Document background
The No Interest Loan Agreement is commonly used in Belgium for various purposes, including family lending, corporate group financing, and social impact initiatives. This document is particularly relevant when parties wish to establish a formal lending arrangement without charging interest, while ensuring compliance with Belgian civil law and tax regulations. It's essential for documenting loans between related parties, charitable arrangements, or strategic business relationships where interest charges are deliberately omitted. The agreement must specifically address Belgian tax implications of interest-free loans, including potential deemed interest provisions and gift tax considerations. It should be structured to meet requirements under the Belgian Civil Code and Code of Economic Law, particularly regarding contract formation, enforceability, and consumer protection where applicable.
