Skip to main content

Can I lend money from one company to another interest-free?

Yes, as long as you follow certain formal requirements and can justify the transaction.

Written by Maud WAUTHOZ

Yes, a 0% loan between two Belgian PLCs is possible, under certain conditions.

A written document signed by both companies is sufficient

It must include: the identity of both companies, the amount, the date the funds are made available, the term/due date, the interest rate (or "interest-free") and the repayment terms.

No interest rate is legally required

Belgian law does not impose any interest rate: it is an optional element of the loan.

Two risks to watch out for: misuse of company assets and abnormal or gratuitous advantage

  • Misuse of company assets: the loan must serve the interests of the lending company.

  • Abnormal or gratuitous advantage (tax): the absence of interest must be justifiable in relation to market conditions.

For a modest amount and a short duration, the risk remains limited if repayment is certain and the transaction is justified (group relationship, cash flow support, etc.).

Did this answer your question?