Construction planners across Hungary ceased works on residential building sites the moment prime minister Victor Orban announced a 5% VAT for housing tax. According to the National Federation of Hungarian Building Constructors (EVOSZ) as soon as the announcement was made works were ceased in order to examine the possibilities created by this new law. The new preferential 5% VAT may include sustainable energy solutions, hence investors are looking into making amendments into their development plans in order for the construction to be eligible for the new tax rate. Orban announced on Wednesday, that the VAT on buildings constructed before December 31st 2022 will remain at 5% as part of the tax relief measures caused by COVID-19.
