The taxation of crowdlending. Practical Guide

Fiscalidad crowdlending In this practical guide, we will explain point by point everything that has to do referred to retentions, possible deductions, how to declare the benefits … when investing in crowdlending. If you have any additional questions do not hesitate to contact us. Go for it!


Withholdings practiced in crowdlending

Crowdlending consists of loans to companies or individuals funded by private persons who lend their money in exchange for a return. Therefore there is an interest in the company that is financed and a return for the investors in these operations.

When dealing with loans, they generate interest following the Law 35/2006 of the Income Tax of the Physical Persons, which dictates that the company that obtains the loan must make the corresponding withholdings for the period.

At MytripleA, in order to carry out this process in an easier and faster way for the company, we carry out the retention on your behalf.

Currently, the retention practiced is 19%.


Taxation of benefits

Image result for taxation of benefitsThe profits (or interests) that the investor generates by investing in loans for crowdlending are declared as income from movable capital, exactly like the interest that is generated in a bank deposit, and in this way, it forms part of the taxable income of the IRPF.


Therefore, who makes the retention?

Depending on the crowdlending platform in which it operates, it will be the company that obtains the loan that will declare this information or the platform itself.

In our case, MytripleA takes over the obligation to retain and declare it to the Treasury in models 123/193.

MytripleA declares these withholdings quarterly in model 123, and annually in model 193, so the company will not have to retention of interest on its loan.


The draft tax for the investor

Image result for taxMytripleA sends in January all investors a breakdown of all withholdings that have been made to the companies financed and in which these investors have invested.

The investor, on the other hand, will be able to see the information about his interests retained in the box 022 of the section Returns of the movable capital to integrate into the tax base of the saving. The amount that appears both in the document sent by MytripleA and in the IRPF account, must coincide. Only check that the data from both documents match.

What happens if this data is not the same as that provided by MytripleA?

The data must always match, but we recommend that you always check it. If the retention data does not match the information that we send you, you must simply add this information in your statement.

To reflect these transferable capital returns in your statement, it will be made as follows:

  • If you must reflect interests: Situate yourself in the section on income from movable capital to be included in the impossible basis of savings, specifically in box 22: Interest on accounts, deposits and financial assets in general.
  • In the case of withholdings: In the section Determination of liquid installments and results, in withholdings and other payments on account for income from the capital, specifically in box 539, for income from movable capital.

If you have any questions, do not hesitate to contact us.

Is there any repercussion in my statement if the loan in which I have invested is in default or in default? Declaration as patrimonial loss

Bad loans may be recognized as equity losses on certain occasions, distinguishing between individuals and legal investors, since the treatment and recognition of the loss are different.

Individual investor: An income deductible in the IRPF may be recognized:

  • When the loss is judicially recognized (either by reaching a judicially approved agreement to remove or that the agreement acquires effectiveness in a bankruptcy phase)
  • When more than one year has elapsed since the judicial proceeding, other than the competition, has been stopped, there has been no change or been satisfied.

Investor legal person: A tax-deductible expense may be recognized in the Corporation Tax, provided that the loss due to deterioration of the credits has been recorded, and that some of the following causes have occurred:

  • The course of a period exceeding six months from the expiration of the obligation
  • The debtor is in a contest situation
  • The existence of judicial resolution.

Tax deductions on investment in companies by crowdlending

In countries like England, private investors who lend their money to companies enjoy a deduction on their income tax return. In Spain, so far, there are no deductions for this reason.