Hungary plans wealth tax from 2027

Hungary plans to introduce a wealth tax on high-value assets from Jan. 1, 2027, Prime Minister Peter Magyar announced Tuesday.

Under the proposed system, individuals with wealth exceeding 1 billion Hungarian forints ($3.08 million) would pay an annual 1% tax on the portion above that threshold.

The rate would rise to 1.5% for wealth exceeding 100 billion forints ($308 million), Magyar said in a video posted on Facebook.

The tax would apply broadly to real estate, investments, company holdings and assets held outside Hungary, while outstanding loans would be deductible from the taxable base.

Magyar said the proposed legislation would first undergo public consultation before being submitted for parliamentary approval.

The first annual self-assessed payment is expected to be due by Aug. 31, 2027, based on assets held at the end of 2026.

The measure was included in the governing Tisza party’s election programme and comes as Magyar’s government seeks to implement fiscal reforms while addressing Hungary’s budget deficit.