She was born Vilma Koncsics to János Koncsics and Katalin Ulbert in Nagydorog, Austria-Hungary. Her father was a bureau chief under Franz Josef's Austro-Hungarian Empire. Shortly after she was born, her father was transferred to Budapest, and the family relocated. Vilma had two other siblings - an older brother, Gyula (who would later go on to work in Berlin as a writer and cinematographer), and a younger sister, Gisella. After graduation from secondary (high) school, Vilma took courses to work as a stenographer, but was offered a role in a film. Acting had been her interest since she was a young girl.
Vilma's first appearance was in the lost film Im Letzten Augenblick, directed by Carl Boese in Germany in 1919. On a trip to Budapest in 1925, Hollywood film producer Samuel Goldwyn discovered the violet-eyed, blonde beauty and signed her to a contract. Both her mother and father were vehemently against Vilma's acting career as was her fiancé. Regardless of their feelings on the subject, she left for the United States in March 1925, arriving to a great deal of fanfare.