Hungaryʼs government has mandated measures for the launch of a "City Home Creation Program" that aims to incentivize environmentally-friendly residential developments in brownfield areas in a resolution published in the latest issue of the official gazette Magyar Közlöny, according to a report by state news wire MTI.
The government declares its support in the resolution for the application of a preferential 5% VAT rate to homes built in the framework of the program.
Hungarian lawmakers approved legislation earlier in July on reducing the VAT rate from 27% to 5% for homes constructed in brownfield areas designated "rust belt" zones by the government.
The goals of the program are to support the creation for city dwellers of "a first or a new home, either self-owned or in a rental flat", to "support job preservation, job creation and the stable operation of businesses through economic stimulus and investment incentives", and to "promote the renewal of unused and neglected rust belt zones in cities".
The resolution instructs the head of the PMʼs Office, the finance minister, the innovation and technology minister, the farm minister, the human resources minister and the minister without portfolio in charge of managing state assets to draft an action plan establishing the legal and physical conditions necessary for the consolidation of the rust belt zones.