Avoid Tax Trouble: A Lawyer's Guide to 0% Interest Family Loans in Spain

How to Secure a 0% Interest Family Loan in Spain: A Lawyer's Guide Borrowing money from family or friends can be a convenient solution, but it's crucial to navigate the legal aspects correctly. In Spain, a 0% interest loan needs careful handling to avoid tax complications. According to Xabi Abat, a lawyer and TikTok influencer (@xavi_abat), two simple steps can ensure a smooth process. First, create a formal written contract detailing the loan terms. This is essential to prevent the transaction from being considered a donation, which carries tax implications. Second, submit the Modelo 600 form to the Spanish tax agency (Hacienda). This form reports the transaction, protecting both the lender and the borrower. "The key is to have a written contract and submit the Modelo 600," says Abat in his video. "This simple process ensures you avoid any tax issues and the loan remains a loan, not a donation." This straightforward approach ensures legal compliance and protects against potential disputes. By following these steps, individuals can secure financial assistance from loved ones with peace of mind.