HUNGARY: Hungary to Allow Use of Private Pensions for Property in 2025

Hungary plans to allow savers to break up their private-pension funds without a tax penalty next year as long as they use the money to buy or renovate property, Bloomberg report. Harnessing private pension savings will be voluntary and can be done in 2025 for about 1 million savers who have such accounts, according to the ministry statement.

• The above is in-line with expectations and part of efforts to stimulate the housing market. According to draft proposals, the government proposed allowing tax-free withdrawals from pension savings for home purchases. Prime Minister Viktor Orban announced a new economic programme at a meeting of Fidesz's parliamentary group over the weekend, and the Fidesz party may hold a press conference today following that meeting.