Hungary’s government has unveiled a broad tax package for 2027 that would introduce a new wealth tax on individuals with more than HUF 1 billion in net assets, widen access to the KATA small-business tax regime and sharply reduce the preferential tax ceiling available to professional footballers and other athletes.
Prime Minister Peter Magyar said the wealth tax would take effect from January 1, 2027, with a 1% rate applied to net wealth above HUF 1 billion and a 1.5% rate above HUF 100 billion. The proposal has been published for public consultation and is expected to proceed to parliament.
The tax would cover real estate, investments, company stakes, assets held abroad and wealth placed under trustee or similar asset-management structures. Loans would be deductible when calculating the tax base, while property and vehicle taxes already paid could also be offset.
Around 15,000 individuals could be affected
The first tax liability would be calculated using asset values at the end of 2026, with the first payment due by August 31, 2027. Only individuals with net assets above HUF 1 billion would be required to file under the new regime.
Documents accompanying the draft estimate that the tax could affect around 15,000 wealthy individuals and about 2,000 asset-management taxpayers. The Finance Ministry expects the measure to generate HUF 800 billion in additional budget revenue over a four-year period, rather than in a single year.
KATA to reopen to more than 100,000 small businesses
The government is also preparing a substantial expansion of KATA, Hungary’s itemised tax regime for small businesses. Under the new rules, second-job entrepreneurs, pensioners and people working while enrolled at university would once again be allowed to opt into KATA.
Businesses would also regain the ability to invoice companies and other organisations rather than being restricted largely to private individuals. Magyar said more than 100,000 additional small businesses could become eligible.
The annual revenue ceiling would rise from HUF 18 million to HUF 22 million. For entrepreneurs using KATA as their main source of income, the monthly flat-rate payment is planned to rise to HUF 100,000. Those invoicing only private individuals would receive a transition period, paying HUF 75,000 per month in 2027 before moving to HUF 100,000 from 2028. Second-job KATA taxpayers would pay HUF 50,000 per month.
Corporate invoices would face an additional 15% tax
The revised regime would also reopen corporate invoicing, but with an additional tax mechanism. Income invoiced to companies and organisations would face a 15% levy, with the flat KATA payment deductible against that liability.
For a full-time KATA taxpayer, the additional payment would effectively begin once annual corporate-sourced revenue exceeds around HUF 8 million under the proposed structure.
The government also plans to increase the income base used to calculate sick pay, maternity benefits and future pensions for KATA taxpayers. The changes make the package more generous in terms of eligibility and revenue limits, while simultaneously raising the basic monthly burden for many existing full-time KATA users.
Footballers lose HUF 500 million preferential ceiling
The third major change targets professional athletes. Under the current EKHO simplified tax regime, professional footballers and some other athletes can use the preferential system on annual income of up to HUF 500 million.
From 2027, that ceiling would be cut to HUF 60 million, bringing athletes into line with journalists, actors, performers and other professions already subject to the general EKHO threshold.
The change represents an 88% reduction in the maximum income eligible for the preferential regime. The government has framed the move as the removal of a special exception in the tax system rather than the abolition of EKHO itself for athletes.
