The Lithuanian Market for Crowdfunding
According to data from the latest report by Cambridge Centre for Alternative Finance (CCFA) on the global market of alternative finance and crowdfunding, Lithuania had a total funding volume of €121.8 million in 2018, up from €61.3 million in 2017, which corresponds to an impressive growth rate of 98.7%. This places Lithuania’s crowdfunding market as number 15 in Europe and as number 31 (same ranking as last year) in the worldwide crowdfunding statistics. The countries topping the list in Europe are the United Kingdom, the Netherlands, Germany, France, and Italy. However, it is worth noting that Lithuania, together with the other two Baltic countries Estonia and Latvia, is home to some of the largest European-based peer-to-peer lending platforms operating on an international scale.
Below, you will find a complete list of all Lithuanian peer-to-peer lending platforms.
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Best P2P Lending Platforms in Lithuania
Here, you will find a list of the top peer-to-peer lending platforms in Lithuania. 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.
Finbee facilitates crowdfunding in the area of consumer lending and business lending at a minimum investment of €5. The platform offers financing to individual personal projects (such as renovation, purchasing of vehicles, reestructuring debt, and healthcare, among others) and financing to businesses (such as working capital, reestructuring debt, aquisition, and expansion among others). Finbee was founded 2015 by Laimonas Noreika as a Lithuanian company. The office and company is located in Vilnius, Lithuania and exclusively offers financing to residents of Lithuania. All loans are in Euro(EUR).
Lenndy facilitates crowdfunding in the area of loan originator lending for mortgage lending, car secure 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 mortgage loans, car secure loans, business loans and invoice trading. Lenndy was founded in 2015 by Arturas Stukalo, Evaldas Damanauskas, N. Šatkauskas, and Tadas Krivickas as a Lithuanian company. The headquarter and company is located in Vilnius, Lithuania and they offer financing to loan originators in Lithuania and Poland. All loans are in Euro(EUR).
Any entity, natural or legal person of at least 18 years old can invest on Lenndy. For investing on Lenndy as a company, the business owner or the authorised person need to facilitate all the requested documentation in the registration form.
No one can borrow directly on Lenndy, to have a loan on Lenndy the borrower would have to had borrowed from a loan originator that the platform is collaborating with.
NEO Finance facilitates crowdfunding in the area of consumer lending at a minimum investment of €10. The platform offers unsecured financing to individuals personal projects such as renovation, purchasing of vehicles, reestructuring debt, and trips among others. Neo Finance was founded in 2015 by Evaldas Remeikis(Chairman) as a Lithuanian company. The office and company is located in Vilnius, Lithuania and exclusively offers financing to residents of Lithuania. All loans are in Euro(EUR).
Savy facilitates crowdfunding in the area of consumer lending and real estate lending at a minimum investment of €5. The platform offers unsecured financing to individuals personal projects such as renovation, purchasing of vehicles, reestructuring debt, and real estate development among others. Savy was founded 2014 by Augustas Staras, Ignas Mangevicius, Vincentas Zabulis, Vytautas Zabulis as a Lithuanian company. The office and company is located in Vilnius, Lithuania and exclusively offers financing to residents and real estate in Lithuania. All loans are in Euro(EUR).
Any person of at least 18 years that register on the platform can invest on Savy.
Any person from Lithuania above 18 with a financing volume from €300 to €19.000 and a duration of 3 months to 72 months can apply for a loan on Savy. Any business from Lithuania with a financing volume up to €5000 without real estate as collateral and up to €500.000 with collateral can apply for a loan on Savy.
Nordstreet facilitates crowdfunding in the area of SME business lending and real estate lending at a minimum investment of €100. The platform offers financing to real estate developers for different purposes and businesses that can pledge existing real estate. Nordstreet was founded in 2017 by Linas Kliukas and Tadas Budrikis as a Lithuanian company. The headquarter and company is located in Vilnius, Lithuania and they only offer financing to anyone with real estate in Lithuania, Poland and americans. All loans are in Euro(EUR).
Any person of at least 18 years old registered on Nordstreet can invest on the platform.
Any legal entity that fullfils the following requirements can apply for a loan on Nordstreet:
- Photos and / or video of the property intending to mortgage
- All relevant information on the borrower
- The loan amount requiered
- The duration of the loan
- A short business description
- Certificate of Valuation of Property and extract of the Center of Registers of the Property
Profitus facilitates crowdfunding in the area of real estate lending at a minimum investment of €100. The platform offers financing to real estate developers and companies that can offer real estate as collateral. Profitus was founded in 2017 by Viktorija Vanagė as a Lithuanian company. The headquarter and company is located in Vilnius, Lithuania and they exclusively offers financing to Lithuanian real estate. All loans are in Euro(EUR).
Any person of at least 18 years can can invest on Profitus.
Any legal entity that needs financing with a duration between 3 months to 6 years for real estate development or working capital in a business that can pledge real estate as collateral can apply for a loan on Profitus.
Rontgen facilitates crowdfunding in the area of real estate lending at a minimum investment of €100. The platform offers financing to both commercial and residential real estate mostly in Vilnius, Lithuania. Rontgen was founded in 2018 by Martynas Stankevičius as a Lithuanian company. The company is located in Vilnius, Lithuania and offers investments to everyone in the EU. All loans are in Euro(EUR).
Taxation on Peer-to-Peer Lending in Lithuania
For individuals, interest earned from peer-to-peer lending is taxed at a flat rate of 15% in Lithuania. The same rate applies to companies, who are taxed with a corporate income tax of 15% – and unlike the other two Baltic countries, Latvia and Estonia, there is no tax relief of interest income for companies in Lithuania.
To get a more in-depth overview of the Lithuanian tax system for both companies and individuals, we can 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 P2P Lending and Crowdfunding in Lithuania
Lithuania is one of 11 member states of the European Union that has national laws to specifically regulate crowdfunding. This regulation framework was adopted with the aim of making Lithuania an attractive place for FinTech companies as well as to enable citizens to invest in the domestic economy and create new funding channels for Lithuanian companies. Especially, the Lithuanian Law on Crowdfunding (Lietuvos Respublikos sutelktinio finansavimo įstatymas) enabled the development of debt-based P2P lending platforms and equity crowdfunding platforms by breaking down regulatory barriers.
Below, you will find an overview of some of the most important aspects of the regulatory framework for crowdfunding in Lithuania. These highlights can also be found in the impact assessment accompanying a proposal for a regulative framework on crowd and P2P finance presented by the European Union in March 2018. You can also read more about the Lithuanian Law on Crowdfunding here.
- Bespoke Regime: Yes
- Scope of lenders and borrowers: Securities and lending (to businesses).
- Entry into force: 1 December 2016.
- Passport: Yes, if MiFID platforms. No for platforms registered under exemption (Art.3 MiFID).
- Authorisation: Registration with the Bank of Lithuania.
- Minimum capital requirements: €40,000 or professional liability insurance (not less than €100,000 for a single liability claim and €500,000 in total); capital requirements to be re-calculated at the end of each year and must equal 0.2% of the amount of loans that have yet to be repaid.
- Services provided: N/A.
- Financial instruments: Financial Instruments.
- KYC rules (suitability or appropriateness; AML checks): Suitability test for first-time engagement with each product. Risk warnings must be issued if product is deemed unsuitable.
- Size of offer (limitations or prospectus requirements): Lower than €5 million over a 12-month period.
- Maximum investable amounts: No limit – appropriateness test and risk warning.
- Disclosure to investors by the issuer: The following information has to be disclosed: project & project owner characteristics, proportion of own funds used, details of the offering, security measures, existence of secondary markets. Information document needs to be prepared when the amount is between €100,000 and €5 million. At least 10% of the project has to be financed using own funds.
- Information requirements & risk warnings by platforms: Information on the platform itself, investment risks associated with crowdfunding, project selection criteria, crowdfunding information booklet (fees, taxes, procedures). Monthly and yearly progress updates.
- Due Diligence: Platform shall conduct project due diligence as well as publicly display the applicable criteria.
- Conflict of interest: Platforms must disclose the fee structures for investors and project owners as well as provide applicable tax information.
- Professional requirements: Criminal record check for platform operators, board members, and significant stakeholders.