Reviewed by Jane Katkova, Founder & Licensed CICC ConsultantHungary's new government has begun work on a wealth tax. A government resolution published in the official gazette on 14 May 2026, two days after the Magyar government was formed, directed the finance ministry to prepare legislation for a 1% annual tax on wealth above HUF 1 billion and to review how to end preferential tax treatment for Hungarian trusts. The ministry was given until 5 June 2026 to prepare the draft.
The measure is proposed, not enacted. The government has said it intends the tax to apply from 2027, and in September Prime Minister Péter Magyar indicated that the expected revenue will be included in the 2027 state budget.
Proposed design of the Hungarian wealth tax
| Element | Position reported to date |
|---|---|
| Rate | 1% a year |
| Threshold | Net wealth above HUF 1 billion (reported as roughly €2.8 million or US$3.2–3.3 million) |
| Assets under consideration | Property, savings, equity stakes in companies and other high-value assets |
| Start | 2027, subject to legislation |
| Revenue estimate | About HUF 125 billion on a narrow base; HUF 300–600 billion on a broader base including corporate holdings |
| Status | Proposed; legislation in preparation |
Questions not yet answered
Hungarian press reports in June listed several open design points:
- whether the 1% applies only to the amount above the threshold or to the whole estate once the threshold is crossed;
- how assets held outside Hungary will be treated;
- how stakes in unlisted companies will be valued.
The resolution itself gave no detail on design or timing, and we have not seen published text that defines who is liable. Reports describe the target as the country's richest residents. Mr Magyar has repeatedly referred to the Swiss model.
What this means for applicants
For US and Canadian citizens holding or considering a permit under the Hungary Guest Investor Programme, the first point is that a residence permit and tax residence are different things. The programme has no minimum stay requirement, and an investor who keeps their home, family and working life in the United States or Canada and visits Hungary occasionally would not ordinarily become Hungarian tax resident. On the information published so far, the proposal is aimed at residents, so a permit held as a contingency should not by itself bring worldwide assets into the charge. That reading must be checked against the final statute.
The position is different for a client who plans to relocate to Budapest. A net worth above HUF 1 billion, roughly US$3.2 million, is common among investor applicants, and the treatment of foreign assets is exactly the point the draft has not settled. Americans have a further concern: the US–Hungary tax treaty was terminated on 1 January 2024, so relief depends on foreign tax credits, and a wealth tax is not an income tax for that purpose.
We recommend that clients intending to live in Hungary wait for the bill before fixing a move date, and that those comparing EU options weigh this alongside the alternatives on our European residence page. To review your own position, book a consultation with our team.