Summary of the main tax and legal changes affecting fiduciary asset management

Personal Income Tax

From 12 September 2023, the Hungarian Personal Income Tax Act will consider the transfer of assets as a sale. This means that the settlor will have to pay tax on the difference between the contract value of the assets transferred and the amount spent on their acquisition. The trustee will have to provide the beneficiaries with a certificate of the contract value within 30 days of the transfer of the assets and will also have to provide information on this to the Tax Authority.

The tax payable on the transfer of assets will not be payable in one amount by the individual Settlor. Instead, they can choose to declare and pay the tax liability arising from the transfer over a period of 3 years. If the value established when the property is transferred is not higher than the amount spent to acquire it, the transfer will not be taxable.

Even if the beneficiary can only acquire ownership of the asset after the settlor’s death, no income tax is payable on the transfer. However, if the beneficiary would have acquired the assets in trust earlier, he or she would have to pay income tax and an additional 20% penalty if the tax can no longer be recovered from the settlor.

Another exception to the general rule is when a trust is created on the death of a person, where death creates the legal relationship. In this situation, too, the beneficiary can only receive the property after the death of the settlor.

If the trustee provides a service free of charge – e.g. a free use of a real estate – on the assets held in trust, the costs and expenses on the assets held in trust will be taxable as a taxable benefit.

Social Contribution Tax

In addition to the current 15% personal income tax, a 13% social contribution tax will also be payable on deposit interest and interest income from newly acquired securities after 1 July 2023.

Investments in assets in trust will not be subject to the new tax burden. The beneficiary will not be taxed on the income from a long-term investment account held by the trustee for the beneficiary.

Corporate Income Tax

In the case of assets in trust and wealth management foundations, the pre-tax result is reduced by income from long-term investment determined in accordance with the provisions of the Personal Income Tax Act.

Whistleblowing System

On 24 July 2023, the so-called Whistleblowing Act came into force, which was necessary to comply with the obligations of the relevant EU Directive.

Employers who employ at least 50 persons under an employment relationship are required to set up an internal whistleblowing system.

The Whistleblowing Act lists the employers, irrespective of the number of employees, who are required to set up an internal whistleblowing system. Therefore, it also applies to employers who fall within the scope of Act LIII of 2017 on AML and CFT Law, such as financial service providers; fiduciary asset managers; corporate service providers; accountants and tax advisors.


The acquisition of assets by a wealth management foundation as a beneficiary is not subject to gift tax.