The Cypriot Market for Crowdfunding and P2P Lending
According to data from the latest report by Cambridge Centre for Alternative Finance (CCFA) on the global market of alternative finance and crowdfunding, Cyprus had a total funding volume of €56.6 million in 2018, up from €10,000 in 2017. Thus, from being almost non-existing in 2017, the Cypriot market for crowdfunding, or more specifically peer-to-peer lending as the current local market is primarily driven by Kviku Finance, seems to be undergoing an interesting development. This development also earned Cyprus a place as number 10 among high-income countries on funding volume per capita with €47.6 raised per capita. On an overall level, Cyprus’ crowdfunding market was ranked as number 17 in Europe and as number 37 worldwide. The countries topping the list in Europe are the United Kingdom, the Netherlands, Germany, France, and Italy.
Below, you will find a complete list of all peer-to-peer lending platforms in Cyprus.
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Best Peer-to-Peer Lending Platforms in Cyprus
Here, you will find a list of the top peer-to-peer lending platforms in Cyprus. Under each platform, you will find a brief description of the platform and the type of peer-to-peer lending available for investing on the platform. The list is sorted alphabetically, but to promote platforms contributing to transparency in the market, we have placed the platforms sharing data about their funding volume and other relevant statistics on the top. If you see a platform missing, please feel free to submit the platform by using the submit formula located in the sidebar of this page.
Kviku Finance facilitates crowdfunding in the area of loan originator lending to consumers in Spain, Poland, Philippines, Ukraine and Khazakhstan at a minimum investment of 1€. The platform offers financing to the Kviku loan originators located throughout the world that offers consumer loans. Kviku Finance was founded in 2020 by Kviku Holding Ltd and is their own platform for financing the loans of their Kviku loan originators, before and still the loans can be found on Mintos, IUVO, Bondster, Crowd Credit and Viventor. The company is located on the Republic of Cyprus but offers financing all over the world. All loans are in Euro(EUR).
Anyone that is at least 18 years old and has a bank account can invest on Kviku Finance.
No one can borrow directly on Kviku Finance, to have a loan on Kviku Finance the borrower would have to had borrowed from a Kviku loan originator that the platform is collaborating with and facilitating loans for.
Taxation on Peer-to-Peer Loans in Cyprus
In most cases, income from peer-to-peer lending will be treated as passive interest in Cyprus. This means that income from P2P loans will be subject to a tax rate of 30% according to the Special Defence Contribution. There can, however, be exceptions to this, why you should contact a tax adviser when handling your taxes. Also, please note that this should be considered tax advice and might be outdated.
To get a more in-depth overview of the Cypriot tax system for both companies and individuals, we can recommend this tax summary overview made by PwC.
Regulation on Peer-to-Peer Lending and Crowdfunding in Cyprus
Regulation of peer-to-peer in Cyprus is based on general national legislation as there is still a lack of common rules for crowdfunding in the European Union. However, 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. You can read more about the state of crowdfunding regulation in Cyprus in the European Crowdfunding Network Factsheet for Cyprus.