Consultation closes on Hungary’s draft wealth tax

The public consultation on the draft wealth-tax bill closes on October 14. The document remains a proposal, not enacted legislation. Under the draft, the tax base would be the portion of an individual’s net wealth above HUF 1 billion, calculated as taxable assets minus eligible debts.

The proposed rate would be 1 percent on a tax base up to HUF 100 billion and 1.5 percent on the amount above that level. A key property-market provision would classify real estate worth at least HUF 500 million as a “high-value asset.” Domestic property would be valued first using a recent transaction price; failing that, an indexed earlier transaction, the tax authority’s mass appraisal or an expert market valuation would apply.

Under the draft debt rules, only outstanding liabilities connected to acquiring taxable assets would reduce the calculated value in this system.

For Hungarian owners and property-market participants, the next points to watch are the final statutory text, the valuation method and the commencement provisions. The proposal itself does not create a tax liability. For context, see our coverage of the MNB house-price index and the mortgage LTV dataset.