How P2P lending and crowdlending earnings are taxed under IRPF in Spain

Introduction

P2P lending and crowdlending have established themselves as investment alternatives for those looking to diversify their assets beyond deposits, investment funds, or equities. However, in addition to analyzing potential returns and risks, there is an aspect that many investors overlook: taxation.

This raises questions such as: How are the earned interests declared? What taxes need to be paid? Is it possible to offset losses? What happens if the platform is located outside Spain?

In this guide, we explain, in a simple and updated manner, how the earnings from P2P lending and crowdlending are taxed under the Spanish IRPF.

How are the interests earned through P2P lending taxed?

The interest generated by investments in P2P lending or crowdlending platforms is generally considered income from movable capital in Spain.

This means that it is part of the taxable savings base of the IRPF, just like the interest from a savings account, a bank deposit, or bonds.

Consequently, the earned interests must be included in the income tax return corresponding to the year in which they were received.

It is important to distinguish between the invested capital and the generated interest; the amount you recover corresponding to the loan granted is not taxed again, as it simply represents the return of the initially invested capital. Therefore, what is subject to taxation are the earned interests.

What tax rates apply?

In Spain, income from movable capital is taxed according to the brackets established for the savings base.

This means that not all interests pay the same percentage, but rather the taxation is progressive.

If you also receive dividends, capital gains, or other income included in the savings base, all of them will be added together to determine the applicable tax rate.

For this reason, two investors with the same return may end up paying different amounts depending on the total volume of savings income obtained during the year.

These are the brackets of the Savings Base:

• Up to €6,000: 19%
• From €6,000.01 to €50,000: 21%
• From €50,000.01 to €200,000: 23%
• From €200,000.01 to €300,000: 27%
• From €300,000.01 onwards: 30%

Is there withholding on the interests?

It depends on the platform from which you invest.

Some platforms may apply tax withholdings when required by law, while others, especially if they operate from other countries, may not apply any withholding.

In the latter case, the investor still has the obligation to correctly declare the earned interests in their IRPF return.

Therefore, it is advisable to keep the annual operations report or the tax summary provided by the platform in which you have invested to facilitate the completion of the tax return.

What happens if the platform is in another country?

Many European crowdlending platforms operate under community licenses and allow investment from Spain, such as Maclear.

When the platform is based abroad, the tax obligation of the Spanish investor does not disappear. In general terms, tax residents in Spain must declare the earnings obtained regardless of the country where the platform or borrower is located.

Therefore, before investing, it is advisable to check what tax documentation each platform provides.

A platform that provides clear and complete reports can significantly simplify the preparation of the tax return, as otherwise, it could lead to future problems with the tax authorities.

Can losses be offset?

One of the most frequent questions among investors is what happens when a borrower stops paying the loan and losses are incurred.

The answer depends on the specific circumstances of each particular case.

In general terms, Spanish regulations provide mechanisms to offset certain capital losses against other gains or income within the limits established by current legislation. However, the tax treatment of a defaulted loan may vary depending on aspects such as the legal status of the debt or the moment it can be considered definitively uncollectible.

For this reason, not every delay in payment automatically implies a tax-deductible loss; rather, one must wait for the loss to be definitive.

If a significant default occurs, it is advisable to review the platform's documentation and, when necessary, consult a tax advisor to determine the applicable treatment.

How does a crowdlending platform help manage tax information?

Although the responsibility for correctly declaring earnings lies with the investor, a good platform can greatly facilitate this process.

Among the most useful aspects are:

• Annual reports detailing collected interests.
• Complete operation history.
• Record of payments received.
• Clear information about each loan.
• Easy download of necessary documentation.

On platforms like Maclear, organized access to the investment history allows for easy consultation of the portfolio's evolution and provides the necessary information to prepare the tax return.

However, it is important to remember that the platform does not replace professional tax advice.

Taxation and profitability: two aspects that must be analyzed together

When comparing an investment, it is common to focus solely on potential profitability.

However, the actual profitability obtained will also depend on factors such as:

• The applicable taxation.
• The diversification of the portfolio.
• The potential defaults.
• The fees.
• The inflation.
• The investment term.

Therefore, taxation should be part of the prior analysis along with the other characteristics of the product.

In the case of crowdlending, platforms that offer diversification tools, borrower analysis processes, and transparent documentation can facilitate investment management, although, as with any investment, there is always a risk of capital loss.

Conclusion

P2P lending and crowdlending can be part of a diversified investment strategy, but it is also important to understand their tax implications.

In Spain, the interest earned is usually taxed as income from movable capital within the savings base of the IRPF. Additionally, when investing through foreign platforms, the investor continues to have the obligation to correctly declare the earnings obtained.

Understanding how this taxation works helps to more accurately calculate the potential profitability of an investment and avoids errors in the income tax return. Before investing, it is advisable to review the tax information provided by the platform, maintain an organized record of operations, and, in case of doubts about particular situations, consult a specialized advisor.

The content of this article is provided for informational and educational purposes only. It does not constitute investment, financial, tax, or legal advice. P2P loans and crowdlending investments carry a risk of partial or total capital loss. Past results are not indicative of future results. Liquidity in a secondary market is not guaranteed. Readers should conduct their own independent research and consult qualified advisors before making any financial decisions. The availability of products and services may be restricted in certain jurisdictions.