Remote Banking in Hungary

Banking Guide for Hungary

When moving to Hungary or planning an extended stay, understanding the banking system and options available can be crucial for managing your finances efficiently. This comprehensive guide will walk you through various aspects of banking in Hungary, including banks that accept foreigners, Know Your Customer (KYC) requirements, the availability of Wise and Revolut, ATM fees, multi-currency options, account opening processes, currency exchange tips, and clarifications on tax residency.

Banks Accepting Foreigners in Hungary

Most major banks in Hungary, such as OTP Bank, UniCredit, Raiffeisen Bank, and Erste Bank, are open to foreigners opening accounts. However, some banks might have specific requirements or restrictions, so it’s advisable to check with the individual bank before proceeding with the account opening process.

KYC Requirements in Hungary

As part of the KYC process, banks in Hungary typically require the following documents when opening an account:

1. Passport or national ID card 2. Proof of address (utility bill or rental agreement) 3. Proof of income (employment contract or bank statements) 4. Some banks may require a Hungarian tax identification number

Ensure you have these documents ready when visiting the bank to streamline the account opening process.

Wise and Revolut Availability

Wise (formerly TransferWise) and Revolut are popular digital banking services that offer multi-currency accounts and competitive exchange rates. Both services are available in Hungary and can be a convenient option for expats or frequent travellers.

By opening an account with Wise or Revolut, you can easily manage your funds in different currencies, make international transfers at lower costs, and benefit from real-time exchange rates.

ATM Fees and Multi-Currency Options

ATM fees in Hungary can vary depending on the bank and the type of transaction. While some banks may offer free withdrawals for account holders, others may charge a nominal fee per transaction. It’s advisable to inquire about ATM fees and any associated charges before using a particular ATM.

For those frequently dealing with multiple currencies, having a multi-currency account or using services like Wise or Revolut can help avoid excessive exchange fees and offer better exchange rates for foreign currency transactions.

Account Opening Process in Hungary

The process of opening a bank account in Hungary typically involves visiting a bank branch in person. Here is a general outline of the steps involved:

1. Choose a bank: Research different banks in Hungary and select one that best suits your needs. 2. Visit the branch: Schedule an appointment or visit the bank branch directly with all the required documents. 3. Complete the application: Fill out the account opening form and submit the necessary documents for verification. 4. KYC verification: The bank will verify your identity and documents as per the KYC requirements. 5. Fund your account: Deposit the minimum required amount to activate your account.

Currency Exchange Tips

When exchanging currency in Hungary, consider the following tips to get the best rates:

1. Compare exchange rates: Check rates offered by banks, exchange offices, and digital platforms to find the best deal. 2. Avoid exchanging at airports or tourist areas: Rates can be less favourable in these locations. 3. Use digital platforms: Consider using Wise or Revolut for competitive exchange rates and lower fees. 4. Monitor exchange rates: Keep an eye on currency fluctuations to exchange money at advantageous rates.

Tax Residency Clarification

In Hungary, your tax residency status is determined by various factors, including the number of days spent in the country, family ties, and economic interests. If you are unsure about your tax residency status, it’s advisable to consult with a tax advisor or the Hungarian tax authorities for clarification.

Understanding the tax residency rules can help you comply with Hungarian tax regulations and avoid any potential issues related to tax obligations.

Conclusion

Navigating the banking system in Hungary as a foreigner can be straightforward with the right information and preparation. By familiarising yourself with the banks accepting foreigners, KYC requirements, digital banking options like Wise and Revolut, ATM fees, multi-currency options, account opening procedures, currency exchange tips, and tax residency rules, you can efficiently manage your finances and enjoy your stay in Hungary. Remember to research specific banks and their procedures to ensure a smooth banking experience tailored to your needs.