Married couples having three or more children, or promising to have three children within a specified period of time, can qualify for a one time, non-refundable housing subsidy of HUF 10 million (USD 37,000), as well as a long-term, low interest HUF 10 million loan.

The introduction of the subsidy coincided with a dramatic scale back in value added tax in the case of new residential properties. Furthermore, new home buyers may reclaim up to HUF 5 million worth of VAT.

Intended to incentivize young Hungarians to marry and have large families, as well as the above ground construction industry, 30 percent of new home buyers have taken advantage of the subsidy scheme to date, of which 83 percent have two or more children. In 82 percent of cases, families with two children are promising to have a third child. Families building new homes or adding onto existing homes also qualify for the subsidy.

Critics have questioned the sustainability of the program given its high cost to the public purse.

In addition to the generous housing subsidy, some 2700 families have availed themselves of the opportunity to reclaim up to HUF 5 million (USD 18,500) worth of VAT at a cost to the Hungarian treasury of HUF 11 billion (USD 41 million) to date.

Source: The Budapest Beacon

Republished with permission