Can i also just ask...to speed up the process is it possible for her to gift 3k each to my parents and for them to in turn pass it onto me? or can i only accept 3k from one source per year?
There are a number of ways to tackle this. The simplest would involve your friend gifting €10k to each of you. €3k is covered by the Small Gift Exemption, and then €7k of your Group C "stranger" threshold of €15,075 is used up (assuming you haven't already used it).
My understanding is that you wish to repay this over 20 years. Then it's not a gift, it's a loan. As outlined in my earlier post, there should be no tax leakage and you just do it.
If your friend is open to the idea of potentially gifting the €20k, in broad terms a loan with circa €6k written off each calendar year would work (once you take account of the free use of property €200 point I mentioned previously).
Basically, no tax leakage should arise. There's no payment to Revenue. There isn't even a tax return.
A loan where it's agreed at the outset that it will not be repayable and €6k is to be written off each year, is NOT a loan! It's simply trying to recharacterise a gift as a loan, to obtain a tax advantage. It's exactly the type of messing section 811 is drafted to deal with, however without at least one additional zero on all of the numbers it's unlikely to rear its head in reality.
Just document it all.
What kind of documents Revenue would require to confirm the money transfer came from parents? Signed agreement? Notary stamped contract? Ownership of transaction source account? Just a declaration letter from parents? How to prove that gifter is Group A?
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