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Getting Paid in Hungary - best option for SEPA zone non-EUR using users?

Active Member
David H Member Since: May 3, 2015
1 of 4

Hey everyone,

 

So I work Hungary, which is part of the EU and thus, the SEPA zone but we still don't use EUR cause our national currency HUF is too strong (not).

 

I would like to know what options are there for me to avoid ridiculous conversion rates and fees.

 

My problems are:

-If I request payment via Local Funds Transfer oDesk automatically converts my USD to EUR on a rate that is like 2% off of normal rates. Then, to use this money in my country I'll have to convert the EUR to HUF yet again, where another ~2% of my money goes to **bleep**s.

-If I go the Paypal route I can get my money in USD or HUF, but if I get it in USD it still needs conversion to HUF before I can withdraw it. Not to mention that conversion would be at Paypal's rate, plus me getting my money would be dependent on Paypal's **bleep** policies.

-I could open an USD account in my country at a bank, but as I've seen Paypal still doesn't offer USD payments for non-USD countries and neither does oDesk. I can however, open an EUR account and get paid directly by oDesk in EUR (which is again 1 conversion) and to use that money I'd have to get it in HUF (conversion no. 2). 

 

tl;dr: this global money system still needs some fine-tuning or I'm just a ruthless penny-pincher (but in the long run not caring would be costly and I don't plan to work in Hungary where 3 usd/hour is considered a normal rate)

Community Guru
Krisztina U Member Since: Aug 7, 2009
2 of 4

Hey David - there is no perfect solution to this and you have to settle for what works best for you, but I also think you're looking at it the wrong way, and obviously what I am about to say is somewhat dependent on whether you can make enough on this platform to justify the approach. Instead of looking at the conversion loss at the time of the conversion, look at it over a 1-3 months period. I am very sure that keeping your money in any other currency but HUF for as long as you can will ultimately save you more, than the 2% you think you lose at the point of your conversion. I usually withdraw once a month to EUR, and by timing my withdrawal right, I often make a couple of hundred bucks extra just in favorable exchange rates (or lose it if I didn't pay attention to the news). It saddens me to say this, but I think it's fairly safe to assume that under Orbán and his lunatic approach, the HUF will further deteriorate, and that you can make significantly more money working internationally, and keeping your savings in a slightly more stable currency.

Active Member
David H Member Since: May 3, 2015
3 of 4

That's actually a good way to think about it.

 

So I should open an EUR "foreign currency account" and keep my oDesk money there until I need it. Thank you!

 

This isn't really relevant to oDesk but I assume you're a fellow hungarian working online. Could you recommend me a bank for this EUR account?

 

Also may I ask -if you work online and live in Hungary as I do- how do you go about paying taxes? I think I'll need to pay the 16% personal income tax on the amount I actually get (with oDesk fees subtracted) and I only need to pay taxes in Hungary, right?

Community Guru
Krisztina U Member Since: Aug 7, 2009
4 of 4

@David H wrote:

That's actually a good way to think about it.

 

So I should open an EUR "foreign currency account" and keep my oDesk money there until I need it. Thank you!

 

This isn't really relevant to oDesk but I assume you're a fellow hungarian working online. Could you recommend me a bank for this EUR account?

 

Also may I ask -if you work online and live in Hungary as I do- how do you go about paying taxes? I think I'll need to pay the 16% personal income tax on the amount I actually get (with oDesk fees subtracted) and I only need to pay taxes in Hungary, right?


I am Hungarian but I don't live in Hungary and have been gone for too long to really know how to handle the taxes, but if income tax really is only 16%, I need to move back ASAP!! Smiley Happy

 

I can't give you tax advice, and your last name sounds Hungarian to me so if you're a Hungarian national who resides in Hungary, you do only have to pay taxes in Hungary. If you're a citizen of a country that taxes worldwide income (like the US for example), it's a different story.

 

I am in Germany and what I will do this year or early next (since oDesk changed how the fee is displayed and charged), is that I will report my gross earnings (incl. 10% oDesk fee) for 2015, and deduct the 10% oDesk fee as a business expense. That way there is no discrepancy to my disadvantage in the 'system', and I will only have to pay taxes on my net income.

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