Parents lending €350,000 to daughter for a home: key tax and legal rules

Parents lending €350,000 to a daughter for a home purchase requires a formal loan agreement to avoid tax complications, as Revenue may otherwise treat it as a gift. Clear terms on repayment, interest, and security are essential. A solicitor should document the loan, specifying term, interest, and any charge on the property. Banks may resist additional lending if another party holds an interest, and large parental loans could affect eligibility for Help to Buy or First Home schemes. Interest-free loans trigger annual "deemed gift" benefits for the daughter, reducing her €400,000 lifetime CAT threshold from parents, with reporting required if the loan exceeds €335,000. Parents should also address loan forgiveness in wills, as written-off balances count as taxable inheritances.