# Hungarian government wealth and small business tax reforms > Live situation record from CLSTR: https://clstr.news/situations/hungarian-government-wealth-and-small-business-tax-reforms > Updated: 2026-10-09T16:57:34.000Z. Sources: 34. Developments: 5. Péter Magyar, leader of the Tisza Party, has detailed his economic policy proposals as part of a broader initiative titled ‘Operation Cleansing Fire,’ which aims to address systemic corruption within the Hungarian state. A central component is the introduction of a wealth tax scheduled for January 1, 2027. The plan specifies a 1 percent tax on the portion of assets exceeding one billion forints, rising to 1.5 percent for assets exceeding 100 billion forints. This tax is intended to cover real estate, investments, corporate holdings, and assets held abroad, while allowing for deductions related to loans, real estate, and vehicle taxes. Following these proposals, the Hungarian government announced its plans for the tax, which will target individuals with net wealth exceeding 1 billion forints. The tax base is broad, encompassing savings, personal property, company assets, investment funds, and assets held in trust. For domestic tax residents, the tax will apply to both Hungarian and foreign assets. To prevent asset concealment, the regulation includes provisions addressing wealth transferred to spouses or minor children. Finance Minister András Kármán noted that taxpayers can choose to donate 5 percent of their wealth tax to public causes. The National Tax and Customs Administration (NAV) will provide online calculators for asset valuation, with the first payments expected by August 31, 2027. Regarding the ‘kata’ small business tax system, Magyar proposes expanding eligibility to over 100,000 new small businesses. As the 2027 reforms approach, debate continues regarding the ‘kata’ system. A key feature of the draft is restoring the ability for eligible individuals to invoice companies, a practice restricted in 2022. While this offers tax advantages, experts from Niveus warn it could increase the risk of “disguised employment,” where entrepreneurial contracts mask actual employment relationships. ## Claims - A 1 percent tax rate will apply to wealth portions between 1 billion and 100 billion forints. (corroborated by 9 sources) - A 1.5 percent tax rate will apply to wealth portions exceeding 100 billion forints. (corroborated by 9 sources) - The tax base includes assets held both in Hungary and abroad for domestic tax residents. (corroborated by 9 sources) - The tax applies to savings, real estate, personal property, company assets, and investment funds. (corroborated by 9 sources) - The Hungarian government is planning to introduce a new wealth tax. (corroborated by 8 sources) - Finance Minister András Kármán stated that the tax aims to strengthen the principle of shared social burden. (corroborated by 7 sources) - Real estate values for the tax base will be determined using market prices or indexed historical transaction values. (corroborated by 6 sources) - The regulation is designed to prevent asset concealment by transferring wealth to spouses or minor children. (corroborated by 5 sources) ## Timeline ### 2026-10-09: Hungary to introduce new wealth tax for high-net-worth individuals Hungary plans to introduce a wealth tax on January 1, 2027, targeting individuals with net assets over 1 billion forints. Rates will range from 1% to 1.5% based on total wealth. 9 sources. https://clstr.news/cluster/hungary-proposes-new-wealth-tax-for-high-net-worth-individuals ### 2026-10-09: Hungary KATA tax reform sparks debate over entrepreneurship and employment risks Proposed 2027 reforms to Hungary’s KATA tax system aim to allow invoicing companies again, but concerns remain regarding higher fixed taxes and the potential for increased disguised employment. 4 sources. https://clstr.news/cluster/hungarian-entrepreneurs-react-to-proposed-2027-kata-tax-reform ### 2026-10-04: Hungarian KDNP leader claims wealth tax will hit SME owners KDNP leader Bence Rétvári claims Hungary's planned wealth tax will unfairly burden domestic SME owners and the middle class rather than just the ultra-wealthy. 2 sources. https://clstr.news/cluster/hungarian-kdnp-leader-claims-wealth-tax-will-hit-sme-owners ### 2026-09-28: Hungary plans new wealth tax targeting assets over 1 billion forints Hungary plans to introduce a wealth tax in January, potentially targeting assets over 1 billion forints with progressive rates for much larger fortunes. 2 sources. https://clstr.news/cluster/hungary-plans-new-wealth-tax-targeting-assets-over-1-billion-forints ### 2026-09-25: Péter Magyar announces wealth tax and small business tax reforms Prime Minister Péter Magyar announced a new wealth tax starting January 2027 and plans to expand the 'kata' small business tax system, alongside new programs to reduce medical waiting lists. 27 sources. https://clstr.news/cluster/hungary-wealth-tax-leaked-details-reveal-2026-proposal --- Cite as: Hungarian government wealth and small business tax reforms. CLSTR, https://clstr.news/situations/hungarian-government-wealth-and-small-business-tax-reforms