Nonresident individuals
For nonresidents, the draft would limit liability to specified Hungary-connected assets. Holding Hungarian property through a foreign company would not automatically remove it from scope.
Based on the supplied draft. The rules described have not been verified as effective law; the final provisions may change.
Which Hungarian connections would matter?
Section 4(2) would cover the following assets. Residence first needs assessment under the draft’s definition and exceptions.
- Hungarian real estate
- property rights connected with Hungarian real estate
- interests in companies formed under Hungarian law
- interests in a company with Hungarian real-estate assets as defined by the draft
Debt deductions and treaties
Section 6(2) would require a direct link between the debt and acquiring, creating, maintaining or improving the taxable asset. The HUF 1 billion net-wealth threshold would also apply. Section 8 would not create an automatic treaty exemption.
Cross-border records
Foreign corporate and official records help assess ownership chains, entitlements and values together.
- residence-related documents
- ownership of Hungarian property and companies
- links between foreign holding companies and Hungarian property
- debt evidence and relevant treaty
Frequently asked questions
Would all nonresident wealth count?
No. Section 4(2) would limit scope to specified Hungarian property, related rights and company interests.
Could any overseas loan be deducted?
Not automatically. Section 6(2) would require qualifying evidence and a direct connection with the taxable asset.
Open draft (Hungarian)