A stable state budget and a predictable economic policy have enabled the Government to launch a Family Housing Programme in 2016, Minister of State for Financial Affairs Ágnes Hornung told public news channel M1.

She stressed that one component of this programme is the new family housing allowance, the second is the allowance for newly-wed couples in their first marriages, who are entitled to a tax incentive of HUF 5000 per month, and the third pillar is a lower VAT rate at the purchasing of a new home.

In case of building a home, VAT on bills related to construction, purchasing of plot or building works can be reclaimed up to HUF 5 million.

The Government also provides a loan with a preferential interest rate of 3 percent. The amount of this is capped at HUF 10 million, the tenor is maximized at 25 years.

The conditions will be finalized in two new regulations within this month, depending on a final Government decision, she added.

(Ministry for National Economy)