The Hungarian government has laid out plans to extend the preferential 5 percent VAT rate on the sale of new build homes to December 31, 2023.
Mihály Varga, minister of Finance, said the bill will be submitted to parliament this week for properties with a final building permit obtained by November 1, 2018.
What’s more, preferential VAT rules will continue to apply until the end of 2019. New single-family detached homes below 300 square meters and homes no larger than 150 square meters in multi-dwelling residential buildings can be sold with a preferential VAT rate instead of the standard 27 percent.
According to MTI, the finance ministry has drawn up the proposed changes based on the suggestions of national building association EVOSZ and other professional organizations.