In a dimly lit TV studio, one of Hungary’s richest men is close to tears. It’s early May, just weeks after the general election that ended Viktor Orbán’s 16-year hold on power, and advertising mogul Gyula Balásy has something to say.
Balásy tells the interviewer he has just handed over his businesses to the state, along with a chunk of his personal savings. He even brought a notarized deed—a legal document showing the change of ownership.
“Given the current situation, I don’t think our group of companies has a future,” he says.
Balásy was one of the biggest winners of the Orbán era. His companies ran a network of poster sites known as the blue billboards, where figures like financier George Soros and European Commission President Ursula von der Leyen were labeled public enemies in state-funded propaganda campaigns.
Now, those billboards are empty. Hungary’s new leader, Péter Magyar, and his party, Tisza, are focused on Orbán’s oligarchs. Not only has Balásy lost access to public sector contracts, but the tax bill on his remaining millions is likely to go up.
Finance Minister András Kármán has promised that by June 5, he will provide more details on a planned overhaul of the tax system. This could make Hungary the first current EU member to introduce a new wealth tax since the 1980s.
Announcing the policy in a post on X last summer, Magyar said the move was “not a punishment but a sign of social justice and solidarity in a functioning and humane country.”
So far, details are limited. In its manifesto, Tisza promised a 1% annual tax on assets over 1 billion forints (about £2.4 million), applied only to the amount above that threshold. Property, company shares, and assets held abroad would all be included, Magyar said on X, as well as items like yachts, private jets, paintings, and sports cars. To prevent avoidance, wealth owned by spouses and children would also be taxed.
“Hungary badly needs a wealth tax, for two reasons,” says Zoltán Pogátsa, a political economist and lecturer at the University of West Hungary. First, he believes current taxes on wealth are too low, and second, he thinks it will promote accountability.
“Tisza’s wealth tax is a way of returning public money to the public coffers,” he says.
After studying the fortunes of the 50 richest Hungarians, as ranked by Forbes magazine, Pogátsa concluded that 38 of them either built their wealth under Orbán through public contracts, or were already rich but greatly benefited from government procurement during his time in power.
Many hold key roles in media, energy, construction, banking, and real estate. They are beneficiaries of what became known as the System of National Cooperation (NER), where political loyalty was rewarded with economic opportunities.
One of the most well-known NER oligarchs is Lőrinc Mészáros, who tops the Hungarian Forbes list with an estimated net worth of $5 billion. A gas fitter from the same small town as the former prime minister, his empire spans energy, construction, finance, tourism, and media. Years ago, he credited his fortune to three things—”God, luck, and Viktor Orbán”—though he has also attributed his success to intelligence and hard work.
At number 27 on the list, with $245 million, is Orbán’s son-in-law, István Tiborcz. His interests include property, hotels, and banking.
“Tisza’s wealth tax is a way of returning public money to the public coffers.” – Zoltán Pogátsa
The debate over wealth taxes is global, with the government in Brazil and trade unions in California pushing for similar legislation.The Green Party and many Labour MPs support the idea. In France, socialist President François Mitterrand introduced a wealth tax in 1982, but it was later repealed under Emmanuel Macron. Last year, the French parliament came very close to bringing it back, and it’s expected to be a major topic in next year’s presidential election. For now, though, Hungary looks set to act first.
Magyar has a free hand after securing a two-thirds majority in parliament. Described as an umbrella party, Tisza was originally center-right but expanded to unite anti-Orbán voters from across the political spectrum.
[Image: A view of Budapest at night. Hungary has entered a new era after Viktor Orbán’s 16-year grip on power. Photograph: Anadolu/Getty Images]
If there’s one thing its supporters agree on, it’s the need to dismantle the NER system. Magyar has promised to reform the public tender process and set up a National Asset Recovery and Protection Office to tackle corruption. However, in many cases, wealth was acquired under the rules that were in place at the time.
“This is where I think the wealth tax could come in, where it’s immoral but legal,” says Pogátsa.
One or two business leaders have already spoken in favor. György Wáberer, a trucking and transport entrepreneur who backed Tisza during the campaign, told the news site Telex in April: “The rich pay taxes in other countries too, and the average person pays proportionally much more in taxes – this is unfair and this system must be changed. I’m happy if I have to pay a lot of tax because that means we’re probably earning a lot too.”
[Image: Demonstrators in the US. The wealth tax issue is a global one. Photograph: Bianca Otero/Zuma Press Wire/Shutterstock]
Not everyone agrees. Viktor Zsiday, an investment fund manager and economic commentator, says the solution to unfair enrichment should be criminal proceedings, not taxation. “It would be good if the wealth tax were not mixed up in public discussion with punishing those who have unfair income,” he wrote last year.
Zsiday is not against redistribution in principle, describing Hungary as “almost a tax haven for the rich,” but he would prefer higher tax rates on dividends and corporate profits.
“A wealth tax puts Hungarian enterprises at a disadvantage because their tax burden is higher than companies owned by non-Hungarian nationals,” he told the Guardian. “That is surely not what the government wants, but it is a campaign promise, so unfortunately it will be enacted.”
With a flat income tax rate, both low and high earners in Hungary pay only 15%. The rate for dividends and capital gains is also 15%. Inheritance tax is 18%, but immediate family members pay nothing on property. By comparison, the UK rate is 40%. Corporation tax is also low by European standards, at just 9%.
Since 2014, when Hungary introduced British-style trust laws, the ultra-rich have enjoyed generous tax exemptions on their private savings.
[Image: Gyula Balásy is interviewed by Tóthváradi Zsolt on the YouTube channel @kontrollhu in May. Photograph: YouTube/Kontroll]
To pay for public services, the Treasury has turned to other types of taxes. Workers pay welfare contributions of 18.5%. With a hefty 27% rate, VAT is the highest in the EU.
The result is a system where workers bear a disproportionate share. Sales taxes are among the most regressive ways to raise money because low earners spend a larger portion of their income on basics like food and fuel.
This leads to a massive concentration of assets at the top, says István Karagich, CEO of the business intelligence firm Blochamps Capital. Their research has been cited by people on all sides of the debate because the government collects only limited information on wealth.
“Inequality is not good for growth,” says Miroslav Palanský.
There are 4.2 million households.In Hungary, the top 1% own about 35% of the country’s assets, according to Karagich. The top 10% hold more than two-thirds. “This needs to change,” he says. “Let’s call it society’s revenge.”
However, he believes the 1 billion forint threshold is too low. “If you own two properties and a small company, you’d be hit by this tax. Two million pounds is nowhere near Jeff Bezos-level wealth. This tax would hurt Hungarian entrepreneurs running small and medium-sized businesses.”
He suggests a threshold of 5 billion forints—about £10 million—which was the original proposal when Magyar announced the policy last summer. At that level, the state would raise around 100 billion forints (£240 million) a year from up to 10,000 households. But since that’s only 0.25% of annual government revenue, the amount raised hardly seems worth the effort.
Still, Tisza has proposed other ways to get more from the wealthy, like ending tax exemptions for trusts. The extra money would go toward helping low earners. A basic income tax rate of 9% has been promised, along with cuts to VAT.
For Miroslav Palanský, an economics professor at Charles University in Prague and head of research at the Tax Justice Network, wealth taxes aren’t just about raising money—they can also boost the economy. “Inequality isn’t good for growth once it passes a certain point. When wealth is more evenly spread, more people have the chance to contribute to GDP.”
These changes should also improve transparency, since the government can only tax what it can measure. They might even bring some new names into the Forbes rankings.
This article was updated on 2 June 2026 to correct Gyula Balásy’s name from Balásy Gyula throughout, and to correct György Wáberer’s name from Gábor Bojár in the 20th paragraph.
Frequently Asked Questions
Here is a list of FAQs about Hungarys proposed wealth tax and the nervousness among Viktor Orbáns inner circle
BeginnerLevel Questions
1 What is this wealth tax Hungary is talking about
Its a proposed new tax on the assets of very rich peoplethings like expensive houses luxury cars yachts and large cash holdings The government hasnt finalized the details yet but the idea is to make the wealthy pay more
2 Who are Orbáns oligarchs
They are a small group of extremely wealthy Hungarian businesspeople who have become billionaires under Viktor Orbáns rule They often get government contracts favorable laws and state support and they are very loyal to the prime minister
3 Why are these oligarchs getting nervous
Because they are the main targets of this tax They have a lot of wealth tied up in fancy assets and theyre worried theyll have to pay a huge bill They also fear this could be a sign that the governments special treatment of them is ending
4 Is this tax meant to help regular Hungarians
Thats the official reason The government says it needs more money to fix the budget deficit and fund public services But critics say its a political move to distract from economic problems and to pressure the oligarchs
5 When will this tax start
Nothing is set in stone yet The government has floated the idea but no law has been passed It could be introduced in 2025 but its still being debated
Intermediate Advanced Questions
6 How is this different from Hungarys existing taxes
Hungary already has a flat income tax and a VAT that hits everyone A wealth tax is completely differentit targets existing assets not just your income or what you buy Its a new kind of levy on capital
7 What specific assets would be taxed
Early proposals mention luxury real estate highend vehicles and possibly large bank deposits or investment portfolios The exact thresholds havent been announced
8 Could this tax actually hurt the Hungarian economy
Yes potentially If the oligarchs panic they
