The exact details of the home renovation support have been posted, so many people are curious.

According to Katalin Novák’s Facebook video this afternoon and government decree 518/2020 published today in the Magyar Közlöny, the following was revealed about the support for home renovation.

General information

• These Regulations will enter into force on January 1, 2021.
• each family can benefit from the support once, the amount of the support is 50% of the renewal costs certified by the invoice, but not more than HUF 3,000,000,
• Support amount may include 50-50% of material cost or business fee,
• You can use all the support that applicants consider good, you don’t have to use the maximum of 3 million guilders, but you can do well with an investment of at least 6 million guilders, as 50% of this is due to support.

Housing, residence conditions

• maintenance can be requested if the applicant or the minor have together at least 50% of the property of the apartment affected by the maintenance, registered in the real estate registry,
• if the family has owned the apartment for a long time, the parents and children must have lived in the declared apartment for at least one year at the time of application,
• In the case of the purchase or construction of a child or fetus under one year of age or a new home, this one-year residential relationship is not a condition (this would filter out abuse),
• In the case of real estate in indivisible co-ownership made up of several dwellings, compliance with the required property condition must also be examined on the basis of the use contract or court ruling presented by the applicant of the part of the property affected by the aid
• No subsidy can be claimed for a floor that has been previously subsidized, unless the previous claimant has fully disposed of his property at the time of his claim.

Conditions for a child

• At least one cohabiting child is required for support, including fetuses at least 12 weeks old and cohabiting children who have reached the age of majority and have not yet turned 25.
• there is no age limit for children with stomach rights.

Conditions for parents

• In addition to married couples and couples, single-parent families and single people, divorced people can also take advantage of the opportunity,
• in the case of single people, the party raising the child has the right, but if, for example, they are raised one by one, they can use between 1.5 and 1.5 million HUF,
• one of the parties may decide to transfer the right to the allocation to the other parent.

Conditions of social security and public debt

• A continuous legal relationship of at least 1 year, interrupted for a maximum of 30 days, is required for support (also in the case of entrepreneurs),
• main cases: all types of work, public and private employee employment, service and other legal relationships, cooperative work, job search assignment period, sole proprietorship, joint venture, religious service, primary agricultural producer, full-time taxpayer, evaluator of public projects, public education or higher legal relationship, national or foreign employment,
• Also included is the allowance per job seeker received in recent months, as well as work in addition to retirement and student status.
• People who have been covered by the social security system of another state or an international organization established by an international treaty in the last year can also apply, if they are already covered by the Hungarian social security system on the day of application.
• In the 180 days prior to the request, people with a public employment relationship will not be able to request the aid,
• condition of exemption from public debt,
• if one of the parents works abroad, they can still take the opportunity (surprisingly many people asked Katalin Novák),
• In the case of a single-parent family, support can be requested even if the father has worked abroad; in this case, you must have a national social security relationship on the day of the application.

Eligible costs and works

Support is available for almost every job related to home renovation:

• introduction of water, sewerage, electricity, gas services, or construction or replacement of your internal network
• construction of a bathroom or toilet in an apartment that does not have such a room,
• the design, modernization or replacement of heating system components, including the use of renewable energy sources,
• building insulation, including plinth insulation, thermal, acoustic and waterproofing works,
• replacement of external doors and windows, installation or replacement of blinds, blinds, shutters, mosquito nets, security bars, replacement or renovation of cornices, thresholds,
• roof replacement, renovation, insulation,
• construction and modernization of the chimney,
• air conditioning installation, replacement,
• solar collector, solar system installation, replacement,
• Interior renovation, including replacement, renovation, painting, wallpapering, gallery construction, interior stair design and replacement, installation or replacement of sanitary ware, electrical switches and sockets, and installation, replacement or rehabilitation of interior doors, sills, thresholds ,
• renovation of a building with the same topographic real estate registration number as the apartment, non-residential premises (such as in particular: summer kitchen, laundry room, storage),
• fence construction,
• construction of a car depot or open garage,
• terrace, loggia, balcony, marquee construction,
• make and replace coverings of spaces,
• creation of a winter garden,
• if the claimant or their child is a person with reduced mobility, the specific accessibility works,
• reinforcement of the foundation structure, and s) installation and replacement of built-in furniture or kitchen appliances.

Costs already accounted for during the use of CSOK cannot be taken into account (curiously, we did not find any reference in the decree to the exclusion of renovation works covered by the subsidy from the savings fund for housing under contracts concluded before October 2018).

One or more invoices issued by a contractor under a contract or contracts for the supply of goods or services covered by the Value Added Tax Law and for planning, construction and installation work related to the renovation may be accepted as an invoice that certify the performance of construction activities. of which the contractor is subject to Law CXXVII of 2007 on Value Added Tax. met its obligation to provide data in accordance with point 1 of Annex 10 of Act No. The aid is not eligible for an invoice with a VAT rate of 5%.

An invoice issued by a contractor performing design, construction or installation work in connection with the renovation will be accepted only if the contractor is not a close relative or associate of the claimant or, in the case of a business organization, is not a member, employee or manager of the claimant or close relative or partner of the claimant. official. In the case of a joint application, both applicants must comply with the provisions of this paragraph.

Control and ex post reimbursement

• the state treasury has the right to examine the legality of the use of the support in the framework of an on-site inspection with the participation of the capital city and the competent county government office according to the location of the apartment no later than 180 days after the payment of the support . The government office produces a report on the on-site inspection, which is sent electronically to the Treasury.
• If the Treasury determines, based on the facts contained in the report sent by the government office, that the claimant has misused the grant, it will order the claimant to repay the grant in an amount plus interest in accordance with the Public Finance Act. .

The published decree and Katalin Novák’s video provide answers to essentially all the important questions that have arisen thus far. An important novelty of the regulation is that the subsidies can be claimed until December 31, 2022 and the 60-day submission period ends after the payment of the last invoice. The definition of eligible work and staffing conditions are generous, and it is positive that, in addition to ex post controls, several safeguards have been included in the regulations to prevent abuse. It is important for users to note that the support rate for salaries and material costs can only be 50% -50%, that is (since this does not apply to the proportion within investment accounts but to the subsidized part of them) both types of costs must reach 1.5 million HUF (and 6 million HUF in total) if the family wants to receive the maximum support of 3 million. Aid can also have a positive effect on the second-hand housing market, professions involved in renovation activities, and the bridge loan market (eg, home renovation loans, personal loans) due to subsequent disbursement.

Cover image: Getty Images