How can I give 100k EUR to my brother French citizen? Loan?

[5K1PP3R]

I am a Russian citizen, UAE resident. I need to send 100k EUR to my brother who is a French citizen and resident. Is there something easy we can do? He is a musician and can't be bothered with complicated things like crypto capital gains etc.
Can I send him from my Wise account and sign a loan contract? I want to buy him an apartment.

 

[JohnnyDoe]

5K1PP3R said:
I am a Russian citizen, UAE resident. I need to send 100k EUR to my brother who is a French citizen and resident. Is there something easy we can do? He is a musician and can't be bothered with complicated things like crypto capital gains etc.
Can I send him from my Wise account and sign a loan contract? I want to buy him an apartment.
Click to expand...

Crypto is WAY less complicated than anything else, and infinitely safer than Wise and such crap.

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[5K1PP3R]

JohnnyDoe said:
Crypto is WAY less complicated than anything else, and infinitely safer than Wise and such crap.
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He needs clean money to buy an apartment. He needs SOF. Although he has a decent salary, but he doesn't have money on his bank account

 

[Sols]

France has some terrible gift taxes. If the loan is between family members and for buying a property, that could be seen as a gift.

You need to get this absolutely right. Speak with a French lawyer or tax adviser.

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This is the probably the answer to your question.

 

[TheCryptoAnt]

A bit off-topic but gift tax was the ultimate reason I went from 'taxes suck but I understand they are necessary' to 'f**k this s**t Im going offshore'

In response to OP, would he be willing to relocate to UAE for 6 months?
This will make the gift tax-free.

If not, a wire is ok. Most if not all UAE banks facilitate EUR wires.
Beware of gift tax, having to declare the money etc. Also prepare a clear and clean money trail just in case.

 

[avalanche]

Maybe you can try buying apartment there in your name and let your brother live there?

 

[5K1PP3R]

avalanche said:
Maybe you can try buying apartment there in your name and let your brother live there?
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good idea, but in the current circumstances being Russian citizen, I want to consider other options first

 

[avalanche]

5K1PP3R said:
good idea, but in the current circumstances being Russian citizen, I want to consider other options first
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your brother can open a company and you can invest in it. it may reduce taxes

 

[Martin Everson]

5K1PP3R said:
Is there something easy we can do?
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Don't gift it no matter what.

See page 64 of Overview of French tax system...yikes 😳.

https://www.impots.gouv.fr/sites/default/files/media/1_metier/5_international/french_tax_system.pdf
SCALE APPLICABLE IN 2017 TO TRANSFERS (INHERITANCE OR GIFT) BETWEEN BROTHERS AND SISTERS:

up to €24,430 tax rate 35%
over €24,430 tax rate 45%

Speak to a tax advisor no matter what you do as France is a tax hell hole.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[Lamb75]

Is your brother broke ? Under French civil law you would have a "natural" obligation to help him (may or may not be interesting if he is broke. Legal advice would be needed from a French lawyer specialized in tax). Overwise it is highly taxed . I don't know which degree of complication the fact that you are Russian may add.