P2P Lending in Austria

May 26th, 2020
4 minutes read

The Austrian Market for Crowdfunding

According to data from the latest report by Cambridge Centre for Alternative Finance on the global market of alternative finance and crowdfunding, Austria had a total funding volume of €35.1 million in 2018, up from €32.9 million in 2017, which corresponds to a modest growth rate of 6.7%. This places Austria’s crowdfunding market as number 22 in Europe and as number 46 in the worldwide crowdfunding statistics. The countries topping the list in Europe are the UK, the Netherlands, Germany, France, and Italy.

Best Peer-to-Peer Lending Platforms in Austria

Here, you will find a list of the best peer-to-peer lending platforms in Austria. When choosing the best peer-to-peer lending sites in a country we consider a variety of factors that you can find in the Methodology below.

More P2P Lending Platforms in Austria

Below, you will find a list of the remaining peer-to-peer lending platforms located in Austria. If a new platform has been launched since this article was published and you do not see it here, please feel free to submit the platform by using the submit formula.

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Direct Marketplace Lending
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Direct Marketplace Lending
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Taxation on Peer-to-Peer Lending in Austria

In most cases, for natural persons residing in Austria, P2P loans are subject to a progressive income tax rate of up to 55% according to §27 (2) Z2 EStG if they do not fall below the annual assessment limit of €730 in accordance with §41 (1) Z1 EStG.

P2P Lending Regulation in Austria

Since there is still a lack of common rules for crowdfunding in the European Union, regulation of peer-to-peer in Austria is based on national legislation though this might change in the foreseeable future as the European Commission in March 2018 presented a proposal for a regulative framework on crowd and P2P finance as part of their Fintech Action Plan.

Below, you will find an overview of some of the most important aspects of the regulatory framework for lending-based crowdfunding platforms operating in Austria. These highlights can also be found in a paper from 16 November 2018 published by the OECD Economics Department on Regulatory framework for the loan-based crowdfunding platforms.

  • Legal status for lending-based crowdfunding platforms: There is no single legal framework for crowdfunding in Austria. The Alternative Investment Act (Alternativfinanzierungsgesetz – AltFG) establishes a transparent regulatory framework facilitating equity-based (crowdinvesting) and lending-based crowdfunding, if certain conditions are met. If these conditions are not met, crowdfunding is governed by the general regulatory framework, in particular the Capital Market Act (Kapitalmarktgesetz – KMG). At the moment, an amendment of the Alternative Investment Act is in the making with the intention to streamline the two existing systems of the AltFG and the KMG.
  • Date of the legislation: 1 September 2015
  • Name of the supervisor: The Austrian Ministry for Digital, Business and Enterprise.
  • Type of loan/debt security: Bonds and subordinated loans (no unconditional repayment claim). The same act covers shares, participation rights, and silent partnerships.
  • Minimum capital requirements: No.
  • Clients money: Should rely on the payment institution.
  • Max size of security: €5 million per emission. However, over a period of seven years, a maximum of €5 million may be collected, if no repayments are made in the meantime.
  • Max invested amount: €5,000 per investor and project (within 12 months). Exception: Professional investors or legal persons, issuers who declare that their investment is limited to 10% of all their capital assets or to the double amount of their monthly income.
  • Disclosure and risk warnings: Details regarding the operator of the internet platform: legal form, company, registered office, information about the owners as well as disclosure of all beneficial owners involved with at least 25%, in the case of legal persons with an excerpt from the corporate register, objective of the company, current annual financial statement; the selection criteria applied to projects and the fees charged; Indication of the nature, frequency and amount of fees paid by investors and issuers. The information sheet that complies with the terms of the AltFG and the Alternative Financing Information Regulation (Alternativfinanzierungs-Informationsverordnung – AltF-InfoV). The information should be checked for coherence, completeness and comprehensibility. The issuer`s business plan, annual financial statement and terms and conditions that apply between the issuer and the investor.
  • Do lenders have to pass a financial literacy test?
  • Business continuity requirements:
  • Can platforms invest in loans/securities that they facilitate? The platform itself may only act in the capacity of investor under certain conditions: It is permitted if it is a minor investment, which is solely intended to facilitate the flow of information between issuers and investors, and if expressly referred to.
  • Authorisation of platforms and professional requirements for applicants: There is no particular authorization process for platforms.

At P2PMarketData we are dedicated to providing an unbiased overview of the Peer-to-Peer Lending market and platforms. Among other, in our mission to bring more transparency to the market for online lending we track over 60 platforms funding volumes.

When choosing the best platforms in a country we have considered a variety of factors such as:

  • Number of investors
  • Minimum investment requirement
  • Historical annual returns
  • Diversification opportunities
  • Reinvestment opportunities
  • Educational and informational offerings
  • Platform fees
  • Total capital invested
  • Features (such as secondary market and automatic investing)
  • General transparency (the difficulty of finding who the owners are, how they make money on the platform (fees), terms & conditions and more)
  • Management team

We also look into the company’s online reputation (for example customer reviews, news, complaints, average monthly searches and social media).