Reader Question: How do I handle characters speaking in a foreign language?

Indicate the foreign language, but use English instead.

A question from Matt:

I am crafting a story, and the outline is pretty solid. I have fleshed out the characters, and I’m ready to start developing dialogue (and actually putting pen to paper on this script). Something keeps confusing me, however. My characters in early scenes should be speaking in Hungarian, and I don’t know how to handle this. Should I be writing the English translations in the dialogue and mention in the scene setting what language they are speaking? Should I be writing the dialogue in Hungarian (if so, do I provide a translation)? Is it the director who should determine what language they actually speak? I am very confused.

To my knowledge, there’s no absolutely right way to handle foreign language in a screenplay. In your case, Matt, chances are probably 99.9999% that anyone who reads your script in the U.S. is not going to know Hungarian. Logic dictates, therefore, you don’t write the dialogue in the character’s native language. Rather, you indicate the use of a foreign language, but use English instead. Here’s an example from The Bourne Identity written by Tony Gilroy:

        INT. FISHING BOAT HEAD -- NIGHT
        One of the ugliest bathrooms on the planet.  THE MAN
        standing before a pitted, tarnished, cataract of a mirror.
        Staring at himself.
        And then he speaks.
                                THE MAN
                        (in perfect French)
                   (I don't know who I am.  Do you
                   know who I am?  Do have any idea 
                   who I am?)
        And then he stops.  Blinks.  Wipes away the perspiration
        just beading on his forehead.
                                THE MAN
                        (in perfect Dutch)
                   (Tell me who I am.  If you know who
                   I am, please stop fucking around
                   and tell me.)
        No answer.  Just that face.  His face.  Who am I?

Specify the language the character will actually be speaking in the movie, but use the English to get across the content with the assumption that the film will use subtitles.

Gilroy uses parenthesis. I prefer italics. For example, here is an excerpt from my proposed sequel to the franchise "The Bourne Invasion":

        INT. FISHING BOAT HEAD -- NIGHT
        One of the ugliest bathrooms on the planet.  THE MAN
        standing before a pitted, tarnished, cataract of a mirror.
        Staring at himself. And a really yucky tentacle suddenly
        emerges from his nostrils.
        And then he speaks.
                                BOURNE
                        (in perfect Martian)
                   Holy crap! I'm an alien! From Mars!
                   And I'm invading the Earth! I pray some
                   courageous gendarme stops me!!!

Apart from understanding why the studio would prefer to hire Tony Gilroy instead of me, I like the italics because you see it, you get it: Italics = Foreign Language. Whereas a parenthesis can get lost in the shuffle, especially when using parentethicals.

Speaking of which, if your characters use a foreign language for an entire scene, you can handle that by indicating it with the first character, then italics the rest of the way:

        INT. POLICE STATION -- NIGHT [PARIS]
        A worried group of gendarmes study a photo of Bourne with
        his nostril tentacle.
                               SCARED GENDARME 
                        (in French)
                   Bourne an alien from Mars. Who knew!
                               MORE SCARED GENDARME
                   And such a distasteful looking nostril
                   tentacle!

Whatever your approach, the goal is to clarity: Make sure the reader knows who’s saying what in what language. And make it easy for them to read.