Extending the reduced VAT rate for home construction in Hungary

A 5 percent preferential VAT rate for home construction which has been extended until the end of 2024 could be applicable up until December 31, 2028 provided that construction begins by 2024, Finance Minister Mihály Varga said on Tuesday.

The preferential VAT rate saves taxpayers 200 billion forints (EUR 487.4m) a year, Varga said on Facebook.

The extension of the preferential VAT rate until the end of 2028 has been initiated by construction industry association ÉVOSZ (Építési Vállalkozók Országos Szakszövetsége), the minister said. According to ÉVOSZ’s proposal, the VAT rate should remain applicable if a home building permit is approved by the end of 2024 or if construction on the home in question begins by then, he said.

The finance ministry has examined and approved the association’s request, Varga said, adding that the proposal could go before parliament in the autumn.

As we wrote earlier, Hungary has the highest house price growth in Europe, read more HERE.

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Source: MTI