Hungary proposes wealth investigations for politicians and families

The Hungarian government has launched a social consultation process for a new legislative proposal aimed at investigating the wealth accumulation of political leaders and their close associates. The proposed law would empower the National Tax and Customs Administration (NAV) to conduct risk-based analyses to ensure that the assets of Members of Parliament, ministers, state secretaries, and other high-ranking officials align with their declared taxed income.

The investigation would extend to spouses, domestic partners, and family members living in the same household, as well as entities or individuals to whom assets were transferred. The plan could affect up to 5,000 people and is estimated to cost approximately 3 billion HUF over four years, potentially requiring 50 new tax inspectors. If a tax deficit of at least 5 million HUF is identified, the names of the individuals involved may be made public for 90 days.

Separately, NAV is implementing a new receipt data reporting requirement for small businesses, such as hairdressers and electricians, effective September 1. To assist with this transition, tax inspectors are providing information cards with QR codes that lead to tutorials and digital tools like the ePénztárgép application to help businesses comply with the new online reporting obligations.