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Lending money to family - tax implications

tapu90

Hello all,

I would like to lend some money to a family member (specifically my sister) to buy a house/first property. I have been living in the Netherlands for a bit over 2 years now and am working here but my sister still lives in Balkan, where I originated from.

Are there any tax implications when lending money (to family) and is anyone aware of any specifics that should be followed when doing so?

I am aware of the gift tax, but as the idea is to lend the money, the rules don't seem like they should apply.

Is there anything I should be vary of before I make the money transfer?

And perhaps important to note, my sister would buy a house, but it would not be her primary residence.聽

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Cynic

Hello all,
I would like to lend some money to a family member (specifically my sister) to buy a house/first property. I have been living in the Netherlands for a bit over 2 years now and am working here but my sister still lives in Balkan, where I originated from.
Are there any tax implications when lending money (to family) and is anyone aware of any specifics that should be followed when doing so?
I am aware of the gift tax, but as the idea is to lend the money, the rules don't seem like they should apply.
Is there anything I should be vary of before I make the money transfer?
And perhaps important to note, my sister would buy a house, but it would not be her primary residence.
-@tapu90

Hi and welcome to the Forum.


Speak to a Dutch tax adviser before you speak to the Belastingdienst; they keep a watch on international money movements and the Belastingdienst will have oversight of your Dutch bank accounts in this regard.聽 This link will take you to a section of our Forum where tax advisers are offering their services.


I hope this helps.


Cynic

草榴社区 Team

3Josh

On top of what Cynic said, many countries have tax differences for a first home vs a rental home, so your sister should also consult a tax professional in her country because she'll likely need to file her taxes differently.