People who want to take advantage of the home renovation support must have at least one year of continuous social insurance coverage and have no delinquent public dues, Katalin Novák said.
The minister without portfolio responsible for family affairs explained on her Facebook page on Wednesday that from January the government would reimburse half of the renovation costs of families raising at least one child, up to a maximum of three million forints.
She said that the VAT rate on sales of new-builds would be reduced from 27 to 5 percent. Families who buy a new property with the state’s Housing Subsidy Scheme for Families (CSOK) will be able to reclaim the 5 percent VAT; buyers who purchase a new or used home with CSOK will be exempt from stamp duty; and the full amount of the CSOK subsidy can be claimed for loft conversions.
Home renovation support will be available to all people who are raising at least one child.
Married couples, civil partners and single-parent families will be eligible for the subsidy, and divorced parents with joint child custody can split the support between them. Parents qualify for the support from the 12th week of pregnancy until the child living in the same household turns 25.
However, parents raising a disabled child and receiving a child home care fee are entitled to the renovation support regardless of the child’s age.
Ms Novák explained that social security coverage can also come from higher education and employment; and it is considered continuous if it has not been interrupted for more than one 30-day period in the past one year. As many people lost their jobs due to the coronavirus epidemic, jobseeker's allowances will also qualify for the last three months.
The subsidy can be claimed for renovations starting after January 1.
It can be claimed for material and labour costs; a contract about the works is needed; and all invoices related to labour or materials must be collected and submitted to the Hungarian State Treasury (MÁK) within 60 days after the completion of the renovation.
The entire procedure can be done electronically. When the invoices have been submitted, MÁK has 30 days to evaluate them and the subsidy will be transferred within the next 5 days after approval. The government office may check any time in the following six months whether the claimants have actually spent the subsidy according to the claim.
Ms Novák also noted that each family can use the support only once; if they sell the house or flat, they will not have to pay back the support, but they cannot apply for it again. The new owner of the property will be entitled to the subsidy if they have not claimed it before.
She said that she was confident that thanks to the home creation programme, 2021 will be a "year of creating safe homes", and more families will be able to raise children in better conditions in Hungary.