In a recent Facebook post, Hungarian Prime Minister Viktor Orbán announced that the tax benefits for families with children will be doubled in 2025. The announcement was part of Orbán’s speech at the Tusványos Summer Free University and Student Camp, where he emphasised the need for a strong and flexible Hungarian society. According to Orbán, reversing the country’s demographic decline, which has stagnated despite initial success, requires renewed efforts.
As part of a “peace budget,” the government plans to double the child tax benefits and extend these benefits to Hungarians living abroad, Portfolio reports. Orbán also stressed the importance of preserving the rural village system and maintaining a work-based society, avoiding the creation of megacities.
Who is eligible for family tax benefits?
- Individuals entitled to family allowances.
- Parents who share custody of their child based on a court decision, agreement, or joint declaration.
- Spouses living in the same household as the family allowance recipient but not entitled to the allowance themselves.
- Pregnant women and their spouses living in the same household.
- Children entitled to family allowances on their own behalf and individuals receiving disability benefits.
- Individuals eligible for family allowances, disability benefits, or similar benefits under the laws of any foreign country, provided they meet other statutory conditions.
Duration of family tax benefits
The family tax benefit can be claimed from the 91st day of pregnancy, requiring a medical certificate. It continues until the child reaches 16 years of age, or longer if the child is enrolled in a full-time educational institution (such as high school or vocational school). The benefit ends when the child graduates from high school. However, if there are younger siblings who are eligible, the older child can still be considered for the benefit, albeit at a reduced rate.
Applicable incomes for family tax benefits
Family tax benefits can be claimed on income that forms part of the consolidated tax base, including:
- Income from independent activities, such as private businesses, agricultural production, or rental income.
- Income from dependent activities, such as wages and taxable social security benefits, including child care fees.
This comprehensive increase in family tax benefits is aimed at supporting Hungarian families and encouraging population growth.
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Couples, who know that their children will not have good educators nor good health-care will not be enthusiastic about having more children (or the first child). Increasing some family benefits is just like a bad-aid hiding the real issue. It will not cure the underlying bigger problems. Teachers need more motivation (=money) and healthcare workers need more motivation (=money). Plus the premises of basic health-care and education are in dire need of improvements (=money). One also has to consider, does the country have enough budget so sustain these increased benefits. Maybe one year later these benefits will cease to exist. Nobody should plan their future based on government benefits, let alone start a family based on expected benefits.
And the birth rate still goes down.
Why do i think this wont work?
Punish Hungarian couples who choose not to have families. These double income couples will simply leave Hungary with their money.
Orban will end up with for Wolt delivery drivers from China and India.
How can it benefit a Hungarian family living abroad, does anyone know? The only category I can think of is if they rent out property in Hungary. If anything, this tax concession will just encourage them to leave as renting out their former home becomes more lucrative. Shareholder dividends in Hungarian companies would ordinarily be taxed in their new country of residence. It’s highly unlikely any Hungarians would emigrate while continuing to work remotely for a Hungarian employer deriving a salary in Hungary.
MORE of our tax money going to “ethnic” Hungarians that don’t live here? Or will ever live here? Buying votes of people that live in other countries with better healthcare, better education systems, much better wages, better everyting while voting in OUR elections? People like Steiner and Maria Von Foot in Mouth? Him and his friend Trump, the emperors without clothes, as disgusting as that idea is.
Where is the money coming from? I understand it is an “investment” on the part of our Politicians, however it does require funding …
https://economy-finance.ec.europa.eu/economic-and-fiscal-governance/stability-and-growth-pact/corrective-arm-excessive-deficit-procedure/excessive-deficit-procedures-overview/hungary_en
Orban – Fidesz Government of Hungary – we KNOW they have NO money to INVEST.
Do they THINK this “Dumb Arse” idea in the doubling of tax benefits is going to really have an impact on – increased time “in the sack” making babies ???
This is, from a Government that continues to exhibit it is LOST, like a ship, that has NO captain, no rudder, just on-ward drifting into a “raging” cyclone, that will sink it, and all the crew on “lost” on board.
This is a BLATANT act of ” to unclothe Peter to clothe Paul”.
It will result in the taking the eradication of one THING to give to “another” cause.
It will result in, through tax on us the people of Hungary, the increase in one for or another – we WILL fund this SHAME of the Orban – Fidesz Government, that will NOT contribute to the quality of Families lives nor increase the depleting falling birth rate of children in Hungary, a trend that has existed in the 15 years of the Orban – Fidesz Government.
It personifies AGAIN, the “veiling” process dismissive of Truth & Facts – that is the PRACTICE in the DNA of this Orban – Fidesz Government.
“Clutching at Straws” – because other ideas Policies they, the Orban – Fidesz Government have tried – over the course of 15 years in Government, that have dismally FAILED.
This “new” policy – in it’s recklessness, is an effort of sheer and utter DESPERATION, to win votes.
That’s FACT.
Pressurization continues to rightly BUILD on the Orban – Fidesz Government – drawing out, disclosing, exhibiting there garagantuan FAILINGS as a Government – in there service as a Government, to the citizens of Hungary.
What have they DELIVERED us ?
It will Worsen.