Hungary is proposing the introduction of a new exit tax for individuals from 1 January 2027. The new rules would apply to certain individuals who cease to be Hungarian tax residents while holding significant financial assets and, as a result of the change of residence, Hungary loses or sees its taxing rights restricted in respect of the future disposal of those assets.
The proposal is particularly relevant for high-net-worth individuals, business owners, founders and investors considering a move from Hungary. It should also be viewed in the context of the broader changes affecting the taxation of private wealth in Hungary. Although the legislation does not expressly state that the exit tax is linked to the proposed wealth tax, its stated objective is to prevent undesirable transfers of wealth abroad that reduce Hungary's future taxing rights. Against the background of the separate wealth tax proposal, the new exit tax could therefore materially limit the effectiveness of relocating
