Private loan agreement Gift tax Down payment Real estate
1. If I want to buy my brother's apartment and have already transferred a down payment of 19,000 euros to the apartment several months before the contract is finalized, will a tax be due for this separate amount, similar to gift or inheritance tax, and if so, how much? I am aware that I will have to pay taxes when I pay the total purchase price.
2. If parents grant their biological child a loan of 100,000 euros through a loan agreement, what percentage amounts are taxable for:
a) a loan at 0% interest
b) a loan at a nominal interest rate of 1% - 2%?
It is likely that the tax office will consider this a gift.
