The tax return for individuals is approaching. It is important to note that interest or exchange gains earned abroad must also be included in the tax return.
If you have a foreign bank account
The foreign bank does not, in principle, deduct the interest tax, but informs the Hungarian tax office, which compares this fact with the individual’s tax return. According to Hungarian law, you are required to tax Hungarian interest on your foreign interest income.
This also has the unpleasant consequence that the tax office can estimate the amount of money you hold abroad with sufficient accuracy. This, in a bad case, also entails a wealth test. (I read more about the wealth test here.)
There are two exceptions to this system
Austria and Switzerland. In both countries, the interest rate is 35%, but in return the tax rate of the home country is not reported unless specifically requested. You might want to ask for this opportunity if you have nothing to fear, because you’re better off taxing in Hungary at 16% than in Austria at 35%.
When I wrote about the Slovak account opening (you can read it here), the agents said they would not mind, they would deduct the Slovak interest tax on the Hungarians as well. In this case, in principle, the interest earned will not be reported to Hungary. I’m a little skeptical, because the bank ladies in Komarno think this way, and they may not be doing it in the Bratislava center. If you have a Slovak account, check with your bank as soon as possible and in case of need, obtain a certificate in time and remember to include it in your return.
I hope I spoke on time
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