Loan from my brother

[tyler_d]

I'm looking to borrow some money from my brother. How much can he loan me without getting tax'ed?

Thanks in advance,

Aaron

 

[Easel]

To get more informed answer you need to provide more information. How much roughly are you looking to borrow? What term will it be repaid over? Will you be charged interest?

Technically you could borrow a large amount of money without any tax being payable provided there was no interest charged.

 

[tyler_d]

Thanks for that. Just €3000. I know my parents can each loan me €3000 each per year but I wasn't sure what the situation was with my siblings.

 

[Easel]

There will be no tax implications for a €3,000 loan provided no interest is charged.

Anyone can give you €3,000 per year without any tax implications, not just your parents.

Personally I prefer to borrow from financial institutions over family members where possible.

 

[Gordon Gekko]

I'm looking to borrow some money from my brother. How much can he loan me without getting tax'ed?

Thanks in advance,

Aaron

In my view, €600,000, but some would contend an unlimited amount.

The taxable value of a loan for CAT purposes is linked to call deposit rates; I would use a rate of 0.5% to be prudent (i.e. €600,000 x 0.5%) but in reality 0% is probably just as reasonable.

The €3,000 limit relates to gifts and a loan is not a gift.