Loans between relatives or friends – Find out how to regulate them
You are thinking that the easiest solution for you, given the difficulty of having a loan from a bank or a finance company, is to request it from a brother or a friend. If you are lucky enough to find a close relative or a friend who can lend you money, surely this is the fastest way to get them. The loan between relatives or friends is practically immediate if the other person confirms that he wants to help you. But we want to warn you from the Revenue Agency and give you some tips on how to proceed.
In fact, in this article we want to inform you that for the loan between relatives or friends:
- it is good to stipulate a private agreement between the applicant and the lender;
- it is better that the loan is non-interest bearing , that is, that interest payments are not envisaged. If the loan was burdensome (with interest), the relative gain on the tax return should be indicated;
- you have to make a private writing even when the transfer of money is free of charge as a gift , this to certify the fact that money is not the reward for illegal work, if there was the need to prove it.
CONTENTS OF THE ARTICLE
- Private writing: Why do it in case of a loan between relatives?
- Loan between friends or relatives: How to declare it
Private writing: Why do it in case of a loan between relatives?
Writing black on white through private writing the loan or even the free transfer of money between relatives or friends is good for these reasons:
- only the transfer of money between wife and husband is allowed without having to declare anything. If the relationship is weaker, even if we talk about a brother or uncle, the loan of unregistered money can be a problem in the eyes of the Revenue Agency. This is because it could be the compensation for a job in the black. If there is no private deed to prove the loan, the opposite cannot be proved and therefore the problem may arise.
- Even if we love each other and our relatives, when money is drawn, relationships tilt. It could happen to argue about anything or for some payment delay and that’s how the problem of demonstrating that you have made a loan to your relative becomes difficult. This is why we advise you to protect this agreement by registering the private agreement with the Revenue Agency.
- Private writing also protects the lender with regard to the need to prove that the loan is non-interest bearing and therefore no interest is earned (this aspect must be explicitly stated).
- This document can also be useful in case of failure to repay the loan because an injunction can be used without incurring a lawsuit.
Loan between friends or relatives: How to declare it
For the reasons mentioned above it is important to declare a loan even if it is non-interest bearing and here we explain to you what to do.
You will have to write a text in threefold copies where the following points must be indicated:
- data of the lender and borrower (indicate name, surname, birth, residence, tax identification number);
- indicate the loaned amount, payment methods with dates and banks;
- Loan duration;
- Purpose of the loan;
- Admitted advance refund;
- non-interest bearing loan;
- Method of return.
The 3 copies must be signed by both parties and a stamp must be affixed to each copy. Private writing will then have to be registered with the Revenue Agency. Here we leave the link for further information where you can find directions on how to register it.
If you are unable to get a loan from a relative or friend, discover the benefits of loans between individuals through social lending.