{"id":1623,"date":"2025-07-22T09:44:16","date_gmt":"2025-07-22T07:44:16","guid":{"rendered":"https:\/\/vwg.nl\/uncategorized\/73-rente-op-familielening-is-onzakelijk\/"},"modified":"2026-03-03T10:34:58","modified_gmt":"2026-03-03T09:34:58","slug":"73-interest-on-family-loan-is-impractical","status":"publish","type":"post","link":"https:\/\/vwg.nl\/en\/73-rente-op-familielening-is-onzakelijk\/","title":{"rendered":"7.3% interest on family loan is impractical"},"content":{"rendered":"<p><a href=\"https:\/\/deeplink.rechtspraak.nl\/uitspraak?id=ECLI:NL:GHSHE:2025:1493\" target=\"_blank\" rel=\"noreferrer noopener\">Court of Appeal of Den Bosch<\/a> rules that an interest rate of 7.3% on a family loan is impractically high.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Family loan<\/h2>\n\n\n\n<p>In 2018, the interested party and his partner in this case partly financed the purchase and renovation of their own home with a \u20ac350,000 loan from (father-in-law). The terms of the loan read:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Term 30 years;<\/li>\n\n\n\n<li>annuity repayment;<\/li>\n\n\n\n<li>no mortgage security;<\/li>\n\n\n\n<li>interest 7.3% per year (and closing commission \u20ac1,000);<\/li>\n\n\n\n<li>interest rate fixed period 5 years;<\/li>\n\n\n\n<li>possibility of penalty-free accelerated repayment at any time;<\/li>\n\n\n\n<li>obligation to repay as soon as bank refinancing is possible;<\/li>\n\n\n\n<li>immediately payable upon (among other things) divorce;<\/li>\n\n\n\n<li>the obligation to take out death insurance policies, which are given as security to the father (in law).<\/li>\n<\/ul>\n\n\n\n<p>Interested party and the tax authorities agree that the loan qualifies as owner-occupied housing debt. There is also no dispute that the amount borrowed was used to purchase or renovate the home. The interest and costs of the loan are therefore deductible expenses relating to the owner-occupied home.<\/p>\n\n\n\n<p>The dispute centres on whether the interest rate of 7.3% is impracticable. The Inland Revenue considers deductible interest at a rate of 2.75%.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Interested party must prove<\/h2>\n\n\n\n<p>The burden of proving the amount of interest rests on the interested party. The Court concludes that this burden of proof has not been met. The contention that no bank would lend the required amount of \u20ac350,000 to the interested party is not sufficiently substantiated by a mortgage indication based on an understated purchase price for the house. Interested party did not request an offer(s) for a bank loan.<\/p>\n\n\n\n<p>The court followed the Tax Office in its contention that the loan was best comparable to a 30-year annuity bank loan with a 5-year fixed interest period. Using ING and DNB statements, the Tax Office argues plausibly that, apart from the lack of mortgage collateral, the loan would have been granted at an interest rate of 2.15%. The Inland Revenue increases this rate by 60 basis points because no mortgage security was provided.<\/p>\n\n\n\n<p>The reference to the interest rate on the bridging loans taken out by the interested party (6%) does not help him either. The court considers that the interested party has not made it plausible that the facts and circumstances under which these loans were granted are similar to the facts and circumstances under which the \u20ac350,000 loan was granted.<\/p>","protected":false},"excerpt":{"rendered":"<p>Hof Den Bosch oordeelt dat een rente van 7,3% op een familielening onzakelijk hoog is. Familielening De belanghebbende en zijn partner in deze zaak hebben in 2018 de aankoop en verbouwing van de eigen woning deels gefinancierd met een lening van \u20ac 350.000 bij (schoon)vader. De voorwaarden voor de lening luiden: Belanghebbende en de Belastingdienst [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1623","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/1623","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/comments?post=1623"}],"version-history":[{"count":1,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/1623\/revisions"}],"predecessor-version":[{"id":3635,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/1623\/revisions\/3635"}],"wp:attachment":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/media?parent=1623"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/categories?post=1623"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/tags?post=1623"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}