Hungary's new government, led by Prime Minister Péter Magyar, is preparing to introduce a wealth tax aimed at the oligarchs who prospered under former leader Viktor Orbán. The policy, announced by Magyar on social media last summer, is described as 'a sign of social justice and solidarity' after years in which political loyalty was rewarded with economic opportunity.
The tax would apply a 1% annual levy on assets exceeding 1 billion forints (£2.4 million), covering property, shares, foreign assets, and luxury items such as yachts, private jets, and sports cars. Wealth held by spouses and children would also be included to prevent avoidance. Finance Minister András Kármán has promised further details by 5 June.
One of the first high-profile beneficiaries of the Orbán era to feel the pressure is advertising mogul Gyula Balásy, who recently surrendered his businesses and a portion of his savings to the state. His company operated the 'blue billboards' used for state-funded propaganda campaigns targeting figures like George Soros and Ursula von der Leyen. 'In the current situation, I don’t think that our group of companies has a future,' Balásy said in a television interview.
Political economist Zoltán Pogátsa of the University of West Hungary argues that the tax is necessary because existing wealth taxes are too low and to ensure accountability. He notes that 38 of Hungary's 50 richest individuals, according to Forbes, either acquired their wealth under Orbán through public tenders or benefited extensively from state contracts. Notable figures include Lőrinc Mészáros, worth an estimated $5 billion, and Orbán's son-in-law István Tiborcz, with $245 million.
If implemented, Hungary would become the first current EU member to introduce a wealth tax since the 1980s. Magyar's Tisza party, which secured a two-thirds parliamentary majority, has made dismantling the so-called System of National Cooperation (NER) a priority. The NER was a network where political loyalty was rewarded with economic opportunities in sectors such as media, energy, construction, banking, and real estate.
