Is a loan tax-free?

A business loan itself is not tax-free; you do not pay tax on the loan amount yourself, as it is not income. However, the loan must be included as a debt on your company's balance sheet. In addition, you can usually deduct the interest and costs you pay on a business loan from the profit as business costs. This can be beneficial because it reduces your taxable profit, which in turn can provide a tax advantage.

At Qeld, part of Qred Bank, we help entrepreneurs with loans between €5,000 and €500,000, without a binding term and with a transparent cost structure. For detailed tax advice, it's always wise to contact a tax advisor so you can be sure how a loan affects your specific tax situation.