How does crowdlending work in Spain?

The financial system is experiencing an unprecedented decentralization. In recent years, numerous alternative financing methods have emerged, advocating for transferring some power from banks to individuals. This is why methods like crowdlending have emerged, which is gaining significant traction in Spain.

Crowdlending, also known as peer-to-peer lending, has gained popularity in Spain as an innovative and accessible investment alternative. It allows individuals to lend money directly to businesses or individuals in exchange for interest, eliminating the need for traditional intermediaries like banks.

What is crowdlending in general terms?

Crowdlending is a type of collective financing where multiple people contribute money to fund a project or meet the capital needs of a business or individual.

In exchange for this money, lenders receive interest payments, making it an opportunity to generate returns. If you’d like to learn more about this type of investment, we recommend checking out our article on what crowdlending is.

How crowdlending works

When getting started with crowdlending, it’s essential for investors to understand the main participants. The crowdlending process involves three distinct parties:

• Lenders or investors - Individuals or institutions offering their capital with the expectation of earning returns.


• Borrowers - Businesses or individuals needing financing for projects.


• Crowdlending platforms - Companies managing the intermediation process between both parties, ensuring that the loan is carried out safely and in compliance with regulations.

After understanding the basics and the parties involved in crowdlending, it’s important to know the step-by-step process:

1. Registration on the platform - The investor registers on an authorized crowdlending platform, such as Inversa.


2. Project selection - The investor reviews available options and chooses which project to fund.


3. Funding - Once the project is selected and meets its funding goal, the loan is issued.


4. Investment recovery - Lenders receive their interest payments as per the agreed terms until the full capital is repaid.

The origins of crowdlending in Spain

Initially, most platforms offering crowdlending services were based abroad. However, over time, and with the gradual acceptance of these mechanisms by society, the landscape began to change. This shift led to the creation of the first platforms exclusively founded with local capital.

This movement is a clear example of the growing interest among savers and businesses in this financing method. In fact, since 2016, consulting firm Universo Crowdfunding, the University of the Republic of Uruguay, and the University of Jaén have been periodically analyzing the state of this sector.

Over the years, crowdlending has seen a remarkable evolution in Spain. Despite challenges like the pandemic and the emergence of new financing methods, it remains one of the most prominent funding approaches.

Crowdlending regulation in Spain

In Spain, crowdlending has grown significantly since the 2008 financial crisis, when businesses began seeking alternative financing sources. Due to this popularity, regulations have advanced, with laws establishing a legal framework for crowdfunding platforms.

Crowdlending in Spain is regulated by Law 5/2015 on the Promotion of Business Financing. This law mandates that platforms meet strict requirements to operate, ensuring greater security for investors.

However, capital is not guaranteed as it is with bank deposits, so investors must act cautiously and fully understand the factors involved in this investment. Platforms like Inversa provide guidance through advisors who keep investors informed at every stage.

At Inversa, we stand out by focusing on solid projects with attractive returns and responsible risk management, offering a reliable option for investors seeking to diversify their portfolios.

What does the law regulating crowdlending in Spain include?

The law defines the scope of these platforms, which not only select and publish crowdfunding projects but also establish communication channels to facilitate agreements.

The law stipulates that platforms must be authorized by the National Securities Market Commission and adhere to principles of neutrality, transparency, and diligence, always considering the interests of both parties.

Various articles regulate infringements and the penalties arising from them. The law also outlines measures to protect small savers, distinguishing between accredited and non-accredited investors:

• Accredited investors - Those with more resources and no investment limit.


• Non-accredited investors - Those who do not invest professionally and are limited to €3,000 per project and €10,000 over 12 months.

The law also aims to mitigate the risk of borrowers being unable to repay and imposes restrictions on the amount of money organizations can raise through these platforms.

If targeting regular individuals, platforms can raise up to €2 million. For accredited investors, this limit increases to €5 million.

Taxation of crowdlending in Spain

Understanding crowdlending in Spain also requires knowing its tax implications. Article 25 of Law 35/2006, dated November 28, on Personal Income Tax, partially amends laws governing corporate tax, non-resident income tax, and wealth tax, regulating the taxation of interest derived from crowdlending operations.

These are categorized as investment income, similar to stock dividends or long-term bank deposit interest. The tax rates are as follows:

• Earnings up to €6,000 - 19% tax rate.


• Earnings between €6,000 and €50,000 - 21% tax rate.


• Earnings over €50,000 - 23% tax rate.

Generally, Spanish platforms withhold this tax and transfer it directly to the tax authorities. In the case of international platforms, withholding does not typically occur, so the investor receives gross interest and is obligated to report it to the tax authorities.

Before investing, it is essential to check how a platform operates to avoid any future issues. As with any investment, there is always a level of risk and the potential for losses.

However, such losses can be leveraged to save, paying taxes only on actual gains. This can be achieved by offsetting losses against gains in your tax return.

If the incomes are of the same nature, the investor can deduct losses from total gains, meaning they only pay taxes on the net interest amount.

Crowdlending in Spain: a reliable funding method

In recent years, crowdlending in Spain has gained significant momentum. Its adoption offers numerous advantages for both savers and businesses, as it eliminates bank intervention, enabling easier investment and loan access. The future looks bright for this alternative financing method, which still has much to offer.

It is an excellent option for those seeking to diversify their portfolios and generate higher returns compared to traditional methods. However, understanding both the benefits and risks is crucial before participating.

If you're interested in exploring new investment opportunities, platforms like Inversa offer a secure and regulated environment to maximize this funding option. Don't hesitate to contact us, and we'll be happy to answer all your questions with no obligation.