Hungary is putting a price tag on big fortunes. Peter Magyar, who won a landslide in April after campaigning against corruption during Viktor Orban's 16-year rule, confirmed a new wealth tax that starts in 2027. He framed it as making the richest contribute more after a politically connected elite grew wealthy, including members of Orban's own family. As he put it, "There were a lot of newly minted billionaire compatriots who tried to lobby against the wealth," adding, "I suggest they pay the tax honorably."
Two tiers define the levy: 1% on assets over 1 billion forint and 1.5% once holdings top 100 billion forint. The latest Hungarian Forbes list counted 28 people with wealth above 100 billion forint. Leading the pack is Lorinc Meszaros, Orban's childhood friend, whose holdings span finance, energy, travel, construction and farming, and whose assets were valued at $5.5 billion.
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The tax is due once a year based on an individual self-assessment. Only those with assets above 1 billion forint must file, and their paperwork is due by Aug. 31 of next year using valuations as of the end of 2026. Magyar did not say how much revenue the government expects from the measure.
The wealth tax will appear in next year's budget draft, due by Oct. 15, a test of how serious the government is about budget consolidation. Magyar has also pledged to shrink the deficit to 3% of GDP by 2030 so the country meets euro criteria on debt and deficits before the decade closes, with eventual adoption of the common currency to follow. Hungary is not alone in rethinking how to tax large fortunes.
California is debating a billionaires' tax, New York has floated new levies, Swedish parties are weighing a wealth tax, and Norway's higher wealth tax has prompted many to move abroad. For your wallet, the takeaway is simple: when governments go hunting for revenue and to narrow inequality, how wealth is structured and taxed can shift over time.
How a levy is designed determines whether it raises anything. Get the free Market Briefs daily newsletter and follow the detail.
