Key takeaways from Hungary's draft wealth tax

Hungary plans to introduce an annual wealth tax already applicable for the tax year of 2026. The draft act, published on 6 October 2026, sets a 1% tax rate on net wealth above HUF 1 billion and 1.5% above HUF 100 billion, with a set of multiple valuation rules depending on the asset itself. Based on the draft proposal, asset restructurings from 14 May 2026 onwards – a supposed date for awareness about the tax itself – may be tested under the principle of the proper exercise of rights, meaning that their rationale may be questioned.

Taxpayers concerned

Hungarian tax residents will be taxed on their worldwide wealth, while non-residents will be taxed only on selected assets (Hungarian real estate, Hungarian company shares, and shares in foreign companies whose book value is made up of over 75% Hungarian real estate). Spouses will each have their own HUF 1 billion threshold, a minor child's wealth is added to the parents’, while adult children’s wealth will not be aggregated with their parents’. Trusts and private foundations will be separate taxpayers, with foreign trusts having a presumed Hungarian residency if the settlor is Hungarian or a resident beneficiary has decision-making influence. The draft has its own rules for related wealth management structures that will share one threshold.

Valuation of real estate

The valuation of property will follow a fixed order:

1. recent transaction value;
2. indexed transaction value (purchases 1–10 years old);
3. the NAV mass valuation model; and
4. and only then an expert valuation.

Properties worth HUF 500 million or more need a forensic expert’s valuation using two of the above methods. Values calculated by the statutory rules cannot be raised on audit, while a compliant expert valuation may be raised, but without penalty or late payment interest. There is no exemption for the family home, although personal movables are, except art, collections and jewellery over HUF 3 million and vehicles over HUF 10 million are exempted.

Valuation of company shareholdings

Unlisted shares are valued with a determined formula of

(Equity + 2 × Earnings Value) / 3 × ownership share

where Earnings Value is the three-year average after-tax profit divided by the capitalization rate (15%). Equity above HUF 500 million must include hidden reserves, backed by auditor-reviewed data. Special rules apply to holding companies, new companies and minority stakes.

Notable details

Half of a mandatory valuation fee, up to HUF 2 million a year, is deductible from the tax, and local taxes on the assets are creditable. Tax treaties will only be applicable if they cover taxes on capital. Where they do, foreign real estate of Hungarian tax residents is exempt but still counts toward the wealth the tax rate is determined upon.