New Luxury Tax Introduced in Hungary

With the luxury goods market in tatters, sales of luxury real estate and yachts drying up faster than an ice cube in the Nevada desert and luxury goods makers going broke left and right, the Hungarian government has announced a new "luxury tax," which will apply to any luxury goods and any luxury real estate worth over 30 million forints ($150,000) which may seem a low figure – but not for Hungary. The tax will be introduced in 2010 and will be applied at a rate of 0.35% up to 50 million florints and 0.5% over that figure.

Hungary - New Luxury Tax

The former communist country seems to be heading back in that direction, or perhaps more appropriately taking a "Robin Hood," approach. Take from the rich and give to the poor, because at the same time they are reducing taxes on the lower income brackets and adding a 30% tax on incomes from coutries considered "tax havens."