Do you want to lend money to a friend or a family member and would you like to have it in black and white? What is the legal minimum that the agreement must contain, and what else should you remember? Who is a borrower (vydlužitel), and what is the difference between a loan agreement (smlouva o půjčce) and a money loan agreement (smlouva o zápůjčce)? We have explained all the terms and also prepared a template for you, so you know how to draw up a loan agreement.
Types of agreements for lending money
- Consumer credit: this includes mortgages, consumer loans, loans from non-bank institutions and building savings loans
- Loans concluded by a party other than a consumer: these are known as business loans
- Money loan agreement (smlouva o zápůjčce): these agreements are usually concluded between friends or family members and do not involve business or other commercial activity
Loan agreement
Under the new Civil Code (občanský zákoník), the loan agreement (smlouva o půjčce) has become a money loan agreement (smlouva o zápůjčce). The creditor is now the lender (zapůjčitel) and the debtor is the borrower (vydlužitel). You can still use the old terms in a new money loan agreement and the agreement will still be valid. A money loan agreement mainly protects the person who lends the money. If the debtor stopped making repayments, this agreement makes the money recoverable, for example through a court bailiff, if the worst came to the worst.
The legal minimum in a money loan agreement
- precise identification of the parties to the agreement
- an agreement that the creditor (lender) hands over money to the debtor (borrower)
- the date by which the money must be repaid (if the parties have agreed on instalments, the date and amount of each instalment) and the method of repayment (in cash or by card)
If no date is set for repaying the money, the creditor can simply terminate the agreement. The notice period is 6 weeks.
We also strongly recommend adding the following details
- any interest and its amount
- penalties for late payment
- the date, place and signatures
Once the agreement is drawn up, all you need to do is sign it, hand over the money and you are done. In this case, there is no need to have the signatures certified or deal with any other formalities. If you would rather arrange an overdraft or get a credit card, there are many options on the market. In that case, it is definitely worth contacting your own bank, where you already have some credit history (a regular monthly salary, etc.), as they may offer you attractive products. This may be better than risking family relationships, which often change for the worse when money is lent.
Do I have to pay tax on the money I receive?
If you agreed in the contract on interest that the other person must pay on top, you should pay tax on this income. Conversely, if you saved on interest, you should strictly speaking pay tax on the amount you saved compared with borrowing from a bank at a standard interest rate.
However, you need not worry, as you will probably avoid paying the tax. It only has to be paid if the interest for the calendar year exceeds 100,000 CZK (about 4,600 USD). Loans between parents and children, or other close relatives in the direct line, are also exempt. So you will most likely not have to pay any tax on interest.
Read also how to manage your money and how to save.
USD amounts are approximate, converted at the Czech National Bank rate of 21.80 CZK per USD on 2 October 2026.
