Do I need to declare loan interest paid to me to French tax authorities?

Reader question: I lent my friend €7,000 and he paid it back with interest. Will I need to declare anything?

If the additional amount paid was agreed interest on a private loan, it will be declarable as taxable investment income in the same box as for bank interest in the annual declaration for the year when you received the money. 

As a reminder, it is strongly advised that any significant loans should be formalised by a written contract, and in law, a loan of more than €1,500 between two people can only be proved by such. 

Other declaration obligations exist with regard to loans of more than €5,000 made in the course of a given tax year. Their existence should be declared to the tax authorities via form 2062. 

This is usually done by the borrower, or otherwise should be carried out by the lender and can be done at the same time as the income declaration for the year, by selecting it as an annexe. A paper form also exists.

For each loan, you are asked to indicate the amount, intended length of loan, amount and frequency of reimbursements and any interest rate (which should not be more than around 8.5% or it becomes viewed as illegal ‘usury’). 

Optionally, you can ask to officially register the loan (for a €125 fee).

Note that if you missed relevant declarations in your declaration of 2025 income, you can still correct it until your final declaration date and a service for later corrections opens via your online account in summer.