Hungarian Prime Minister Péter Magyar has announced plans to triple the threshold for fee-free bank transfers for private individuals, raising it from HUF 50,000 to HUF 150,000. The change is expected to take effect in 2027 and could reduce banking costs for millions of customers.
Prime Minister Magyar announced the decision on social media
“Bank transfers will be exempt from the transaction levy up to HUF 150,000,” Magyar wrote on Facebook on Wednesday, confirming the government’s intention to increase the limit. The proposal had been reported earlier by Hungarian financial website biztosdöntés.hu, which said the higher threshold was being planned as part of the government’s 2027 measures.
Hungary’s transaction levy applies to a range of financial operations, including bank transfers, cash withdrawals, currency exchanges and card payments. Although financial institutions are legally responsible for paying the levy, they commonly pass the cost on to retail and business customers through their fees.
What will change for customers?
The existing exemption allows private individuals to transfer up to HUF 50,000 (EUR 136.62) per transaction without incurring the levy. Under the proposed change, that threshold would rise to HUF 150,000 (EUR 409.87), meaning transfers up to three times the current limit would qualify for the exemption.
The government is not planning to reduce the levy’s percentage rate, according to the earlier report. Instead, it reportedly intends to increase the maximum charge per transaction from HUF 20,000 to HUF 30,000 (from EUR 54.65 to EUR 81.97).
The broader levy was introduced in 2012 and its rate was increased in August 2024. The current charge on transfers is 0.45 per cent, subject to the applicable cap, while cash withdrawals and certain currency transactions face separate charges.
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Could banks hit back at customers?
Raising the fee-free threshold could encourage more people to use bank transfers for everyday payments rather than relying on cash. It may also help households avoid some banking costs as they pay bills or send money to others.
However, the full effect will depend on how banks adjust their account fees and when the measure is formally implemented. The announcement concerns the planned exemption for private individuals; customers should check their bank’s terms for details of any additional charges. The government has yet to provide further implementation details beyond the announced increase.
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