The payment in euros is gaining an increasingly important role in Hungary, especially in the payment of corporate tax, which since August 2022 can be paid not only in forints but also in euros and US dollars. Both companies and individuals can take advantage of the benefits of paying in euros, especially when doing business or invoicing in foreign currencies. The VAT law and consumer protection regulations allow the use of foreign currencies in Hungary, but it is important that the appropriate rules and legal requirements are always followed, especially when concluding consumer contracts in foreign currencies.
However, paying wages in foreign currency is generally not permitted according to Hungarian legislation, although there is the possibility for employees in leadership positions and individuals working abroad to be paid in a currency other than forints. When paying wages in foreign currency, the legal consequences, which are determined by local consumer protection regulations and contractual obligations, must always be considered. Conducting real estate transactions in foreign currency, such as buying a property in euros, allows the parties to determine the prices and payments in foreign currency, provided both parties agree on the terms.
In transactions between private individuals, the parties are free to agree on the currency of the purchase price, and although Hungarian laws do not require strict application of consumer protection regulations, legally binding agreements can be made regarding currencies. It is also important that the parties are aware of the relevant regulations in the case of payments in currencies other than forints and cross-border service provision, as the use of different currencies and the regulations surrounding them may change over time.
Consumer contracts and foreign currencies
The regulation for consumer contracts is somewhat more complex. According to consumer protection regulations for companies contracting with consumers, prices must be displayed in forints, except in cases of cross-border service provision. This rule specifically applies to price display but does not exclude payment being made in another currency, as long as the consumer and seller agree on the terms individually.
Real estate transactions and foreign currency
Consumer protection regulations also apply to real estate, so they are applicable in real estate transactions as well. Since in real estate matters there is often the possibility for individual agreements, it is theoretically possible, for example, for the purchase price in a real estate transaction to be paid in euros, provided an agreement is reached.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
