The so-called Equity Crowdfunding, is a form of Crowdfunding in which investors, through monetary contributions, get a share in the capital of the company with a return on investment through profits, income or capital of the company. , the real estate Crowdfunding is a type of Crowdfunding Equity that is developed in the so-called Participatory Financing Platforms as Icrowdhouse and through which investors make financial contributions for the acquisition of existing real estate or for the implementation of new real estate projects.
In accordance with what is established in Article 25 of Law 35 / 2006, of November 28, of the Income Tax for Individuals and of partial modification of the laws of Corporation Taxes, on Non-Resident Income and on the Patrimony, the income obtained by the natural persons through real estate Crowdfunding, must be taxed as a return on the real estate capital, that is to say in the same way that it happens with the interests obtained by the deposits in financial entities.
The type of taxation that applies to the income obtained is applied by the Treasury in a progressive manner and according to the following tranches:
- Taxes at 19% for the benefits obtained that are less than € 6.000.
- Taxes at 21% for the benefits obtained that fall between 6.000 € and 50.000 €.
- Taxes at 23% for benefits obtained greater than € 50.000.
Interest or dividends will be subject to a withholding of 19% (payment on account of the IRPF).
The promoter of the Real Estate Crowdfunding project, will be in charge of practicing the withholdings and settle the payment on account of the IRPF before the Tax Agency, of the benefits that are distributed to the investors. It must be taken into account that the Spanish tax system does not apply to the individual benefits of each crowdfunding investment that has been made, but to the total that is made on the sum of all the returns obtained. Taxation for the benefits obtained for non-resident foreigners who invest in real estate Crowdfunding, are also subject to withholding on the so-called non-resident income tax (IRNR).
As regards dividends, if the investor is a resident of a State that has signed a Double Taxation Agreement, they will be taxed in Spain with the limit established in the CDI. And in the case of being a resident of a State that has not signed an agreement, they will be taxed in Spain at the rate of 19%.
As for the interests, the promoter will not carry out any type of withholding and the interests obtained must be declared according to the regulations of the country of fiscal residence. If the investor is a legal entity, the benefits that the companies that have invested in real estate crowdfunding, are integrated within the Tax Base of Corporation Tax, the tax rate that corresponds.
There is another type of real estate investment called Crowdlending Real Estate through which investors lend capital to a real estate developer to develop a project, in exchange for an interest in borrowed capital. The loan repayment varies depending on the conditions that have been established between the participatory financing platform that drives and realizes the project viability plan, and the developer, the interests to be received by investors for the loan made, may be of interest fixed or the type called participatory in which the return and the amount thereof is associated with the profitability of the project.
The Crowdlending investor or lender, as in the case of the Real Estate Crowdfunding investor, must also pay income tax for interest and according to the same established tranches, which may vary from a minimum of 19% to a maximum of 23 %, in this case it is the borrower who is obliged to practice the withholdings and present the certificate of those made.
A consideration to take into account: if the benefits obtained by the investor leave them in the account that he has in the Platform to re-make new investments, the Treasury considers it as a realized benefit and is therefore subject to taxation from the same moment in which The account deposit has been made. Likewise, it is important to keep in mind that if the Crowdlending platform is located outside of Spain, within the European Union, the platform does not practice withholdings and it is the investor who must inform the Tax Agency of the benefits obtained from the Crowdlending investments you have made. As for legal entities, as in the case of real estate crowdfunding, taxation is the usual Corporate Income Tax.
Here are some binding queries made to the General Directorate of Taxes on Crowdfunding and Crowdlending issues.
The consulting entity is a company whose activity is known in English as "Crowdfunding" or "Crowdlending", that is, the use of one or several digital platforms to finance applicants. Specifically, the activity consists of using digital platforms so that they can contact investors who have money to invest with a multitude of companies that are looking for loans at a fixed rate between 90 days and 3 years and at a competitive interest rate.
If the activity carried out by the consultant meets the requirements indicated in Article 5 of the LIS in order to determine that said entity develops an economic activity for tax purposes.
The interested party has made contributions to different companies based abroad whose activity is Crowdlending. The consultant makes contributions to the company abroad by bank transfer to a bus account receiving interest on the loan. The company located abroad makes available to end customers to obtain capital in a fractional way. The consultant participates very small (10-50 €) in each final loan.
Obligation to present the 720 model.
Spanish company that aims at various Internet services, and whose main activity, called "Crowdlending", is to contact, as an online platform through its website, individuals (not entrepreneurs or professionals) who need a loan to acquire goods and services for private use, with investors (not entrepreneurs or professionals) willing to grant it. In this way borrowers get cheaper loans and lenders more attractive returns.
In relation to the payment of interest in favor of tax resident residents in the EU, it is consulted regarding: - Declarations to be presented before the Spanish Tax Administration. The Company considers that it is only the Model 299.- Documentation accrediting the tax residence of the investor that allows not to apply any withholding tax on behalf of the IRNR.- Yes, in the event that specific accreditation of the tax residence is required, it would suffice with certificates or letters of recognition of fiscal residence issued by the tax authorities of the States of residence in their original language.
The information indicated in this article is merely for guidance purposes, so it is advisable for investors to consult with a tax advisor or the Tax Agency, in order to ensure in each case the proper statement of income obtained both in the cases of real estate investments by Crowdfunding and Crowdlending.