Document background
The Down Payment Gift Letter is a crucial document in Belgian real estate transactions where part or all of a property down payment comes from a monetary gift. It is commonly used when family members or close relations assist in property purchases by providing funds for the down payment. The document serves multiple purposes: it satisfies mortgage lenders' requirements for proof of down payment source, complies with anti-money laundering regulations, and establishes a clear record for tax purposes across Belgium's regions (Brussels, Flanders, and Wallonia). The letter must include specific declarations about the gift's nature, amount, and irrevocability, while also addressing Belgian banking regulations and regional gift tax implications. This document is particularly important as it helps distinguish genuine gifts from loans and ensures transparency in property transactions while protecting both donors' and recipients' interests under Belgian law.
