P2P Lending in Latvia

The Latvian Market for Crowdfunding and Peer-to-Peer Lending

According to data from the latest report by Cambridge Centre for Alternative Finance (CCFA) on the global market of alternative finance and crowdfunding, Estonia had a total funding volume of €227.3 million in 2018, up from €92.2 million in 2017, which corresponds to an impressive growth rate of 146.5%. This places Estonia’s crowdfunding market as number 10 in Europe and as number 23 in the worldwide crowdfunding statistics. The countries topping the list in Europe are the United Kingdom, the Netherlands, Germany, France, and Italy. P2P consumer lending was by far the largest business model driving crowdfunding volumes in Latvia, accounting for more than 90% of the total volume.

Interestingly, Latvia was ranked as number 3 worldwide in terms of funding volumes on a per capita basis with $132.12/per capita only surpassed by the UK ($155.93) and the US ($186.88), which provides an idea of the relative market size. The high volume per capita is thus indicative of high adaptation, usage, and penetration of crowdfunding in Latvia despite the relatively small total funding volume.

It is also worth noting that Latvia and the two other Baltic states, Estonia and Lithuania, are home to some of the largest European-based peer-to-peer lending platforms operating on an international scale, especially within P2P consumer lending and P2P business lending.

Below, you will find a complete list of all Latvian peer-to-peer lending platforms.

Table of Contents

Best P2P Lending Platforms in Latvia

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

Crowdestor

Crowdestor facilitates crowdfunding in the area of real estate lending and business lending at a minimum investment of €50. The platform offers financing to companies and entrepreneurs for real estate oportunities and business projects such as working capital, construction, adquisition, and renovating among others. Crowdestor was founded in 2017 by Gunars Udris and Janis Timma as an Estonian company. The headquarter and company is located in Riga, Latvia but they offer financing to companies worldwide. All loans are in Euro(EUR).

Any natural or legal person of at least 18 years old with a bank account can invest on Crowdestor.

Any company can apply for a loan on Crowdestor. After the application, the platform evaluates the borrower´s background, their business plans, financial reports and loan security to verify the viability of the loan.

Debitum Network

Debitum Network facilitates crowdfunding in the area of loan originator lending for business lending originators at a minimum investment of €10. The platform offers financing to various loan originators that then find the borrowers for business loans. Debitum Network was founded in 2009 by Martins Liberts, Donatas Juodelis and Justas Šaltinisas as a Latvian company. The headquarter and company is located in Riga, Latvia and they offer financing to loan originators in Netherlands, Lithuania, Latvia, Romania, United Kingdom, and Czech Republic. All loans are in Euro(EUR).

Any person of atleast 18 years old or company can apply to become an investor on Debitum Network if they right documentation is provided.

No one can borrow directly on Debitum Network, to have a loan on Debitum Network the borrower would have to had borrowed from a loan originator that the platform is collaborating with.

Mintos

Mintos facilitates crowdfunding in the area of loan originator lending for agricultural loan originators, business lending originators, mortgage lending originators, car lending originators, invoice trading, pawnbroking lending originators, consumer lending originators, and short-term lending originators at a minimum investment of €10, DKK 80, GEL 25, PLN 50, GBP 10, SEK 100, RON 50, RUB 700 or CZK 300. The platform offers financing to various loan originators that then find the borrowers. Mintos was founded in 2014 by Martins Sulte and Martins Valters as a Latvian company. The headquarter and company is located in Riga, Latvia but they offer financing to loan originators in Albania, Armenia, Botswana, Bulgaria, Colombia, Czech Republic, Denmark, Estonia, Macedonia, Finland, Georgia, Indonesia, Kazakhstan, Kenya, Kosovo, Latvia, Lithuania, Mexico, Moldova, Philippines, Poland, Romania, Russia, South Africa, Spain, Sweden, Ukraine, United Kingdom, Zambia. The loans are in Euro(EUR), Danish Krone(DKK), Georgian Lari(GEL), Polish Zloty(PLN), British Pound(GBP), Swedish Krona(SEK), Romanian Leu(RON), Russian Ruble(RUB), or Czech Koruna(CZK).

Any company, natural or legal person of at least 18 years old with a bank account in the European Union or third countries currently considered to have AML/CFT systems equivalent to the EU, and with their identity successfully verified by the platform can invest on Mintos.

No one can borrow directly on Mintos, to have a loan on Mintos the borrower would have to had borrowed from a loan originator that the platform is collaborating with.

PeerBerry

PeerBerry facilitates crowdfunding in the area of loan originator lending for consumer lending, real estate lending, and Business lending at a minimum investment of €10. The platform offers financing to various loan originators that then find the borrowers for personal loans, real estate loans, and business loans. PeerBerry was founded in 2017 by Aventus Group as a Latvian company. The headquarter and company is located in Riga, Latvia and they offer financing to loan originators in Poland, Belarus, Ukraine, Russia, Kazakhstan, Moldova, and Vietnam. The loans are in Euro(EUR).

Any company, natural or legal person of at least 18 years old can invest on PeerBerry. The requirements for investing as a company are the followings:

  • A valid passport or both sides of representative´s ID card
  • Extract from business register
  • Document certifying the rights to represent the company
  • Documents that can verify company´s registration number, legal address, and beneficial owners
  • Certificate of Fiscal Residence

No one can borrow directly on PeerBerry, to have a loan on PeerBerry the borrower would have to had borrowed from a loan originator that the platform is collaborating with.

Twino

Twino facilitates crowdfunding in the area of loan originator lending for consumer lending, real estate lending, invoice financing, and Business lending at a minimum investment of €10. The platform offers financing to various loan originators that then find the borrowers for personal loans, real estate loans, business loans and invoice trading. Twino was founded in 2009 by Armands Broks as a Latvian company. The headquarter and company is located in Riga, Latvia and they offer financing to loan originators in Latvia, Poland, Russia, and Kazakhstan. The loans are in Euro(EUR) and British Pound(GBP).

Any natural or legal person of at least 18 years old resident of a European Economic Area country can invest on Twino.

No one can borrow directly on Twino, to have a loan on Twino the borrower would have to had borrowed from a loan originator that the platform is collaborating with.

ViaInvest

Viainvest facilitates crowdfunding in the area of loan originator lending for consumer lending and business lending at a minimum investment of €10. The platform offers financing to various loan originators that then find the borrowers for personal loans, short term loans and business loans. Viainvest was founded in 2016 by VIA SMS Group as a Latvian company. The headquarter and company is located in Riga, Latvia and they offer financing to loan originators in Romania, Sweden, Czech Republic, Poland, Latvia, Spain and Vietnam. All loans are in Euro(EUR).

Any natural or legal person of at least 18 years old with a residency in an European Union or Switzerland can invest on ViaInvest.

No one can borrow directly on Viainvest, to have a loan on Viainvest the borrower would have to had borrowed from a loan originator that the platform is collaborating with.

Viventor

Viventor facilitates crowdfunding in the area of loan originator lending for consumer lending, mortgage lending, invoice financing, and Business lending at a minimum recommend investment of €10. The platform offers financing to various loan originators that then find the borrowers. The use of the loans differs depending on the borrower, may be for business development, medical expenses, renovation, and car financing among others. Viventor was founded in 2015 by Finstar Financial Group as a Latvian company. The headquarter and company is located in Riga, Latvia and they offer financing to loan originators in Bosnia and Herzegovina, Netherlands, Estonia, Spain, Poland, Bulgaria, Russia, Lithuania, Macedonia, Latvia, Moldova, Kazakhstan. All loans are in Euro(EUR).

Any company, natural or legal person of at least 18 years old with a bank account in any European Economic Area country can invest on Viventor.

No one can borrow directly on Viventor, to have a loan on Viventor the borrower would have to had borrowed from a loan originator that the platform is collaborating with.

DoFinance

DoFinance facilitates crowdfunding in the area of loan originator lending for short term consumer lending at a minimum investment of €10. The platform offers financing to various loan originators that then find the borrowers for personal loans. DoFinance was founded in 2016 by Viesturs and Jānis Kuļikovskis as a Latvian company. The headquarter and company is located in Riga, Latvia and they offer financing to loan originators in Latvia, Poland, and Indonesia. The loans are in Euro(EUR).

Any natural or legal person of at least 18 years old with valid documents (passport or identification card) and with a bank account in one of the European union countries, Switzerland or any other country of the EEA can invest on DoFinance.

No one can borrow directly on DoFinance, to have a loan on DoFinance the borrower would have to had borrowed from a loan originator that the platform is collaborating with.

Taxation on Peer-to-Peer Lending in Latvia

As many Latvian platforms operate on an international scale, it is important to note that the income earned through Latvian platforms is usually based on the tax laws of the investor’s country of residence. If you are a Latvian investor, interest earned through P2P lending must be included in the yearly income declared to the Latvian State Revenue Service (the SRS). The Latvian income tax system has been progressive since 2018, which means the annual taxable income is:

  • 20% for an annual income up of to €20,004.
  • 23% for the annual income between €20.004 up to €62,800.
  • 4% for the annual income exceeding €62,800.

For Latvian investors, Mintos has made a thorough review of the tax rules in Latvia, which you can find here. To get an overview of the Latvian tax system for both companies and individuals, we can also recommend this overview made by PwC.

Keep in mind that this should not be considered tax advice and can be outdated, why you should always contact a tax adviser when handling your taxes.

Regulation on Crowdfunding and P2P Lending in Latvia

Due to the variety of business models, regulation on crowdfunding and P2P lending in Latvia is still unclear. In the other Baltic countries, Estonia and Lithuania, platforms need explicit permission to lend in the form of a credit mediator license, whereas Latvian rules are vaguer. This does, however, not mean that crowdfunding and P2P lending is not regulated at all in Latvia, but there is still a lack of a specific regulatory framework for this type of financing, which might be introduced on a European level in the near future.

If you are interested in learning more about how crowdfunding is regulated in Latvia and the Baltics, take a look at this research article by Tomas Sadzius & Linas Sazius: Crowdfunding Regulation in the Baltic Region.

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