This gives them flexibility and the ability to control the necessary payments in this country.
Most banks require a minimum number of documents from foreigners who want to open a bank account in Hungary.
Our attorneys in Hungary can help guide you through the process if you want to open a bank account for a company or for personal use.
How to open a bank account in Hungary in 2023
You can open following kinds of bank accounts in Hungary:
- Saving account;
- Basic account;
- Current account;
- Foreign currency account.
Several banks in Hungary allow foreigners to open an account just by presenting a valid passport and proof of Hungarian residence, which is usually accepted in the form of an address card, a residence card, or proof of address abroad. However, some banks may require a residence permit or an employment permit.
The fees for opening an account, for issuing a card and for other services generally vary depending on the chosen bank.
Foreign individuals should consider certain aspects when choosing the desired bank, such as the number of available branches throughout Hungary, the number of available ATMs and other issues related to client benefits.
Credit cards are widely accepted throughout stores in Hungary, however, when shopping in small grocery stores or souvenir shops, individuals are advised to carry some cash with them.
If you need help in order to open a bank account in Hungary or encounter other issues, please contact our Hungarian law firm.
Banking in Hungary
The official currency in Hungary is the Hungarian Forint (HUF). The denominations of the banknotes in Hungary are: 500 HUF, 1000 HUF, 2000 HUF, 5000 HUF, 10,000 HUF and 20,000 HUF. Coins are available with the following denomination: 5 HUF, 10 HUF, 20 HUF, 50 HUF, 100 HUF and 200 HUF.
Your account in Hungary will generally allow the use of the Hungarian Forint and/or other currencies, like Euros or US Dollars.
Many international banks have opened branches in Hungary and foreigners have a wide range of banks to choose from, some of which also have available websites in English. OTP Bank Group is one of the largest commercial banks in Hungary.
Can foreigners open a bank account in Hungary?
In Hungary, a handful of banks enable foreigners to create accounts merely by providing their passports.
Some banks, on the other hand, may demand a non-resident client to have a work permit or a residency permit. In general, the cost of opening a bank account in Hungary, issuing cards, and other services vary based on the bank selected.
When picking a bank, foreigners must consider factors such as the number of branches accessible across Hungary, the number of ATMs available, and other factors that are helpful to the client. In 2023, a basic payment account is another option for opening a bank account in Hungary as a non-resident. These bank accounts provide basic banking services for free or at a low cost and are accessible to EU residents.
If you are a foreigner and you are looking out for information about how to open a bank account in Hungary, you are welcome to get in touch with our lawyers.
Furthermore, the skilled lawyers located at our law firm in Hungary can help you obtain residency if you have not acquired it yet. Obtaining residency can help you to initiate your process of opening a bank account in Hungary.
Benefits to foreigners for opening an account in Hungary
Hungary’s streamlined entrance system makes it a convenient jurisdiction for businesses. Entrepreneurs’ decisions to start a firm and open a bank account in Hungary are also impacted by legislation that encourages foreign investment and provides a wide range of investment options.
Foreign company owners that operate in Hungary and employ foreign workers should be aware of the benefits of opening a bank account here.
Foreigners who wish to create a bank account in Hungary must provide a minimum number of papers. If you open a bank account in Hungary, you will be able to make transactions in both the country’s currency and foreign currencies.
If you are a foreigner who wishes to immigrate to Hungary to seek banking benefits of this country, you can get in touch with our immigration lawyers. Furthermore, you should also know that Hungary is a country in central Europe. It has a population of over 8 million people, and the official language is Hungarian. If you are interested to learn about the types of visas that this country offers, get help from our lawyers. They will not only guide you but also practically assist you throughout the procedure of immigration to Hungary.
Our knowledgeable lawyers in Hungary will provide you with detailed information regarding banking in Hungary and its regulations.
Banking Law in Hungary in 2023
The banking system in Hungary is straightforward and many foreign banks have opened branches in Hungary. The Magyar Nemzeti Bank is Hungary’s national bank and a member of the European System of Central Banks and the European System of Financial Supervision. The national bank observes the implementation of the banking law throughout the entire territory of Hungary.
Although Hungary is a member of the European Union since 2004, the national currency is the Hungarian Forint (HUF).
Foreign investors in Hungary can choose the desired currency when opening bank accounts in Hungary. The fees often vary according to the chosen currency and initial deposits must be made when opening a bank account at a Hungarian bank.
Our lawyers in Hungary are ready to help you with tax compliance in Hungary and other economic matters and can also help you open a bank account in Hungary.
The Banking Law imposed new regulations starting with 2021 on Hungarian banks. Thus, all banking institutions that have Hungarian companies as clients are required to provide specific information on the said clients, which will be transferred to the Central Transparency Register.
You can request more details from our team of lawyers in Hungary. You can get in touch with our lawyers if you are seeking legal help regarding acquiring citizenship in Hungary. Before applying for citizenship, you should keep the following benefits in mind. Travel from Hungary to any of the Schengen states, as well as to Canada, the USA, and other countries is possible without a visa. The total number of nations that Hungarians can travel to without a visa is 187. The Hungarian passport is now ranked 10th in the Guide Passport Ranking Index. Getting a Hungarian passport gives you immediate access to global travel options.
Monetary policy in Hungary
The exchange rate in Hungary is established by the Hungarian Government together with the Magyar Nemzeti Bank. The reference currency is the forint-euro.
The Hungarian central bank publicly announces an inflation target and takes the necessary steps to meet the target. The prime objective is to obtain and maintain price stability in Hungary.
Inflation in Hungary is likely to remain low, under the 3% target for 2014. According to an analysis performed by the Hungarian Monetary Council, the Hungarian economy is growing steadily as of 2013 and the economic growth is likely to continue.
Our lawyers in Hungary can guide you if you are interested in investing in Hungary or opening a company.
Advantages of opening a bank account in Hungary
If you want to open a bank account in Hungary, please find below some of the advantages you can get:
1. Major transactions
For minor purchases, EMIs and Fintechs, Transferwise, Revolut, and N26 cards are useful. However, online banking such as digital transfer services, EMIs, and other online banks are not always reliable.
Even if you have a lot of money in your account, it is typical for them to be denied for major transactions. So, the individuals can open a bank account in Hungary as a safety net. This is especially significant if you are coming from a nation where banking options are restricted and you do not have access to foreign credit cards.
2. Hungarian banking for non-resident companies
Foreign businesses that have not been able to create bank accounts in other countries may be able to do so in Hungary.
Creating a bank account for a foreign firm in Hungary is not simple, and it is not a viable solution for everyone. But Hungarian banking may be a good thing for entrepreneurs and enterprises in dire need of a European bank account.
Although the process of opening a bank account for a non-resident company is exhaustive, you can rely on our skilled lawyers. They will provide you with detailed guidance on how to open a bank account in Hungary.
3. Blockchain or Cryptocurrency
Cryptocurrency users have difficulties with traditional banking. Their bank accounts are detected, stopped, and canceled more quickly and frequently than those of their peers.
It is advisable to have a backup banking alternative like those provided in Hungary for anyone active in crypto or blockchain-related company, who has crypto as a source of money, or who just has transactions that include bitcoin.
4. Corporate tax
Hungary has had one of the lowest corporate tax rates in Europe since 2017. Europeans with small internet businesses operating in high-tax EU nations (France, Germany, Italy, Spain, and so on) frequently relocate here. They form a Hungarian firm a “Kft” (a company type) and relocate their operations here.
The individuals can open a business bank account in Hungary after forming a Hungarian company or branch, which is also available for non-residents.
5. Remote European accounts
Hungary is one of the few nations where opening a bank account through the internet is still feasible.
We can help you open a bank account in Hungary or figure out your banking alternatives if you are a non-resident, foreigner, or company owner.
Our law firm in Hungary would be pleased to assist you if you want to know which particular banks will accept you, which account opening tactics to employ, how to avoid expensive fees, and how to overcome difficult documentation requirements.
If you want to learn more about the benefits of banking in Hungary, please get in touch with our experienced lawyers.
Recent changes in the Hungarian banking law
Bank lending in Hungary has decreased in the second part of 2014, as compared to the beginning of the year. The Hungarian prime minister has announced recent changes to the banking law that wish to help individuals who have foreign-currency loans in Hungary.
The newly approved law is a controversial measure that forces banks to refund borrowers who concluded consumer credit agreements, dated as far back as 2004. The banks must share the burden with individuals who have loans in foreign currencies, particularly Swiss francs.
In 2020, the Hungarian government passed a law allowing borrowers to repay their foreign currency-denominated loans early without paying a penalty fee. This was intended to help borrowers who had taken out loans in foreign currencies before the financial crisis of 2008, and who were struggling to repay their loans due to fluctuations in exchange rates.
The exact manner in which the banks will refund the borrowers was not yet described by the Hungarian Government.
For more information about the Hungarian banking system and the applicable legislation for foreigners and Hungarian nationals, please contact our law firm in Hungary.
Our law firm can help you open a bank account in Hungary. Our attorneys also offer a wide range of legal services, personalized to the exact needs of your company.
Our attorneys are ready to help you with any business issue you may encounter in Hungary.