It may seem like a “smoke-selling” ad. or a practical joke, even more so with how much it costs to buy an apartment today and the sacrifice that entails, but it is totally real, with some nuance. If you didn’t know her, it’s not something strange or bordering on illegality, quite the opposite, something more typical of a collaborative economy, used between friends and family.
With the rise in interest rates, increasingly higher housing prices and an uncertain purchasing power and job horizon, if you want to buy your house, it is not only the best option, but it may be the only one when you already thought it was impossible to qualify to be an owner, you would have to wait many years or go into debt to unsuspected limits.
The key, the family loan
We are faced with an option that also facilitates access to credit with zero or very low interest. A family loan, or between family members, involves the transfer of a specific sum of money between two individuals, commonly from the same family, close friends or relatives.
In this case, The intervention of a banking entity is not required, so we are now entering the territory of not depending on unwanted intermediaries or those who will demand much more from you. This type of loan offers flexibility in terms of interest rates, since it is the lender, that is, the person lending the money, who decides whether interest will be applied or not.
The importance of the contract
Of course, to carry out this operation properly, it is essential to formalize it through a contract. The contractual document should include the date of signing, details of the lender and borrower, loan amount, interest conditions (if any), repayment period and any other relevant aspects.
You also have like possibility of paying off the debt early or a procedure in case of non-payment. A solid and complete contract ensures that both parties are protected and future misunderstandings are avoided.
And what about the Treasury?
Well, another piece of news that will surprise you: Family loans are exempt from taxation, although they must be declared to the Treasury. This declaration, although it does not entail a tax cost, is an essential step to demonstrate that it is not a hidden donation of money, which would be subject to specific taxes.
Family loans fall under the Tax on Property Transfers and Documented Legal Acts, in its form of onerous property transfers. In this process, the borrower must present the original contract along with form 600 at the Treasury Delegation within a legal period of 30 days from receipt of the funds.
Interest and declaration before the Treasury
But let’s go with the nuances, because as you will see, you always have to check out, but in this case it represents a ridiculous amount compared to the “classic” ways of buying an apartment. If the loan involves the payment of interest, the lender must declare these benefits as a return on capital to the Treasury.
For example, if the loan amounts to 60,000 euros and the lender receives 63,000 euros, including interest, You only have to declare the profits of 3,000 euros. For both parties it is a most beneficial agreement, and all legal.
If one of the parties dies
It is the other question that you will ask yourself, not having that “security” that on the other side is an entity that is not going to disappear. But a person does, at any time. If the lender dies, the debt will be transferred to his heirswho must assume it.
Similarly, if the borrower dies, the debt will pass to his heirs, who must comply with the conditions stipulated in the contract. It is relevant to note that the heirs can renounce the inheritance in its entirety and, therefore, be exempt from paying the debt. If not, it must always be returned in full.
2023-10-23 08:20:30
#buy #apartment #savings #mortgage #taxes
