Financing a condominium: full repayment or not?

Addition: When it comes to supporting you, have the kitchen gifted to you. That way, both parties benefit more. You receive a larger grant than with the loan, and the lender can invest their money better over the next 15 years (because after taxes and considering inflation, the loan results in a loss of wealth over 15 years). On top of that, no family stress at all.

That's what I mean by "It's not worth it to me."

Well, "only" 8000€ interest savings is already a decent amount that could be used elsewhere instead of throwing it down the bank's throat.

The partner is already well equipped regarding investments, so it doesn't bother him, he is also a bit older and we all hope he survives 15 more years (but don't really believe it :().
We are already getting a voucher for a kitchen worth 15k€ with the apartment offer, no matter which kitchen store.

How is it with the land register entries, do you have to pay 0.5% + 2% of the purchase price per entry?
So 1x 4000€ for 1st rank bank and another 4000€ for 2nd rank partner?

How is it with land register entries, do you have to cough up 0.5%+2% of the purchase price per entry? So 1x 4000€ for 1st rank bank and another 4000€ for 2nd rank partner?

The costs for ordering the land charge depend on the amount of the respective land charge. Two land charges are somewhat more expensive than one (obviously, double the documents, applications, notifications from the land registry office, etc.). You can calculate it online. Just google "Kostenrechner Grundschuld".

Well "only" 8000€ interest savings is already a chunk that you could use elsewhere instead of throwing it into the bank's mouth.

That’s clear. But as I said, with a €10,000 gift the giver probably comes out better and you don’t have a second creditor sitting on your neck.

The costs for establishing a land charge depend on the amount of the respective land charge. Two land charges are slightly more expensive than one (of course, double the documents, applications, notifications from the land registry office, etc.). You can calculate it online. Just Google cost calculator land charge.

Thanks, I'll take a look

I understand. But as I said, with a €10,000 gift, the donor probably comes out better and you don’t have a second creditor on your back.

uhh yeah ok, I hadn’t looked at it from that angle yet. The private loan basically gifts us the interest, so why not just do it directly like that :p

We also went to the loan broker again. He advised against it and said that if we don’t charge interest at all, or only very low interest, the tax office will come and ask why he isn’t taking market interest rates (currently about 5%). And then we’d have to pay gift tax on the so-called foregone interest. Sounded complicated and very uncertain for us. And with the kind of luck we always have, they will definitely come and want something :rolleyes:

The other option: to wait until they are married and then transfer the money from the partner via my mother to me interest-free as a regular gift between spouses, or parents/children, but depending on when his children inherit their future estate, and then maybe the recently concluded marriage, that won’t go smoothly without any disputes....

He advised us against it and said that if we don't charge any interest or only very low interest, the tax office will come and ask why he is not charging market-standard interest rates (currently about 5%).

Market-standard interest rates is correct – but secured by land register, the bank only charges 0.84% and not 5%. The 5% results from the past or a flat rate approach for consumer loans. If you want to be really clever and legally clean, there are both loans for 0.84% and at the end of each year you always get a Christmas gift amounting to half of the paid interest. Completely clean as a gift ;-) If you ever fall out with each other, in the worst case you pay the interest the bank would have charged. Of course, the broker advised you against it. He misses out on a lot of commission...

I could imagine that if he transfers the full amount to me as a third party, it might look like a gift and the tax office would charge me 30% gift tax?

Well, I am neither a lawyer nor a tax advisor, but I don't see who should demand gift tax. If there is a loan agreement and a repayment is planned, then surely no one can interpret it differently.