A Tartós Befektetési Számla (TBSZ) is a tax-advantaged Long-term Investment Account for Hungarian tax residents. The main benefit is a reduced tax rate on investment returns, which is either 10% or 0% (down from the standard 15%) after 3 or 5 years, respectively. With Lightyear, the TBSZ account is free – there are no account opening or custody fees. See Lightyear pricing page.
To be eligible for the TBSZ account, you must be over 18 years old, a Hungarian tax resident and reside in Hungary. To open the account, go to your profile and select “Add another account”.
How does the TBSZ account work?
- The 5-year lock-in period is divided into two parts:
- First 3 years: Breaking the account requires you to pay a 15% tax on returns. No social contribution tax is applied
- Next 2 years: If the account is broken, a reduced 10% tax applies. Again, no social contribution tax
- After the 5-year lock-in period is over, you can choose in the app whether you want to move your assets into your general Lightyear account or again into your new TBSZ account
- There are no limitations on trading or converting your funds – you can access your assets at any time, but withdrawing before the 3 and 5 year marks affects the eligibility for tax relief on any returns. You can withdraw at the end of the 3rd year. Taxation rules apply based on the timing of the withdrawal
- Your TBSZ account terminates at the end of the 5-year period, or under certain conditions like value dropping below 0 HUF
Can I have more than one TBSZ account with Lightyear?
No, you can open one account with one provider per collection year. Closing the account prevents you from opening a new one within the same collection year. The collection year is the calendar year you opened the account. During that year, you can deposit money. After the year, you can't deposit any more
Depositing into my TBSZ account
You can get started with just 25,000 HUF, and there’s no maximum limit. We support the same currencies that your general account supports. Note that you can only deposit during your collection year (the calendar year you opened the account)
- Deposit money into your general Lightyear account (see how to do that here: Depositing into my Lightyear account)
- When your money has arrived, move it into your TBSZ account: Select the 'Add Money' button in your TBSZ Cash Balance and choose your Lightyear balance as a deposit method
Taxes and declaring my account
- While the TBSZ account takes your investment return tax to 0% after 5 years, you are still responsible for determining and reporting the tax yourself — especially if you close your TBSZ account before that. Tax certificate will be provided to you on the 31st of January the following year after your account expires, or when you close your account
- Only Hungarian dividends are tax-exempt. Foreign dividends are not
- It’s a requirement from your local authorities that you report your TBSZ account that you have with a foreign provider (such as Lightyear), and that you do it each year. It’s important to declare your TBSZ to NAV within 30 days to start using the account. After you’ve deposited into your TBSZ account, we’ll send you guides to help you with the declaration. Please make sure to check your spam folder too if you have not received it
- It's important to know that Lightyear cannot give tax advice as it always depends on your personal circumstances and local tax laws. We recommend talking to a local tax professional if you have any specific questions
Can I earn interest on uninvested money in the TBSZ account?
Due to local laws, we can’t pay interest on your TBSZ account. You can still earn interest on any uninvested cash that sits in your main Lightyear account.
The Hungarian law currently only allows banks to pass on interest on the money users hold in their TBSZ account. As a regulated investment service provider, today, we can only pay interest on your money in your general Lightyear account. Read more about the interest feature here
Can I transfer my existing account to Lightyear or move my stocks from my general Lightyear account to my TBSZ?
At the moment you can’t transfer your current TBSZ account from another provider to us but we’re working on making it possible and will notify you when that option is available. The same is true with instrument transfers from your general Lightyear account to your Lightyear TBSZ account
How account closure works?
If you want to close your TBSZ account, you need to first close all your positions and withdraw your funds. The app will guide you through the account closure process when you initiate to move your TBSZ funds to your general Lightyear account
See also: The only free TBSZ