made sense before, but now... There is tension in the housing market in Hungary," he explains. Rents are rising, and the government does not want to make this situation worse with the help of GIP.
Armand Arton, President and CEO of Arton Capital, points out that the decision was probably made out of concerns about market stability. The expert says that if this option had been preserved, then a property worth 350,000 euros would suddenly cost 500,000 euros, which would have put a lot of pressure on the market.
Sprint, the only government-approved fund under the GIP, has appointed Arton Capital Hungary Kft as its official partner and exclusive broker in markets outside of China and Greater China, as Sprint operates two separate entities there.The government did not give an official reason for rejecting the real estate option.
Source: IMI