Parents helping their child buy a home: loan or gift?

Published on October 12, 2026.

Loan or gift

When parents give money to their child for the purchase, the difference lies in repayment. A loan must be repaid; a gift need not be. If nothing is in writing, the judge looks at the evidence: bank transfers, messages, conduct. It is often concluded that it was an indirect gift. A gift of money to buy the property may also enter into the calculation of the reserved share on the parents’ death.

Next question: Does the home bought with the parents’ money fall into the community of property? Read Home bought while married with the parents’ money: does it fall into the community?.

If the child is married or separates

The property regime matters. Under legal community of property, a home bought during the marriage is joint, unless it is expressly declared that it is bought with personal money, by gift, and the other spouse confirms this in the deed. Under separation of property the home belongs to whoever buys it. If the child separates, the parents have no direct right to the home; they have only the right to repayment if it is a proven loan.

How to put it in writing

For a loan, a private agreement with the amount, the due date and the terms, and bank transfers with a clear reference, are enough. For a gift of a large sum, a notarial deed gives more certainty. In both cases it is useful to specify who owns the property.

A frequent case

A frequent case described in general terms: names, places and details do not refer to real persons or files.

Two parents make a bank transfer of 60 thousand euros to their child to buy a home, with the reference “help for home”. The child is married under community of property and the home is registered in both names. After a few years the couple separates. The parents think they will get the money back, but without a written document it is very difficult to prove that it was a loan.

The best solution for you

• If you want to be sure of getting the money back: make a loan agreement signed by everyone, with a due date and a consistent bank transfer reference.
• If you just want to help: a declared gift is better, perhaps with the statement that the home is purchased with the child’s personal money, under art. 179 c.c.
• If it has already happened: gather the bank transfers and messages and have an assessment made of whether there is proof of a loan or a different route, such as reimbursement at the time of separation.

What to do right away: Put together the bank transfers, the purchase deed and every message on the subject, before memories fade. No route guarantees an outcome.

Frequently asked questions

Can the parents get the money back if the child separates?

Only if they prove it was a loan. If it was a gift, no.

Is a bank transfer with a reference enough?

It helps, but on its own it is only an indication. A signed document is better.

Do I have to declare the gift to the tax authorities?

Gifts of money follow their own rules: ask the notary or a lawyer.

Share on WhatsApp

(Read also): Legal guides from Studio Legale Fiorentino · Succession and gifts: how to plan right away · Gifts in Naples: risks, forced heirship and how to protect yourself when giving or receiving a home

Sources: Normattiva, Court of Cassation. Author: Avv. Renato Giuseppe Fiorentino, Naples Bar. Informational text, it does not replace an opinion on your case.