Are Hungarians wealthier than expected? Many moving their money abroad
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Global wealth began to rise again last year, with Hungary witnessing an increase of over 200% in average wealth per adult since the financial crisis. However, premium banking clients are now seeking to move their assets abroad in search of more favourable transaction fees. This trend could threaten cash flows and the broader Hungarian economy. Meanwhile, foreign currency loans are reaching record levels.
International trends and Hungary
As Portfolio writes, global wealth resumed its growth last year, with lower-income adults in Hungary experiencing faster growth in wealth than those in higher brackets, according to a recent UBS study. Despite this, Hungary saw an 8% decline in average wealth per adult in 2023 when measured in Hungarian forints. Yet, since the 2008 financial crisis, average wealth per adult in Hungary has more than tripled, ranking it eighth globally in terms of growth. The study also highlighted a significant disparity between average and median wealth, a pattern evident in Hungary.
Hungarians seek to move their fortunes abroad
According to Szeretlek Magyarország, the recent introduction of financial transaction levies and additional charges for currency conversion in Hungary is unlikely to drive the wealthy to move all their assets abroad. However, 10-30% of their actively managed savings may be relocated to foreign providers, as reported by hvg.hu based on Blochamps Capital’s analysis.
The National Bank of Hungary (MNB) has observed a significant shift, with financial institution deposits falling by nearly HUF 1,200 billion (EUR 3 million) in July, while foreign currency deposits rose by HUF 492 billion (EUR 1.25 million). This shift is directly linked to the new measures, particularly affecting premium banking and affluent clients, who may find the extra 0.9% transaction fee a more significant burden. Consequently, there is growing interest among these clients in opening foreign accounts, particularly with banks offering international networks.
This transaction tax is government robbery of Hungarians. You work and receive your pay from which tax is deducted and it is deposited to your bank account. You are then taxed again by 0.9% when you want to take your hard earned pay to actually buy something with it. You then buy something on which a 27% VAT is added into the price. Meanwhile Fidesz spends all that tax money they collect on buying buildings for grossly inflated prices from Orban’s son-in-law and his cronies to line the pockets of the Orban’s family and the oligarchs.
“Proxy” – Minister of Finance – Member of the Fidesz Party – Michael Steiner, comment we WAIT.
“Proxy” – couldn’t do a worse job could Michael Steiner than the present “Dud” of a Finance Minister – Mihaly Varga who is a cataclysmic Embarrassment & DISASTER.
Larry – comments AGAIN highlight that any BELIEF we are a lowly taxed country right throughout our taxation system – is WRONGFUL thinking.
Hungarians pay for in taxes that could rightly be ARGUED – the DOUBLE dipping “claws” practices of the Orban – Fidesz Government.
Do the sums – we are high, high end of he 27 country’s of the European Union – in the taxes – individual and “other” what the Orban – Fidesz Government – TAKE – from us.