FinMin changes mortgage support for young people

Amendment would reduce paperwork involved in providing state assistance.

NBS governor Peter KažimírNBS governor Peter Kažimír (Source: TASR)

The state plan to support young people to get a foot on the property ladder is to be streamlined and will involve less paperwork, Finance Minister Peter Kažimír said on August 17. The Slovak cabinet adopted an amendment to the Income Tax Act, changing the current plan on August 16 within a package of tax-related laws.

The programme aimed at supporting people under 35 years of age to take out a mortgage is to be changed to allow home buyers to be able to reduce their tax assessment base. It will thus effectively amount to a tax bonus or deduction.

Meanwhile, the eligibility conditions concerning the applicant’s age or income will remain essentially intact.

“We’re aiming to significantly simplify and reduce paperwork involved in providing state assistance to young people,” said Kažimír as cited by the TASR newswire. “The whole process involving the requirement to submit various documents to commercial banks will change into submitting a tax return. It will be much simpler.”

The support is envisioned to amount up to 50 percent of the paid interest over a particular tax period, or €400 annually at most.

Read also:Blog: Higher R&D tax allowance will not help Read more 

Other tax related amendments approved by the cabinet reduce tax secrecy, increase tax deductions for research and development expenditures from the the current 25 to 100 percent and put in place incentives for the spa sector, among other initiatives. Parliament still needs to approve the changes.

Get daily Slovak news directly to your inbox

Top stories

Threats have worked. People queued for COVID testing before the official start

The nationwide testing in Slovakia started with four districts in the north. Here is a report from the first day in Orava.

Bardejov

Day two of pilot testing in hardest-hit regions is off to a smoother start

PM Igor Matovič and Health Minister Marek Krajčí are helping the sampling teams, too.

Trstená, the Tvrdošín district

No test, no work. Employees will have to take paid or unpaid leave

Those who will be quarantined with a positive test result will be entitled to pandemic sick leave.

Illustrative stock photo

Autumn holidays change, art schools close too

The ministry will contribute to schools to buy computers and other equipment for distance learning.

Illustrative stock photo