News News from Hungary Next steps for the Fam­i­ly Pro­tec­tion Action Plan in Hungary

Next steps for the Fam­i­ly Pro­tec­tion Action Plan in Hungary

Stay tuned, these two steps are only the first in a long line of mea­sures to be intro­duced by the Hun­gar­i­an Government.

“If there are jobs and there are homes, then life is eas­i­er,” said Min­is­ter for Fam­i­lies Katal­in Novák last week. Her state­ment came just after announc­ing that the government’s goal is to have as many Hun­gar­i­an fam­i­lies as pos­si­ble become home own­ers. That’s why the gov­ern­ment has low­ered VAT on new­ly built homes from 27 to 5 percent.

Accord­ing to Min­is­ter Katal­in Novák, the government’s exten­sive home cre­ation pro­gram makes a sig­nif­i­cant con­tri­bu­tion to Hungary’s eco­nom­ic growth and pro­vides jobs for Hun­gar­i­ans. Due to the coro­n­avirus pan­dem­ic, she said, it is espe­cial­ly impor­tant that there is a sec­tor in the econ­o­my where peo­ple can earn a decent liv­ing in a decent job.

On top of this new mea­sure, which will take effect in Jan­u­ary 2021, Min­is­ter Novák also revealed this week that it will be pos­si­ble to reclaim the 5 per­cent VAT for fam­i­lies who have pur­chased their home using the CSOK home sub­sidy. In the case of new­ly built real estate worth HUF 30 mil­lion, fam­i­lies can thus save HUF 6.6 mil­lion with the VAT dis­count. In the case of a larg­er apart­ment worth HUF 50 mil­lion, this sum increas­es to 11 mil­lion HUF. Beyond the VAT dis­count, reclaim­ing the 5 per­cent will leave HUF 1.5 and HUF 2.5 mil­lion extra in the fam­i­ly bud­get, respectively.

Min­is­ter Novák remind­ed peo­ple that, since 2015, the gov­ern­ment has helped more than 150,000 fam­i­lies through the CSOK home sub­sidy pro­gram — to the tune of HUF 500 bil­lion. The goal is, the min­is­ter con­clud­ed, to con­tin­ue inten­sive sup­port for fam­i­lies in the com­ing years.

While the VAT dis­counts can poten­tial­ly save mil­lions for fam­i­lies who have decid­ed to pur­chase new­ly built homes, the Fam­i­ly Pro­tec­tion Action Plan’s lat­est step focus­es entire­ly on sup­port­ing those who already bought homes, but don’t have the nec­es­sary funds to car­ry out much-need­ed renovations.

At a press con­fer­ence last Wednes­day, Min­is­ter Novák declared that begin­ning next Jan­u­ary, the gov­ern­ment will repay 50 per­cent of all ren­o­va­tion costs, up to a total of HUF 3 mil­lion for fam­i­lies with one or more chil­dren. She added that the details of the ren­o­va­tion pro­gram will be made avail­able soon.

Source: abouthun​gary​.hu