Market-conform interest: what rate can you charge family?

The most common question about family loans is also the most important one for the Belastingdienst: what interest rate is acceptable? Too low and the difference can count as a gift. Too high and it is not arm’s-length either. The answer lives in one concept: market-conform.

What does market-conform mean?

The rate should be close to what an independent lender would charge for a comparable loan under comparable conditions. The Belastingdienst looks at the most favourable form of financing available. Important: you may not add a 25% surcharge on top of market rates, that rule of thumb is explicitly rejected.

The bands per loan type

• Home loan with right of mortgage: roughly 4-5% (comparable to mortgage rates).
• Home loan without collateral (subordinated): a risk premium on top, typically up to about 5.5%.
• Unsecured consumer credit: higher, comparable to a personal loan from a bank.

What the official examples show

In the Belastingdienst’s own examples, a rate of 4.5% was accepted for a family home loan when banks charged 4-4.5%, and 5.5% was accepted for a subordinated loan without collateral. But 6% was rejected when a comparable alternative (the Nationaal Warmtefonds) charged 4.1% under the same conditions. The lesson: anchor your rate to the most comparable market offer, not to what feels fair.

Our calculator has these bands built in per loan type, move the rate slider and you immediately see whether your rate is inside the accepted range.