Money doesn’t stay behind when you move countries. It follows you – in all its messy, complicated forms. Pensions. Taxes. Healthcare costs you didn’t think about until the first time you need a doctor. Even the exchange rate that suddenly makes your monthly budget look completely different overnight.

I know this because Andrew and I went through it ourselves. His UK pension questions alone could have been a full-time job to untangle. Thankfully, we had Richard Holmes and his advice turned a confusing pile of documents into something Andrew could actually act on.

Meet Richard Holmes

Richard isn’t just some finance guy parachuting in from London. He’s been in Budapest for 25 years, lives in the 2nd district with his wife and children, and if you’ve ever been to an IHBC or British Chamber event, you’ve probably met him. When he’s not helping people get their financial lives sorted, he’s on his bike or leading his Plastic Pick Up Hungary group in the city.

On top of that, Richard’s philosophy on money is refreshingly human. As he puts it: “Life is not a rehearsal. Precious time is slipping away. My job is to help you identify the sort of life you want to live, and the lifestyle you want to enjoy during the time you’ve got left on this planet.”

That’s why he works wearing three hats:

• Life Planner – helping you decide what you actually want from your life.
• Financial Planner – showing you where you’re heading and answering the big question: “Are we going to be OK?”
• Financial Adviser – making sure the pensions, portfolios, and products line up with the life you’re trying to build.

And you don’t have to just take my word for it. This Q&A is part of our Trusted Voices video series – where you can actually see and hear Richard’s answers in his own words. Look for the clips on my Facebook, Instagram, YouTube, and TikTok.

So, grab a coffee and let’s dig in. Here’s Richard’s take on the biggest questions about managing money in Hungary.

1. UK Pensions: What Happens When You Move to Hungary?

Just because you’ve moved here doesn’t mean your UK pension vanishes. It’s still yours. The trick is figuring out the smartest way to handle it from Hungary.

Richard explained three main routes:

• Leave it in the UK: If your pensions meet your requirements then there may be no need to move them. Depending on the type of pension it can continue to be invested, and income payments can be made to your bank account. And once your Hungarian residency is set, in most cases you can complete a HMRC form to arrange for it to be paid to you without UK tax being deducted. This income will also typically be tax-free In Hungary.
• Move it into a SIPP: This is a UK pension scheme for non-UK residents. Not all UK pension providers are particularly well equipped to support expats. Often an International SIPP might better suit the needs of expats and enable multiple pensions to be consolidated in a single pot for simplicity and ease of management.
• Avoid the shiny traps: As an expat your pension is vulnerable from those who will try to persuade you to invest it in the hot new fad, or the miraculous product paying high returns with no risk. Successful Investing is usually boring. For most a low cost globally diversified portfolio of stocks and bonds aligned with the needs of your financial plan could give you the highest probability of having a successful investing experience.

This advice was invaluable for Andrew. It meant he could make a confident choice instead of endlessly second-guessing.

2. UK–Hungary Taxes: Avoiding Double Taxation

Here’s the good news: pensions in Hungary are generally exempt from personal income tax. That applies to both Hungarian state pensions and most foreign pensions, including those from the UK.

On top of that, the UK and Hungary have a double taxation treaty. In practice this means:

• Residency matters first: Once you’re classed as tax resident in Hungary, your worldwide income generally falls under Hungarian tax law. However, you still need to understand the ins and outs of the tax treaty. i.e. If you receive rental income from the UK this is taxed in the UK and rental income from Hungary is taxable in Hungary. Whereas dividends and interest from the UK are taxed in Hungary.
• Treaty protection: The treaty is there to make sure you don’t pay tax in both countries.
• Pensions specifically: Hungarian law exempts pension income from personal income tax, you can usually have your UK pensions paid gross, many people find their pension income here is effectively tax-free.
• The paperwork catch: UK providers often continue deducting tax at source unless you file the right forms. Without completing this paperwork, you could needlessly be paying tax in the UK.

The bottom line? Make sure you understand how that tax treaty affects you. It’s one thing paying the tax that’s due but there’s no need to give the tax man a tip.

3. Pension Transfers: SIPPs, QROPS, Etc…

This is where the alphabet soup begins – SIPPs, QROPS, Money Purchase, Final Salary Pensions. It sounds more complicated than it is.

• SIPPs: Often the most flexible option, keeping your pension in the UK while giving you ease of control over how your pension is invested and flexibility when taking income.
• QROPS: Once popular, but rules have tightened. Unless you’re resident in the country where the QROPS is based, it can trigger heavy tax charges.
• Various UK pension types: Sometimes fine to leave as they are but check if the scheme/s still meet your needs. It might be that some of the pensions you’ve accumulated throughout your working life no longer are fit for purpose.

Richard’s advice? Slow down. Work together with a qualified financial planner to create a proper financial plan before you consider transferring your pensions. A good financial planner won’t pressure you to transfer. In fact, they won’t even discuss transferring until they’ve gone through the financial planning process with you. This helps you understand if transferring is necessary, in your best interest, and aligned with your goals.

4. Planning for the Long Haul in Hungary

If you’re staying here long-term, you’ve got to think bigger than your monthly budget.

• Savings & investments: Structure them to support your financial goals such as retirement or inheritance.
• Estate planning: Hungarian inheritance law includes forced heirship rules, giving certain relatives rights to your estate regardless of your wishes. If you have assets in Hungary, an up-to-date Hungarian will ensures they pass according to your wishes.
  • If you have wills in Hungary and the UK, they should be carefully worded so that they do not revoke each other.
• Cross-border assets: Owning assets in multiple countries can be complicated. A financial plan brings you confidence, clarity, and control.
• Insurance: Long-term planning isn’t just about money. Protect your family if something unexpected happens.

In other words: don’t just focus on today. Plan for the Hungary you’ll be living in years from now.

5. Investing in Hungary: Opportunities and Pitfalls

Investing in Hungary can feel tempting. The cost of living is lower, property looks cheap compared to London or Dublin, and you’ll see plenty of glossy adverts for funds or schemes “tailored for expats.” But Richard’s message is clear: tread carefully.

• Pensions: The tax treatment of pensions in Hungary is attractive. Excess cash could be invested in a pension to take advantage of this. Make sure it meets NAVs definition of a pension.
• The Long-Term Investment Account: If you are a tax resident of Hungary, holding your investments in this type of account means they are tax-free after five years, with reduced taxes after three years.
• Hungarian Government bonds: Hungarian Government bonds make a good addition to a diversified portfolio. They let you hold Hungarian Forints to cover income and future expenses, potentially earning more than cash but carrying more risk.
• Diversification matters: Diversify globally instead of putting all your money into Hungary just because you live here. Spreading your investments across stocks, bonds, and property reduces country risk and increases your chances of successful investing.

Richard’s bottom line: treat investing in Hungary like seasoning. A little adds flavour, but too much and it overwhelms the dish. Build your financial plan around your life goals first, then decide what role, if any, local investments should play.

6. Healthcare and Insurance in Hungary

Healthcare is one of those things people push to the back of the drawer – until they suddenly need it.

• If you’re employed and paying into the Hungarian system, you’ll get access to public healthcare. It’s affordable, but sometimes slow.
• Many people add private medical insurance. Faster, smoother, and often with English-speaking doctors.
• There are ways to reduce the cost of private health insurance to make it more affordable.

Richard’s advice was simple: don’t treat healthcare as an afterthought. Build it into your financial plan from the start.

7. Exchange Rate Risks: Protecting Your Income

Exchange rates can feel like background noise until they suddenly wreck your budget.

• If your income comes in pounds or euros but you live on forints, small currency swings can make a big difference.
• Multi-currency accounts from well-known providers give you the flexibility to move money at better rates.
• You can sometimes lock in today’s exchange rates for future purchases, like buying a property.
• Planning ahead for your lifestyle costs and expenses helps you prepare better. You’ll be more likely to have the right amount in the right currency when you need it. If most of your income is in HUF, ask yourself if it makes sense to hold so much cash in GBP.

The bottom line: don’t ignore exchange rates. Even a couple of percent can change how comfortable life here feels.

8. Finding Trusted Financial Advice

It’s one thing to know you need financial advice. It’s another to figure out who you can actually trust.

Richard said this is where many people trip up. The friendly sales pitches are easy to find but that doesn’t mean they’re right for you.

• Local vs UK-based advisers: If you live in Hungary, choose someone who understands the Hungarian tax system, inheritance rules, and the realities of living there. An adviser outside Hungary may miss these important details. On the other hand, a Hungary-only adviser might not understand how your UK pension or cross-border assets work. Ideally, find someone who bridges both worlds.
• Red flags to avoid: Watch out for anyone who pushes products before learning about your life goals. If their first conversation focuses on moving your pension, investing your cash, or selling a financial product, be cautious. Advice should begin with your life, not their commission.
• Very bright red flags: If an offer sounds too good to be true, it almost always is – don’t take the risk.

As Richard put it, financial planning isn’t about numbers first – it’s about people. The right adviser should help you answer the big questions: Are we going to be OK? When can we slow down or retire? How do we make sure we don’t run out of money? The technical bits – pensions, tax structures, portfolios – come after.

In short: choose an adviser who takes time to understand you. The rest will follow.

So, Where Does That Leave Us?

Managing money in Hungary requires more than one big decision. You need to piece together pensions, taxes, healthcare, and investments so they work for the life you’re building here.

Richard’s answers, shaped by 25 years of living and working in Budapest, show how much calmer you feel when you have a clear plan. And honestly, his advice has made a difference in our own family too.

We thank Richard Holmes for the time, care, and expertise he shares. From pensions to taxes, healthcare to exchange rates, he helps us make sense of the questions many of us struggle with.

If you’d like to reach Richard directly, here’s how to find him:

Richard Holmes, DipPFS
Principal & Financial Planner
📍 Budapest, District II
🌐 www.gerrardswealth.com
✉️ ri*****@************th.com

This article wraps up our first Trusted Voices: Finance series – eight videos running throughout September 2025 on Facebook, Instagram, TikTok, and YouTube. If you missed any along the way, you can still go back and watch the full series to hear Richard’s answers in his own words – all the videos are live now across your social media platform of choice.

In the meantime, if you’d like even more practical guidance, my ebook HOW TO HUNGARY: Budapest & Beyond is packed with 350+ pages of advice, 500+ verified resources, and plenty of stories from my own journey here.

👉 Get your copy here and stay tuned for the next Trusted Voices series.

And remember, this is just the start. Trusted Voices Video Series will be back soon with our next series in November, featuring new experts and new conversations to help make life in Hungary a little easier to navigate.

This communication is for informational purposes only based on our understanding of current legislation and practices which are subject to change and are not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. Investing involves risk. The value of investments can go down as well as up, and you may not get back the amount originally invested. Past performance is not a reliable indicator of future results. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.