Published: December 22 2023
A new law in Hungary provides tax exemption for real estate purchases made with the CSOK Plus loan. This change can result in significant financial benefits for those buying high-value properties from 2024 onwards.
Tax Exemption for CSOK Plus Real Estate Purchases
The recently published law states that real estate purchases made with the CSOK Plus loan will be completely exempt from property transfer tax. This exemption applies regardless of the purchase price, eliminating the previous upper limit of 80 million forints.
Financial Benefits of Tax Exemption
The property transfer tax is normally 4% of the purchase price. With the new tax exemption, buyers can save a significant amount of money. Here are some examples:
- For a purchase price of 20 million forints, the buyer is exempt from paying 800,000 forints in property transfer tax.
- For a purchase price of 40 million forints, the buyer is exempt from paying 1.6 million forints in property transfer tax.
- For a purchase price of 60 million forints, the buyer is exempt from paying 2.4 million forints in property transfer tax.
- And so on.
Exceptions and Conditions
Properties priced higher than 150 million forints cannot be purchased using the CSOK Plus loan. However, the tax exemption remains intact for preferred small settlements if the property is purchased using the Falusi CSOK loan. It is important to note that if the conditions of the CSOK Plus loan are violated, the property transfer tax must be paid.
Conclusion
The new law providing tax exemption for CSOK Plus real estate purchases offers significant financial advantages for buyers. Whether purchasing a high-value property or a property in a preferred small settlement, the tax exemption removes the burden of property transfer tax. However, it is crucial to adhere to the terms and conditions of the CSOK Plus loan to maintain the tax exemption.
Questions & Answers
What is the new law regarding tax exemption for real estate purchases using CSOK Plus in Hungary? According to the new law, real estate purchases made using CSOK Plus can be completely exempt from property transfer tax. This change can provide significant financial benefits for buyers from 2024 onwards.
Who is eligible for the tax exemption on real estate purchases using CSOK Plus in Hungary? Any individual or family who purchases a property using CSOK Plus, regardless of their income or the purchase price of the property, can be eligible for the tax exemption.
What is CSOK Plus in Hungary? CSOK Plus is a preferential home loan program in Hungary with a maximum interest rate of 3%. It also includes a debt forgiveness component of 10 million forints for each child born during the loan term. It is aimed at promoting home ownership and supporting families.
What is the property transfer tax rate in Hungary for real estate purchases without CSOK Plus? The property transfer tax rate in Hungary is typically 4% of the purchase price.
What are the financial benefits of the tax exemption on real estate purchases using CSOK Plus in Hungary? The financial benefits of the tax exemption can vary depending on the purchase price of the property. Here are some examples:
- For a purchase price of 20 million forints, the buyer can be exempt from paying 800,000 forints in property transfer tax.
- For a purchase price of 40 million forints, the buyer can be exempt from paying 1.6 million forints in property transfer tax.
- For a purchase price of 100 million forints, the buyer can be exempt from paying 4 million forints in property transfer tax.
Is there a limit to the purchase price of the property for the tax exemption on real estate purchases using CSOK Plus in Hungary? There is no limit to the purchase price of the property for the tax exemption. Previously, there was a limit of 80 million forints, but this limit has been removed.
What happens if the rules of CSOK Plus are violated in Hungary? If the rules of CSOK Plus are violated, such as not fulfilling the conditions for debt forgiveness or not fulfilling the requirements for childbearing, the buyer may have to repay the benefits received, including the property transfer tax exemption.
Are there any specific requirements to be eligible for CSOK Plus in Hungary? Yes, there are specific requirements to be eligible for CSOK Plus in Hungary. These requirements include income limits, the number of children in the family, and fulfilling the conditions for debt forgiveness.