Orbán plans tax relief: The fight against falling birth rates!

Orbán plans tax relief: The fight against falling birth rates!

Hungary has implemented a variety of family policy measures that cause a stir both nationally and internationally. In particular, the introduction of the so-called baby loan is considered an essential part of the strategy to increase the birth rate. According to OE24 , the birth rate in Hungary was able to increase from 1,23 children per woman to 1.61. After the introduction of the loan, however, there are currently evident declines: in 2024 the birth rate fell to 1.39 and thus reached the lowest level since 2013.

The Hungarian government, under the direction of Prime Minister Viktor Orbán, pursues a strict immigration policy and does not see migration as a solution to the demographic decline. Instead, family -friendly measures are taken. A remarkable example is the baby loan, which provides a maximum of 11 million forints (approx. 27,700 euros) in front of the first child. The repayment of the loan depends on the number of children, whereby the debts are partially issued in several children.

Tax incentives for families

From October 2025, a new tax regulation comes into force, which enables mothers with three or more children to be exempt from income tax. From January 2026, mothers with two children will gradually benefit from the tax exemption. Orbán described these measures as significant financial investments in the family, which the Hungarian economy could cope with according to Exxpress . Every year the costs for tax exemptions amount to around 170 billion forints (approx. $ 441 million) and affect around 250,000 women.

These family policy measures are part of a greater strategy to counteract the challenges of a decline in the employable population and an outdated society. However, existing programs, such as family subsidies, have not had the desired success in order to increase the birth rate sustainably. In 2022, family funding spent 4.9% of the gross domestic product and are part of the government's political agenda, which is also discussed before the next parliamentary elections.

residential property and social justice

In addition to the financial incentives for families, Hungary pursues the home program CSOK, which promotes the acquisition and expansion of residential properties for families with children. This program enables grants and loans, whereby the amount depends on the number of children. However, critics note that the grants often benefit from families with income. Only 145,000 out of around one million families with children under the age of 20 have so far used the CSOK program, such as mdr

The risen real estate prices in Hungary, which grew by 108.9% between 2010 and 2021, make it difficult for many families to use the grants. In Budapest, the average square meter price is 700,000 forint (approx. 1,900 euros), which significantly limits the accessibility of property.

Overall, Hungary faces major challenges, while the government continues to aim to promote families and increase the birth rate. The efforts are characterized by both successes and the short -term increase in the birth rate and setbacks in terms of the effectiveness of the existing programs.