Government plans to reduce VAT – apartment prices going down?

> properties for expats, property sale and purchase, property sale contract, property sale contracts in English language, property sale contracts in foreign languages, property sale contracts in German language, sale and purchase contract, sale and purchase contracts for foreigners, sale and purchase contracts in Hungary > Government plans to reduce VAT – apartment prices going down?

napi.hu: There is no info regarding either the rate or the date of such reduction. Apartment developments are on the back burner not because of a lack of demand but because developers can’t make profits at current price and VAT levels. If they pay 27 per cent VAT at current market prices they can’t even reach the break-even point, developers said to napi.hu. The smaller the rate of VAT reduction, the less its effect on apartment prices will be. A new VAT of 18 per cent would only result in a modest increase of supply while a reduction to 5 per cent would trigger a mere 8-10 per cent decrease of prices – provided that demand starts to increase again.

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