Families minister: Hungary to launch biggest home creation scheme yet

The government is launching its biggest ever home creation scheme this year, Katalin Novák, the minister for family affairs, said on Facebook on Friday.

Under the scheme, the VAT rate on newly built homes is reduced from 27 percent 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, Novák noted.

Under the scheme, half of the renovation costs up to a maximum of 3 million forints (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.

The government is also extending the CSOK scheme to loft conversions, Novák said. Families with three children who avail themselves of this option will be eligible for a 10 million forint subsidy, those with two children will get 2.6 million forints, while families with one child will be entitled to a 600,000 forint non-repayable subsidy, the minister said.

A maximum 10 million forints is available in the CSOK support plus another maximum 15 million forints in the CSOK related subsidised-interest loan, she added.

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Source: MTI