Open a Bank Account in Hungary
Opening a Bank Account in HungaryUpdated on Friday 24th April 2020
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Foreign business owners who own companies in Hungary and foreign employees need to consider the advantages of opening a bank account in Hungary. 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
A number of banks in Hungary allow foreigners to open an account just by presenting a valid passport. 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.
Banking Law in Hungary
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.
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.
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.
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.