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Jan 04, 2021

Hungarian government to launch its biggest ever home creation scheme this year

Katalin Novák, the minister for family affairs, has announced a number of new initiatives to help Hungarian families throughout 2021.

 

The Hungarian government is launching its biggest ever home creation scheme this year.

According to MTI, Katalin Novák, the minister for family affairs, said that under the scheme, the VAT rate on newly built homes is reduced from 27 to 5 percent from Jan. 1. Novák said the measures also make new home purchases with the CSOK housing subsidy scheme exempt from VAT and all home purchases with CSOK exempt from duties.

The minister said the first day of the year also marks the launch of a new home renovation subsidy for households with at least one child. Under the scheme, half of the renovation costs up to a maximum of HUF 3 million (EUR 8,200) per renovation will be covered by the state. Also, a preferential home renovation loan will be available from February 1, she said, noting that its term will be limited to ten years.

Minister Novák said the government is also extending the CSOK scheme to loft conversions. Families with three children who avail themselves of this option will be eligible for a HUF 10 million subsidy, those with two children will get HUF 2.6 million, while families with one child will be entitled to a HUF 600,000 non-repayable subsidy. A maximum HUF 10 million is available in the CSOK support plus another maximum HUF 15 million in the CSOK related subsidised-interest loan, she added.

Photo credit: vg.hu