Katalin Novák announced: here are the details of support for home renovation

According to Katalin Novák, “Hungary’s largest home creation program” will start on January 1, with the following points:

• VAT on newly sold properties will be reduced from 27% to 5%,
• 5% VAT will be refundable to property buyers with CSOK,
• support for home renovation amounts to 3 million HUF,
• support for multigenerational households,
• duty-free comes with CSOK for property buyers.

The details of the 5% VAT and the tax exemption have been published for three weeks, we have reported them here:

Katalin Novák has received many letters recently, and many of the questions are about the home renovation program, the minister said.

Point:

• the existing house can be beautified, expanded, modernized with the support,
• condition of at least one child up to age 25 (from week 12 the fetus also counts) at home,
• the support can be used for half the investment, up to a maximum of 3 million HUF,
• does not have to be used for 3 million HUF, a smaller amount can be requested,
• the same family can use it only once,
• couples, couples, singles and divorcees too can claim if they are raising a child,
• in the case of children with disabilities, it is not necessary to take into account the age of 25 years,
• can be used by single-parent families regardless of the number of children raised,
• Divorced parents raising their children separately can also share the allowance, but if only one parent is raising a child, he or she is eligible.

There are three conditions:

• at least one adopted child,
• a continuous employment relationship of at least 1 year, with an interruption of a maximum of 30 days (higher education relationship also counts), the job search allowance can also be taken into account in the last 3 months, and work in addition to the pension can be taken into account,
• relief of public debt.

Possibilities of use:

• each family can only benefit from the renewal allowance once,
• if the apartment is sold, the subsidy does not have to be repaid, but they can no longer live with it,
• if someone else buys the same apartment, you can take it to the same apartment,
• can be used for renewals started after January 1,
• Invoices for the material and the work must be collected and a contract signed for the work, for which a formal contract is issued by the government, these must be presented to the state treasury,
• material costs and labor fees can be requested in half, i.e. a maximum of 1.5 to 1.5 million HUF can be requested individually,
• It will be the responsibility of the government offices to verify the implementation of the renovations, the government office can verify it at any time within 6 months after receiving the grant.

What can i use?

• work both outdoors and indoors can be accounted for, e.g. ex. kitchen or bathroom renovation, utility connection, heating system replacement, purchase of a new furnace or furnace, exterior and interior insulation, interior gallery or stair design, door and window replacement, roof replacement or renovation, installation solar system, garage or summer kitchen renovation, painting, decorating and carpentry work will also be eligible,
• the money must be advanced by the family, and you can claim it from the state treasury after, The cases will be processed in full electronically, the invoices collected must be sent to the State treasury within 60 days after the completion of the work, which has 30 days to be awarded, and then the money will be disbursed within another 5 days.

The announced information is not complete, the other details will probably be known in the Hungarian Gazette.

This may include exactly what else (e.g. Carpentry) it can be used for in addition to renovation and extension work, and how much time can elapse between the issue date of invoices issued after January 1, 2021 and the use of help. . It may also be interesting for interested families what will be the deadline (if any) to apply for the grant.

Since the aid can be applied for retroactively, its implementation could give a boost to the credit market, especially in the case of personal loans and even renewal mortgages. Lenders should also expect massive prepayments after grant disbursement.

Cover image: MTI / Koszticsák Szilárd