What is a fair interest rate for a loan to parents?

Questioner

What kind of interest should I ask for a private loan to my parents? It concerns 6000 euros with a term of 2 years, for the purchase of a caravan. I do not want to rip them off with too high an interest, but I do not want it to suddenly become a gift because of all kinds of gift tax rules. On the internet I only read information about gifts from parents to children instead of the other way around. Does it make any difference from a tax perspective whether we let it start this calendar year or in January? How do we calculate what they have to transfer monthly? I am also open to interim additional repayments in the event of windfalls so that the loan is repaid sooner. Are there other things I should pay attention to?

Lawyer

For the answer to this question you could look at the tax authorities' website. There you will find information about lending money to family and the interest rate, etc.