VAT reduction in construction and purchase of new-build homes a boost to restarting economy
On Sunday, the parliamentary state secretary of Hungary s minister for family affairs talked about government subsidies with regards to the construction and purchase of new-build flats and houses.
In a video posted on social media, Robert Zsigo underlined that – as part of the government s Home Purchase Subsidy scheme – the VAT will be reduced from 27 to 5 per cent on both the contruction (with a general contactor) and the purchase of new houses and flats in Hungary.
Reducing VAT will help people and businesses, and it will also contribute to relaunching the economy, the state secretary said.
Mr Zsigo stressed that the VAT reduction can be used for flats less than 150 square meters or single-family houses under 300 square meters. If the property is issued a building permit by the end of 2022, the reduced VAT will be applicable until the end of 2026, he indicated.
This government measure will help provide secure housing for families. It will also contribute to the relaunching of the economy, as it helps businesses to not only preserve jobs but create new ones, Robert Zsigo said.