Hungary is undergoing a “family-friendly tax revolution,” according to Zsófia Koncz, State Secretary for Families at the Ministry of Culture and Innovation. Speaking on M1 television Tuesday morning, she highlighted the government’s continued expansion of family support measures since 2010.
Koncz emphasized the exceptional scale of the latest changes. In July, the first phase of the family tax allowance doubling began, with eligible parents receiving the increased benefit in their August pay. Also in effect since July is the new “CSED extra” scheme, allowing mothers to return to work after 90 days while still receiving 70 percent of the childcare benefit.
From 1 October, families with three children will become exempt from personal income tax (PIT), with similar tax relief for two-child families and mothers under 30 set to begin in January. “The government supports families in all life situations, ensuring parents have freedom of choice,” Koncz stated.
She also discussed the Home Start Program, calling it a key pillar of the family support system. A related government decree is currently under public consultation to ensure the program can be combined with other homeownership schemes. Addressing concerns about price inflation, Koncz noted the introduction of a HUF 1.5 million per square metre price cap to prevent speculative increases.
Home Start loans can be used for both home construction and purchasing pre-owned properties, she confirmed.
In a separate interview on Kossuth Radio, Koncz said the scheme is clearly aimed at young people, who are already supported through PIT exemptions for under-25s and access to work-based loans.
