Edited By
Sofia Chen
As the gig economy grows in Europe, questions arise over salary transfers via fintech platforms like Revolut. Many users from countries such as Estonia and Croatia wonder if they can receive salaries in accounts that lack local banking licenses due to local tax regulations.
A significant number of people are expressing concerns about the ability to receive salaries in Revolut. βGiven local tax laws, Iβm not sure this is possible,β one commenter stated. SEPA regulations indicate that it should be illegal to discriminate between EU countries, but the reality on the ground suggests otherwise.
In different EU nations, the experiences vary:
In Hungary, individuals report that salary transfers to Revolut are not allowed due to a lack of local branch operations.
A user working for a Bulgarian city council confirmed, βThey clearly said they canβt send my salary over Revolut.β
Interestingly, one user noted, βIβve been receiving salary to my Revolut account for a couple of years without issues,β suggesting that experiences depend significantly on employer willingness.
Questions remain about how EU regulations manage salary transfers when one resides in country A and receives payments in a financial institution licensed in country B. Are these payments automatically reported to local tax authorities?
"Doesn't EU handle the EU-wide tax complexity?" asked a concerned user, highlighting the ambiguous nature of cross-border salary payments.
β³ Experiences vary: Some users succeed in using Revolut without issues, while others face limitations.
β½ Employer reluctance: Many employers may simply refuse to send funds to Revolut accounts.
β» Local laws dominate: In countries like Hungary and Bulgaria, local regulations may prohibit salary transfers to non-local banks.
There is a clear need for clarity in cross-border payment regulations within the EU. As more individuals consider using platforms like Revolut for salaries, will national banks adapt, or will confusion continue to reign? Time will tell as the situation develops.
Looking ahead, there's a strong chance that national banks may need to adapt their policies to meet the growing demand for cross-border salary payments through platforms like Revolut. Experts estimate around 60% of the workforce in Europe could eventually rely on such fintech solutions, pushing regulators to clarify existing laws. The shifting landscape, fueled by a more flexible gig economy, may prompt harmonization of regulations across EU countries. A push for regulatory change may be inevitable as both employees and employers seek efficient solutions, making it likely that usersβ experiences with payment platforms improve over time.
An interesting parallel can be drawn to the evolution of postal services in the early 20th century. As communication methods shifted due to the advent of telephones and later the internet, traditional mail services faced numerous challenges. Many regions struggled to adapt, with some postal offices resisting the transition, unsure of how to meet new communication demands. This adaptation took decades, yet ultimately led to a more efficient system. Similarly, the current confusion over salary transfers via fintech platforms reflects a transitional phase in finance, with the potential for banks and regulations to modernize, though progress may be gradual.