The possibility of introducing a wealth tax in Hungary has returned to the agenda, although key details remain unresolved, particularly regarding which types of assets would be included in the tax base. Depending on the final design of the rules, projected revenues vary significantly, with estimates suggesting differences of several hundred billion forints.
The TISZA Party has proposed a wealth tax targeting the richest Hungarians, applying to individuals with assets exceeding one billion forints. Under the proposal, the state would tax accumulated wealth alongside income and consumption. This could include property, savings, equity stakes in companies and other high-value assets, meaning the measure would primarily affect the wealthiest individuals.
The tax could generate between 125 and 600 billion forints in revenue
Based on the latest publication of the 100 Richest Hungarians and wealth statistics from the Hungarian National Bank, GKI Economic Research Institute examined what determines whether the proposed tax would yield 125 billion or as much as 600 billion forints in revenue for the state.
The 2026 edition of the ‘100 Richest Hungarians’ estimates that the combined wealth of the top 100 individuals could reach 12,579 billion forints, representing an annual increase of around 14%, or 1,559 billion forints. A 1% wealth tax on this amount would generate roughly 125 billion forints in budget revenue.
However, this figure only reflects a narrow and highly visible segment of private wealth. According to GKI, if the tax base were broadened to include corporate equity stakes, investments and other assets, revenues could reach the 300–600 billion forint range, a figure also referenced by the government.
Corporate wealth valuation seen as the key challenge
Several issues remain unresolved regarding the proposed tax. It is still unclear whether the tax would apply only to assets above the threshold, or whether exceeding the one-billion-forint limit would make the entire wealth taxable. The treatment of foreign-held assets and deductible liabilities also remains open.
Another major challenge is the valuation of business assets. While the value of a bank account or residential property is relatively straightforward to determine, valuing non-listed companies can vary significantly depending on whether book value, earnings potential, or market comparison methods are used.
The prime minister Péter Magyar has repeatedly referred to the Swiss model as an example in relation to the wealth tax. In Switzerland, the tax has operated for decades, with a specific methodology for valuing business assets—an issue that is central to the functioning of such systems. However, international experience shows that several European countries have abolished wealth taxes due to increasing valuation and enforcement difficulties.
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The proposal has already triggered strong professional and business reactions
Under current plans, the wealth tax would operate at a flat annual rate of 1%, with legislation potentially adopted by autumn 2026 and implementation expected from 2027.
Sándor Csányi, CEO of OTP Bank, previously told Index that he does not fully understand the structure of the proposed tax. While not opposed in principle to higher taxation, he raised concerns about additional burdens being placed on already taxed wealth.
Investment expert Viktor Zsiday also expressed criticism, arguing that the structure could disadvantage Hungarian-owned companies by applying unequal pressure compared with foreign-owned firms.
The exact scope of taxation remains uncertain. It is not yet clear whether only wealth above the threshold would be taxed, or whether exceeding the limit would result in the entire asset base becoming taxable—an issue that could significantly alter the effective tax burden.
Ultimately, the impact will depend on how broadly the tax base is defined and how different asset classes are valued.
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Featured photo: Facebook/Magyarország Kormánya
When you punish those who contribute to reward those who do not, it becomes just a matter of time before NOBODY contributes anything.
You can wrap it up in whatever sophistry and rhetoric about solidarity, compassion, exploitation, fairness, etc. but it is the ageless fundamental truth about every iteration of economic collectivism.