Up to HUF 150,000 a month for housing support? – Here’s how your employer and the state can help in 2025!
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.
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.
For more details about state housing support and about Combining employer and state support with concrete examples please read the whole article on WTS Klient webpage.
