In the second half of 2022, we experienced very hectic times in the frame of financial and real estate markets,bringing us the interests increase and the following changes on the real estate market. (More information can be found here and here). The interest increase has been causing the costs increase concerning individuals as well as families. The existing situation is very uneasy for low-income families and thus arising problems for them to be able to pay their depts. As the reaction for this situation, the new form of state support was created, helping low-income families and individuals to be able to pay their increased mortgage payments after refixation.1 Who can apply for this type of state support?
The state support is divided into two sections.The first is aimed at the mortgage payments increase in 2023, in the form of the tax bonus, and the second is in a form of the state support for the increased mortgage payment,which will be distributed by the Central Office of Labour, Social Affairs and Family upon application. An important information is that this support applies only on the increased payments after REFIXATION on mortgage contract! Not for the new mortgage contracts (for property purchase or refinance).
Terms and conditions for state support application
- Increased mortgage payment after REFIX,
- Applies only to one mortgage contract, to one domestic property (an apartment or a family house),
- The property must be lived in by the applier or his family members, must not be a rental home,
- The mortgage purpose is either reconstruction, construction or settlement,
- It applies also to the mortgage refinance, signed before 31.12.2022, the condition is, that the one of the purposes must be also settlement, reconstruction, construction,
- The average brutto income for 2022 must not exceed 2086,40€,
- If there is a co-applier present, their cumulative brutto income in 2022 must not exceed 4 172,80€, the co-applier is not able to apply for the tax bonus,
- The average brutto income is calculated as 1/12 of the brutto yearly taxed income (meaning without any expenses, insurance, taxes) for the taxed period in 2022,
- If the applier already has had other mortgages, the support can be applied only for one of them,
- Only for mortgages provided by the bank,
- The income does not include any other state support.
Tax bonus on increased mortgage payments in 20232
Tax bonus on increased mortgage payments in 2023 can be applied by the clients, whom the refix on mortgage caused the monthly increased payments. The Slovak republic will repay 75% of the payment difference,maximum up to 150€ per month in the form of the tax bonus.
The tax payer can apply for the tax bonus in case, if he fulfills the terms and conditions for the state support and is NOT applying for the tax bonus on paid mortgage interests (substitution for the mortgage for the young, more here).
The tax bonus can be applied based on the attached bank confirmation, and in tax return application for year 2023. The tax payer is obliged to ask the bank for the confirmation.
State support in the increased mortgage payment3
The state support is aimed to cover difference of the increased payment after 1.1.2024. The client can apply for the state support for the increased payment up to 75% of the payment difference, maximum up to 150€ per month. This support can be applied for by every citizen, who he fulfills the terms and conditions and pays his mortgage on time..
The support will be administrated by The Ministry of Labour, Social Affairs and Family, month behindhand, latest until the end the calendar month following the calendar month, during which the applier has fulfilled the terms and conditions for the state support. The support is considered after the application has been admitted and paid out to the bank account at the application.The information about the mortgage is provided by the bank and the income is confirmed by Financial Administration.
Despite the client’s income decrease in 2022, the support can be applied for.
If the average income of the applier and his co-debtor in the calendar year, which is 2 years prior the application (2022) exceeds the defined income limit, the state support will be considered based on the average monthly income during 6 months prior the calendar month, in which the application was submitted (for example, if the application is submitted in January 2024, the considered income will extend from July 2023 until December 2023). In this case, the applier will be asked by the Central Office of Labour, Social Affairs and Family to collect his income and his co-debtor’s confirmation.
The state support is considered in the frame of the applier’s income only once and is valid until the end of the calendar year. The application can be submitted immediately during the month, in which the mortgage payment increased. If the mortgage payment has increased in 2023, the application can be submitted from January! All information can be found on website of the Central Office of Labour, Social Affairs and Family.
We hope that we have shed some light on your possibilities. If you are not sure, if you can apply, do not hesitate to contact us. We will have a closer look at your possibilities.
Your team ProFin Experts.
- source: https://www.slov-lex.sk/pravne-predpisy/SK/ZZ/2023/526/vyhlasene_znenie.html ↩︎
- source: https://www.mfsr.sk/sk/media/tlacove-spravy/pomoc-hypotekami-od-dnes-si-mozu-ludia-ziadat-aj-statny-prispevok.html ↩︎
- source: https://www.upsvr.gov.sk/social-affairs-and-family/socialne-veci/prispevok-na-zvysenu-splatku-uveru-na-byvanie.html?page_id=1321127 ↩︎
