Comparing Portugal and Hungary: which investment fund residency program to choose

To obtain residency by investment in funds, investors contribute a significant amount of capital to a fund approved by the country offering the residency program. In return for the investment, the applicant and their family receive a residence permit, granting them the right to live in the country.

Residency by investment in funds is offered by four European countries. Minimum investment required is as follows:

1. €250,000+ in Hungary;

2. €300,000+ in Cyprus;

3. €350,000+ in Greece;

4. €500,000+ in Portugal.

Some investment programs, like the Cyprus Golden Visa, grant immediate permanent residency, while others, such as the Hungary Guest Investor Program and the Portugal Golden Visa, provide a temporary residence permit with the possibility of obtaining permanent residency and, eventually, citizenship.

Residency by investment in funds is a passive, flexible, and often lower-cost option, particularly suitable for those seeking liquidity and professional management. Other investment options like real estate or business ownership may offer tangible assets or entrepreneurial opportunities but often come with added responsibilities and costs.

Both Portugal and Hungary offer Golden Visas to non-EU citizens over 18 who have no criminal record and a legitimate source of income.

In Hungary, applicants must also rent or purchase residential real estate to establish a registration address, without any specific cost requirements.

Family inclusion. Both Golden Visa programs allow applicants to include their spouses, children, and parents in the application. Spouses and parents can be of any age, but there are age restrictions for children. In Portugal, children up to 26 are eligible, while in Hungary, the limit is 25.

All adult dependents, except the spouse, must demonstrate financial reliance on the main applicant. In Hungary, parents must rely solely on pension payments as their income, and adult children must be unmarried students. In Portugal, adult children must either be enrolled in university or live with the main applicant.

Investment. The minimum investment to obtain the Portugal Golden Visa by purchasing fund units starts at €500,000, while in Hungary, investors must contribute €250,000 to a designated investment fund.

The investment amount does not increase when family members are included in the application.

Processing time. Portugal’s Golden Visa applications take at least 12 months to process due to high demand and administrative delays. Hungary’s Golden Visa offers a faster process, with residence permits issued within 5 months.

Validity of residence permits. Portugal grants a 2-year residence permit, renewable for additional periods. In contrast, Hungary issues a 10-year residence permit upfront, which can be extended once for the same duration.

In Portugal, adult children receive residence permits for the same duration as the main applicant, while in Hungary, adult children are granted 3-year residence permits, with the possibility of extension, instead of the 10-year permit.

To maintain the Golden Visa, Portugal requires a minimal physical stay of 7 days per year. Hungary, however, does not impose any stay requirements on investors.

Eligibility of funds. Not all Hungarian and Portuguese investment funds qualify for residency.

In Portugal, eligible funds are those managed by licensed fund management companies, which are registered and supervised by the Portuguese Securities Market Commission. At least 60% of the fund’s investments must be directed to Portuguese companies.

In Hungary, funds must receive a licence from the government to participate in the Golden Visa program. All licensed funds are listed on the National Bank of Hungary’s website. At least 40% of the fund’s investments must be directed toward residential real estate in Hungary.

In both Hungary and Portugal, eligible funds must comply with EU regulations, including Anti-Money Laundering, or AML, and Know Your Customer, or KYC, requirements, to prevent financial misconduct. The fund’s shares must also have a minimum maturity of 5 years.

Albert Ioffe,

Legal and Compliance Officer, certified CAMS specialist

In Hungary, Golden Visa applicants invest only in one fund, while in Portugal, the minimum investment of €500,000 can be diversified across any number of eligible funds. 

However, based on our experience, we recommend investing in one or two funds, or at most, three funds. This isn't because we can't facilitate multiple investments, but due to the added complexity. The more funds involved, the greater the administrative and bureaucratic challenges, including onboarding, compliance checks, forms, and documentation for each fund.

The more important thing is that the Agency for Integration, Migration, and Asylum in Portugal is currently experiencing a significant backlog. Submitting a Golden Visa application with multiple funds can delay the process due to more extensive reviews, leading to additional information requests and longer processing times. This increases the likelihood of delays and could potentially affect the outcome.

Fund options. In Portugal, the list of eligible funds includes over 30 options. The exact number may fluctuate, as some funds close their subscription periods and begin operations, while others complete their cycles and may reopen for new subscriptions.

Some of the most popular funds include the Mercan Private Equity Fund, Container Fund, and Growth Blue Fund, among others.

In Hungary, the selection is more limited. As of early 2025, only two funds have been licensed: the SPRINT Hungary Real Estate Development and Investment Fund and the Gravitas Hungary Real Estate Fund. Applications from at least three other investment funds are currently under review.

Strategies of funds. The fund’s investment strategy is outlined in the contract and constituent documents, and the fund is restricted to investing solely within the scope of the chosen strategy.

In Portugal, a wide range of eligible funds is available, covering sectors from agriculture and renewable energy to football management and Bitcoin. Most often, eligible funds invest in Portuguese companies, real estate, or other strategic sectors. However, the Golden Visa program prohibits investments in residential real estate in high-density urban areas.

In Hungary, each fund allocates at least 40% of its assets to Hungarian real estate, including residential properties, logistics centers, hotels, and office buildings. The remaining assets are diversified into bonds, debt securities, collective investment schemes, and derivatives.

Minimum investment. There is always a minimum required investment for purchasing a fund unit. In Hungary, the minimum is set at €250,000, as the Hungary Golden Visa does not allow investments to be split across multiple funds.

In Portugal, however, splitting investments is permitted. This means the minimum investment in a single fund can be lower than the overall amount required for a Portugal Golden Visa. The minimum investment set by the fund ranges from €50,000 to €350,000, except for the Portugal Golden Opportunities Fund, where the minimum is just €1,000.

Individual cost calculation for residence by investment in Hungary

Get the cost calculation

Types of funds. Investment funds can be classified as closed-end or open-end.

Closed-end funds have a fixed number of shares, are traded on exchanges, and their prices may differ from their net asset value, or NAV. In contrast, open-end funds issue and redeem shares continuously at their NAV, offering higher liquidity and are not traded on exchanges.

Most funds eligible for the Portugal and Hungary Golden Visa programs are closed-end. These funds follow a life cycle that includes subscription, investment and asset management, divestment, and either closure or restart.

However, there are also several open-end funds on the lists, such as the Portugal Golden Opportunities Fund and the Gravitas Hungary Real Estate Fund.

Exit from investments. The exit strategies for both Hungary and Portugal’s Golden Visa funds require a minimum holding period of 5 years. However, the exact timing of reimbursement typically ranges from 6 to 20 years, reflecting the fund’s life cycle.

Selling fund units exactly after 5 years is generally only possible if the units were purchased from an open-end fund.

Units of a closed-end fund can be sold before the end of its life cycle if the investor finds a buyer. However, shares of investment funds, particularly those tailored for Golden Visa applicants, are often illiquid, making it challenging to find a buyer quickly. Some funds also offer the option to buy back shares from investors before the fund’s life cycle ends, usually at discounted prices.

Operational stages of Portugal and Hungary Golden Visa investment funds

Investing in a Golden Visa fund entails various fees. Both Portugal and Hungary charge a subscription fee and an annual maintenance fee. Additionally, Portugal applies a performance fee. Both countries also impose administrative fees.

The subscription fee in Hungary ranges from €4,100 to €5,000, while in Portugal, it varies from 0 to 3.5% of the unit value.

The annual maintenance fee in Hungary is between 2.5 and 4% of the unit value, whereas in Portugal, it ranges from 0.2 to 2.5%.

In Portugal, both the subscription and maintenance fees are included in the fund unit cost, so applicants do not pay them separately.

The performance fee, charged in Portugal, is based on a percentage of the fund’s profits and is applied periodically, either annually or quarterly. It ranges from 20 to 50% of the return.

Many funds apply a Hurdle Rate, a benchmark that must be exceeded before the performance fee is charged, ranging from 3.5 to 8%. If the fund’s performance does not surpass this threshold, no performance fee is applied.

The administrative fee in Hungary is €65,000 for a family of up to four members. For each additional dependent, there is a charge of €10,000 per person. If a child is over 18, an additional €15,000 is required, even for families of four or fewer.

In Portugal, the administrative fees are split into two parts: €605 is paid for processing the residency application and €6,045 for issuing the residence permit card.

Yields and risks. The potential profit from an investment fund is correlated with its risk profile. This is influenced by several factors, including the assets acquired by the fund, the economic sector, the fund manager’s experience, asset liquidity, and the current economic cycle.

Funds are categorised into three risk levels:

• Low Risk — established funds that have a diversified portfolio, government-backed sectors, and a strong track record of over 5 years;

• Medium Risk — funds with moderate diversification, emerging industries, newer management teams, and a track record of 3 to 5 years;

• High Risk — funds with high-volatility sectors, such as startups, limited history, and a single-asset focus or lack of transparency.

In Portugal, eligible funds cover all three risk levels, with expected annual yields ranging from 2% for low-risk funds to 20% for high-risk funds. In Hungary, eligible funds fall under the low-risk category, so their yields are not expected to be higher than 6%.

Taxes. Golden Visa holders investing in funds must pay annual taxes on investment income.

In Portugal, tax residents are taxed at a progressive rate ranging from 13 to 48%, while in Hungary, the rate is a flat 15%. Non-tax residents are exempt from this tax in Portugal, but in Hungary, they are subject to both the 15% income tax and an additional 13% tax.Container Fund

Comparing popular funds qualifying for Hungary or Portugal Golden Visa

Fund name

SPRINT ASSET

Investment strategy

Real estate, securities

Subscription fee

€5,000

Annual management fee

2.5%

Maturity

20 years

Fund name

Gravitas

Investment strategy

Real estate, bonds

Subscription fee

€4,100

Annual management fee

4%

Maturity

Continuous (open-end fund)

Fund name

ActiveCap Opportunities

Investment strategy

Mixed

Subscription fee

2%

Annual management fee

2%

Maturity

10 years

Fund name

Container Fund

Investment strategy

Technology

Subscription fee

2%

Annual management fee

2%

Maturity

10 years

Fund name

Finance Fund

Investment strategy

Renewable energy

Subscription fee

1.5%

Annual management fee

1.5%

Maturity

10 years

Fund name

FCR Hospitality Fund

Investment strategy

Hospitality

Subscription fee

1%

Annual management fee

1.5%

Maturity

10 years

Fund name

Growth Blue Fund

Investment strategy

Blue Economy

Subscription fee

3%

Annual management fee

2%

Maturity

10 years

Fund name

Iberian Net Zero

Investment strategy

Renewable energy

Subscription fee

1%

Annual management fee

1.6%

Maturity

8 years

Fund name

Indexed Fund

Investment strategy

Securities

Subscription fee

2%

Annual management fee

2%

Maturity

10 years

Fund name

Mercan Private Equity Fund

Investment strategy

Hospitality

Subscription fee

0%

Annual management fee

0.25%

Maturity

12 years

Fund name

Mercurio Fund

Investment strategy

Mixed

Subscription fee

0%

Annual management fee

2%

Maturity

7 years

Fund name

Pela Terra

Investment strategy

Agricultural

Subscription fee

1%

Annual management fee

1.5%

Maturity

7 years

Fund name

Portugal Gateway

Investment strategy

Technology

Subscription fee

0%

Annual management fee

2%

Maturity

10 years

Fund name

Portugal Golden Opportunities

Investment strategy

Equities, bonds

Subscription fee

1%

Annual management fee

1.8%

Maturity

Continuous (open-end fund)

Fund name

Private Equity Fund

Investment strategy

Venture capital

Subscription fee

0%

Annual management fee

1.5%

Maturity

10 years

Fund name

Investment strategy

Subscription fee

Annual management fee

Maturity

SPRINT ASSET

Real estate, securities

€5,000

2.5%

20 years

Gravitas

Real estate, bonds

€4,100

4%

Continuous (open-end fund)

ActiveCap Opportunities

Mixed

2%

2%

10 years

Container Fund

Technology

2%

2%

10 years

Finance Fund

Renewable energy

1.5%

1.5%

10 years

FCR Hospitality Fund

Hospitality

1%

1.5%

10 years

Growth Blue Fund

Blue Economy

3%

2%

10 years

Iberian Net Zero

Renewable energy

1%

1.6%

8 years

Indexed Fund

Securities

2%

2%

10 years

Mercan Private Equity Fund

Hospitality

0%

0.25%

12 years

Mercurio Fund

Mixed

0%

2%

7 years

Pela Terra

Agricultural

1%

1.5%

7 years

Portugal Gateway

Technology

0%

2%

10 years

Portugal Golden Opportunities

Equities, bonds

1%

1.8%

Continuous (open-end fund)

Private Equity Fund

Venture capital

0%

1.5%

10 years

1. Visa-free travel to Schengen. Both Hungary and Portugal are part of the Schengen Area, which allows residents of these countries to travel freely across 29 European nations.

2. Opportunity to move to an EU country. Both Hungary and Portugal provide a straightforward pathway to European Union residency. By securing residency in either country, investors gain access to all the advantages of EU membership, including the right to live, work, run a business, and benefit from public education and healthcare.

However, for Golden Visa investors, relocating to the EU remains a choice, not a requirement.

3. Business opportunities. Residency in Hungary or Portugal grants access to the single European market, enabling you to expand your operations within one of the world’s largest economic zones. This opens up opportunities to tap into a diverse, competitive market, scale your business internationally, and take advantage of EU trade agreements, funding options, and a vast consumer base.

Hungary also offers a significant advantage with the lowest corporate profit tax in Europe, at just 9%.

4. Access to quality healthcare and education. As residents of Portugal or Hungary, you will gain access to high-quality public healthcare and education systems. Both countries offer excellent healthcare facilities with competitive standards of care, available to residents at affordable rates.

Additionally, the education system in both nations is well-regarded, with Portugal’s universities ranking highly in Europe and Hungary offering a range of prestigious institutions with lower tuition fees compared to other European countries.

5. Pathway to citizenship. Residency by investment in Hungary and Portugal can eventually lead to citizenship.

In Portugal, you can apply for citizenship after five years of residency, provided you meet the necessary criteria. Hungary also offers a path to citizenship, though the requirements are more stringent, and the process takes longer.

Obtaining citizenship in either country grants you the full benefits of being an EU citizen, including enhanced travel freedom and expanded employment opportunities throughout Europe.

Both Hungary and Portugal’s Golden Visa programs offer a pathway to citizenship, though the timelines differ significantly.

In Portugal, investors can apply for citizenship after just 5 years of residency, bypassing the need for a permanent residence permit. Relocation to Portugal is not required — spending only 7 days per year in the country is sufficient to maintain residency.

Hungary has a longer timeline. Investors can apply for permanent residency after 3 years of living in the country. However, to obtain citizenship, they must maintain permanent residency for an additional 8 years, bringing the total time to 11 years.

Relocation to Hungary is necessary. To qualify for permanent residency, applicants must spend at least 27 out of 36 months in the country and cannot be absent for more than 4 consecutive months. To qualify for citizenship, they must keep permanent residency for eight years, without leaving Hungary for more than 6 consecutive months or more than 2 years with prior notification.

In both countries, applicants must also demonstrate proficiency in the respective language — Portuguese or Hungarian.

Both Hungary and Portugal offer residency through investment in fund units, but there are key differences to consider.

In Hungary, the minimum investment is €250,000, while Portugal’s Golden Visa requires €500,000 — double the amount. Additionally, the Hungary Golden Visa process is faster, taking just 5 months compared to Portugal’s 12 months.

Portugal, however, offers a quicker path to citizenship, taking 5 years versus 11 years in Hungary. Furthermore, Portugal’s eligible funds tend to offer higher returns, with yields reaching up to 20% annually, while Hungarian funds typically yield just a few percentage points.

In conclusion, if you’re looking for a more affordable and quicker route to residency, Hungary is the better option. On the other hand, if you’re aiming for higher returns on your investment and a faster route to EU citizenship without relocating, Portugal is the ideal choice.