Hungary to extend preferential home construction VAT rate

Construction

Hungary's government will extend a 5% preferential VAT rate for home construction for another two years, Prime Minister Viktor Orbán said in a weekly interview broadcast on public radio on Friday.

The preferential VAT rate - reduced from the main rate of 27% - was set to expire at the end of 2022.

Orbán acknowledged a rush to get home building permits before the deadline and said a government body established to take steps to keep the economy growing had decided to extend the measure.

"There's no need to hurry. The government will ensure in the coming two years, too, amid the - unfortunately - slowing home construction market, support with the 5% VAT rate," he said.

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