Hungary announces 2027 tax reforms including wealth tax and KATA expansion

tax reform wealth tax KATA system interest rate cap pension increase

The Hungarian government has announced a comprehensive package of tax reforms scheduled for implementation in 2027. A central component is the introduction of a wealth tax targeting individuals with assets exceeding 1 billion HUF. The proposed rate is 1 percent for assets between 1 billion and 100 billion HUF, increasing to 1.5 percent for assets exceeding 100 billion HUF. This tax will cover real estate, investments, corporate holdings, and assets held abroad, though existing property and vehicle taxes may be deductible from the base.

Additionally, the government plans to significantly reform the KATA (small business) tax system. The expansion will allow pensioners, students, and part-time entrepreneurs to utilize this simplified taxation method again, potentially benefiting over 100,000 small businesses. While the KATA system becomes more accessible, monthly fixed tax rates for full-time KATA users will increase to 100,000 HUF.

Other notable changes include the removal of preferential EKHO tax status for professional athletes, reducing their threshold from 500 million HUF to the standard 60 million HUF. In social policy, the minimum old-age pension is set to increase from 28,500 HUF to 120,000 HUF starting in 2027. Furthermore, the government is in ongoing negotiations with the Hungarian Banking Association regarding the potential phasing out of the mortgage interest rate cap, which currently affects approximately 220,000 contracts.

Entities

András Kármán · Hungarian Banking Association · Hungarian Ministry of Finance · Hungarian National Bank · Hungarian government · Hungary · Magyar Nemzeti Bank · Magyar Péter · Ministry of Finance · National Tax and Customs Administration · Peter Magyar

Claims

What the coverage asserts, and how many sources carry each claim.

[○ 1 SOURCE] The government intends to reduce the tax on minimum wages from 15 percent to 9 percent. privatbankar.hu
[● 2 SOURCES] Approximately one-tenth of the 200,000 to 220,000 mortgage customers could be sensitively impacted by the potential removal of the interest rate cap. kanizsamediahaz.hu · index.hu
[● 2 SOURCES] Negotiations aim to find a mutually acceptable solution to prevent sudden, unmanageable increases in mortgage repayments for vulnerable borrowers. kanizsamediahaz.hu · index.hu
[● 2 SOURCES] The government and the Hungarian Banking Association are continuing negotiations regarding the potential phasing out of the interest rate cap. kanizsamediahaz.hu · index.hu
[○ 1 SOURCE] The 2027 budget proposal must be submitted to Parliament by October 31. privatbankar.hu
[● 2 SOURCES] There are approximately 220,000 mortgage contracts currently under the interest rate cap. kanizsamediahaz.hu · index.hu
[● 2 SOURCES] The government plans to increase the old-age pension minimum from 28,500 HUF to 120,000 HUF starting in 2027. privatbankar.hu · www.blikk.hu
[○ 1 SOURCE] Vulnerable borrowers are defined as those facing a monthly repayment increase of at least 5,000 HUF while their debt-to-income ratio exceeds 40 percent, or those who became pensioners since the cap's' kanizsamediahaz.hu
[● 7 SOURCES] The KATA tax system will be expanded to include pensioners, students, and part-time entrepreneurs. nyugatifeny.hu · egriugyek.hu · hirklikk.hu · szeged365.hu · szekszardihirek.hu · +1 more
[● 6 SOURCES] A wealth tax will be introduced for assets exceeding 1 billion HUF starting in 2027. egriugyek.hu · hirklikk.hu · szeged365.hu · novekedes.hu · szekszardihirek.hu · +1 more
[● 2 SOURCES] Negotiations are ongoing with the Hungarian Banking Association regarding the potential phasing out of the interest rate cap. kanizsamediahaz.hu · index.hu
[● 4 SOURCES] A wealth tax will be introduced for assets exceeding 1 billion HUF starting in 2027, with a 1 percent rate for assets over 1 billion HUF and 1.5 percent for assets over 100 billion HUF. egriugyek.hu · hirklikk.hu · novekedes.hu · szekszardihirek.hu