P2P loans, also known as “private loans” in German, have enjoyed great popularity for many years. In addition to specialized platforms, their conclusion can also be “face to face”, for example between family members or friends. From a tax point of view, corresponding interest is included in the income from capital assets. Who pays the interest can claim it, if necessary, as operating expenses or advertising costs.
First principle: Capital provision for personal loans
P2P loans or personal loans fall under the income tax income from capital assets according to § 20 (1) no. 7 EStG. Because a corresponding loan represents a capital transfer in the sense of the norm, since
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.