Hungary government proposes wealth tax on ultra-rich

FILE PHOTO: Hungarian Prime Minister Peter Magyar takes part in a press conference at Bratislava Castle, Bratislava, Slovakia, September 10, 2026. REUTERS/Radovan Stoklasa/File Photo

BUDAPEST, Oct 6 - Hungary's government has proposed a wealth tax targeting individuals with assets exceeding 1 billion forints ($3.08 million), Prime Minister Peter Magyar said on Tuesday, delivering on a campaign promise of his governing Tisza party.

The centre-right Tisza defeated veteran Prime Minister Viktor Orban's nationalist Fidesz party in an April election, ending his 16-year rule, and must now tackle a budget deficit projected at 7.5% of national output again this year.

• For those with wealth exceeding 1 billion forints, the government proposes an annual 1% wealth tax on the portion of their wealth above that threshold, starting in January 2027.

• Those with wealth above 100 billion forints ($308 million) would face a higher rate of 1.5% on the excess, Magyar said in a video posted on his Facebook page.

• The tax would include all forms of wealth, including real estate, investments, company holdings, and assets located outside Hungary, with loans deductible from the tax base.

• It remains unclear what impact the new tax will have on next year's budget. The government is set later this month to announce its 2027 budget and a roadmap towards adopting the euro.

• Hungary's wealthiest man in 2025 was Lorinc Meszaros, a childhood friend of Orban, who — along with his family — was worth 1.786 trillion forints ($5.50 billion) according to the 2026 list published by Forbes.

• Hungary's second richest man was Sandor Csanyi, chairman of OTP Bank, with wealth of 649.7 billion forints ($2 billion).

• Magyar said the tax proposals would shortly be published on the government website for public consultation. It is then expected to be approved by parliament, where Tisza has a large majority. REUTERS