Lend money to family member in France

Banks, Insurances & Third Pillar
1

Hi community!
I read this blog for a while now but this is my first post!

My dad needs 50K to pay out something. I could borrow him this money, but I live in CH and him in France. He plans to pay me back in 3 months, it is only a treasury issue.

The biggest hassles I see is:

  • transfer this money from CH to FR without paying an insane amount of fee. Any idea?
  • do I need to declare to customs such a transfer?
  • and make it clean with Taxes declaration. But this seems straightforward, just make it clear in my next declaration.

Any advise, recommendations?
Thanks a lot,
D.

2

I guess cheaper are things like revolut/wise/etc. (relying on the bank to convert will probably cost a few %).

No reason to declare anything, though your dad should be able to explain the source if asked.

Yeah you should still list the assets as being on loan in your declaration (and your dad should list it as something he owes).

Some country might require paying interests so that it’s not considered a gift, but given the timeline/amount it probably doesn’t matter.

You might want to have some kind of written trace (https://www.economie.gouv.fr/cedef/pret-familial implies it might be mandatory for france).

3

Thanks a lot Nabal for your answer!
I just checked with my bank (Zak) it says SEPA wire transfer is free. Looks to good to be true but great!

Thanks for the custom info and confirming for taxes.

And yes I will still write a paper to make it clear and official.

4

SEPA Transfers are free for sure, but he meant CHF to EUR conversion that is going to cost you.

3 Likes
5

yes, the conversion will probably cost a few %

6

Thanks both!
So Zak % is quite high, found 2.5% online (they hide quite good the exchange rate policy in their conditions).
So I will rather go trough Wise, were rate is much more interesting.

7

Consider using Wise or Revolut for low-fee international transfers. No need to declare to customs for a regular bank transfer.

8

I may be wrong, but tax-wise, if you can wait till Jan. and get repaid same year, nothing to declare.

9

You are right, I thought on this, if possible I keep it on the same year yes

10

Revolut is interesting with a paying account, not the free revolut from what I see.

I will go with Wise, thanks all