The tax allowances will rise by 50% from July 1, 2025 and by another 50% from January 1, 2026. The measure was part of a package of tax changes approved by lawmakers with a vote of 114 for, 42 against and eight abstentions.
The legislation also allows Hungarians to tap their voluntary pension fund accounts for home purchases or renovation during the 2025 calendar year and raises the threshold for tax preferences on employer housing support by HUF 1.8 million a year for employees under 35.
Szép voucher card holders may apply up to half of top-ups to home renovation expenditures.
The legislation extends the 5% preferential VAT rate on new home builds until the end of 2026, or until the end of 2030 for projects still under construction. The package will raise the room tax on short-term rentals in the capital to HUF 150,000/year.
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