Published: December 06 2023
Saving money for retirement is an important aspect of financial planning. In Hungary, the government provides tax incentives for individuals who contribute to pension savings. In this article, we will explore an opportunity for savers in Budapest to earn up to 410,000 Ft in tax credits.
Eligibility and Benefits of the Savings Program
By participating in a pension insurance plan, individuals can receive a 20% tax credit on their contributions. This credit is in addition to the 20% tax credit provided by the government. Under a special promotion offered by Bankmonitor, the insurance provider will double the initial year's tax credit without any upper limit. This means that savers can earn a total tax credit of 40% by taking advantage of this offer.
Contribution Levels and Potential Tax Credits
To qualify for the extra tax credit, savers must commit to a minimum monthly contribution of 50,000 Ft. The amount of the tax credit depends on the monthly contribution and is calculated as follows:
- Monthly contribution of 50,000 Ft: extra tax credit of 120,000 Ft + government tax credit of 120,000 Ft
- Monthly contribution of 75,000 Ft: extra tax credit of 180,000 Ft + government tax credit of 130,000 Ft
- Monthly contribution of 100,000 Ft: extra tax credit of 240,000 Ft + government tax credit of 130,000 Ft
- Monthly contribution of 150,000 Ft: extra tax credit of 360,000 Ft + government tax credit of 130,000 Ft
- Monthly contribution of 200,000 Ft: extra tax credit of 480,000 Ft + government tax credit of 130,000 Ft
How to Apply for the Extra Tax Credit
To take advantage of the 20% extra tax credit, individuals should contact Bankmonitor's advisors through their registration page and initiate a pension insurance plan before the end of the year. The insurance provider will credit the extra tax credit, equivalent to 20% of the first year's contribution, after the first policy anniversary. It is important to note that the tax credit will not be awarded if the policy is in a fee-free status before the first policy anniversary.
Conclusion
Participating in a pension savings program can provide individuals with significant tax benefits. By taking advantage of Bankmonitor's promotion, savers in Budapest have the opportunity to earn up to 410,000 Ft in tax credits. Start planning for retirement today and take advantage of this special offer.
Questions & Answers
What is the maximum tax credit available for savers in Hungary? The maximum tax credit available for savers in Hungary is 280,000 Ft.
Is it possible to receive an additional 20% credit for savings? Yes, it is possible to receive an additional 20% credit for savings under certain conditions. If someone starts their savings now, they can receive this extra credit. The Bankmonitor offers this promotion where, if the conditions are met, the service provider will double the 20% state support for the first year from their own pocket.
Who is eligible to participate in the savings promotion? Any saver who commits to starting their pension insurance with a minimum monthly contribution of 50,000 Ft can automatically participate in the promotion. There is no upper limit for the credit provided by the service provider, so any amount contributed in the first year can receive the 20% extra credit.
How much extra credit can be received in the first year under the promotion? The amount of extra credit that can be received in the first year under the promotion depends on the monthly contribution. Here are some examples:
- For a monthly contribution of 50,000 Ft, the extra credit is 120,000 Ft, plus the 280,000 Ft state support.
- For a monthly contribution of 75,000 Ft, the extra credit is 180,000 Ft, plus the 280,000 Ft state support.
- For a monthly contribution of 100,000 Ft, the extra credit is 240,000 Ft, plus the 280,000 Ft state support.
- For a monthly contribution of 150,000 Ft, the extra credit is 360,000 Ft, plus the 280,000 Ft state support.
- For a monthly contribution of 200,000 Ft, the extra credit is 480,000 Ft, plus the 280,000 Ft state support.
What do I need to do to receive the extra credit? To receive the extra 20% credit in addition to the state support, you need to contact the Bankmonitor advisors through their registration interface and start the participating pension insurance in the same year. The service provider will credit the extra amount corresponding to 20% of the first year's premium after the first policy anniversary and invest it according to the current allocation ratio for the regular premium. It's important to note that the credit will not be provided if the policy is in a state of premium-free status on the day before the first policy anniversary.
