The changes allow the rollout of an interest-free general purpose loan up to 10 million forints (EUR 31,100) for married couples who commit to having children. Repayments on this loan will be suspended for three years after the birth of the borrower’s first child. After the birth of a second child, repayments will be suspended for another three years and one-third of the principal will be paid for by the state. After the birth of a third child, the state will take over the whole loan’s principal. The measures also include government grants up to 2.5 million forints for purchases of new, seven-passenger vehicles for families with at least three children.
The amendment also affects the law on personal income tax, allowing for the PIT exemption of the preferential loan and the government subsidies provided for the vehicle purchases. The law is set to come into effect on July 1.
Additional measures of the action plan include write-offs of outstanding mortgage credit linked to the birth of children and an exemption from the personal income tax for women who have four children.