From identifying obligations to preparing tax returns

The introduction of the Hungarian wealth tax may create new tax obligations, data collection requirements and planning challenges for many private individuals and family businesses.

Proper preparation is essential even before the rules enter into force. As part of our wealth tax advisory services, our experts assist clients in identifying potential tax liabilities, reviewing wealth structures, and assessing compliance and tax planning opportunities.

Our wealth tax advisory services

Our wealth tax advisory services cover the entire spectrum of preparation related to wealth tax obligations, from identifying assets falling within the scope of the tax and assessing the applicable valuation rules, through gathering the necessary data and documentation, to preparing tax returns and supporting tax authority procedures. Our services include:

• reviewing the scope of the wealth tax;
• identifying and categorising relevant assets;
• performing a preliminary calculation of the expected wealth tax liability;
• reviewing family and business wealth structures;
• analysing wealth tax risks and planning opportunities;
• reviewing the tax treatment of domestic and foreign assets;
• analysing related inheritance, gift and wealth management considerations;
• supporting the collection of data and documentation required for tax return preparation;
• reviewing related corporate reporting obligations, particularly those connected with hidden reserves;
• preparing wealth tax returns;
• supporting tax authority consultations and audits;
• providing ongoing compliance support.

Who and what may be affected by the wealth tax?

The obligations are not limited to wealthy Hungarian private individuals. The tax may apply to the entire domestic and foreign wealth of Hungarian tax resident individuals and wealth management structures, as well as to Hungarian-linked assets of foreign resident individuals and wealth management taxpayers. Significant shareholdings and real estate assets may all fall within the scope of the tax.

Those particularly affected may include: 

• private individuals with substantial private wealth;
• owners of family businesses;
• investors owning multiple real estate properties;
• individuals holding significant securities portfolios;
• private individuals with foreign assets;
• family businesses preparing for generational transition;
• individuals involved in trust structures, private foundations or other wealth management arrangements;
• foreign individuals working in Hungary. 

Why WTS Klient Hungary?

The introduction of this new Hungarian tax raises complex valuation, tax and documentation issues. The assessment of shareholdings, holding structures, real estate assets and foreign assets often requires the coordinated involvement of multiple areas of expertise. Through the wealth tax advisory service of WTS Klient Hungary, you can benefit from:

• a comprehensive tax and legal approach;
• access to the international WTS Global network;
• extensive experience in the taxation of private individuals and business owners;
• integrated compliance and tax planning support;
• coordinated handling of tax, valuation and international matters.

Our experts can help you assess potential wealth tax exposure and prepare the necessary data, valuations and documentation even before the legislation is finalised.

Request a proposal from us. We are ready to assist you!