We previously reported on the index that the home renovation subsidy specifically avoids the class for whom renovation of their residences would be most necessary. Instead, it can be used mostly by those who have sufficient financial resources to generate self-reliance.
Now a new housing support scheme has been put in place under the auspices of the Ministry of National Economy, which could once again provide significant assistance to the wealthy – and that is getting the government's attention. Bank Controller.
Credit comparison portal quotes that NGM Advertisementunder which they studied the possibility of “hack” long-term savings almost tax-free, if savers used the money to build a house.
Preference is given to the wealthiest.
Bankmonitor also draws attention to the fact that savings in Hungary are very unevenly distributed among different strata of society – 80 percent of them are owned by the richest 20 percent of society.
Remarkably, the top 10% of the population, the richest million Hungarians, had almost 70% of financial savings in the first quarter of 2024. If we add the next 10% (the ninth), we get the top quintile of the population. This richest quintile already owns more than 80% of domestic financial savings. The bottom eight million people thus have a share of barely 20% of total savings.
From the content of the advertisement, we can conclude that in order to stimulate economic growth, the government wants to mobilize long-term savings to some extent. This group can cover a wide range of savings: in principle, we can classify fixed bank deposits, government securities and other bonds, amounts of money held in investment funds, stock exchange shares, and even life insurance and pension fund savings.
Financial portal indicates.
The announcement also suggests that using savings to build a home will be rewarded with a tax break – so certainly forms of saving will be affected when different taxes are imposed on the income generated.
The goal will be to create a home.
We can recall that from July 2023, taxation of many forms of savings has become less favorable. While previously a personal income tax of only 15% was imposed on a wide range of investments, since last year it has become necessary to pay a social contribution tax of 13% even on the returns from bank deposits, mutual funds and other investments. . Thus, the extension of sushi in this direction has led to a doubling of the tax burden in many cases, and government housing securities have been the winners.
Income tax relief can only be a meaningful support if a very large amount of capital is used as a basis. As a result, the Monitor Bank concluded that “once again, the wealthiest classes will be the main beneficiaries of the newly introduced support.”
The announcement emphasizes the goal of creating a home, from which we can conclude that they may try to exclude investment property purchases from support. “We already know of many examples of such restrictions in the world of existing housing support schemes: for example, in the case of additional social security or former social security, the supported property must be used as a permanent residence.
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