tag: wealth planning

Published on Tuesday, the wealth tax proposal sets out a more complex and far-reaching framework than previously anticipated.The proposed legislation introduces its own valuation rules, meaning that the taxable value of business assets and real estate could significantly exceed expectations. Alongside the HUF 1 billion threshold and the standard tax rate of 1%, the proposal now provides a clearer picture of who would be affected, how wealth would be valued and what compliance obligations taxpayers would face.

It is well known that inheritance between direct relatives is tax-free in Hungary, meaning that no public charges have to be paid when inheriting from one’s parents. However, the situation becomes more complicated when there is an international element to the inheritance: either the children live abroad or part of the estate is located abroad. In such cases, careful planning is required to ensure that a death does not result in unpleasant tax consequences in addition to its emotional strain.