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Updated: June 2026

Case study · Hungary · Residence permit

How to Obtain Hungarian Residence Permit through a Closed Class A Warehouse Fund without Direct Real Estate Purchase

Not everyone needs an apartment on their balance sheet: sometimes it is smarter to invest in a fund and obtain the same residence permit without the hassles of direct ownership. Alexey wanted a Hungarian residence permit but did not wish to manage specific real estate, find tenants, and hold the property in his own name. We explain step-by-step how we selected a qualifying closed Class A warehouse fund, verified it, and issued a 10-year investor residence permit.

Dmitry NagyDmitry NagyInternational Tax Consultant, BRIDGESReading time9 min readVerificationReviewed by an expert

This case is based on a real matter. The name and certain identifying details have been changed to protect confidentiality.

BRIDGES client story - How to Obtain Hungarian Residence Permit through a Closed Class A Warehouse Fund without Direct Real Estate Purchase
Contents

Case at a glance

Situation, solution and outcome in seven lines

Client
Alexey, approximately 45 years old, investor, from Kazan
Objective
Hungarian residence permit without direct real estate ownership
Program
Hungary, Investor Residence Permit (Guest Investor Programme, 10 years)
Choice
Investment in a closed real estate fund
Asset
Class A warehouses - stable logistics segment
Solution
Selection and verification of qualifying fund + source of funds
Result
Fund investment, 10-year residence permit

Client story

Client's Story

Where they started

Alexey approached the residence permit as an investor, not as an apartment buyer. He did not want to manage a specific property - finding tenants, overseeing repairs, holding real estate in his own name. He needed status and working capital without operational hassles.

Why the standard route did not work

The Hungarian program permits not only direct real estate purchase but also investment in a qualifying closed fund. This changes the investor's role: instead of ownership of a specific property - a stake in a professionally managed portfolio. However, not every fund qualifies, and the choice of fund determines both status and capital preservation.

What BRIDGES had to solve

Alexey was interested in Class A warehouses - a stable segment of logistics real estate with long-term tenants. The logic was sound, but it was important to select a fund that simultaneously qualifies under the program and is reliable in substance, not just in presentation.

Why a standard answer would not do

He approached BRIDGES, understanding that the task was not "invest in any fund" but to select a qualifying and verified instrument that would provide both a residence permit and peace of mind regarding capital.

I did not want to buy an apartment. Irina found a closed fund of grade A warehouses and checked it. Residence for 10 years, and the money is working.

Alexey, 45 · Alexey, InvestorThe name and certain identifying details have been changed to protect confidentiality.

What Was at Risk

What Was at Risk

Investment in a fund eliminates the hassles of direct ownership, but not every fund qualifies and not every fund is reliable in substance. The choice of instrument determines both status and capital preservation. Relying on presentation instead of verification is the primary risk.

Investing in a fund that does not qualify under the program;

  1. 01Selecting an instrument reliable in presentation but not in substance;
  2. 02Failing to verify the fund's structure, assets, and management;
  3. 03Getting stuck on compliance without clean source of funds;
  4. 04Incurring capital risk instead of stable returns.

The logic of the solution

How the matter progressed: from checks to result

The chart is built from the facts of this matter and shows the logic of the work without decorative or unverified data.

  1. 01
    Stage 1

    We established the goal—residency without operational burden—and reviewed which closed-end funds qualify under the program as an alternative to direct real estate purchase.

  2. 02
    Stage 2

    We identified a Class A warehouse fund—a stable logistics segment with long-term tenants—and verified its compliance with investor residency program requirements.

  3. 03
    Stage 3

    We conducted due diligence on the fund itself: structure, asset composition, management company, entry and exit terms, actual reliability—to ensure the instrument was sound in substance, not merely in presentation.

  4. 04
    Stage 4

    We structured the source of funds for the investment (fund origin, bank statements, tax trail) to ensure fund entry passed compliance without issue.

  5. 05
    Stage 5

    We formalized the investment in the qualifying fund and submitted investor residency documentation: investment confirmation, funds documentation, basis of residence, residential address, and medical insurance.

Takeaway. The fund route delivered what the investor needed: status and working capital without direct property management. Selection of a qualifying and reliable fund secured both residency and peace of mind regarding capital.

How We Solved It

How We Solved It

The work was split into verifiable stages so that every conclusion rested on documents.

  1. 01

    Stage 1

    We established the goal—residency without operational burden—and reviewed which closed-end funds qualify under the program as an alternative to direct real estate purchase.

  2. 02

    Stage 2

    We identified a Class A warehouse fund—a stable logistics segment with long-term tenants—and verified its compliance with investor residency program requirements.

  3. 03

    Stage 3

    We conducted due diligence on the fund itself: structure, asset composition, management company, entry and exit terms, actual reliability—to ensure the instrument was sound in substance, not merely in presentation.

  4. 04

    Stage 4

    We structured the source of funds for the investment (fund origin, bank statements, tax trail) to ensure fund entry passed compliance without issue.

  5. 05

    Stage 5

    We formalized the investment in the qualifying fund and submitted investor residency documentation: investment confirmation, funds documentation, basis of residence, residential address, and medical insurance.

  6. 06

    Stage 6

    We guided Alexey through the process to issuance of a 10-year residency card—capital working in a managed portfolio, status obtained without ownership burden.

Expert comment

Not every investor needs a property on their balance sheet—many prioritize capital working without operational burden. Hungary permits this: residency through a closed-end fund. But funds vary, and I am thorough—I verify structure, assets, management, entry and exit as though it were my own money. For Alexey we selected a Class A warehouse fund: stable logistics, long-term tenants. It qualifies under the program and is substantively sound. I consider not only "how to obtain status" but also "how the capital will perform afterward."

Dmitry Nagy, International Tax Consultant, BRIDGESDmitry NagyInternational Tax Consultant, BRIDGES

Outcome

What the client received

What Was Required
How We Executed · Result
Residency without ownership burden
closed-end fund structure · status without operational burden
Reliable Instrument
Class A warehouse fund due diligence · capital in stable portfolio
Clean Entry
source of funds documentation for investment · compliance cleared
Extended Status
10-year investor residency · status obtained
Extended Status
10-year investor residency · status obtained

Alexey obtained 10-year Hungarian residency through a closed-end Class A warehouse fund: the fund was selected per program requirements and vetted substantively, source of funds confirmed, entry passed compliance. Capital operates in a managed portfolio without operational burden.

Practical takeaway

What matters in a similar situation

  • The fund route delivered what the investor needed: status and working capital without direct property management. Selection of a qualifying and reliable fund secured both residency and peace of mind regarding capital.
  • The case demonstrates that fund-based residency is a convenient alternative to purchase, but only with proper instrument selection. Program compliance verification and actual reliability matter, not presentation.
  • A closed-end commercial property fund solves the residence goal without direct ownership and the burdens of an owner. We will look at this option.

FAQ

Questions people ask in a similar situation

01Can residency be obtained through a fund rather than purchase?

Yes. The Hungarian program permits investment in a qualifying closed-end real estate fund as an alternative to direct purchase—without the operational burdens of owning a specific property.

02Is any fund suitable?

No. Only a fund that meets the program requirements is accepted. Additionally, its actual reliability is important - structure, assets, management - which is verified separately.

03Why Class A warehouses?

This is a stable segment of logistics real estate with long-term tenants and predictable income. With the right fund, it combines reliability and working capital.

04Is it necessary to confirm the source of funds?

Yes. The source of funds for the investment is prepared in advance so that entry into the fund passes bank and program compliance without issues.

05For what period is a Residence Permit issued?

The investor's Residence Permit is issued for an extended period with the possibility of renewal. The exact parameters are clarified with the relevant authority.

06Which documents were key in this case?

We established the goal—residency without operational burden—and reviewed which closed-end funds qualify under the program as an alternative to direct real estate purchase. We identified a Class A warehouse fund—a stable logistics segment with long-term tenants—and verified its compliance with investor residency program requirements.

07Why did the standard route not suit the client?

The Hungarian program permits not only direct real estate purchase but also investment in a qualifying closed fund. This changes the investor's role: instead of ownership of a specific property - a stake in a professionally managed portfolio. However, not every fund qualifies, and the choice of fund determines both status and capital preservation.

08What risk had to be closed before filing?

Investment in a fund eliminates the hassles of direct ownership, but not every fund qualifies and not every fund is reliable in substance. The choice of instrument determines both status and capital preservation. Relying on presentation instead of verification is the primary risk. Investing in a fund that does not qualify under the program;

09How did BRIDGES check that the chosen solution would hold?

We formalized the investment in the qualifying fund and submitted investor residency documentation: investment confirmation, funds documentation, basis of residence, residential address, and medical insurance. We guided Alexey through the process to issuance of a 10-year residency card—capital working in a managed portfolio, status obtained without ownership burden.

10What confirmed the result in the end?

Alexey obtained 10-year Hungarian residency through a closed-end Class A warehouse fund: the fund was selected per program requirements and vetted substantively, source of funds confirmed, entry passed compliance. Capital operates in a managed portfolio without operational burden. What Was Required: How We Executed · Result. Residency without ownership burden: closed-end fund structure · status without operational burden. Reliable Instrument: Class A warehouse fund due diligence · capital in stable portfolio. Clean Entry: source of funds documentation for investment · compliance cleared. Extended Status: 10-year investor residency · status obtained. Extended Status: 10-year investor residency · status obtained

About the author

Dmitry Nagy

Author: Dmitry Nagy

International Tax Consultant, BRIDGES

I lead the international tax practice at BRIDGES and work at the intersection of tax residence, cross-border reporting and banking compliance. I assess how citizenship, residence, relocation or a new ownership structure may affect the client's tax obligations, banking profile and capital.

My work covers tax residence, CRS and FATCA requirements, source of funds and the questions a bank may raise. These elements should be considered together, because inconsistencies between documents, declarations and the underlying circumstances can create risks after a status has been obtained or an account has been opened.

During the consultation, you will receive an assessment of the tax and banking implications of the proposed decision. Where further work is required, I determine the financial documentation and personally oversee the tax and compliance aspects of the BRIDGES project.

Prepared on the basis of BRIDGES practice and reviewed by a subject-matter expert.

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Anna KovalevskayaHead of Legal, BRIDGES
Anna Kovalevskaya, Head of Legal, BRIDGES

Names and certain details have been changed to protect client confidentiality. The result described reflects one specific situation and is neither a public offer nor a guarantee of a similar outcome. Programme terms are stated as of 2026 and may change - please confirm current parameters with a BRIDGES consultant.