Government to expand VAT cuts on homes until end of 2026

The Hungarian government is expanding VAT cuts until the end of 2026. Finance Minister Mihály Varga said VAT will remain at 5% on newly built apartments smaller than 150sqm and houses smaller than 300sqm, in a move that will support families and the construction sector. Homes purchased after 2026 will be eligible for the same discount up until 2030 if their building permits have been obtained by 2026, he added. The step is expected to leave 200 billion forints (EUR 513.3m) with taxpayers, he said.