You should not experience much difficulty managing your banking and taxes in Hungary, as the country offers all the financial amenities expected of a modern European state.
Money in Hungary
Although it has been a member of the EU since 2004, Hungary’s official currency is still the Hungarian Forint (HUF) rather than the Euro. An official date for changing to the Euro has yet to be set.
Historically, the forint was divided into 100 fillérs, but fillérs are not in circulation any more; today they are merely used as a quantity in accounting.
- Notes: 500 HUF, 1,000 HUF, 2,000 HUF, 5,000 HUF, 10,000 HUF, and 20,000 HUF
- Coins: 5 HUF, 10 HUF, 20 HUF, 50 HUF, 100 HUF, and 200 HUF
Banking in Hungary
Banking in Hungary is relatively simple and up to the standards that expats from other Western countries have become accustomed to. Dozens of banks operate in Hungary, and many of them are foreign-owned.
Banking hours in Hungary are from 9am to 5pm from Monday to Thursday, and on Fridays banks tend to close early, usually at 3pm or 4pm. Most banks are closed on Saturdays and Sundays.
Opening a bank account
When opening a bank account, you will be asked if you’d like to open a Forint, Euro or US Dollar account; each account has its pros and cons and varying fee structures. Minimum deposit requirements are typically the equivalent of USD 100.
Expats opening a bank account in Hungary will need to bring their passports. An address card is also sometimes required and a letter from an employing company with proof of income is also helpful, but not essential. Non-residents must also provide a residence permit or work visa. Internet banking is frequently included with most bank accounts.
Credit cards and ATMs
ATMs are widely available in Hungary, and debit and credit cards can be used in most large supermarkets and chain stores.
If you want to use a debit card, you will need to make an initial deposit. While credit cards are available, it is notoriously difficult for an expat to obtain one from a Hungarian bank. For this reason, expats generally use credit cards from their home country or an international bank, rather than ones from Hungarian banks.
Taxes in Hungary
If you’re working in Hungary and your only income is your salary, you will not be required to file tax returns, as tax is deducted from your monthly salary.
Foreign residents employed in Hungary are only required to pay tax on their income earned within Hungary. If you stay in Hungary for more than 183 days of the year, you will be classified as permanent residents and required to pay tax on your income earned in both Hungary and abroad.
Hungary has a flat income tax rate of 15 percent. Expats working in Hungary should note that the country has double taxation agreements with several countries, so they don’t pay tax in two countries. You are advised to check this with the tax office in your home country.