P2P Lending in the Netherlands

April 9th, 2020
5 minutes read

The Dutch Market for Peer-to-Peer Lending

According to data from the latest report by Cambridge Centre for Alternative Finance (CCFA) on alternative finance and crowdfunding in Europe, the Netherlands had a total funding volume of €279.9 million in 2017, which places the country as the fourth largest country in the region after the UK, France and Germany. From the total alternative finance funding volume 33.1% or 92.5 million came from P2P lending/crowdlending.

Best Peer-to-Peer Lending Platforms in the Netherlands

Here, you will find a list of the best peer-to-peer lending platforms in the Netherlands. 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.

Crowdfunding and Alternative Finance in the Netherlands

For a current view of the European market for peer-to-peer lending and equity crowdfunding, you can visit our data-section for an overview of all platforms denominated in Euros. However, another valuable source of data to visit for a view on the historical development of alternative finance and crowdfunding in the Netherlands is the Cambridge Centre for Alternative Finance (CCAF), who published their first report on the European market for alternative finance in 2015. The latest and fourth report was published in 2019 was called “Shifting Paradigms” and looks at 45 European countries and 269 platforms. The report primarily covers the four main types of crowdfunding: lending-based crowdfunding, equity-based crowdfunding, reward-based crowdfunding and donation-based crowdfunding. Because the report uses survey data the latest data available is from 2017.

The total Dutch market for alternative finance in 2017 was €279.9 million up from €194.2 million in 2016, which corresponds to a growth rate of 44.1%. In the figure below, you can see the market development in Dutch crowdfunding and alternative finance from 2013-2017. In the period, the yearly average growth rate was 59.2%.

Graph of the alternative finance in the Netherlands statistics from 2013 to 2017

The Netherlands accounted for 8.3% of the market in continental Europe in 2017. In comparison to the Dutch funding volume €279.9 million, the countries with higher funding volumes in continental Europe were France with a total funding volume of €661.4m and a market share of 19.6% and Germany with a total funding volume of €595.5 million and a market share of 17.7%. In a worldwide perspective, the Netherlands is the tenth-largest market for alternative finance and crowdfunding.

Statistics About P2P Lending in the Netherlands

The total alternative finance volume in the Netherlands in 2017 was split between twelve different business but for our purpose, we will focus on the numbers reported on P2P consumer lending and P2P business lending, which are the two peer-to-peer lending business models identified by CCAF in the Dutch market. In total, peer-to-peer lending accounted for 33.1% of the total alternative finance funding volume in the Netherlands, where €86.5 million came from P2P business lending and only €6.1 million came from P2P consumer lending.

Below, you will find a figure showing how peer-to-peer lending has developed in the Netherlands from 2013-2017.

Peer-to-Peer lending development in the Netherlands statistics 2013-2017

It is worth noting that P2P consumer lending is a relatively new business model in the Netherlands and only accounts for a fraction of the market. Also, unlike in most other countries, the Netherlands saw a quite large drop in funding volume from peer-to-peer lending in 2017 compared to 2016, which can partly be explained by three P2P business lending platforms (Greencrowd, Kapitaal Op Maat, and Geldvoorelkaar) not being part of the survey in 2017 after having participated in 2016.

To put the Dutch P2P lending funding volume into perspective, the two largest players on the peer-to-peer lending market in continental Europe, France and Germany, had a funding volume from P2P lending of €410.7 million and €396.7 million, respectively. However, if we look at the whole European region and thus includes the United Kingdom, who had a total peer-to-peer funding volume of £4,660 million in 2017, there should be plenty of room left for growth in the Netherlands.

Taxation on Peer-to-Peer Lending in the Netherlands

On most platforms, you will have to report your invested money to the tax authorities yourself. If you are a private individual, this is done on the income tax return by entering the outstanding investment amount in Box3 under “Uitgeleend geld en andere vorderingen” (money lent and other receivables). If you are an entrepreneur, the loan and interest must be entered in Box1 of the income tax return, while a Ltd must incorporate this in the income tax return. 

You might find the tax calculations tools and guides on Oneplanetcrowd.com useful.

P2P Lending Regulation in the Netherlands

Since there is still a lack of common rules for crowdfunding in the European Union, regulation of peer-to-peer in the Netherlands 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.

Even though there are no specific regulations on lending-based crowdfunding in the Netherlands, there is a chance that platforms operating within this market have activities that are regulated under the Dutch Authority for the Financial Markets (AFM), which might lead to requirements such as obtaining a banking, consumer credit or investment firm license and publishing a prospectus. More specifically, in the Netherlands, consumer-to-consumer platforms must have a creditor license, while consumer-to-business platforms are required to get an individual release from the AFM.

P2P lending and other crowdfunding platforms can apply for certain exemptions under specific circumstances, but it is also possible for the AFM to attach certain conditions to these exemptions and licenses, e.g. to protect investors. Also, it is mandatory for peer-to-peer lending and other crowdfunding platforms in the Netherlands to conduct a crowdfunding investment test on a consumer investing more than €500. Also, investment limits for consumers will apply, depending on the crowdfunding type.

Methodology

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 70 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).