Hungary expands tax authority wealth investigations

In late July 2026 the Hungarian government moved to overhaul wealth‑related tax oversight. A draft law announced on 22 July would exempt assets transferred into trusts from immediate taxation, applying tax only when beneficiaries withdraw amounts exceeding their original contribution. The proposal was coupled with warnings from EY that the tax administration (NAV) might revive its suspended wealth‑investigation powers, using advanced data‑analysis tools to scrutinise large property purchases, luxury consumption, foreign holdings, crypto assets and complex ownership structures.

Four days later, on 26 July, the government confirmed that NAV would receive explicit authority to probe the assets of politicians and their relatives retroactively for up to 20 years. Officials emphasized a shift toward examining more recent holdings rather than historic ones and noted ongoing, yet unresolved, investigations into foundations linked to the Hungarian National Bank. The expanded powers were presented as part of broader efforts to increase transparency and strengthen anti‑corruption measures.

Together, the two announcements show a rapid progression from a legislative draft hinting at tighter wealth scrutiny to the formal grant of extensive investigative authority to the tax authority.