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The advisory firm said compiling asset inventories and valuations could take months for those with complex holdings.
Under draft legislation released for public consultation, the rules could take effect Dec. 15, 2026. The first filing and payment deadline would be Aug. 31, 2027.
The proposal would generally apply to net wealth exceeding HUF 1 bln. The portion above that threshold would be taxed at an annual rate of 1% up to HUF 100 bln, with a 1.5% rate applying to the portion above HUF 100 bln.
Rather than taxing individual categories of property separately, the framework would assess a taxpayer’s total net wealth.
Assets potentially covered include real estate, securities, bank deposits, business interests, receivables, crypto assets, insurance policies with a surrender value, investment precious metals and certain high-value movable assets.
“The wealth tax is not simply a new type of tax, but a complex data collection, valuation and documentation task. Those affected must first understand precisely which assets fall within its scope, then compile a detailed asset inventory. For individuals and families with asset structures spanning multiple countries, business interests or trust arrangements, preparation could take months,” said András Módos, head of EY’s tax and legal advisory business.
EY said determining asset values would be particularly important. While bank balances and listed securities are relatively straightforward to value, interests in family businesses, foreign properties and complex trust structures could require more extensive calculations and documentation.
The draft also contains detailed provisions covering the division of family wealth, jointly owned marital assets, the treatment of assets belonging to minor children, and the taxation of trusts and private foundations.
“With the first valuation date approaching, it is advisable to assess potential exposure now, gather the necessary data and documents, and identify assets that may require separate valuation. Under the draft, a comprehensive picture of the entire asset position is a prerequisite for accurately determining the tax liability,” Módos said.
The first assessment would generally reflect the taxpayer’s position on Dec. 31, 2026, with exceptions where Hungarian tax residency or tax liability associated with a trust arrangement ends.
The tax would operate through self-assessment, with taxpayers required to calculate, report and pay their liability by Aug. 31 of the following year.
EY said initial preparation should include reviewing tax residency, ownership arrangements, foreign assets and any trust or foundation structures. This would be followed by compiling a complete asset inventory, selecting valuation methods and preparing any necessary specialist or business valuation work.
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