How to Open a Bank Account in Hungary

A bank account in Hungary opens up a great number of opportunities for foreign nationals. Even though the country still does not use the euro for domestic settlements, working with local financial institutions lets you enjoy the benefits of one of the healthiest and most stable banking systems in the European Union.

Below we explain how to open an account at a Hungarian bank and review the main requirements financial institutions place on potential clients.

Hungary's banking system

The country operates a two-tier banking system headed by the National Bank of Hungary - the main regulator and coordinator of the state's monetary policy. It is the National Bank that controls the exchange rate of the national currency and oversees the work of financial-sector institutions.

The second tier consists of commercial banks that serve the accounts of individuals and legal entities.

Among foreigners, the most popular are:

• OTP Bank Group, which holds more than 25% of the country's financial market;
• Erste Bank - one of Europe's oldest banks, which draws clients with a well-developed network of branches, ATMs and terminals;
• Budapest Bank, founded in 1987 through the merger of two financial leaders of the time - Budapest Credit Bank and National Bank of Hungary;
• Raiffeisen Bank - a subsidiary of Raiffeisen Bank International AG, today one of the largest providers of corporate and investment banking services in Austria;
• UniCredit, a member of the group of the same-named leading European commercial bank, which offers its clients a wide range of financial products and services.

One of the most notable features of Hungary's banking system is the presence and use of its own national currency, the forint (for comparison, in Germany all settlements are made exclusively in euros). It's important to note that this does not prevent clients of Hungarian banks from making transactions and opening current and savings accounts in euros or any other currency.

Who can open a personal bank account

Citizens of the country and its residents can approach any Hungarian bank and open an account there without any problems. All they need to present is a passport or any other form of identification.

Different rules apply to foreign nationals. Clients in this category must present the bank employee with the following documents:

• a national ID card and international passport;
• a valid residence permit or work visa;
• documents confirming ownership of a property or a lease agreement.

In addition, a foreign national needs to confirm the legal origin of their funds. Evidence for this can include a company's founding documents, notarized and translated into Hungarian, a bank statement covering commercial activity, or copies of contracts with counterparties.

Bank requirements for residents and non-residents

If a foreign client is not a citizen of an EU member state, they will need to demonstrate direct ties to Hungary.

Currently, Russian citizens cannot always open a bank account in Hungary without a valid residence permit card. And even holders of a residence permit must be ready to confirm the legal origin of their income. For Russians, in most cases only an account in the local currency - forints - is available.

Before approaching a Hungarian bank, a foreign national needs to obtain documents confirming their registered address in the country.

What documents are needed to open an account in Hungary

The core document package includes a passport (national and international), a certificate from the migration service confirming registration at a place of residence in the country, a long-term lease agreement or proof of property purchase, and documents confirming the legal source and level of the foreigner's income. Hungary and the banks within its financial system do not impose strict requirements for a potential client to have a local SIM card. The mobile app and online banking can also be linked to a foreign phone number.

How to open an account at a Hungarian bank: step-by-step instructions

The process of approaching a Hungarian bank can broadly be divided into the following stages:

• Preparing the document package (a registration certificate takes a few days to prepare, so you should apply to the migration service for it well in advance).
• Approaching the bank. Applications are accepted on a first-come, first-served basis, so plan your time when heading to the bank.
• Reviewing the application. The decision-making process takes on average 7 to 14 days.
• A repeat visit to the bank to sign the servicing agreement and to activate online banking. The account-opening agreement is signed by the client in person.

Costs associated with opening an account

The account-opening procedure itself is free at a Hungarian bank. The main cost item for a foreign client relates to servicing the bank account.

The vast majority of banks charge fees for the following services:

• account servicing;
• issuing a bank card;
• servicing the bank card in the first year of use;
• domestic transactions carried out in the national currency;
• foreign-currency transactions carried out within the country online;
• cash withdrawals at ATMs of the bank where the foreign national is a client;
• cash withdrawals at ATMs of partner banks;
• cash withdrawals at ATMs outside Hungary but within the EU;
• cash withdrawals outside the EU.

Account servicing terms depend on the bank's policy. All rates are always specified in the agreement. If a client wants to reduce their annual costs related to account servicing, they need to study the terms of the agreement carefully.

What to look for when choosing a bank in Hungary

Hungarian banks offer clients an almost identical range of services. That's why a foreigner who wants to open an account should primarily look at the reputation rating of the financial institution, the size of the account-servicing fee, and the rates for cash withdrawals and transactions. The main criterion, of course, will be whether the bank actually offers, and has a track record of, opening accounts for non-resident foreigners.