The Hungarian Government has put forward a wealth tax aimed at individuals whose assets exceed $3.08m (Ft1bn).
According to a Reuters report, Prime Minister Peter Magyar announced the measure, which fulfils a campaign pledge made by his governing Tisza party.
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Under the proposal, an annual 1% tax would apply from January 2027 to the portion of a person’s wealth above that threshold.
Those holding more than Ft100bn would pay a higher rate of 1.5% on the amount above that level.
Magyar said the tax would cover all forms of wealth including real estate, investments, company holdings, and assets held outside Hungary. Loans would be deductible from the tax base.
He said the proposals would soon be posted on the government’s website for public consultation. Parliament, where the ruling party holds a large majority, is then expected to approve them, according to the news agency.
Later this month, the government is due to present its 2027 budget and a road map for adopting the euro.
It is still unclear how the new tax will affect next year’s budget.
Last month, Bloomberg reported that the Hungarian Government planned to introduce a wealth tax as part of an effort to raise levies on the country’s wealthiest people.
According to the report, the move came as proposals for wealth levies have been gaining ground on both sides of the Atlantic, with politicians seeking to increase funding and reduce inequality.
