Hungary Inheritance & Gift Tax Guide 2026

Overview — Inheritance and Gift Taxation (Illeték)

Hungary does not have an estate tax or death duty levied on the deceased's estate. Instead, inheritance tax (öröklési illeték) is imposed on the beneficiaries (örökösök) based on the value of the inherited assets and the relationship to the deceased. Similarly, gift tax (ajándékozási illeték) is payable by the recipient of a gift. The tax is administered by NAV as part of the stamp duty and property transfer system.

Inheritance Tax Rates (Öröklési Illeték)

Inheritance tax rates depend on the relationship between the deceased and the beneficiary:

• Spouse, direct descendants (children, grandchildren), and parents: 0% — fully exempt from inheritance tax
• Siblings and half-siblings: 5% on the portion up to HUF 100 million, 8% on the excess above HUF 100 million
• More distant relatives (aunts, uncles, cousins): 15% on the portion up to HUF 100 million, 21% on the excess above HUF 100 million
• Non-relatives (others): 25% on the entire value

The inheritance tax applies to both movable (cash, securities, vehicles) and immovable (real estate) assets. The tax base is the market value of the inherited assets at the date of death, less any debts and funeral expenses.

Gift Tax Rates (Ajándékozási Illeték)

Gift tax (ajándékozási illeték) applies to gifts made during the donor's lifetime. The rates mirror the inheritance tax rates:

• Spouse, direct descendants, and parents: 0% — fully exempt
• Siblings and half-siblings: 5% on the portion up to HUF 100 million, 8% on the excess above HUF 100 million
• More distant relatives: 15% on the portion up to HUF 100 million, 21% on the excess
• Non-relatives: 25% on the entire value

Gifts between spouses and direct family members are entirely tax-free. A gift is defined as a transfer of assets without consideration. Gifts that form part of ordinary social expectations (e.g., customary gifts, birthday presents) are exempt up to reasonable amounts.

Real Estate Inheritance and Gift — Additional Rules

Inheritance or gift of real estate may also trigger property-related costs:

• The inheritance/gift tax on real estate is calculated on the official market value assessed by NAV
• If the beneficiary sells the inherited property within 5 years, capital gains tax (15% SZJA) may apply on any increase in value since the date of inheritance
• Gifts of real estate must be registered with the Land Registry (Földhivatal), which involves additional administrative fees (not significant)

Exemptions and Reliefs

Key exemptions and reliefs in the inheritance and gift tax system include:

• Family inheritance: 100% exemption for spouse, children, grandchildren, parents, and grandparents
• Housing inheritance: If the inherited property was the deceased's primary residence and the beneficiary uses it as their primary residence, additional reliefs may apply
• Agricultural assets: Reduced rates may apply to agricultural land and farm assets to support family farming continuity
• Small inheritances: Inheritances with a taxable value below HUF 100,000 are exempt from tax

No Estate Duty

Hungary does not impose an estate duty on the deceased's estate as a whole. The tax is levied on individual beneficiaries based on their share of the inheritance. There is no probate tax or death duty payable by the estate itself. This means that the total tax burden depends entirely on who inherits — an estate passing entirely to a spouse or children generates zero inheritance tax.

Filing and Payment

Inheritance tax is assessed by NAV as part of the probate process. The executor or the beneficiaries must file an inheritance tax return within 60 days of the death (or within 120 days for complex estates). Gift tax must be declared and paid by the recipient within 30 days of receiving the gift. Payment can be made in instalments for large inheritances upon request.

FAQs

Is there any inheritance tax if I leave everything to my spouse?

No. Spouses are fully exempt from Hungarian inheritance tax, regardless of the value of the inheritance.

How do I value assets for inheritance tax purposes?

NAV determines the market value of assets at the date of death. For real estate, this is based on the official property valuation. For securities, the stock exchange price on the date of death is used. Bank accounts are valued at the balance on the date of death.

Do non-residents pay Hungarian inheritance tax?

Non-residents inheriting Hungarian assets (especially real estate located in Hungary) are subject to Hungarian inheritance tax at the same rates as residents. Assets located outside Hungary inherited by a Hungarian resident are not subject to Hungarian inheritance tax.

Disclaimer

This guide provides general information about Hungarian inheritance and gift tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Hungarian tax advisor (adótanácsadó) or NAV directly for advice specific to your situation. InvestmentKit does not provide tax advice.