8-10,000 New Pension Insurance Contracts

In order to take advantage of the tax relief of up to HUF 130,000 for this year, 8-10,000 people have taken out new pension insurance policies in recent weeks, according to estimates by the Hungarian Association of Independent Insurance Brokers (FBAMSZ).

The organization reminds that the tax credit can only be claimed if the amount on which it is based is paid into the insurer's account by December 31.

The tax credit for pension insurance contributions is 20% of the contributions paid in a given year – up to HUF 130,000. This would require an annual contribution of HUF 650,000 to the account.

However, the average annual contribution is significantly lower: HUF 277,000 at the end of last year. Until the end of the year, it is possible to make a payment on a case-by-case basis in addition to the regular payment, thus increasing the amount of tax relief available for the year, FBAMSZ said.

The organization recalled that by the end of the third quarter of 2022, according to the Hungarian National Bank (MNB), almost 440,000 continuous fee contracts were registered for which tax relief can be claimed.