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How private loans work at tax level

Today there are many financial alternatives to banks. From private equity companies to private lenders. Each of these options has its consequences at the fiscal level. Although it is likely that you have never considered it. For example, do you know how loans between individuals work on a fiscal level? If you have no idea, don’t worry. In Particular Lenders we clarify it for you. Continue reading.

Loans between individuals

Loans between individuals

Before explaining what the fiscal consequences are, it is important to be clear about what a private loan is. We speak of this modality at the moment in which a financial relationship is established between two parties. The lender, a natural person, offers capital to the borrower. In this way a contractual relationship is created where limits and characteristics of the financial agreement must be set. From repayment terms, through interest, possible commissions and duration of the loan. Without forgetting, of course, to agree the amount between both parties.

It is essential to create a contractual relationship

Although today the Law does not contemplate a specific type of contract when a private lender offers money, it is necessary that the agreement be reflected by contract. This way possible problems are avoided in the long run. All the characteristics of the loan must be reflected in said contract. So much:

  • the amount to lend,
  • such as the return period and fees,
  • possible interests,
  • The extraordinary characteristics of the agreement. As for example possible commissions for delay or partial or total early amortization.

For the process to be well established it is necessary to sign it before a notary.

How private loans work at tax level

How private loans work at tax level

Now that these details are clear, it is time to find out how loans between individuals work on a fiscal level.

According to article 45 of Royal Decree 1/1993, loans between individuals are exempt from having to pay the tax on documented legal acts. And the tax on capital transfers.

Precisely this exemption has led to abuses taking place over the years. Many people cover donations in the form of private loans to avoid having to pay those taxes.

That is why it is so important that it is clear that when making this agreement it is being done from the strictest legality. Regardless of whether it is a loan with a lender or with a friend or family member. In all cases it is recommended to sign it before a notary and present it later to the Treasury. In this way the contract is reflected and there are doubts about its legality. Thus, the tax administrations will have no doubt that it is really a loan between individuals.

It does not matter that it is an interest-free loan with a very long repayment term. As long as all its characteristics are reflected in the contract, a capital return link will be established between both parties. This will show that it is not a donation.

Did you find this information interesting?

Did you find this information interesting?

In that case we encourage you to take a look at the news section of Private Lenders. Here you will find more interesting information on economics, finance and economic news. For example:

  • Are there interest-free loans?
  • APR and TIN: two essential acronyms when requesting a loan
  • What is the legal interest in money and what is it for?

Loans and loans with bills of exchange who pay them in 2020

Well, if these are the questions, you are in the right place! What is this page for? Specifically, this is an entry page towards a whole series of institutions, both institutional and non-institutional, which in various capacities deal with the foreign exchange loan granted in Italy and which basically aims to answer a final question: how to obtain a loan with promissory notes in 2020?

Offers a loan with payment in bills

Offers a loan with payment in bills

Being the main access from which to start, here you will not find, on purpose, any person, whoever he is, who offers a loan with payment in bills as we have decided to divide everything into distinct sections. Which and why? Let’s see.

Who offers loans with return or repayment in promissory notes 2020: unlike many and other sites, which usually highlight everything on a single page, We at Personal Finance.it have chosen to divide those who make loans with promissory notes based on the subject that dispenses. Someone will ask themselves the following question: “. oh well, divide it as you want, but always loan with bills is!” Well, that’s not quite the case. So, the subdivision consists of four parts (4 pages), each of which indicates a specific type of financing with bills: to be precise, it goes from the letter “A” to “D”. Why such a subdivision?

The point of dividing a loan with bills in this way

The point of dividing a loan with bills in this way

The Reader may continue to wonder “. what is the point of dividing a loan with bills in this way?” A: The sense is as follows: to divide the loan with promissory notes by giving a sort of rating (one vote) based on who is treating them is certainly useful for those who want to access this form of residual credit. Therefore, we start from A which represents the “best” loan with bills of exchange both for feasibility and for rates applied, passing from B and C to get to D in which ” potentially ” the loan with bills is theoretically more risky and problematic.

Banks that make loans with bills of exchange: they are not many, but certainly, as much as they grant it, they do it at the best conditions compared to other grantors as they disburse their own money (rectius: of customers). Check them out on: banks that make loans changed. Financials that issue loans with bills of exchange: these are even fewer than banks, but where there are loans with bills of exchange although at a higher cost than the bank: financial ones that grant loans with exchanges

Agencies that make loans with bills: known with the name of agents in credit brokerage, they are the dominant numbers also for disbursements, but by mediating money from others the costs still rise: agencies that make loans with exchanges

Loan with bills of exchange between individuals: it is natural, by visiting the page, you will not find the name and surname of any individual who makes loans with bills rather a series of tips and attentions on how to avoid risks, rip-offs: loan with bills between serious individuals.

Loans and retired loans without assignment of the fifth

Loans for pensioners without assignment of the fifth

Loans for pensioners without assignment of the fifth

Who has landed on this page, is probably a pensioner who has been refused the assignment of the fifth relating to his/her pension. However, as the title suggests, there are cases in which it is the pensioner who freely chooses not to give up the fifth while being able to do it. Let’s recap the reasons for seeking alternative solutions to the transfer of the fifth: 1) they cannot give the fifth in how much we fall into one of the cases for which the law provides for the exclusion of the assignment; 2) we could sell it, but at some point it becomes uneconomical compared to other forms of financing; 3) we want to obtain a larger amount, which cannot be reached by the transfer of the fifth.

Now let’s analyze the three cases, in particular the first one, trying to suggest alternative solutions. Let’s start with the first hypothesis which is the most important as it concerns millions of Italian pensioners, i.e. all those cases in which it is not possible to transfer the pension and for this reason forms of credit are sought without assignment.

Loans to pensioners with non-transferable pension

Loans to pensioners with non-transferable pension

This is the first case. NB: a series of pension and/or social security and/or welfare treatments are included, regardless of the monthly received (it does not matter whether high or low) or the age of the pensioner as non-transferability is excluded from the current reference laws.
A) Family allowances: these, if paid to pensioners, cannot be transferred; B) Monthly allowances for assistance to pensioners for incapacity: this is essentially the accompanying allowance for which the transfer is precluded; C) Pensions and/or social allowances: these are loans for pensioners with social allowance which, by 2020, is equivalent to 459.83 USD per month, but which from this year (2020) can reach up to 780 USD per month as a supplement the minimum citizenship pension introduced by the Yellow-Green Government, if the requirements are met.

Loans for pensioners with a social pension follow, which instead, again in 2020, is equivalent to 378.95 USD per month: even from 2020, subject to requirements, it can reach 780. In both cases (C and D), they would no longer be non-transferable if above the minimum pension threshold, as we will see below; D) benefits for the exoduses required by law no. 92 of 2012; E) the owners of Ape Sociale (not the voluntary one); F) Loans with a civil disability pension ? Warning! We do not confuse civil disability with work-professional disabilities. Civil disability retired loans: what does it mean? These are welfare services that are released from work and as such cannot be transferred! While all related disabilities deriving from work may be subject to assignment of the fifth, but only under certain conditions, to see which you go on assignment of the fifth with disability pension. Let’s move on to the second case: it occurs when the transfer of the fifth is no longer convenient. As per the premise, there are cases in which, although the pensioner can freely give up the fifth, it is preferable not to give it and seek other financing. These cases are almost always related to the retiree’s advanced age and which make the transfer very expensive as described on loans for retirees up to 90 years to which the interested parties refer.

Loans for pensioners with minimum pension

Loans for pensioners with minimum pension

This is case no. 3 and which affects millions of Italian pensions. Did you know that in mid-2019 out of 18.1 million pensions paid in Italy, as many as 64% of these are under $ 750 per month? Well, it is precisely to these that the third form of financing is addressed to pensioners without transferring the fifth, directed not so much to obtain the financing but to increase it. So, there is a rule, known as ” safeguarding the minimum pension “, which establishes that it is not transferable, in fact, the fifth under a minimum threshold, which for the year 2020 is equivalent to 515 USD. Attention: the aforementioned sum does not refer only to the monthly received by the pensioner but in any case to the minimum sum which must remain net of the deduction deriving from the assignment: it cannot fall below this threshold. In these cases we speak NOT of assignment of the fifth, but up to a fifth that is different.

Let’s take an example of calculation for 2020, which is better than a thousand words: a pensioner, net of social security and tax deductions, has 600 USD per month. Strictly speaking, it could yield $ 120 (1/5 or 20%): and instead not! It can only sell $ 85 which is 14.2%, no longer 20%. In fact, if we subtract the $ 120 from the initial 600 we reach $ 480, that is below the threshold of the minimum transferable pension (515) which must be integrated: how? By lowering the installment that will drop from $ 120 to $ 85, as the minimum pension threshold will not be affected with $ 85 (600 – 85 = 515). This is why we said “up to a fifth”. The problem of loans with a minimum pension is that which does not allow you to obtain certain amounts: with current rates and even wanting to take advantage of the maximum amortization period (10 years) it is difficult obtain loans over 6-7 thousand USD.

Loans and loans to VAT holders

In the first part, we dealt with all the hypotheses and the financial implications not only of the new holders of VAT, but even before opening it or when, thanks to the opening of a VAT, we can create new jobs. So, where interested in these forms of financing, we refer to loans with a VAT number that has just opened.

While, here, we will deal with how to finance the VAT holders already started, that is, those who have a consolidated business as well as their moments of crisis and any solutions to overcome them in particular when a report has been made as bad payers. We will tell about the funding from credit institutions and those of the associations they belong to (autonomous and free professions) supported by the figures of the bank and on what conditions to access them…

Loans for VAT holders: what is the top priority?

Loans for VAT holders: what is the top priority?

Therefore, when you get in touch with banks and financial companies both online and by going physically to their branches, pay attention that, probably, the first thing that will spontaneously propose to you are common personal loans per VAT number. Why common? Because, despite the name with which they call the product, they are loans that have interest rates aligned with those of the market. In this case and if they have not offered it to you, you must be the one asking for some financing that has an agreement with your trade association.

Why? The reason for the request is based on the fact that only the agreements between the bank and/or the financial institution and the association guarantee subsidized loans per VAT number where the concession is able in some cases to halve the cost of money (interest).

Do not have sufficient guarantees to cover the amount requested

Do not have sufficient guarantees to cover the amount requested

Not only. If, for any reason, you do not have sufficient guarantees to cover the amount requested, the agreement, in some cases, is connected with one or more bank which, as we know, have the institutional role of guaranteeing up to 70% -80 % of the requested amount. Not bad! Question: my business is not represented by any ass. category or does it exist but I am not registered? What to do? It’s not a problem! As we will say later, some associations but, above all, some bank are free to provide and/or guarantee loans to VAT holders regardless of whether they belong to an association or not…

Loans for those who have registered VAT in 2020: we can substantially enclose all the funding destined for these in two large categories of workers: the self-employed and the freelancers. However, we consider that, always within the two aforementioned categories, we will include the forms of work organized in individual firms and/or SMEs as well as the liberal professions organized in associations and/or companies and in any case and regardless of the legal form, which we have a VAT number: true single common denominator.

Have access to loans for liquidity covering the short

Have access to loans for liquidity covering the short

Loans for self-employed with VAT number: there are many (self-employed) and, we repeat, the best strategy they can implement is to contact the association to which they belong. Among many, we want to indicate one, but not casually, but for a specific reason: we refer to the loans for craftsmen with VAT number of ArtigianCassa! Well, the aforementioned Cassa has the characteristic of providing loans to holders of VAT numbers NOT necessarily registered in the Register of Artisans. However, if you are not an artisan, you can only have access to loans for liquidity covering the short, medium and long term, not to other forms of financing such as leasing or the opening of credit in the current account which remain the prerogative of those enrolled in the Register of Artisans. The same applies to bank: now they guarantee any kind of self-employed worker regardless of union membership.

Credit for those who practice a profession:

Credit for those who practice a profession:

We have already dealt with this topic on loans for freelancers to which we refer for any further information.
With regard to the freelance profession, we would like to say here that, finally, a rule or law no. 172/2017, has liberalized the possibility for any professional to turn to any bank even if it does not belong to an Order as, for example does not exist. Well, by 2020, those who practice a profession can directly contact e.g. the FidiProf.eu, the bank.net or bankProfessionisti.it etc. etc.

Minimum VAT number financing: a brief mention goes to those holders of VAT numbers in the minimum system. These have the problem of having such a volume of business, sometimes so modest, that it does not allow them to finance sums of a certain size. What to do if you are in the minimum system? Well, if not even the bank, based on the income presented, are unable to guarantee the requested sum, those interested in this problem can find a solution among the loans for self-employed with low income.

Purpose of private loans

When we are immersed in unfavorable economic circumstances we ask ourselves if it would be convenient to use a private equity company to obtain a loan, we must analyze the purpose of private loans and know in which case it is more appropriate to use a private equity company.

So essential to be able to solve unforeseen situations

So essential to be able to solve unforeseen situations

When we have no other alternative and the bank closes the door for us in order to obtain the necessary financing, which is so convenient and so essential to be able to solve unforeseen situations, specific needs that can never be foreseen. In those cases it is when it would be appropriate to assess the possibility of resorting to a company like ours that offers private loans and that allow us to improve the situation is where we are.

It is not, therefore, a whim but a clear urgency to request private loans, the purpose of private loans is to solve specific needs, it is not a large-scale investment but it is a necessary boost to get out of the quagmire in which we are immersed.

To be able to access any of these private loans, it is only necessary to guarantee it with a property. In the case of our company Contact Finance, there is the option of guaranteeing almost any object of value, this means that we can guarantee credit with a flat, a vehicle, any object as long as they are not jewelry.

Client needs is a small amount of money

Client needs is a small amount of money

If what the client needs is a small amount of money to be able to get out of the unforeseen economic situation in which he has immersed himself, we can always lend him a small amount from $ 3,000, the maximum that we can grant him will be delimited by the quality of the guarantee to provide us, up to 20 or 25% depending on each case.

And in those situations in which the user does not have real estate or any other object with a considerable value, we have the option of obtaining money for the client’s own vehicle, this means that we will be able to grant him a credit through his car, for this first That car is taxed and then a monetary amount can be given that can reach up to 40% of the value of the vehicle, in the same way we do it in the case that it is a motorcycle, a van, a truck, etc.

As for real estate properties, it has to have a special characteristic that is to be free of charges and mortgages, and flats, houses, premises, etc. can be valid. except for the plots or plots.

All our loans are granted in a very short time and it is possible that the client will have the cash in less than 72 hours, that is possible thanks to the fact that the credits of our private equity company offer many advantages and one of them is that they do not We ask for so many papers or justifications, thus speeding up the procedures.

Gives more solidity and legality to our financial loans

Gives more solidity and legality to our financial loans

The purpose of private loans is to give our clients an economic respite and we also offer security, assistance and we design all operations tailored to the user’s needs. All the agreements are signed before a notary and this gives more solidity and legality to our financial loans; These notarial signatures can be made anywhere on the peninsula, including the islands, and with this we ensure that the client does not have to travel to perform them.

The payments of the installments can be done very comfortably and the duration of the loans can be extended up to 15 years, we always make the burden of requesting a loan for the user as flexible as possible.

All these characteristics are more than enough reasons for you to decide to apply for a particular loan, knowing the purpose of private loans you can know and appreciate that this is a very convenient alternative, when bank credit is denied, we can help you And we will also solve all the doubts you have in this regard, therefore we advise you to contact us and consult us as soon as possible.

Loans to unemployed to open businesses

The difference mentioned concerns that between unemployed and unemployed: the first case concerns all those who have worked but, for any reason, have lost their jobs; the second case (the unemployed) concerns those who have never worked: the latter type mainly includes boys and young people who are looking for their first job. Well, based on the belonging of one or other type of jobless, you may or may not have access to certain loans.

Are aimed at both the unemployed and the unemployed

Are aimed at both the unemployed and the unemployed

However, the facilities that provide for this difference, by 2020, are less and less as they were (and are) considered discriminatory to each other. From this point of view, all the new concessions indicate either “not employed” or specify that they are aimed at both the unemployed and the unemployed.

Non-repayable loans for unemployed people who want to start their own business: let’s start with these because they are the most attractive. The most important non -repayable loan for unemployed people who want to start their own business is, perhaps, invitalia’s honor loan: this can provide a non-repayable contribution of up to 50% of the loan granted and the remaining 50% to be paid by a subsidized rate mortgage.

There are non-refundable grants

There are non-refundable grants

The Rest in the South project follows: also in this there are non-refundable grants which reach up to 35% of the loan that can be disbursed but the remaining 65%, to be paid in installments, is at zero rate. Always among the non-repayable loans destined for the unemployed, we have Cultura Crea and which concerns the creation of businesses in the cultural industry: in this, the non-repayable contribution reaches up to 45%. Non-refundable loans for unemployed women ? Sure! All the aforementioned hypotheses also concern women, i.e. the female enterprise alone or mixed with the male one.

Discounts for unemployed people to open businesses. These are many and often the real problem is knowing them. They can come from many levels: from the region, from the state and from Europe. We indicate to you that, among the new unemployed enterprises 2020 facilitations, it is the most important as it has a budget of several million USD to satisfy the demand of many young unemployed young people: we refer to the initiative known as financing new enterprises at zero rate.

Allows you to start on your own relatively

Allows you to start on your own relatively

This latter facility allows you to start on your own relatively, that is, it is only admissible in a corporate form and not as a sole proprietorship for self-employment. Among the forms of subsidies and loans to unemployed people to open businesses there is a “very special” one. This is a loan for innovative startups, even if not yet established. The peculiarity of this loan is that it has a dual nature: as a rule, the concession consists of a zero rate of up to 80% of the loan granted and the rest at market rate. While if the innovative start-ups are located in the southern regions, without prejudice to the rate 0 up to 80%, the remaining 20% ​​will NOT be returned, therefore it will be fully funded.

Another way to start up on your own, concerns only the unemployed who take advantage of the unemployment allowance or in case of reimbursement in advance for the opening of activities that we have already talked about about financing with reimbursement in advance and the opening of activities and to which we refer interested parties. Other systems to open businesses with unemployment can be found on loans for those who open a VAT number. Finally, if you were interested in requesting liquidity during the unemployment period, we recommend visiting loans for unemployed 2020: how to obtain them and with what guarantees.

Financing and loans with VAT number just opened

To make it clear, in addition to using the concept map technique, we have divided it into two parts: the present one, which will deal with those who intend to open a new VAT number and those who have just opened it. The second part, on the other hand, will concern those who have an activity consolidated over time and in which we will tell about the loans dedicated to them as well as some solutions both during the crisis phases and, above all, when they have undergone a negative report in some database.

Deal with the role of the trade associations

Deal with the role of the trade associations

Loans for the opening of a new VAT number & loan with a newly opened VAT number: is there a difference? Yes! Sure! Especially in the disbursement of public contributions. Attention, because it seems a tongue twister: depending on the case, in order to obtain some financing you do NOT need to have any VAT, for others the VAT number just opened must not have an opening greater than a certain period, for others it must be inactive, that is without movement. On these points we will clarify, but with lots of real examples. It is understood that the aforementioned differences refer to those new VAT numbers that want to be financed through public funds. But we will also deal with the role of the trade associations and the Confidi as well as the problems that a new VAT number has had, open for 1-2 years, when instead we turn to the common banks and financial institutions.

Loans to open a VAT number

Loans to open a VAT number

In this case the prerequisite is that you do not have any VAT number! These are direct loans for the creation of new activities or small-medium size entrepreneurial start-ups. As of 2020, an example of this is given by the Invitalia Loan of Honor where it provides the requirement of not having any VAT, under penalty of inadmissibility of the application;

Then, Idem for the Resto al Sud financing: in this case, however, and only and exclusively for freelancers (not for self-employed persons and companies), the requirement of the lack of VAT number must be uninterrupted for at least the last year ( 12 months) compared to the date of submission of the application.

Finally, there is another hypothesis of financing to open a new VAT number, but since it concerns the initiative New Zero Rate Companies, we will talk about it later.
Financing with VAT number just opened: in this hypothesis, we already have a VAT number but recently opened.

The basis of the type of funding requested

The basis of the type of funding requested

Again on the basis of the type of funding requested, we have distinct hypotheses: the microcredit for young people up to 29 years of Selfiemployment of Youth Guarantee, which, also in 2020, provides that, in the case of individual companies or even cooperative and professional companies, although the VAT no. exists must not have movements therefore it must be inactive and that the new opening must not exceed 12 months compared to the presentation of the Selfiemployment application.

Another very particular example of 2020 to apply for a loan with a VAT number that has just been opened is that of New Zero Rate Companies aimed only at companies both of capital and of persons (no sole proprietorships) already established: in practice, companies can be already established but not more than a year (12 months) from the submission of the application, and if during the last year, they have handled VAT, they must provide separate accounting.

While, again for the New Zero Rate Companies initiative, if the company is not yet established, there is no need, therefore, to have a VAT number, as long as the new VAT number is opened within 45 days of the occurred admission to subsidies.