The great housing construction program has been drawn up: the child under 25 is entitled to a renovation grant

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Katalin Novák spoke at a five-element home improvement program summary press conference on VAT reductions, VAT exemptions, tax exemptions, supporting home renovation and creating multi-generational homes for educators and early childhood planners.

Article 1: 5% VAT on housing

He explained from January 1 VAT on newly sold properties will be reduced from 27 to 5 percent. By the way, the bill has already been published, we write it here:

Element 2: VAT Refund for CSOK

If, on the other hand, someone also benefits from a family housing allowance (CSOK), the VAT will be 0 percent, so that 5 percent of the VAT can be recovered later. It will save families, he said. As an example, he said: If a young couple planning to have three children pays the baby allowance, the initial capital is 10 million guilders. Thanks to the full VAT exemption, a net purchase of HUF 50 million can save HUF 13.5 million.

No regulation or bill has yet been published in this regard.

Element 3: 50% renewal aid up to 3 million

Home renovation support is for those who already have their own home and do not want to move. They can recoup 3 million for a HUF 6 million renewal. The minister said that based on feedback received so far, home improvement support is the most popular. In this regard, he also announced:

In the family, all children up to the age of 25 are counted in their own homes.

And if a seriously ill child in need of constant care is raised in the family and the children are entitled to a home care allowance, there is no age limit, he added. Responding to a question, he also said: This support can be used once by a family.

No regulation or bill has yet been published in this regard.

Element 4: Exemption for CSOK

The fourth element of the home building program is tax-free. Beginning January 1, children or child planners will be exempt from property taxes purchased with CSOK. Thus, a tax of 4 percent of the property value will also save families.

The bill was also published on this, we write it here:

Element 5: Multi-generational CSOK

The fifth element of the program, announced this week, is the creation of multi-generational housing. This will create an opportunity for next January who installs the attic of a family home, you can use CSOK, which can mean a non-refundable grant of up to HUF 10 million.

No regulation or bill has yet been published in this regard.

The campaign begins

Responding to a question, Katalin Novák also said that they are planning an information campaign about the housing creation program, because their aim is to make as many people as possible take advantage of the opportunities. The minister stressed that plans to create a home can now be carried out. His goal is to help all families who are raising children and are about to have children. It argues that this is important so that even young couples who are not sufficiently self-sufficient can create a home. In addition, so that those who already have a home can move forward to create better conditions for their children. Katalin Novák emphasized that the government has helped more than 600,000 families to return home in the last five years. In five years, more than a billion forints of support were given to families in some form, he declared.

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Cover image: MTI / Attila Kovács