Hungarian wealth tax

Who pays

Individuals and trust-like structures pay; companies do not.

Families

• Spouses are taxed separately, and each has their own HUF 1 billion threshold. Joint marital property is split by their marriage contract, by a joint election for registered assets, or otherwise 50/50.
• A minor child's assets are added to the parent(s) with custody, except assets the child inherited or earned.
• Related trusts with the same settlor or settlors who are relatives share a single HUF 1 billion threshold.

What counts

Every asset with a monetary value counts, unless the law exempts it.

• Real estate in Hungary and abroad, and rights over it such as usufruct
• Shares in companies, interests in partnerships, sole proprietorships and other organisations
• Cash, bank balances, securities, investment funds, crypto assets and investment gold
• Loans receivable, life and pension insurance with a surrender value, options and other contractual rights
• Movable property used in a business or self-employment, in full

Exempt: personal-use items, with exceptions

• Personal belongings and normal household furnishings are not counted.
• They do count if a single item is worth more than HUF 3 million for works of art, collections and jewellery, or more than HUF 10 million for vehicles (cars, boats, aircraft).

How assets are valued

Assets are valued at 31 December using the bill's prescribed methods. Where the bill gives no method, the usual market value applies. Foreign currency is converted at the official MNB rate for 31 December.

Unlisted company shares in more detail

• Companies with equity above HUF 500 million must add audited hidden reserves: the market value of their real estate, shares and securities above book value, less deferred tax. They report these figures to their owners and to the tax authority.
• Holding companies (shares are at least 90% of assets) are valued at equity only. Newly founded companies have zero earnings value in their first three years.
• Minority stakes are discounted: by 25% for 33–50% ownership and by 30% below 33%.
• Parent companies use their consolidated accounts. A sale of more than 10% to an independent buyer within the last year can be used instead.
• If the accounts are missing or unsuitable, for example because of shareholder agreements, a qualified independent valuer must value the shares using at least two methods.

Expert valuations of real estate

• Experts must be independent and registered. Properties worth HUF 500 million or more need a court-registered expert and at least two valuation methods.
• If the tax authority later sets a higher value than a compliant expert valuation, no penalty or late-payment interest is charged on the difference.

Debts and the tax base

Tax base = value of the assets that count − deductible debts − HUF 1 billion.

• Residents can deduct debts that exist at 31 December and are documented, such as loans in a notarial deed, a fully probative private deed or an equivalent foreign deed, or debts set by law or a final court or authority decision.
• Non-residents can deduct only debts directly linked to acquiring, maintaining or improving the assets that count.
• The wealth tax itself is not deductible. No asset or value is counted twice, and no debt is deducted twice.

Rates and credits

1% of the tax base up to HUF 100 billion, and 1.5% above that.

• Valuation fees: 50% of mandatory expert or company valuation fees can be deducted from the tax, up to HUF 2 million a year. Fees for optional valuations do not qualify.
• Property and vehicle taxes: Hungarian local taxes (such as building tax and land tax) and vehicle tax paid on assets included in the base are deducted from the tax, as are similar foreign taxes.
• Example: net wealth of HUF 1.5 billion gives a tax base of HUF 500 million and a tax of HUF 5 million, before credits.

Tax treaties

A treaty helps only if it also covers taxes on capital. Of Hungary's 39 treaties reviewed, 26 do.

• Non-residents: under a treaty covering capital, Hungary can generally tax only real estate located in Hungary. Shares in Hungarian companies and property companies are then taxable only in the country of residence. France and Finland have narrow exceptions.
• Dual residents: the treaty tie-breaker rule (Article 4) decides residence, but only under a treaty that covers capital.
• Residents with foreign real estate: where a treaty gives the other country the right to tax, that property is exempt in Hungary but raises the rate on the rest (exemption with progression).
• Income-only treaties, such as those with the UK, Japan, China, India, Israel, the UAE and Singapore, give no protection. Since 1 January 2024 there is no treaty with the United States.

Filing and payment

Self-assessed once a year, based on wealth at 31 December.

• The return and payment are due by 31 August of the following year, electronically. Those with no tax payable do not file.
• The tax authority may allow deferral or instalments for up to 12 months, or 24 months in exceptional cases such as tax on a home or on company shares. Automatic instalments are not available.
• Trusts and foundations must register with the tax authority within 30 days: existing ones from the law's entry into force, new Hungarian ones from their creation, and foreign ones from first acquiring a Hungarian taxable asset.
• If a taxpayer dies before filing, the tax authority assesses the tax after the probate proceedings.
• Records supporting the valuations must be kept until the limitation period ends.

Anti-avoidance

Arrangements made since 14 May 2026 can be challenged.

• From that date the government's intention to introduce the tax was public. The tax authority can disregard valuations, transactions or other steps aimed at getting around the valuation or tax base rules.
• A transaction is respected if the taxpayer shows genuine economic reasons, or other acceptable reasons unrelated to the tax, such as health or family.
• This covers, for example, moving assets into foreign companies, changing residence, or splitting assets between family members.