If you borrowed money or lent money, you have to report the loan to tax authorities. Below a certain threshold, you don't have to do it. As of September 27, 2020, this tax exemption threshold has been increased from €760 to €5,000 in order to reduce the reporting obligations of individuals and traders.
The threshold of €5,000 is the total amount of the loan or loans for the year.
If the amount of money borrowed or lent is more than €5,000 then the loan contract, written or verbal, must be declared to the tax department. You must then fill out Form 2062 by completing the date, amount and conditions of the loan as well as the names and addresses of the lender and the borrower. This form is attached to your tax return.
FYI
If you lent money with interest, you have to report the interest you earned on your annual income tax return.
