Housing has become an increasing challenge for young people in Hungary, where rising property prices and rental costs put significant pressure on monthly income. This also impacts the labour market: housing security is a key factor in employee loyalty and long-term commitment. With the introduction of the Otthon Start Loan, the range of non-tax incentives is expanding, although housing has already been supported through several tax-based allowances.
In this article, we summarise all employer-provided and state housing support opportunities available in 2025.
Employer housing support – Effective incentives within the fringe benefit system
Legislation has long allowed employers to provide assistance such as rental subsidies, mortgage relief, or interest-free loans to employees—primarily those under 35, but older employees may also benefit. These tools not only ease employees’ financial burden but also give employers a competitive edge in recruitment. However, these benefits are not automatic; they depend on employer decisions and must be properly integrated into the company’s fringe benefit policy. A well-structured fringe benefit system enables employers to provide targeted, fair, and effective support—such as helping employees achieve their housing goals.
A) Up to HUF 150,000 per month for employees under 35!
From 1 January 2025, employers may provide housing support as a non-wage benefit to employees under 35. The employer is liable for the 15% personal income tax and 13% social contribution tax.
The benefit can be used for:
- Rent payments
- Mortgage repayments
Employees must submit a rental or loan agreement to the employer.
Annual limit: HUF 1.8 million (pro-rated if employment begins mid-year or the employee turns 35 during the year). If the benefit exceeds the annual cap or actual verified costs, additional tax and penalties apply.
Employers must report the support and related property details to the tax authority (NAV) by 31 January each year.
B) Interest-free loans on top of salary?
Employers may also provide employees with preferential or interest-free loans, which are often faster, more flexible, and cheaper than bank loans.
Eligible purposes:
- Housing-related: purchase, construction, expansion, renovation, or even solar panel installation – tax-free if disbursed via a financial institution or the Hungarian State Treasury, up to HUF 10 million within the current and previous four tax years. Amounts above HUF 10 million are taxable: the tax base is 1.18 times the interest discount, with the tax assessed by the employer at year-end.
- Other purposes: e.g. car purchase, holiday, or unexpected expenses. In such cases, the employer must pay tax on 1.18 times the interest discount (15% personal income tax + 13% social contribution tax), while the employee has no tax liability.
Advantages of employer loans:
- Faster administration, less paperwork
- Interest-free or preferential interest rate
- Convenient repayment via payroll deductions (with written consent)
If well-designed, employer loans are a true win-win: employees gain access to funds on favourable terms, while employers provide a valuable benefit.
C) Furniture, paint, flooring? Now payable with the SZÉP card!
From 2025, balances on the SZÉP card can partly be used for home renovation, not just leisure and entertainment.
The amount available for renovation is capped at 50% of the current balance plus new 2025 top-ups and counts towards the annual recreational limit. Employers bear the 15% personal income tax and 13% social contribution tax.
Eligible expenses:
- Building materials, paint, glass, hardware stores
- Furniture and lighting shops
- General household goods stores (excluding clothing, cosmetics, jewellery, toys, sports goods)
- Carpet and flooring retailers
This means that in 2025, even a new sofa or fresh wall paint can be covered by the SZÉP card.
State housing support in 2025
Alongside employer benefits, the state provides a wide range of subsidies for homebuyers and builders. Many of these can be combined, significantly reducing the cost of acquiring property. Key schemes include:
CSOK Plus:
- Up to HUF 50 million loan at fixed 3% interest
- Minimum 10% down payment
- From the second child, up to HUF 10 million debt forgiveness per child
Rural CSOK:
- Up to HUF 15 million non-repayable subsidy
- For property purchase and renovation, with optional subsidised CSOK loan
- Available in designated rural settlements
Otthon Start Loan:
- Up to HUF 50 million loan, 25 years, fixed 3% interest
- For home purchase or construction
- Minimum 10% down payment
- Requires 2 years of social security contributions, no public debts, and a clean credit history
VAT Refund:
- For new property construction or purchase
- Up to HUF 5 million refundable
- Primarily available in designated rural settlements
Transfer Tax Exemption:
- With CSOK Plus or Rural CSOK, the 4% property acquisition tax is waived – saving millions on high-value properties
Overall, state housing subsidies in 2025 offer solutions for every life stage:
- CSOK Plus for families with children
- Rural CSOK for residents of small towns
- Otthon Start for first-time buyers
These can also be combined for even greater benefits.
Think carefully: using pension fund savings for housing
In 2025, pension fund members have a unique, tax-free opportunity: they may use part of their savings accumulated by 30 September 2024 for housing purposes.
Applications must be submitted via the pension fund, with supporting contracts, invoices, and documentation. Payments are made in up to three instalments within 60 days, with the final deadline on 1 March 2026.
This option provides significant help to first-time buyers or those looking to reduce existing mortgage burdens.
While pension funds are designed for retirement, in certain life situations these savings can help achieve important life goals, such as home ownership.
Combining employer and state support
Employer housing support does not exclude state housing schemes. In fact, using both can offer significant financial relief: providing a larger down payment and reducing loan burdens simultaneously.
Example: A 32-year-old employee receives HUF 150,000 monthly employer support for rent while also taking out a CSOK Plus loan for purchasing a new home. The employer subsidy directly assists repayments, while the state scheme provides interest subsidies and tax exemptions.
Housing support and interest-free loans: key to talent retention
Housing support and employer loans are not only financial assistance but also powerful employer branding tools. Young people value housing security, so companies offering such benefits are more attractive and successful in retaining talent.
By combining different support schemes and financing tools, employees can reduce monthly expenses in the short term and achieve significant savings over the long term, while employers strengthen competitiveness.
For housing support to be effective, employers should ensure that:
- Proper documentation is maintained (contracts, invoices, certificates) without excessive administrative burden
- Benefits align with the existing fringe benefit policy
- Annual tax-free limits are not exceeded, otherwise benefits may be taxed as wages
Since the rules are complex and vary by case, employers are advised to seek tailored solutions and up-to-date professional guidance to maximise effectiveness.
Employer-provided housing benefits – in addition to state subsidies – strengthen employee loyalty and can contribute to a company’s competitive advantage on the labor market. If you have any questions regarding the topics outlined above, the tax advisory team of WTS Klient Hungary is always at your disposal.
This article provides general information and does not constitute advice.
