Published: December 15 2023
The Hungarian government has announced changes to the rural home purchase subsidy (CSOK) for 2024. These changes will affect the eligibility criteria and the amount of financial support available. In this article, we will summarize the key changes to the 2024 rural CSOK and provide an overview of the new rules.
Changes to the eligibility criteria
- Previously, young couples could only apply for CSOK if they had not yet turned 40. However, starting in January 2024, the age limit will only apply to the wife at the time of application.
- The number of children that can be taken into account for the CSOK has been increased. Young couples can now apply for CSOK with up to three children, regardless of the intended use of the funds.
Changes to the amount of financial support
- The non-refundable subsidy for one child will be unified at 600,000 HUF, regardless of the housing purpose.
- The subsidy amounts for purchasing and renovating properties remain unchanged. For example, one child can qualify for a subsidy of up to 1 million HUF for purchasing and renovating a property.
Changes to the repayment terms
- If a young couple voluntarily repays the subsidy before the deadline for having children, they will be required to pay a penalty interest rate of 3 percentage points higher than the statutory penalty interest.
- The maximum amount of subsidized loan will not be halved for those wishing to expand or renovate an existing property. Therefore, for two children, up to 10 million HUF can be borrowed, and for three children, up to 15 million HUF can be borrowed.
Changes to the requirements for social insurance coverage
- Starting from 2024, all applicants for the rural CSOK must have a minimum of two years of social insurance coverage, regardless of the number of children and the amount of support requested. This requirement also applies to the CSOK Plus subsidy.
These changes aim to provide more flexibility and support for young families who are looking to purchase or improve their homes in rural areas.
Questions & Answers
What is the CSOK subsidy in Hungary? The CSOK subsidy is a government support program for families in Hungary aimed at assisting with home purchase or renovation costs.
What are the changes to the 2024 rural home purchase subsidy in Hungary? According to the government's published draft legislation, there are several changes to the rules for the 2024 rural CSOK subsidy. The conditions that were announced in July have been modified to align with the existing rules for the regular CSOK in 2023 and 2024. There are also some new elements included in the draft.
Who can apply for the rural CSOK subsidy in Hungary? The rural CSOK subsidy is available to young married couples who meet the following criteria:
- At the time of application, neither spouse has reached the age of 40.
- The couple can have up to three children, and the subsidy amount is determined based on the number of children.
- The subsidy can be used for purchasing a new or used home, or for renovating or expanding an existing property.
- The couple must have a minimum of two years of social insurance coverage.
What is the subsidy amount for the rural CSOK in Hungary? For families with one child, the non-refundable subsidy amount is 600,000 HUF, regardless of the housing goal. For families with two or more children, the subsidy amounts vary based on the housing goal.
What is the time limit for fulfilling the childbearing requirement for the rural CSOK subsidy in Hungary? Starting from September, the rules require fulfilling the childbearing requirement within a specific timeframe. For families with one child, the timeframe is 4 years; for families with two children, it is 8 years, and for families with three children, it is 10 years.
Are there any penalties for early repayment of the rural CSOK subsidy in Hungary? In cases where a young couple voluntarily repays the subsidy before the childbearing requirement deadline, they will still be subject to a penalty interest rate, which is 3 percentage points higher than the statutory penalty interest rate.
What are the conditions for obtaining the CSOK subsidy for existing children in Hungary? The rural CSOK subsidy is available for families with existing children without the requirement of having additional children. This is a significant difference compared to the CSOK Plus subsidy, which is available starting from January 2024.
Is there a maximum amount for the subsidized loan associated with the CSOK subsidy in Hungary? For families with two children, the maximum amount for the subsidized loan is 10 million HUF, and for families with three or more children, it is 15 million HUF. The interest rate for the subsidized loan can be adjusted every five years after the first two years.
What is the age requirement for young couples applying for the rural CSOK subsidy in Hungary? According to the newly modified rules, the age requirement for young couples applying for the rural CSOK subsidy is that the wife must not be older than 40 years at the time of application. This modification only applies to couples who plan to have children after the application date.
Do the new rules for the rural CSOK subsidy in Hungary require a minimum period of social insurance coverage? Starting in 2024, all applicants for the rural CSOK subsidy (and CSOK Plus) must demonstrate a minimum of two years of social insurance coverage. This requirement is stricter compared to the current regulations, which allow certain forms of CSOK with only six months or one year of social insurance coverage.
