Hungary tax reform exempts transferred assets and signals possible revival of wealth investigations

The Hungarian government has submitted a draft law to amend personal income‑tax rules for trust (BVK) and private‑foundation assets. From 31 August 2026, assets transferred into a trust will not create a tax liability; tax will only apply when a beneficiary withdraws assets that differ from the original contribution, with dividends taxed at 15 % plus up to 13 % social‑security levies. Corporate tax and stamp duties remain unchanged, and inheritances continue to be tax‑free, making the new regime attractive for estate planning.

At the same time, EY warns that the National Tax and Customs Administration (NAV) may restore wealth‑investigation powers that were largely suspended in 2016. New data‑analysis tools could enable scrutiny of large real‑estate purchases, luxury consumption, foreign holdings, crypto assets, and complex ownership structures, focusing on cases where lifestyle appears inconsistent with declared income. A revival of such investigations would increase enforcement alongside the tax‑exemption changes.