Hungary plans a wealth tax: 1% on assets above EUR 2.7 million, including for non-residents

In brief

• On 6 October 2026 Hungary published a draft law on an annual net wealth tax. It may enter into force on 15 December 2026.
• The threshold is HUF 1 billion of net wealth per person, about EUR 2.7 million. The rate is 1%, and 1.5% on the portion above HUF 100 billion.
• Hungarian residents would pay on worldwide assets, non-residents only on Hungarian real estate and shares in Hungarian companies.
• Wealth would first be valued on 31 December 2026, with payment due by 31 August 2027.
• It is a draft: public consultation ended on 14 October, business groups are asking for changes, and the final text has not been adopted.

What is proposed

Hungary's Ministry of Finance put the draft wealth tax law out for public consultation on 6 October 2026. The tax is annual and is calculated on net wealth: documented debts linked to the assets are deducted from their value. The threshold is counted per person, not per family: each spouse has their own threshold. A minor child's assets are generally attributed to the parent the child lives with.

Tax is due on the amount above HUF 1 billion. The rate is 1% on HUF 1-100 billion and 1.5% above HUF 100 billion. The tax is self-assessed: a person values their assets on 31 December, files an electronic return and pays by 31 August of the following year. If the law enters into force as planned on 15 December 2026, the first valuation date will be 31 December 2026 and the first payment deadline 31 August 2027.

What this means for you. The tax concerns only very large fortunes: a threshold of about EUR 2.7 million net per person. It will most likely not affect most flat owners and residence programme participants.

How the tax affects non-residents

For non-residents the scope of taxable assets is narrow. Under the draft, tax applies only to real estate in Hungary, rights over it such as usufruct, shares in companies registered in Hungary, and shares in foreign companies more than 75% of whose assets are Hungarian real estate. Bank deposits, securities and assets outside Hungary are not taxed for a non-resident.

The threshold for non-residents is the same, HUF 1 billion. So a foreigner with one or two flats in Budapest is most likely below the threshold and will not pay. The tax really concerns owners of large property portfolios and stakes in Hungarian businesses. Non-residents can deduct debts linked to their Hungarian assets, such as a mortgage on the property. Double tax treaties help only where they cover wealth or capital taxes.

Under the text of the draft, shares held through a foreign holding company appear to be outside the tax unless that company mainly owns Hungarian real estate. But the final rules on indirect ownership will only be clear from the adopted law, so it is too early to build structures on this. The final text of the law will be published in Hungary's official gazette after adoption by parliament.

What this means for you. If you are a non-resident with one or two flats in Hungary, the tax will almost certainly not affect you. Owners of several properties and stakes in Hungarian companies should run the numbers.

Who counts as resident

For residents the tax is broader: all assets worldwide are taxed, including cash, securities, crypto-assets, real estate and company shares. So the key question is who is resident. The draft has two important details here. First, Hungarian citizens, including dual citizens, are treated as resident until they have lived abroad for at least ten years. This also applies to people who obtained Hungarian citizenship by descent and live in another country.

Second, holders of a long-term residence permit are not treated as resident in years when they spend fewer than 183 days in Hungary. For participants in the guest investor programme and other residence permits this means: if you live in Hungary for most of the year, the tax authority may treat you as resident and tax your worldwide wealth if it exceeds the threshold. Employees seconded to Hungary by foreign employers get a five-year exemption from residence under the draft. More on tax residence is in our articles on tax residence and the 183-day rule, and the term tax residence is explained in the glossary.

What this means for you. If you have Hungarian citizenship by descent and a large fortune, the tax may cover all your assets even if you live in another country. This is the draft's main risk for people with Hungarian roots.

A worked example

Take a non-resident who owns several flats in Hungary and a stake in a Hungarian company worth HUF 1.5 billion in total, with a HUF 200 million mortgage on the property. Net wealth for the tax is HUF 1.3 billion. Tax applies only to the amount above the threshold, that is HUF 300 million. At 1% this is HUF 3 million a year, roughly EUR 8,000 at the current rate.

Now a Hungarian resident with worldwide assets of HUF 3 billion, about EUR 8 million, and no debts. The taxable amount is HUF 2 billion, and the tax is HUF 20 million a year, roughly EUR 54,000. The 1.5% rate starts only at HUF 100 billion, about EUR 270 million, and concerns a handful of families. The euro conversions in the examples are approximate and depend on the exchange rate on the valuation date.

What this means for you. The tax is paid not on the whole fortune but only on the amount above HUF 1 billion. For wealth just above the threshold it is small; for large fortunes it is noticeable.

How assets are valued

The draft describes in detail how to calculate value. Financial and crypto-assets are valued at market value on 31 December. Real estate at its indexed purchase price or by the tax authority's mass valuation. Shares in unlisted companies by a formula that takes into account both equity and average profit over the last three years; such a value may exceed book value.

The draft also covers trusts, private foundations and similar foreign structures. They pay tax themselves if they hold Hungarian assets and must register within 30 days after the law enters into force. If the settlor is Hungarian resident, the structure is presumed to be managed from Hungary, and then all its assets are taxed. There is also a rule against splitting the threshold across several trusts of the same settlor. More on trusts is under the term trust, and on controlled foreign companies under CFC.

Wealth taxes in Europe

A net wealth tax is rare in Europe today. Spain, Norway and Switzerland levy one, while most EU countries have abolished it because capital easily moves to other countries. Hungary is going against this trend. If the law is adopted, it will become one of the few EU countries with such a tax, and its threshold is higher than in Spain or Norway. In Spain, for instance, the general allowance is about EUR 700,000, with regions setting their own reliefs, so Hungary's EUR 2.7 million threshold is noticeably milder for most investors.

Where the draft stands now

Public consultation on the draft ended on 14 October 2026. The explanatory memorandum states that the government has not yet discussed the draft and the text cannot be taken as its position. The tax was promised during the election campaign, and polls show that most Hungarians support it. Business groups, on the other hand, are asking for changes: 14 organisations proposed relief for reinvested funds and a lower rate for wealth between HUF 1 and 5 billion.

So figures and rules may still change before the law is adopted. It is important now not to take drastic steps such as selling assets or transferring them to other people: the draft lets the tax authority examine transactions made before the law enters into force if they aim at avoidance. It is wiser to calculate your position under the draft and wait for the final text, which we will report on as soon as it is published.

What this means for you. Until the law is adopted, there is no point selling or re-registering assets because of the tax: the tax authority will be able to examine such transactions. Calculate your position and follow the final text.

What it means for the residence programme

Hungary's guest investor programme offers residence for investment in real estate funds or a home purchase; it is covered in detail in our programme guide and our article on the Hungarian golden visa. For most participants the new tax changes nothing: programme investment amounts are far below the EUR 2.7 million threshold. The tax may become a factor only for large investors who also move to Hungary and become tax resident.

If you are choosing a country for residence, compare the options in our piece on golden visas in Hungary, Greece and Portugal. On buying property in Hungary, see our articles on property for residence and the property market in 2026. On residence and permanent residence, see our article on Hungarian residence and on permanent residence. For remote workers there is the White Card, for entrepreneurs self-employment residence, and on a company and bank account opening a company and a bank account.

What to do

An overview of Hungarian taxes is in our article on taxes in Hungary, and the term wealth tax is explained in the glossary. How inheritance tax depends on residence is covered in our article on inheritance tax and a second passport. On countries with light taxation, see the best countries for tax residence, Cyprus tax residence and our analysis of zero taxes. Everything about the country is on the Hungary page. To go through your situation, book an online consultation; all BRIDGES services are on the home page.

How this article was prepared

Sources: the draft Hungarian wealth tax law published by the Hungarian Ministry of Finance on 6 October 2026, and its explanatory memorandum; information on the close of public consultation on 14 October 2026 and on business groups' submissions. The forint to euro conversion is approximate. The final text of the law may differ. This article does not replace advice from a tax lawyer.