Millions of family benefits: Holidays have brought unexpected changes

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New grants have already been announced before Christmas

Before detailing the latest news, it is worth remembering what happened before Christmas in the area of ​​family benefits and home loans, since like an Advent calendar, the news was published almost daily.

• Support for home renovation: From January 1, 2021 to December 31, 2022, from January 1, 2021 to December 31, 2022, the conditions under which support for the renovation of homes of up to 3 million HUF will be available for those raising children under the age of 25 (the Minister for Family Affairs, Katalin Novák, also spoke with us about the details),
• Subsequent changes in support for home renovation: the amendments concerning divorced or separated parents, the installation or replacement of solar systems, adult accommodation and the extension of the list of eligible works also appeared in the Hungarian Gazette just before Christmas,
• Home renovation loan with interest subsidy: the details of the new loan announced by Viktor Orbán have been published in the Magyar Közlöny, the loan will be available in banks from February 1 with a mortgage guarantee, at 3% interest, up to a maximum of 6 million HUF, for 10 years (that only low-income borrowers with the installment advantage over market home loans to reform, we have written here),
• 5 percent housing tax: Details of an October bill were already known, according to which the sale of new residential properties will once again be subject to a reduced tax rate of 5% from January 1, 2021 to December 31, 2026, if It is an apartment of less than 150 square meters or a single-family house of less than 300 square meters and the construction permit will be final no later than December 31, 2022, or its construction will be notified by that date in accordance with the simple notification rules.
• Tax exemption and VAT refund: Families with children who use CSOK to buy a house and do not have to pay the reduced VAT of 5 percent (see above) do not have to pay property tax for the purchase of a new and used house.

The new family benefits, which were already well known before Christmas, are summarized in the following table.

• Extended refund moratorium– Instead of the previously announced specific solution, the government has extended the moratorium in general, so that repayment of loans taken before March 19, 2020 does not necessarily have to be paid (here we have written about setbacks and if it is worth the moratorium is worth living). supported by calculations here).

News published after Christmas

Between Christmas and New Years, other news appeared in the Hungarian Gazette, the most important of which are summarized below.

• Can be added for attic installation and floor installation (“multi-generation”) CSOK: It is considered a new apartment, therefore, an apartment created by attic or flat extension is entitled to 0.6 million CSOK for one child, 2.6 million for two children and 10 million CSOK for at least three children , if this creates a new independent condo. a new apartment with a separate entrance, registered on a separate property sheet (or with an exclusive right of use in the case of undivided joint ownership of several apartments), accessible by free staircase or stairs, in accordance with the usual rules of the CSOK . In the “original” residential building, on the attic or floor of which the new apartment will be built, the claimant or the child cannot own. In addition to CSOK, two children can get 10 and at least three children 15 million from CSOK loans subsidized at 3%.

• Rewriting the apartment to the child within 10 years.: It no longer constitutes a breach of the 10-year expropriation prohibition in the CSOK Regulation (i.e. no help to reimburse) if the beneficiary’s child acquires ownership of the new home, a third party acquires the property or usufruct by inheritance or establish a right.
• VAT refund for autonomous construction: In the case of the purchase or construction of a new apartment of up to 150 square meters or a family home of up to 300 square meters for those applying for CSOK, a tax refund allowance of up to one time for the purchase price may be applied , including the price of the land. Depending on the cost, this can be done no later than December 31, 2022 on the basis of an invoice issued after January 1, 2018 or after January 1, 2021. The amount can be as high as 5 million HUF. Minister Katalin Novák also spoke about the details in a recent Facebook video.
• Repayment of the mortgage divided into several loans: State aid of 1 million for the second child and 4 million for the third child can be allocated to several housing mortgage contracts at the same time, in which case the order of the housing mortgage contracts to be reduced by the aid must be indicated .
• CSOK for retirees: a legal relationship entitled to the grant is considered if the applicant is a Tbj. A person in accordance with Section 4, Clause 11, that is, a pensioner who performs auxiliary activities.
• Eliminate discrimination against adoptive parents: the government corrected a legislative error raised by the Portfolio in a spring article and in a December interview with Katalin Novák. While until now the date of birth was also decisive for adopted children, from now on the adoption date determines the eligibility for the mortgage loan exemption (1 million HUF for the second child, 4 million HUF for the third child) and benefits related to the baby loan (interest-free until the end of the term). , up to 3 million for two new children, up to 10 million for three new children, and a 3-year payment gap). As of January 1, they can also be used (within 60 days after the loan agreement in the case of a loan waiting for a baby) by those who adopt or have adopted a child born before July 1, 2019 (who are younger so far). Those who already have a loan for babies waiting can apply for the related benefits “after” within 60 days after the entry into force of the Regulation, that is, until March 1, 2021, for children born before 1 July 2019 but adopted after that date.
• Reduced notarial fees: For the subsidized loans (including the 3% CSOK loan and the home renovation loan), the government has lowered the debt recognition rate. In the basic case, the fee can be from 10 to 19.5 thousand florins, in an external place one and a half times (that is, 15-29.25 thousand florins), outside business hours it can be double (that is , 20 to 39 thousand florins). The initiator of the special procedure must already pay the increased fees, for example, in the case of a bank branch.
• Expansion of the list of village CSOK eligible settlements– Updated list now includes 2,678 settlements instead of the previous 2,486 settlements, helping residents purchase new properties and / or upgrade their existing properties. The list of Village CSOK settlements in Békés county, Budapest, Hajdú-Bihar county and Tolna county has not changed. Only one new settlement was included in Csongrád-Csanád county and only two in Bács-Kiskun county. The updated list can be found here.

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