Published: December 01 2023
The Hungarian government has published the CSOK Plusz regulation in the Official Gazette, finalizing the social consultation process. The regulation includes a few changes that may be good news for some interested parties. Additionally, there is also a regulation regarding the exemption from duties related to CSOK Plusz that has been published.
Key Changes in the CSOK Plusz Regulation
The recently published CSOK Plusz regulation has not brought significant changes compared to the initial proposal. However, there is a group of people who will be very happy about it. One of the key factors for CSOK Plusz is having children, as this is a requirement for taking out the loan. Furthermore, the benefits associated with CSOK Plusz are strongly influenced by the number of children born during the loan term. For example, if a couple has one child, they can request a one-year deferment of their repayment obligations. But if they have two children, in addition to the one-year deferment, they will also have 10 million HUF of their outstanding debt forgiven.
Important Deadlines for CSOK Plusz
For those who are currently expecting a child and planning to apply for the subsidized loan, deadlines become crucial. CSOK Plusz can be applied for from January 2024, but it is still unknown which banks will offer the program in the first few days of the new year. Some families may need to hurry to initiate the process before their baby is born. However, there is an interim period until the end of March that allows babies born after January 1, 2024, through adoption to be considered as children covered by the loan.
Illetékmentesség and Illeték for CSOK Plusz
The Falusi CSOK (village CSOK) continues to be exempt from duties in 2024. This means that purchasers using Falusi CSOK to buy a home do not have to pay any duties, resulting in savings equivalent to 4% of the purchase price. However, for CSOK Plusz, there will still be an exemption from duties, but with a limit. According to the regulation, the part of the purchase price not exceeding 80 million HUF will be exempt from duties, and the amount above this threshold will be subject to a 4% duty. This is good news for those who plan to purchase high-value homes using CSOK Plusz, as they will only have to pay duties on the amount exceeding 80 million HUF.
Examples of Illetékmentesség for CSOK Plusz
Here are a few examples of the duty exemption for CSOK Plusz:
- For a purchase price of 40 million HUF, there will be no duty. The duty amount would normally be 1.6 million HUF.
- For a purchase price of 60 million HUF, there will be no duty. The duty amount would normally be 2.4 million HUF.
- For a purchase price of 80 million HUF, there will be no duty. The duty amount would normally be 3.2 million HUF.
- For a purchase price of 100 million HUF, duties will be applicable for the amount exceeding 80 million HUF.
Questions & Answers
What is the CSOK Plusz regulation? The CSOK Plusz regulation is a government decree that provides support and benefits for families, particularly those expecting a child or planning to purchase a home.
What are the key requirements for applying for CSOK Plusz in Hungary? To qualify for CSOK Plusz, one of the key requirements is to have a child. The number of children born or adopted during the loan repayment period can affect the benefits received. Additionally, there are specific income and residency requirements that applicants must meet.
When can CSOK Plusz be applied for in Hungary? CSOK Plusz can be applied for starting from January 2024. It is currently unclear which banks will offer the program immediately at the beginning of the new year.
Is there a deadline for applying for CSOK Plusz in Hungary? For applications submitted between January 1, 2024, and March 31, 2024, children born or adopted during this period will still be considered as qualifying children. This means there is a temporary period allowing applicants to submit their loan applications by the end of March and still have children born or adopted after January 1, 2024, considered for the benefits.
Are additional children required to receive the CSOK Plusz loan? No, it is not necessary to have additional children to receive the loan. However, if additional children are born or adopted during the loan repayment period, there may be additional benefits such as a debt forgiveness of up to 10 million Hungarian forints.
Are there any changes regarding the purchase of a second property with CSOK Plusz? The final regulation specifies that if the property being purchased with CSOK Plusz is not the first jointly owned property, the purchase price of the property bought with the program needs only to exceed the value of the applicants' share in their previous jointly owned property. This provides some flexibility for those looking to purchase a new property.
Will there be exemptions on property transfer tax for homes purchased with CSOK Plusz? Yes, there will be exemptions on property transfer tax. For homes purchased with CSOK Plusz, there is no property transfer tax to be paid. This results in savings equivalent to 4% of the purchase price.
Is there a limit on the exemption from property transfer tax for CSOK Plusz homes? Yes, there is a limit on the exemption from property transfer tax. The regulation states that if the purchase price of the CSOK Plusz home exceeds 80 million Hungarian forints, the portion above 80 million must be subject to the 4% property transfer tax.
Can you provide examples of the property transfer tax exemption under CSOK Plusz?
- For a property with a purchase price of 40 million Hungarian forints, there will be no property transfer tax, while the standard tax would be 1.6 million forints.
- For a property with a purchase price of 60 million Hungarian forints, there will be no property transfer tax, while the standard tax would be 2.4 million forints.
- For a property with a purchase price of 80 million Hungarian forints, there will be no property transfer tax, while the standard tax would be 3.2 million forints.
