“I am signing a loan between individuals, do I have to declare it to the French tax authorities?”

“I am signing a loan between individuals, do I have to declare it to the French tax authorities?”

It depends on the amount:

-No: if over the year I have not borrowed/loaned between individuals more than €5,000 in one or more instalments;

-Yes: if I have borrowed/loaned between individuals more than €5,000 over a year, in one or more instalments.

How to make this declaration?

- Either directly by filling in my income tax return (under the heading "déclarations annexes"),

-Or by filling in the “CERFA 2062” form and sending it to the Individual Tax Department (“Service des Impôts des Particuliers”) on which I depend.

In addition, I can (but not compulsory) ask the registration department (“Service de l’enregistrement”) to register the loan agreement. The cost is €125. The interest is to give the contract a certain date.

Texts:

Article 242 ter, 3 du Code Général des Impôts,

Article 23 L de l’annexe IV du Code Général des Impôts,

Article 49 B de l’annexe III du Code Général des Impôts,

Article 1783 B du Code Général des Impôts.