Lending money to household memeber

Hi All,

My girlfriend is thinking about starting small business and need some capital. Since we are not married yet what is the best way to handle money loan between us to avoid tax implications?
Should we do this as loan with 0% interest and then each year put this to declaration?
In one of admin.ch pages there is shortly mentioned that giving money to household member is not treated as gif. So, would it be easier do as one time payment and declare as gif?

Any ideas?

Thanks

Don’t loan the money, most likely you’ll never see it again and it’ll ruin your relationship.

So, would it be easier do as one time payment and declare as gif?

Gifts between non relatives are taxable

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If you so much believe in her business that you’re willing to invest money in it, then why not do it properly and officially have shares in it? If you’re not sure if the business makes sense then of course don’t give her the money.

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I’m not sure it’s that easy, otherwise people will get loans with each other just to pay less taxes.

Yes, a loan at 0% is the way to go (aka Zinsloses Darlehen).
She declares it as a debt (to u) in her Steuererklärung, and u as a credit, each year same numbers, easy-peasy.
But make a small simple contract with an expiry/payback date in 2 or 5 years or something & get yourself some kind of receipt. Then u can decide at that time if u want the money back or extend the loan again.
A “zinsloses darlehen” without expiry date becomes her money after 10 years, unless interrupted by a new contract, part payment etc.
I know all this is only important should u guys fall out, but u know, better make the written stuff in good times.

A “zinsloses darlehen” without expiry date becomes her money after 10 years, unless interrupted by a new contract, part payment etc.

Something new every day. Beware of “internet lawyers”.

Thanks for contributing @Strabor!


Speak to the hand, @Strabor. And of course since this forum is free all tips are exactly just that (and not legal binding advice). But once you read and make more helpful posts you’ll realise that yourself.

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since this forum is free all tips are exactly just that (and not legal binding advice).

Loans are an important tool, not the least for the reasons the hedgehog mentioned above. Even when executed in a non-optimal way. Googling legal stuff with partial knowledge is a dangerous thing. People turn to this forum for advice. Your overconfident statement is misleading them.

This statement

A “zinsloses darlehen” without expiry date becomes her money after 10 years

is incorrect and not covered by your quoted exerpt on the site of my former teacher. Even after the statute of limitations hits, it’s still your money. You can sue for it, it can be compensated with money she owns you or somebody else. Taking it yourself from her (in a non-stoopid way) would not be theft, as it’s not somebody else’s property. When sued, she would have to explicitely rise the statute of limitations, otherwise she loses. Moreover, putting stuff in your tax declaration as debt (to reduce her tax load a bit) means she recognized the debt. Which triggers the 10-year-timeframe anew.

The real risk is her ability to pay you back.

2 Likes

Great to have a real lawyer on this forum. I mean that.

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