Loan for tax debts for self-employed

Most people don’t have a good opinion of the tax office. The employees there make sure that not only the income is significantly reduced by a tax burden. A tax must also be paid on all other things in life. While the tax is automatically transferred to the tax office when it comes to income or purchases, so that it is not necessary to take care of it yourself, it sees other income such as inheritance, income from self-employed or freelance work or income from capital transactions quite different. Here you have to take care of paying the tax yourself, since there is no mechanism for automatic payment.

However, many consumers like to ignore or forget this obligation once and are very surprised when a high additional payment flutters into the house. However, since debt to the tax office is not a trivial offense, it must be paid as quickly as possible so that no charges of tax evasion are collected. Every now and then it happens that the tax debt cannot be paid because it is so high that the available free money is simply not sufficient for it. Good advice is expensive. Or you decide to take out a loan for tax debts. This not only prevents trouble with the tax office, but also spreads the debt in small installments over many months.

Responsible for the loan for tax debts

The creditworthiness must not be jeopardized

Debt from the tax office should be cleared as soon as possible. Because they are quickly reflected in the form of a negative credit rating. Once this is available, it becomes very difficult to take out a loan for tax debts. Because then the simple installment loans with the banks, which promise a low interest rate and the simplest repayment modalities, will be eliminated. Only a second co-applicant or guarantor could then activate it. However, this would mean that a second person must be involved in the matter, who is responsible for the loan for tax debts and, in the worst case, must also pay for it.

For this reason, it is very important that action is taken quickly and that the loan – unless there is no other way of paying the tax liability – is taken up immediately after the tax assessment has been drawn up. If this does not work, alternatives for borrowing have to be looked at.

A loan for private tax debts?

A loan for private tax debts?

In such a case, a personal loan will be discussed. He can do without asking the private credit checker, but requires a good and above all fixed income. For self-employed persons or freelancers, this loan variant can therefore sometimes not be optimal for a loan for tax liabilities. Because they have no fixed income and would have to prove their existing income through detailed balance sheets. This takes a lot of time, which is simply not available for debts that the tax office has.

A loan from abroad could also be seen as an alternative. It is available as a small loan up to 5,000 USD and does not need to be asked by private credit checker. But the same applies here: Without a fixed income, it will be difficult to draw on such a loan.

In addition, make sure that you properly hedge the loan taken out. If it is a large loan amount, residual debt insurance can be the right choice. You should also look for physical collateral that you can offer the lending institution to keep the effective interest rate as low as possible.



Debts to the tax office are neither nice nor recommendable. However, they can occur quickly and should be cleaned up just as quickly so as not to provoke unnecessary complications. A loan for tax debts can be traded promptly and the debts can be eliminated. However, only if the tax debts have not yet had a negative impact on the creditworthiness and therefore a simple installment loan can be taken out to clear the debts.