P2P Lending Tax Guide for European Investors
A comprehensive overview of how P2P lending income is taxed across major European countries and tips for tax-efficient investing.
Understanding P2P Lending Taxation
Disclaimer: This article is for informational purposes only and does not constitute tax advice. Consult a qualified tax professional for advice specific to your situation.
P2P lending income is generally taxable, but the specific treatment varies significantly across European countries.
Country-by-Country Overview
Germany
Tax Treatment: Capital gains tax (Kapitalertragsteuer)
- Rate: 25% + 5.5% solidarity surcharge = ~26.375%
- What's Taxed: Interest income, bonuses
- Deductions: Losses can offset gains within the same year
- Reporting: Annual tax return required
Key Point: Germany taxes interest as capital income with automatic withholding if done through German banks, but foreign P2P platforms require self-reporting.
Netherlands
Tax Treatment: Box 3 (savings and investments)
- Rate: Based on deemed return (not actual return)
- Threshold: €57,000 tax-free (2024)
- Calculation: Assets taxed at fictional return rate
Key Point: Dutch investors are taxed on wealth, not actual income. This can be advantageous for high-yield investments.
France
Tax Treatment: Flat tax (PFU) or progressive
- Flat Rate: 30% (12.8% income tax + 17.2% social contributions)
- Alternative: Option to use progressive income tax rates
- Reporting: Annual declaration required
Spain
Tax Treatment: Capital gains/savings income
- Rates: 19% (up to €6,000), 21% (€6,000-50,000), 23% (€50,000-200,000), 26% (above)
- Deductions: Losses can offset gains
- Reporting: Annual tax return
Poland
Tax Treatment: Capital gains tax
- Rate: 19% flat rate
- Reporting: Annual PIT-38 form
Tax Optimization Strategies
1. Loss Harvesting
If you have defaulted loans, document them properly. Many jurisdictions allow loss deductions.
2. Timing Considerations
Consider the tax year when:
- Withdrawing large amounts
- Selling on secondary markets
- Receiving bonus payments
3. Record Keeping
Maintain detailed records of:
- All transactions
- Platform statements
- Currency conversions
- Fees paid
4. Use Tax-Advantaged Accounts
Some countries allow P2P investments within tax-advantaged wrappers (e.g., ISA equivalents).
What to Track for Tax Purposes
| Income Type | Typically Taxable |
|---|---|
| Interest earned | Yes |
| Cashback/bonuses | Yes |
| Referral rewards | Yes |
| Capital gains (secondary market) | Usually yes |
| Return of principal | No |
Using Crowdlending Hub for Tax Prep
Our Tax Declaration feature helps you:
- Aggregate yearly income by platform
- Calculate gross vs. net returns
- Generate reports for your tax advisor
Simplify your tax preparation with our Tax Declaration tool.