Hungary's draft wealth tax would reach non-residents

Hungary's draft wealth tax would reach non-residents' Hungarian property and company stakes, but not units in the property funds used for the Guest Investor Programme, IMI Daily reported on 18 October. The Finance Ministry published the draft on 6 October, the day Prime Minister Péter Magyar presented it, and public consultation closed on 14 October.

The draft sets a yearly tax of 1% on net wealth above HUF 1 billion, about US$3.08 million at the rate Reuters used (as of 6 October 2026), and 1.5% on the part above HUF 100 billion. Each spouse has a separate allowance, and documented debts are deductible. The law would take effect on 15 December 2026, with the first charge on wealth held on 31 December 2026 and payment due by 31 August 2027.

Residents would pay on worldwide wealth. Non-residents would pay only on Hungarian property, rights over it and stakes in Hungarian or Hungarian property-holding companies. The draft excludes collective investment securities from its definition of a company stake, so, as IMI Daily notes, fund units fall outside a non-resident's base. A Guest Investor who became tax resident would be taxed on worldwide wealth. Hungarian citizens, including dual nationals, would count as resident until they had lived abroad for ten years.

Reuters reported that parliament, where Magyar's Tisza party has a large majority, is expected to approve the tax. IMI Daily notes that the explanatory memorandum says the government has not yet discussed the text.