Skip to content
Back to index
V4992-16 17 November 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · préstamo gratuito

Interest-free loans are not subject to Income Tax for the lender if their gratuitous nature is proven

A religious entity has enquired whether it is possible to formalise an interest-free loan and how the lender would be taxed under Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) responds that, if the gratuitous nature of the loan is proven, there will be no tax implications for the lender's Income Tax.

The question raised

Whether there is the possibility of formalizing an interest-free loan and how such a loan is taxed under Personal Income Tax.

The DGT's ruling

There is a presumption that transfers of capital are remunerated, valued according to the legal interest rate. However, this estimation of returns does not apply if the gratuitous nature of the loan is proven through the means of evidence admitted in Law. To this end, the connection of the loan, its purpose, and the justification for its repayment must be substantiated.

Book your free first meeting