Hungary | New Government plans introduction of wealth tax for individuals

Key expected features

Based on information currently available, it is expected that the wealth tax would apply to Hungarian tax resident individuals and it would be levied at a 1% tax rate on net wealth exceeding HUF 1 billion (equal to EUR 2,810,000).

The scope of the tax is expected to be broad, covering:

• real estate
• assets held in bank accounts,
• assets held in brokerage or investment accounts,
• cash,
• securities,
• participation in companies, and
• possibly certain vehicles or high-value personal assets.

Key open questions

It remains unclear how the legislation would treat family wealth, including whether family members would be assessed individually or on a consolidated basis. Considering the general lack of a family taxation approach in Hungary, we expect that the wealth tax would be levied on an individual basis.

Based on statements made in various press articles, assets held in trust structures may also be subject to the wealth tax, potentially at the level of the grantor.

A key technical question is how companies will be valued for the purposes of the wealth tax. The Government acknowledges the high complexity of the topic, and the current expectation is that simplicity may initially take priority to enable a swift implementation, potentially followed by later refinements.

Public discussion has also referred to possible anti-avoidance measures targeting individuals who relocate their tax residency abroad, including the potential introduction of an exit tax.

Compliance approach

At this stage, it remains unclear how the wealth tax filing process would be implemented in practice. It has been raised as an open question whether the tax authority - similarly to the personal income tax return process - could prepare draft returns for taxpayers based on information available in its records.

Expected timing

As of early June 2026, the proposal is in the legislative preparation phase. Based on statements made in the press, we expect that further details may be released in the coming months. Realistically, the new rules may enter into force from 1 January 2027, although this remains subject to confirmation.

Next steps

The policy direction is increasingly clear: Hungary is planning the introduction of an annual wealth tax with a broad tax base and a relatively high tax rate, targeting high-net-worth individuals. At this stage, key technical questions are still unresolved, and the practical impact of the regime should be assessed once the underlying rules are clarified in detail. We are closely monitoring developments and will provide further updates once draft legislation becomes available.