On 6 October 2026, the Hungarian Ministry of Finance published a draft bill introducing a wealth tax for public consultation. The proposed legislation could significantly affect high-net-worth individuals, business owners and certain wealth management structures.
Importantly, the proposed tax would not be limited to real estate. The taxable asset base would also include financial investments, ownership interests in companies and various other assets.
The public consultation period closed on 14 October 2026. However, the proposal has not yet been enacted into law, and its provisions may still change during the legislative process.
Who Would Be Subject to the Wealth Tax?
Under the draft legislation, the proposed tax would apply to taxpayers whose net wealth exceeds HUF 1 billion.
In addition to Hungarian and foreign resident individuals, the proposed rules would also cover certain separately managed asset structures, including assets held under fiduciary asset management arrangements and private foundations.
As a general rule, Hungarian tax residents would be required to take into account both their domestic and foreign assets when determining their taxable wealth.
For non-Hungarian tax residents, the tax liability would generally be limited to certain assets located in Hungary, particularly real estate and ownership interests in Hungarian companies.
The assets of spouses would be assessed separately, with each spouse benefiting from an individual HUF 1 billion threshold. However, the treatment of jointly owned assets and certain assets held by family members would be subject to specific rules.
Which Assets Would Be Included in the Tax Base?
The draft legislation defines taxable wealth broadly. The assets potentially falling within its scope would include:
- Real estate located in Hungary or abroad;
- Shares and ownership interests in companies;
- Bank deposits, securities and other financial investments;
- Crypto-assets, precious metals and certain valuable movable assets;
- Receivables and other rights with an economic value.
The tax base would generally be determined by deducting eligible liabilities from the value of the relevant assets, calculated in accordance with the statutory valuation rules.
A particularly important consideration is that wealth tax liability would not necessarily be linked to the receipt of actual income.
For example, a valuable property or a substantial ownership interest in a company could give rise to a tax liability even if the asset does not generate distributable income during the relevant tax year.
What Would Be the Applicable Tax Rate?
According to the draft legislation, the portion of net wealth exceeding HUF 1 billion would generally be subject to an annual tax rate of 1%.
A higher rate of 1.5% would apply to the portion of the tax base exceeding HUF 100 billion.
For example, an individual with net wealth of HUF 1.5 billion would have a taxable amount of HUF 500 million above the HUF 1 billion threshold.
Applying the proposed 1% rate, the annual wealth tax would amount to HUF 5 million, before taking into account any applicable tax credits or reductions.
The draft legislation would also allow certain taxes already paid in relation to specific assets to be credited against the wealth tax liability.
Why Could the Proposed Tax Be Particularly Relevant to Business Owners?
One of the most significant features of the proposed wealth tax is the inclusion of ownership interests in companies within the taxable asset base.
Consequently, an individual could become subject to the wealth tax solely because of the value of their business interests, even where their personal savings and real estate assets do not independently exceed the HUF 1 billion threshold.
The draft legislation provides specific valuation methods for ownership interests in privately held companies.
Depending on the circumstances, the valuation may take into account the company’s equity and earnings-generating capacity. In certain cases, an independent business valuation may also be required.
These provisions could raise complex legal, accounting and tax questions, particularly for owners of family businesses, holding companies and other substantial corporate structures.
The value of an ownership interest does not necessarily correspond to the liquid funds available to its owner.
As a result, the proposed rules could create annual tax liabilities for individuals whose wealth is primarily tied up in operating businesses, potentially requiring additional financial and liquidity planning.
Fiduciary Asset Management and Private Foundations
The draft legislation also contains specific provisions concerning assets held under fiduciary asset management arrangements, private foundations and certain comparable foreign structures.
Under the proposed framework, these separately managed pools of assets could themselves qualify as taxpayers for wealth tax purposes.
Accordingly, an assessment of potential tax exposure would need to extend beyond assets directly owned by individuals.
The establishment and operation of wealth management structures, the rights of beneficiaries and the tax treatment of separately managed assets could all become relevant considerations.
These issues may be particularly important in the context of family wealth planning, business succession and long-term asset protection arrangements.
When Would the Wealth Tax Become Payable?
Under the draft legislation, the proposed act would enter into force on 15 December 2026.
The first tax liability would be determined by reference to the taxpayer’s financial position as at 31 December 2026.
The initial tax return filing and payment deadline would be 31 August 2027.
The proposed system would operate on a self-assessment basis, requiring taxpayers to determine and report their taxable wealth.
This would also involve maintaining appropriate documentation concerning asset values, valuation methodologies and deductible liabilities.
Accurate asset valuation and proper supporting documentation could therefore become among the most important practical aspects of compliance with the proposed legislation.
What Should Taxpayers Consider During the Legislative Process?
Several aspects of the draft legislation warrant particular attention, including the valuation of corporate ownership interests, the deductibility of liabilities, the treatment of foreign assets and the taxation of fiduciary asset management structures.
For high-net-worth individuals and business owners, it may be advisable to review existing ownership arrangements, wealth management structures and relevant documentation while the legislative process is ongoing.
The introduction of a wealth tax would not merely be a taxation matter. It could also have significant implications for corporate ownership structures, wealth management arrangements and long-term succession planning.
Nevertheless, the final scope and extent of any tax obligations can only be determined on the basis of the legislation ultimately adopted.
This article is based on the draft legislation published on 6 October 2026. The proposed rules remain subject to change. This publication is provided for general information purposes only and does not constitute individual legal or tax advice.