The Hungarian Government has announced plans to introduce a wealth tax from 1 January 2027. Based on the published outline, the portion of net wealth above HUF 1 billion may be taxed annually at 1%, with a rate of 1.5% announced for wealth above HUF 100 billion. The potential scope may include real estate, investments, corporate shareholdings and assets held abroad.
For cross-border entrepreneurs, the correct determination of tax residence will be the central starting point. Registration or the location of individual assets alone may not be decisive. Residence must be assessed under the applicable domestic rules and relevant double tax treaties, taking the individual’s actual personal and economic circumstances into account.
Only after tax residence has been analysed can the potential scope of a future Hungarian wealth tax be assessed. Valuation and allocation of assets may be particularly complex for German and Hungarian companies, family businesses, holding structures, property portfolios and shareholder loans.
NZP NAGY LEGAL advises German and Hungarian businesses, shareholders and private clients on cross-border tax-law matters. Our lawyers conduct in-depth tax-law research, develop structured legal positions and regularly represent clients before Hungarian and German tax courts. This contentious experience helps identify potential disputes at an early stage, including matters of residence, asset allocation, valuation and supporting documentation.
Until final legislation is published, specific conclusions remain limited. Businesses and shareholders can nevertheless review residence facts, ownership records, corporate structures and valuation documents in preparation for the new rules.
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