Why Hungary Now?

In the evolving landscape of global mobility, European residency programs have emerged as key tools for investors seeking not just lifestyle upgrades, but long-term strategic safety nets and borderless business operations. Among these, Hungary’s Guest Investor Program (GIP) stands apart—not merely as a transactional route to a residence permit, but as a carefully crafted bridge between Eastern and Western Europe, offering pragmatic access to the European Union’s heartland.

From the vantage point of an economist and investor, the GIP is not simply a “golden visa” but a complex, multilayered opportunity—one that demands a sophisticated understanding of fund structures, legal guarantees, and geopolitical currents. As the founder of ALand, a platform at the intersection of real estate, digital transformation, and investment migration, I have seen first-hand how the difference between success and regret in these programs hinges on expertise, timing, and strategy.

The Core Mechanism: Approved Real Estate Funds—What Makes Them Legitimate?

At its heart, the Hungarian GIP is a residency-by-investment program that channels foreign capital into regulated, government-approved real estate funds. As of May 2025, there are two funds officially authorized for this route:

1. SPRINT Hungary Real Estate Development and Investment Fund

• Approved: October 29, 2024

• Fund Manager: SPRINT ASSET Hungária Zrt.

• Structure: Closed-end fund

• Core Focus: Investment in Hungary’s residential property sector—targeting renovation, new development, and long-term asset appreciation.

• Fee Structure: 2.5% management fee annually, administrative charges in excess of €65,000, and a €5,000 entry commission.

• Eligibility Caveat: Excludes applicants from Russia, Belarus, Ukraine, the US, and Israel unless dual nationality applies.

2. Gravitas Hungary Real Estate Fund

• Approved: January 22, 2025

• Fund Manager: Gránit Alapkezelő

• Structure: Open-end fund

• Core Focus: Modern residential real estate for long-term lease, with a portfolio-driven risk management approach.

• Fees: Not publicly disclosed at the time of writing—underscoring the need for professional advisory due diligence.

Other funds are reportedly awaiting approval, but any legitimate application must involve one of these two funds, each vetted by the Hungarian National Bank (MNB) for regulatory integrity, financial transparency, and alignment with the national housing policy.

The Economic Rationale: Why Funds, Not Just Property?

Hungary’s policy decision to tie its residency program to real estate funds—rather than individual property purchases—reflects a deep understanding of market volatility, capital flows, and systemic risk.

For the Government:

• Funds channel investment into diversified pools, not single units, mitigating the risk of speculative bubbles and ghost towns.

• Central oversight means greater transparency, accountability, and easier monitoring for anti-money-laundering compliance.

• The required structure ensures funds are professionally managed and subject to rigorous custodianship.

For the Investor:

• Exposure to broader portfolios reduces idiosyncratic risk (the danger of one bad property tanking your investment).

• Liquidity and professional management are generally higher than in direct real estate ownership.

• Investors benefit from economies of scale, insider access to prime assets, and the reputational security of government-licensed funds.

Hungary’s approach offers a clear contrast to less-regulated schemes, aligning investor interests with broader social goals—namely, a healthy housing sector and stable economic growth.

Minimum Investment and Regulatory Safeguards

The GIP’s minimum threshold—€250,000 invested in certificates of an approved fund—is competitive by European standards. Yet, the monetary outlay is only part of the story. To truly understand the program’s robustness, consider the built-in safeguards:

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  Five-Year Holding Requirement:
  Applicants must retain their investment for a minimum of five years, creating a medium-term alignment of interests and discouraging quick-flip speculation.

   

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  Portfolio Composition Rules:
  At least 40% of each fund’s assets must be allocated to Hungarian residential real estate, ensuring real economic impact.

   

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  Strict Fund Oversight:
  Only fund managers licensed by the Hungarian National Bank—who either possess a security certificate or are registered with the Constitution Protection Office—are eligible to run approved funds.

   

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  Transparency and AML Compliance:
  Stringent documentation is required regarding the source of funds, investor identity, and the legality of capital flows.

   

Real-World Value: Not Just a Visa, but a Strategic Asset

For the serious investor, Hungary’s GIP is much more than a residency card:

1.  

   Unrestricted Mobility in Schengen:
   Residency grants freedom to move, reside, and do business across most of Europe, without complex visa renewals.

    

2.  

   Family Security:
   Spouses, minor children, and dependent parents can be included—offering a long-term security blanket in an uncertain world.

    

3.  

   No Mandatory Residency:
   Unlike many schemes, Hungary’s GIP allows you to maintain your status without physically residing in Hungary—ideal for global citizens and entrepreneurs.

    

4.  

   Citizenship Pathway:
   After eight years (with continuous residence), you may apply for citizenship, opening the doors to full EU rights.

    

5.  

   Diversification and Wealth Preservation:
   By anchoring part of your portfolio in EU real estate, you hedge against risk in home-country economies.

    

Application Realities: What Makes or Breaks a Successful Case

Having consulted with dozens of clients on cross-border investment and migration, I can attest: the devil is in the details.

Key Application Steps:

• Pre-qualify your eligibility with a qualified advisor.

• Choose your fund—consider not just approval status, but also the fund’s performance, fee structure, and real estate strategy.

• Prepare documentation: financial, legal, identity, and health insurance papers.

• Execute your investment via secure channels (with the support of legal counsel and fund administrators).

• Apply for the guest investor residence permit at a Hungarian consulate or immigration office.

• Maintain compliance and track your fund’s performance over the holding period.

Potential Pitfalls:

• Relying on unlicensed brokers or unofficial “agents”—always verify that all intermediaries are registered with the Hungarian authorities.

• Overlooking hidden fees or unclear exit options.

• Failing to document the legal origin of funds or running afoul of source-country capital controls.

The Role of Legal and Advisory Services: Why Professional Support is Non-Negotiable

A recurring lesson from my career is this: investment migration is not a DIY project for high-stakes decision-makers.

What Expert Lawyers and Advisors Provide:

• Eligibility Analysis: Early assessment of your unique situation.

• Due Diligence and Fund Selection: Scrutinizing fund histories, governance, and fee models.

• Document Preparation: Navigating complex documentation requirements, with translation, notarization, and certification.

• Investment Execution: Securing your funds in accordance with Hungarian law, often with escrow protections.

• Application Management and Advocacy: Filing your application, tracking its progress, and intervening directly with authorities if needed.

• Ongoing Monitoring and Compliance: Ensuring you remain in good standing, updating you on regulatory changes, and supporting fund performance tracking.

• Family, Tax, and Long-term Settlement Planning: Advising on cross-border tax exposure and preparing you for citizenship if desired.

Strategic Perspective: Why Hungary’s GIP Is a Forward-Thinking Choice

Hungary is uniquely positioned at the crossroads of Western and Eastern Europe. Its stable political climate, pro-business policies, and transparent legal infrastructure offer a compelling platform for investment and family security.

• Hungary’s GIP is not a “shortcut,” but a strategic layer in your global mobility and wealth management plan.

• With fund-based investment, your capital is both protected by law and working in an economy poised for continued EU-driven growth.

• The flexibility of no-residency requirements and a real, attainable citizenship path sets Hungary apart from many EU counterparts.

• In a world of shifting geopolitics, increasing regulatory demands, and unpredictable regional crises, programs like Hungary’s GIP are both prudent hedges and open doors for the next generation.

Charting the Course with Confidence

Immigration by investment is not about the mere act of buying residency—it’s about shaping your global future with intelligence, precision, and trust in your partners. Hungary’s Guest Investor Program stands as one of the EU’s most credible, structured, and adaptable platforms for global investors today.

Success, however, is never automatic. It demands clarity of purpose, the right advisors, and a willingness to look beyond surface-level promises to the underlying economic, legal, and personal realities.

As the founder of ALand, I am committed to empowering investors with the insights, tools, and strategic thinking needed to thrive in this new era. Should you need direct referrals, compliance guidance, or personalized strategy sessions, my team and I stand ready to help you make Hungary not just a point on the map—but a secure, meaningful pillar in your family’s global journey.

Hungarian Guest Investor Program (GIP)

The Ultimate 80-Question FAQ

General Program Overview

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  What is the Hungarian Guest Investor Program (GIP)?
  The GIP is a government initiative offering a special type of residence permit to non-EU/EEA/Swiss citizens who make a qualifying investment in Hungary.

   

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  What is the primary benefit of acquiring the GIP residence permit?
  It grants a 10-year residence permit, with the significant advantage of a 10-year extension possibility, allowing visa-free travel within the Schengen Area.

   

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  Who is the Hungarian Guest Investor Program primarily designed for?
  It is designed for high-net-worth individuals and their families from outside the EU/EEA/Switzerland seeking a secure and long-term residence option in Hungary.

   

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  When did the GIP officially come into force?
  The legal framework for the GIP, known as the "Guest Investor Act," came into effect on January 1, 2024, with specific investment routes and approved funds available from late 2024 and early 2025.

   

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  Is this program commonly referred to as a "Golden Visa"?
  Yes, it is widely recognized and referred to as Hungary's "Golden Visa" program.

   

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  What is the main objective of Hungary in launching the GIP?
  Hungary aims to attract foreign investment, stimulate its economy, particularly the real estate sector, and enhance its international standing.

   

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  Is the GIP a new concept in Hungary?
  While Hungary had a previous residency-by-investment program, the GIP is a redesigned and updated version focusing on real estate fund investments.

   

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  Does the GIP offer a direct path to citizenship?
  No, it offers a path to long-term residence, which can eventually lead to permanent residency and then naturalization for citizenship, but it is not a direct or immediate path.

   

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  Are there any quotas or limits on the number of GIP applicants?
  Currently, there are no publicly announced quotas or limits on the number of Guest Investor Program applications.

   

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  What is the legal basis for the GIP?
  The legal basis for the GIP is Act XC of 2023 on the Entry and Stay of Third-Country Nationals.

   

Investment Requirements

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  What is the minimum investment required to qualify for the GIP?
  The mandatory minimum investment is €250,000, to be invested in investment certificates issued by an officially approved Hungarian real estate fund.

   

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  Are there any other eligible investment options besides real estate funds?
  No, investment in approved real estate funds is the sole qualifying investment route.

   

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  How long is the mandatory holding period for the investment?
  The investment must be maintained for a minimum, uninterrupted period of 5 years.

   

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  What are the consequences if the investment is not maintained for the full 5 years?
  Failure to maintain the investment for the minimum period will typically lead to revocation of the Guest Investor Residence Permit.

   

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  Which real estate funds are currently approved for the GIP as of May 2025?
  The two officially approved funds are the SPRINT Hungary Real Estate Development and Investment Fund and the Gravitas Hungary Real Estate Fund.

   

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  Is it anticipated that more funds will be approved for the GIP in the future?
  Yes, several additional funds are reportedly in the process of seeking approval.

   

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  What is the primary investment focus of the SPRINT fund?
  This fund primarily focuses on Hungarian residential real estate.

   

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  Can you detail the fees associated with the SPRINT fund?
  Fees include a 2.5% annual management fee, an administrative fee exceeding €65,000, and a commission of €5,000.

   

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  Are there any specific nationality restrictions for investing in the SPRINT fund?
  Yes, citizens of Russia, Belarus, Ukraine, the United States, and Israel are excluded unless they hold an alternative, eligible citizenship.

   

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  What is the investment strategy of the Gravitas fund?
  This fund focuses on the acquisition and long-term rental of modern residential properties located in Hungary.

   

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  Are the fees for the Gravitas fund publicly disclosed?
  No, not as of the current information.

   

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  What percentage of the fund's net asset value must be invested in Hungarian residential real estate?
  At least 40%.

   

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  How can the remaining assets of the fund be allocated?
  Up to 60% may be allocated to other approved investments, including Hungarian government bonds or commercial real estate.

   

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  Who is responsible for managing these approved GIP funds?
  Entities fully licensed and regulated by the Hungarian National Bank.

   

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  Are there any specific security or registration requirements for fund managers?
  Yes, they must possess a site security certificate or be registered with the Constitution Protection Office.

   

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  Is there independent oversight to protect investor interests in these funds?
  Yes, an independent custodian must oversee operations.

   

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  What is the typical process for purchasing investment certificates from an approved fund?
  Subscription agreement, KYC/AML checks, fund transfer, and certificate issuance.

   

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  Can I use borrowed capital for the investment?
  Generally, investment funds must be legally sourced and belong to the applicant, but some borrowed funds may be permitted if documented properly.

   

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  Is the investment capital into these funds guaranteed or risk-free?
  No, there are inherent market risks, and capital is not guaranteed.

   

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  When does the 5-year holding period begin?
  From the date the investment is registered or certificates issued.

   

Eligibility Criteria for Applicants (Including Family)

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  What is the minimum age requirement?
  At least 18 years old.

   

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  Which nationalities are eligible?
  Any non-EU/EEA country and non-Swiss citizens.

   

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  Can Swiss citizens apply?
  No.

   

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  Is a clean criminal record required?
  Yes, for all applicants and family members.

   

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  Do applicants need to demonstrate sufficient financial means beyond the investment?
  Yes.

   

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  Is health insurance required?
  Yes, valid and comprehensive coverage.

   

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  Is it necessary to prove the legal origin of investment funds?
  Yes.

   

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  Which family members can be included?
  Spouse, dependent children under 18, and dependent parents (either side).

   

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  What is the definition of "dependent parents"?
  Those financially reliant on the main applicant, proven by official documentation.

   

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  Are there age limits for dependent children?
  Under 18; exceptions possible for students up to 25 or 26 if dependent and unmarried.

   

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  Is Hungarian language proficiency needed for the initial permit?
  No.

   

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  Is there an age limit for dependent parents?
  No specific upper limit if dependency is proven.

   

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  Are common-law partners recognized?
  Generally, only legally married spouses; consult legal counsel for exceptions.

   

Residence Permit Details & Application Process

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  Initial validity period?
  10 years.

   

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  Can the permit be extended?
  Yes, for another 10 years if investment and conditions are maintained.

   

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  Is there a mandatory physical residency requirement?
  No.

   

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  Does the permit allow visa-free Schengen travel?
  Yes, for up to 90 days within any 180-day period.

   

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  Does the permit grant the right to work?
  It allows for residence and entrepreneurial activities, but not automatic employment as an employee.

   

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  Typical application process:
  Fund subscription, document preparation, submission (at consulate/embassy or in Hungary), biometrics, and processing.

   

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  Do I need to visit Hungary during application?
  Yes, for biometrics.

   

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  Can I apply from outside Hungary?
  Yes, at a Hungarian consulate or embassy.

   

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  How long does processing take?
  Several weeks to a few months.

   

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  Commonly required documents:
  Passport copies, birth and marriage certificates, proof of investment and source of funds, health insurance, police clearance, and proof of financial means.

   

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  What if my application is rejected?
  Authorities provide reasons; possible to appeal or reapply.

   

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  Is a residential address in Hungary needed?
  Yes, for official correspondence; can be a rental or provided by a legal representative.

   

Permanent Residency and Citizenship

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  How to obtain permanent residency after the GIP?
  After holding the permit and living continuously in Hungary for three years, with limited absences.

   

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  Continuous residency requirements:
  Physical presence in Hungary, with absences generally not exceeding 4 months in a year or 270 days over three years.

   

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  Is there a language or culture exam for permanent residency?
  Yes, as of Jan 1, 2025.

   

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  How long is the National Residence Card valid?
  Indefinitely or a very long renewable period (e.g., 5 years).

   

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  Path to citizenship:
  After five more years of continuous residence following permanent residency (total 8 years), subject to language and knowledge exams, no criminal record, and financial self-sufficiency.

   

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  Does Hungary allow dual citizenship?
  Yes.

   

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  Other pathways to citizenship?
  Yes, e.g., by descent or marriage.

   

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  Can family members also apply for permanent residency and citizenship?
  Yes, if included in the original GIP and if criteria are met.

   

Tax Implications in Hungary

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  How is tax residency determined?
  By spending over 183 days in Hungary in a calendar year.

   

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  Tax implications for residents?
  Subject to Hungarian

   

income tax on worldwide income.

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  Personal income tax rate:
  Flat rate of 15%.

   

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  Capital gains tax:
  Generally 15%, though funds may be exempt at the fund level.

   

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  How are distributions from funds taxed?
  For non-residents, according to treaties (or 15% withholding tax); for residents, 15%.

   

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  Wealth taxes:
  None.

   

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  Inheritance tax:
  18%, but direct descendants and spouses are exempt.

   

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  Gift taxes:
  Same as inheritance tax, with similar exemptions.

   

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  Corporate tax rate:
  9% (one of the lowest in the EU).

   

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  Should you seek independent tax advice?
  Absolutely.

   

Other Important Considerations

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  Overall stability of Hungary:
  Stable EU member with a growing economy.

   

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  Hidden costs:
  Budget for legal fees, due diligence, application fees, insurance, and possible translation/apostille costs.

   

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  How does the GIP compare to other EU "Golden Visa" programs?
  Competitive threshold, 10-year renewable permit, and no mandatory physical presence requirement.

   

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  Where to find official information?
  On the websites of the Hungarian National Directorate-General for Aliens Policing and relevant ministries; consult a reputable legal firm for advice.

   

Authored by Dr. Pooyan Ghamari, Swiss Economist and Founder of the ALand Platform—offering advanced insights into global economics, real estate, and transformative investment strategies for the new era.

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