The planned wealth tax is currently one of the most widely discussed economic topics in public debate. Based on information published in the media, the new tax is expected to primarily affect private individuals with assets exceeding HUF 1 billion, while the government anticipates annual revenue in the hundreds of billions of forints.

Defining Wealth: The Key Challenge

While most people are interested in the tax rate, the real challenge may not be the rate itself but the definition of wealth. The balance of a bank account or the current value of publicly traded shares can be determined relatively easily, but valuing a family-owned business, a privately held company, or more complex investments is far more difficult.

The value of a business is not determined solely by the assets it owns. Its future profit-generating capacity, market position, growth potential, and even the value of its brand are equally important. As a result, the same company may receive significantly different valuations depending on the methodology used.

Who Could Be Subject to the Wealth Tax?

There are still several unanswered questions regarding the proposed regulation. One of the most important is whether the HUF 1 billion threshold will be assessed on an individual basis or at the family level. Based on the information currently available, it appears more likely that wealth will be assessed individually, as the Hungarian tax system is fundamentally built around individual taxpayers. However, the final rules have not yet been published.

Another issue attracting considerable attention is the role of family members, particularly children. If the tax base were determined solely on the basis of individual ownership, the possibility of distributing assets among family members could easily arise. International examples show, however, that wealth taxes are generally accompanied by rules designed to prevent such forms of tax avoidance. Therefore, the Hungarian legislation is also expected to address the treatment of close relatives, children, and various wealth management structures.

Wealth Taxes in Other European Countries

International experience is far from uniform. Today, only a few European countries maintain a traditional wealth tax, including Switzerland, Norway, and Spain. Several countries have abolished such taxes because valuing wealth proved too complex and because they imposed significant administrative burdens on both governments and taxpayers.

Expected Timeline for Introduction

According to the current schedule, the detailed rules are still being developed. The legislation is expected to be adopted in the autumn of 2026, with the earliest possible implementation date being January 1, 2027.

It is also not yet known what filing and payment obligations will be associated with the new tax. However, based on international practice, it is likely to operate as an annual tax calculated on wealth assessed at a specified date.

What Will Count as Wealth?

Perhaps the most intriguing question is what exactly will be considered wealth. Will the full value of an owner-occupied residence be included in the tax base? Will outstanding loans be deductible? How will ownership interests in family businesses be valued? What happens to individuals whose wealth appears substantial on paper but is largely tied up in illiquid assets?

These are the questions that will ultimately determine how many people are affected by the wealth tax in practice and how much revenue it generates for the state budget.

Conclusion

The debate surrounding the wealth tax is therefore no longer primarily about whether a new tax will be introduced. Instead, it focuses on how assets accumulated over decades—whether a family business, a debt-financed real estate portfolio, or wealth set aside for future generations—will be viewed by the tax authorities.

Over the coming months, entrepreneurs, investors, and private individuals alike will be looking for answers to these questions.