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Scalable Capital Review 2025 – A Solid European Roboadvisor

Last updated: December 23, 2024Leave a Comment

Scalable Capital is a digital wealth management platform that aims to make investing more accessible and efficient for a wide range of investors. Founded in 2014 by Erik Podzuweit, Florian Prucker, and Adam French, the company has quickly become one of Europe’s leading robo-advisors. Focusing on technology-driven investment strategies, Scalable Capital offers personalized, cost-effective portfolio management while minimizing risk.

In this review, I’ll explore the features, advantages, and drawbacks of Scalable Capital, providing an in-depth analysis of the platform’s offerings to help you determine whether it’s the right fit for your investment needs.

Invest with Scalable Capital

Investment Approach

The investment approach of Scalable Capital is based on Modern Portfolio Theory (MPT), which aims to maximize returns while minimizing risk through diversification. The platform uses advanced algorithms and technology to create an individualized investment strategy tailored to your risk tolerance, financial goals, and investment horizon.

The platform offers its clients multiple ways to invest and grow their wealth, catering to different investment styles and financial goals. Here are the three primary ways to invest with Scalable Capital:

  1. Broker: Scalable Capital provides brokerage services that enable investors to buy and sell a wide range of financial instruments, such as stocks, bonds, and exchange-traded funds (ETFs). With their brokerage service, investors can create a custom portfolio, selecting individual securities that align with their investment strategy and preferences. This option offers investors more control over their investment choices and is suitable for those who prefer a hands-on approach to investing.
  2. Interest: Scalable Capital offers a fixed-interest investment product known as “Scalable Capital Interest Account” (previously called “Savings Plan”). This option allows investors to deposit a fixed amount of money, typically with a predetermined interest rate, for a specified period. The interest account can be an attractive choice for conservative investors or those looking to diversify their portfolio with a lower-risk investment option. The interest rates can vary depending on market conditions and the duration of the investment.
  3. ETFs (Managed Portfolios): Scalable Capital’s core offering is its robo-advisory service, where they create and manage personalized portfolios using low-cost ETFs. These portfolios are tailored to each investor’s risk tolerance and financial goals. Scalable Capital uses advanced algorithms and technology-driven investment strategies to optimize the asset allocation and maintain the desired risk level. This option is ideal for investors who prefer a passive, hands-off approach to investing, as the platform takes care of portfolio management, including regular rebalancing and risk monitoring.

These three investment options cater to a variety of investor preferences, allowing them to choose the most suitable method based on their financial goals, risk tolerance, and desired level of involvement in the investment process.

Account Opening and Onboarding Process

Opening an account with Scalable Capital is a straightforward process. First, you’ll need to provide some personal information, such as your name, address, and tax identification number. Then, you’ll be asked to complete a questionnaire to assess your risk tolerance, investment objectives, and financial situation. This information is used by the platform’s algorithms to create a personalized investment strategy tailored to your needs.

After completing the questionnaire, you’ll receive a proposed portfolio allocation based on your risk profile. You can review this allocation and make adjustments if necessary before proceeding with funding your account. The minimum investment amount for Scalable Capital is €10,000, which can be a barrier for some investors with limited capital. On the other hand, I usually advise people to build a certain size of additional wealth before they decide to start investing. The minimum investment amount of €10,000 is what I would recommend as a minimum for this purpose, so in my view this makes sense.

Portfolio Management and Rebalancing

Scalable Capital continuously monitors and manages your portfolio using its proprietary algorithms. The platform regularly rebalances your portfolio to maintain the target asset allocation and risk level, ensuring your investments stay aligned with your financial goals and risk tolerance.

Rebalancing helps to keep your portfolio’s risk in check, as it prevents overexposure to a particular asset class or market segment that may have experienced significant gains or losses. This automated process is a significant advantage of robo-advisors like Scalable Capital, as it eliminates the need for you to constantly monitor and adjust your investments manually.

Fees and Costs

Scalable Capital charges an all-inclusive management fee based on the total assets under management (AUM). The fee starts at 0.75% per year for portfolios up to €50,000, with a tiered fee structure that reduces the fee as your investment amount increases. For example, the fee drops to 0.50% per year for portfolios between €50,000 and €200,000, and 0.35% per year for portfolios above €200,000.

This management fee covers all the costs associated with the platform’s services, including portfolio management, rebalancing, and custody fees. However, it’s essential to note that ETF expense ratios, which are inherent to the underlying funds, are not included in the management fee and will be an additional cost for investors.

Performance and Risk Management

Scalable Capital uses a dynamic risk management approach to ensure your portfolio stays within your desired risk level. The platform’s algorithms monitor market conditions and adjust your investments accordingly to maintain the target risk level. This process may involve adjusting the allocation of assets in your portfolio or switching to less volatile ETFs during periods of market uncertainty. This dynamic approach to risk management helps protect your portfolio from extreme market fluctuations while still pursuing your long-term investment objectives.

It’s important to note that past performance is not indicative of future results, and individual investment outcomes may vary. That being said, Scalable Capital’s focus on risk management and diversification aims to provide more stable returns over time, reducing the likelihood of significant losses during market downturns.

User Interface and Mobile App

Scalable Capital’s user interface is intuitive and user-friendly, making it easy to navigate and access all the features the platform has to offer. The platform provides a comprehensive dashboard that displays your portfolio’s performance, allocation, and historical data. This allows you to stay informed about your investments and make adjustments as needed easily.

The platform also offers a mobile app, available for both iOS and Android devices, enabling you to manage your investments on the go. The app includes all the functionality of the web-based platform, allowing you to track your portfolio’s performance, make deposits, and even adjust your risk tolerance directly from your smartphone or tablet.

Customer Support

Scalable Capital provides a variety of customer support options to address any questions or concerns you may have. You can reach their support team via email, phone, or live chat. From my experience, the customer support team has been responsive and helpful in addressing any issues or inquiries I had.

Some Drawbacks to Consider

While Scalable Capital offers many benefits for investors, there are a few drawbacks to consider as well. The minimum investment amount of €10,000 can be a barrier for some investors with limited capital, potentially excluding those who are just starting out on their investment journey.

Additionally, the platform’s investment offerings are primarily limited to ETFs, which may not be suitable for investors looking for a more hands-on approach or access to individual stocks, bonds, or alternative investments.

Alternatives to Scalable Capital

Here are a few robo-advisors and digital wealth management platforms that are available across Europe and that are worth looking into, with the final selection being dependent on your needs and ideas around investing.

  1. Moneyfarm: Founded in Italy and operating across Europe, Moneyfarm provides personalized investment portfolios based on ETFs. The platform offers a user-friendly experience, a tiered fee structure, and access to a team of investment consultants for personalized advice.
  2. Raisin: A pan-European savings and investment platform, Raisin partners with various banks and financial institutions across Europe to offer a wide range of investment products, including savings accounts, term deposits, and ETF portfolios. Raisin focuses on providing competitive returns, diversification, and a user-friendly platform.

Final Thoughts

Overall, I find Scalable Capital to be an attractive option for investors seeking a technology-driven, personalized investment solution. The platform’s emphasis on risk management and diversification, combined with its intuitive user interface and comprehensive support options, make it a compelling choice for those looking to simplify and optimize their investment process.

However, it’s essential to be aware of the platform’s constraints, such as the minimum investment amount and the focus on ETFs, when evaluating its suitability for your individual needs. As with any investment platform, it’s crucial to conduct your own research, consider your financial goals and risk tolerance, and ensure that the platform aligns with your overall investment strategy.

In conclusion, if you’re an investor looking for a robo-advisor that offers a personalized, risk-aware approach to investing, Scalable Capital may be worth considering. Its features cater to a variety of investment styles and preferences, but as always, carefully assess the potential risks and rewards before committing your hard-earned money to any investment platform.

Invest with Scalable Capital

Filed under: Money, Stock market

Esketit Review 2025 – One of the Hottest P2P Platforms

Last updated: December 23, 2024Leave a Comment

Sign up to Esketit

If you’ve been exploring opportunities in the consumer loan space and are curious about the Esketit platform, then you’re in the right place.

Esketit is a fintech company that’s been generating some buzz in the consumer loan market. Their focus is on providing transparent and accessible financing solutions to borrowers, but they also offer a unique opportunity for investors like us to participate in this growing industry. As someone who’s always keen on exploring new investment opportunities, I found their approach quite intriguing.

Esketit was founded in December 2020 by Davis Barons and Matiss Ansviesulis, and the company is registered in Ireland. Davis and Matiss also established the highly successful Latvia-based SIACreamfinance Group, an international non-bank lender in the consumer loans sector, in which they also hold the same stakes. Since its inception in 2012, Creamfinance has been consistently profitable, generating an impressive revenue of 70 million in 2019.

Affiliated loan originators issue the loans on Esketit, ensuring transparency and easy oversight throughout the entire process. Davis and Matiss adopt a ‘skin in the game’ strategy, which gives investors greater confidence in the Esketit Platform.

Investing in personal loans through the Esketit Platform is simple and secure. With operations across five diverse markets, Esketit provides investors with access to a global landscape. By joining Esketit, you can benefit from top-tier practices in the P2P lending industry and enjoy high returns without compromising security.

Invest on Esketit

The Investment Process

The Esketit platform streamlines the process of investing in consumer loans. To start, you’ll need to create an account and complete the necessary verification steps. Once you’re all set, you can browse the available loans on the platform, assess the risk levels and potential returns, and decide which loans to invest in.

What I appreciate about Esketit is the detailed information they provide about each loan, such as the borrower’s credit score, loan purpose, and repayment history. This transparency allows investors like us to make informed decisions and effectively manage the risk-reward balance.

Both individuals and corporate entities can invest in Esketit, and both will need to pass a straightforward KYC process, as is customary with all P2P lending platforms that are regulated.

Founders’ Skin in the Game

The founders of Esketit, Davis Barons and Matiss Ansviesulis, follow a “skin in the game” approach. This means that they invest their own money alongside the investors on the platform. By co-investing, the founders demonstrate their confidence in the platform’s performance and align their interests with those of other investors. This approach adds a layer of assurance for investors using the Esketit platform, as the founders have a personal stake in ensuring the platform’s success and the quality of the investment opportunities offered.

Team Competencies

As noted, Davis and Matiss have achieved a lot of success and bring a lot of value to Esketit.

Since April 2021, Vitalijs Zalovs from Latvia has been serving as the CEO of the Esketit platform.

Vitalijs is a recognized figure in the sector. He previously dedicated six years to the Latvian P2P marketplace, Mintos, in the role of Head of Investor Relations. I’ve had the pleasure of speaking with Vitalijs and corresponding with him many times while he was at Mintos, as well as in his current role at Esketit. I only have good words to say.

Diversification Opportunities

One key aspect of successful investing is diversification, and Esketit doesn’t disappoint in this regard. The platform offers a wide variety of consumer loans, including personal loans, auto loans, and home improvement loans, among others. This variety allows investors to build a diversified portfolio and spread their risk across different loan types and borrowers.

Auto-Invest Feature

Esketit’s auto-invest feature is something I find particularly appealing. This tool allows you to set specific investment criteria and automatically allocate funds to loans that match your preferences. It’s a real time-saver for busy investors like me who want to maintain a diversified portfolio without having to constantly monitor and manually invest in individual loans.

Returns and Risk Management

Esketit offers competitive returns compared to traditional investment options, with annualized yields typically ranging from 5% to 15%, depending on the risk profile of the loans you choose to invest in. Of course, higher returns come with higher risks, so it’s essential to be diligent in your loan selection process and employ proper risk management techniques.

To help mitigate risk, Esketit employs strict underwriting standards and performs thorough due diligence on all borrowers. Additionally, the platform offers a secondary market where you can sell your investments before the loan term ends, providing liquidity in case you need to exit your investment early.

Esketit are completely transparent about their numbers and publish them monthly on their statistics page.

Customer Support

From my experience, Esketit’s customer support has been responsive and helpful. They offer multiple channels for communication, including email, phone, and live chat. This level of support is comforting, as it ensures that any questions or concerns you may have as an investor are addressed promptly.

Some Drawbacks to Consider

No investment platform is perfect, and Esketit has its drawbacks as well. One thing to keep in mind is that investing in consumer loans involves a certain level of risk, and there’s always the possibility of borrowers defaulting on their loans. It’s essential to be aware of these risks and manage your investment strategy accordingly.

Additionally, the platform is relatively new, so it’s yet to establish a long track record. While the early results seem promising, it’s important to approach such investments with caution and stay up-to-date with any developments that could impact the platform’s performance.

Alternatives to Esketit

Esketit faces competition from several other prominent platforms in the European P2P lending and investment industry.

  • Mintos, a well-established player in the market, offers a wide range of investment opportunities in loans issued by various loan originators.
  • Bondora, another competitor, has been operating since 2009, providing access to consumer loans from multiple European countries.
  • PeerBerry, a relatively newer platform, focuses on short-term consumer loans with a buyback guarantee, catering to investors seeking lower-risk investment options. Each of these platforms has its unique selling points, such as the range of loan types, geographical diversification, and risk management features. Investors should carefully consider their specific needs and preferences when choosing a platform to diversify their portfolios in the growing P2P lending space.

Final Thoughts

Overall, I find Esketit to be an interesting investment opportunity in the consumer loan space. The platform offers a streamlined process, detailed loan information, and attractive diversification opportunities. The auto-invest feature and competitive returns make it an appealing option for investors seeking exposure to this growing market.

I like the platform’s design and ease-of-use, that’s definitely something that is important for such a platform, especially if an investor is new to P2P lending and is trying to learn the ropes.

Withdrawing money is fast and reliable, as are deposits, so you can put your money to work with no hassle.

Finally, the buyback is an extra measure of safety, although this is not unique to Esketit.

That being said, it’s crucial to remember that investing in consumer loans comes with inherent risks, and the platform’s relatively short track record means that caution is warranted. As with any investment, it’s essential to do your own research, employ proper risk management techniques, and ensure that your investments align with your overall financial goals and risk tolerance.

If you’re an investor looking for an alternative investment opportunity in the consumer loan market, Esketit is worth considering. The platform offers various features that cater to different investment styles and preferences. As always, be sure to carefully assess the risks and weigh them against the potential rewards before diving in.

If you consider investing on Esketit, a sign up through this link will enable you to get an unlimited cashback bonus of 0,5% in the first 90 days after registration.

Invest on Esketit

Filed under: Money, P2P Lending

Banking Options for Businesses in Malta – Is it Possible to Open an Account?

Published: March 17, 2023Leave a Comment

Malta, a small island nation in the Mediterranean, has long been a popular destination for businesses seeking a favorable tax environment and robust regulatory framework. However, opening a bank account in Malta as a business entity has become increasingly challenging in recent years due to the country’s low-risk policies. In this article, I will explore the banking options available to businesses in Malta and discuss how to navigate these challenges.

The Big Players: Bank of Valletta and HSBC

The largest banks in Malta are Bank of Valletta and HSBC. While these institutions offer a wide range of banking services and have a strong presence in the country, they have adopted low-risk policies that make it difficult for many businesses to open accounts. This is due in part to Malta’s unfortunate greylisting a few years ago. Although the country is no longer grey-listed, the financial sector has tightened up significantly to curb any abuses.

The chances of opening a bank account with these two banks are slim, especially if it’s for a non-traditional business. They are simply not willing to take any chances and are not very interested in attracting new business.

Alternative Banking Options: Agribank and Sparkasse

For businesses that encounter difficulties opening accounts with Bank of Valletta and HSBC, there are alternative banks that may prove more amenable. Agribank, an agricultural and commercial bank, has had some success in accommodating businesses unable to establish accounts with larger banks. Similarly, Sparkasse Bank Malta, a subsidiary of the German Sparkassen Group, has been known to provide banking services to companies facing challenges with the larger institutions.

Other banks that operate in Malta and could potentially serve as alternatives include APS Bank, Lombard Bank, and FIMBank. These banks may be more accommodating to foreign businesses, but it is essential to research their specific requirements and policies to determine whether they are a good fit for your company.

It is quite common for these alternative banks to charge an application fee, in order to cover their costs of processing the application and determine if your business would be a good fit. They will also typically charge extra fees on a yearly basis when compared to the larger banks that don’t have any fees beyond the usual card fees and currency conversion fees.

The Hassle-Free Option: Wise (formerly TransferWise)

For businesses seeking a more straightforward solution, Wise (formerly known as TransferWise) is an excellent option. This fintech company provides borderless accounts, allowing businesses to receive and make payments in multiple currencies with minimal fees. While Wise is not a traditional bank, it offers many of the core banking services that businesses need, such as a debit card and currency conversion.

Wise’s borderless accounts are especially useful for businesses with international transactions and make it easier to manage finances without dealing with the stringent requirements of Maltese banks.

Open a business account with Wise

Conclusion

While opening a bank account in Malta as a business entity can be challenging due to the country’s risk-averse banking policies, there are options available for those who persevere. By considering alternative banks like Agribank and Sparkasse or using innovative financial solutions like Wise, businesses can successfully establish their banking presence in Malta and reap the tax benefits of operating in this country.

Filed under: Banking, Money

Twino Review – One of the Biggest EU P2P Lending Platforms

Last updated: August 14, 20233 Comments

Invest with Twino

Twino was one of the first platforms that I invested in when I got started with P2P lending. They’re one of the earliest companies in the space and as such deserve respect and a closer look, as many other companies are little more than a couple of years old.

I’ve been able to obtain returns of 9.21% on this platform, with no defaults whatsoever during the years I’ve been investing with them. Granted, the returns are not spectacular, but they’re always much better than the returns on money left in the bank, and this is a platform that has never given me any headaches.

Average interest rate on Twino

Evolution of average interest rates on Twino

The company started operations in 2009 (web platform as we know it launched in 2015) in Latvia and has originated over EUR 1 billion in unsecured consumer loans since then. Like Mintos and Peerberry, it offers European investors investment opportunities in unsecured European consumer loans.

Twino total investment

Cumulative investment on Twino

It says it has nearly 22,000 investors from over 30 European countries. Twino has also disclosed that it has also issued loans to the value of €1bn (£860m), since it was set up 10 years ago, half of the value of which have been issued in the past three years. Twino Group employs on average 543 employees across its various offices.

Although I was a big investor on Twino earlier on, over the last couple of years, I’ve reduced my allocation on this platform in favor of other platforms like Mintos which I felt had better management and a faster growth trajectory. However, in 2020 Twino seem to be back on the rise and have implemented almost all the items that I felt had been missing, including a blog, website revamp, and more investment opportunities.

So is Twino worth investing in as part of a diversified portfolio in 2020?

How does Twino Work?

Twino works in a similar way to other P2P lending platforms, linking consumers who need loans with investors in the European Economic Area countries who are ready to lend money to them. You can learn more about how P2P lending works on my dedicated page.

You can, of course, use the auto-invest facility that Twino provides in order to automate your investment and not have to invest in loans manually. You can thus spread your money invested across hundreds or thousands of loans making sure you ware well-diversified geographically.

There are absolutely no fees for investors, and the nice thing for UK residents is that you can invest in Euro as well as GBP.

There are three types of loan types on offer:

Buyback – TWINO will buy back loan (principal amount and interest for investment period) from investor, if it is 60 or more days delinquent.

Payment Guarantee – TWINO will compensate both the invested principal amount and interest according to the loan repayment schedule for the whole loan period, even if the borrower is late with the repayment.

Ventures – Loan is secured and backed by collateral which comes in such forms as a pledge (share, commercial), mortgage and/or guarantees.

I personally stick to BuyBack guaranteed loans, but Ventures (a new addition on Twino) also looks interesting. More on that below.

Getting Started on Twino

Opening up an account on Twino is easy and takes less than 5 minutes. You will need to create a username and password as well as verify your identity.

To invest on the platform, you must also be at least 18 years old.

Once the initial standard procedure is done, you can access the platform and browse the loans available. You will then need to deposit money into your Twino account via a bank transfer (I use N26, Revolut or TransferWise to avoid fees).

Note that the currency of your first deposit will be used for all future activities in your account. If, for example, you first deposit money in GBP, then that currency will be the default for your Twino account.

You can also open a company account if you’re investing through a company. You will need to submit a few extra documents in this case.

Twino sign up

The money will take a couple of days to arrive if using a SEPA transfer, and the same delay happens when withdrawing money. There are no fees for depositing or withdrawing.

Once you have the money, you can go ahead and start investing. Most investors opt to do so by setting up an auto-invest strategy.

Auto-Invest Strategies on Twino

The most hands-off approach to investing on Twino is to use an auto-invest strategy. As you can see in the screenshot below, you can set various parameters for each strategy (you can have multiple different strategies).

As you start filling in the parameters, the system will automatically calculate how many loans match your criteria. This will give you an indication of the strategy’s likelihood to achieve your investment goal. For example, if I have a goal of 20,000 euro for a strategy, but limit it to interest rates between 35-40% and a term of 2 months, I will probably not encounter a single loan available, as those parameters are by far too optimistic. Twino auto invest

The best idea is to play around with the parameters until you find something that fits your goals. Every investor has his own risk tolerance and time frames so it doesn’t make sense to copy someone else’s strategy.

If you have no idea where to start from, try selecting BuyBack loans, limit the investment per loan to €25 and interest rate between 10 and 15%. You can then tweak things from there.

Twino Ventures

In 2020 Twino has launched Twino Ventures – secured investments in real estate, with the first project being a residential renovation project in Riga, Latvia.

Twino ventures

These are loans that are backed by collateral in the form of commercial pledge, share pledge or mortgage.

The returns are fixed and are projected to be up to 12% per annum. All loans available are pre-screened by Mintos, who do the required due diligence before publishing them on the platforms. This does not mean that investors should invest blindly, however.

I think this is an interesting area for expansion for Twino and I’m interested to see how it goes for them.

Who Invests on Twino?

UK investors are responsible for 12% of TWINO’s investments, the second largest proportion only after Germany (33%).

Twino number of investorsTwino total investors

Investors have already earned more than EUR 10m in interest and earn on average a market-leading return of more than 10% per annum.

Website

Twino’s website is very clean and straight to the point.

The Statistics page shows the main numbers investors look out for in a neatly presented fashion, and all other information is easy to find.

The investment interface when you are logged in works pretty well and everything is presented clearly.

Transparency

I would argue that Twino is quite transparent. You can easily find out who the top management at the company is by venturing to the Twino About page.

All financial statements up till 2018 are also easily available, as are general stats on loan performance.

Platform Profitability

As investors, we need to keep a close eye on the profitability of not only loan originators but also the platforms we invest in. In February 2019, Twino published consolidated results for 2017 and non-consolidated results to Sept 2018.

The results were not very good, with very large losses in 2017 and a negative equity position as of Sep 2018. In fact, their auditors raised ‘going concern’ risks, which means that they are of the opinion that there is a real risk that Twino will go belly up in the near future if things don’t improve.

In November 2019, Twino released its consolidated financial statement for 2018, which show an impressive turnaround in the company’s finances.

In fact, the company now reports pre-tax profits of €13m for 2018, compared to a €7.2m loss the year previous.

During 2018, Twino attracted 4,621 new investors that together with the existing client base of 11,604 acquired claims totaling EUR 199 million with an average annual yield above 10.9%.

The Twino Group’s non-bank lending companies issued loans amounting to EUR 183 million, of which 73% were issued in Russia, 9% – in Georgia, 7% – in Kazakhstan, 6% – in Poland and, 5% – in Latvia.

Customer Care

I’ve interacted various times with their customer care agents over Skype, and they were able to attend to all my queries in an efficient and well-articulated manner. I give them thumbs up on their support quality.

I would love to see a live chat integrated into the Twino website, however. That would be even easier than contacting over Skype. Phone numbers are available for various countries and you can also reach customer care over email.

Reports

One aspect where Mintos stands head and shoulders above many other platforms is in their reporting section. You can easily generate an income statement for the past year and also balances at the end of the previous year.

The PDF generated is comprehensive and contains all the information your accountant will need for tax purposes. It contains all the information necessary irrespective of whether you are investing as an individual or as a company.

Loan Portfolio and Interest Rates

In the early days, Twino used to provide excellent rates of return, rivaling those of other big platforms at the time like Mintos and Bondora. However, over time, Twino seems to have struggled to maintain a good inflow of loans with good interest rates. You should expect around 10% for 1-3 month loans at the moment from them, which is not spectacular. In 2020 things have started picking up, however, so I’m optimistic going forward.

Twino is contemplating expansion into the Asian market and also planning lending to real-estate and development projects. Currently, it has a presence in a number of European countries including Latvia, Poland, Russia, Georgia and Kazakhstan.

Their biggest presence is currently in Russia, although they previously were very heavy on Georgian loans. Concentrating on Russia has its own risks, but it seems to have given Mintos another shot at longevity after some worrying results in 2017.

Twino implements a buyback guarantee to cover investors against losses, which is protected by its parent group Twino Group.

TWINO issues loans via subsidiaries in Poland, Russia, Georgia, Latvia, Kazakhstan, Denmark, and Spain. Investors come from all over Europe with the UK accounting for the second-largest share of investment at 12%, according to the company. Germany is the largest market with 33% of the investing.

Loan Volume

Here are the statistics on loan volume from the month of March 2020:

Loans listed from 01.03.2020 to 01.04.2020
Short-Term Loans | BuyBack Guarantee
Country Term Rate (%) Volume
PL 1-2 10 €2,319,103
PL 1-2 12 €2,941,859
RU 1-2 10 €5,074,845
RU 1-2 14 *(CE) €1,068,247
RU 1-2 14 €1,610,461
RU 1-2 16 *(CE) €427,888
KZ 1-2 12 €370,226
KZ 1-2 14 *(CE) €150,857
Installment Loans | Payment Guarantee
Country Term Rate (%) Volume
LV 3-12 8 €99,761
LV 3-12 10 €39,476
LV 13-60 8 €493,122
LV 13-60 10 €90,300
PL 1-2 10 €1,439
PL 3-12 10 €33,252
PL 13-60 10 €59,037

As you can note, the volume for short-term loans with a buyback guarantee is much higher than that of installment loans with a payment guarantee. The rates of return are also significantly higher.

Team

Armands Broks – Twino Founder and Owner

Twino was founded by Armands Broks, who is also the 100% shareholder of the company. The managing director is Anastasija Oleinika, who replaced Broks in November 2019 as CEO. Both are Latvians.

Armands Broks will now focus on new business opportunities and bringing talent on board.

Anastasija Oleinika – new Twino CEO

At the time of the change in leadership, Broks and Oleinika both had some things to say:

Broks said: “We’re delighted to have Anastasija leading the team at this important time in the company’s growth. We’re currently working on a number of new business developments and are evaluating opportunities in new markets, most notably Asia in the next year.”

Oleinika said: “Reaching the €1bn milestone is significant for us, and is reflective of the business’ continued growth and expansion. The restructuring process we started in 2017 has brought the expected results in a very short time, and our financial results are testament to this.

Oleinika has worked at Twino for nearly three years, managing its finance and business operations. She has also managed Twino’s operations in Russia.

It seems that this is a good move for Twino; I don’t really have any concerns about the Twino team as it stands today, they seem to be genuine people working hard to expand the platform.

Alternatives to Twino

I consider Twino to be an honest platform and worth using for a diversified P2P lending portfolio. Some other good options to consider as an alternative or an addition to Twino would be:

  • Mintos – read my Mintos review
  • Peerberry – read my Peerberry review
  • Swaper – read my Swaper review

I think diversifying across 3-4 P2P lending platforms is ideal. Having more platforms makes it a hassle to manage everything – unless you have a lot of money to invest and investing is part of what you do on a day-to-day basis.

Filed under: Money, P2P Lending

Is Trading Crypto in Portugal Tax-Free?

Last updated: December 22, 20232 Comments

The main reason for the enthusiasm about Portugal from people involved in the crypto space is that until 2022, crypto earnings are tax-free in Portugal.

Currently, crypto trading gains are taxed at 28%. However, crypto held for more than one year will not be taxed on disposal, which still means that Portugal is one of the best places to live in for crypto and NFT investors.

For a historical perspective, here’s the information on the previous situation which led to crypto gains for Portuguese residents being tax-free:


In a 2016 official ruling, the Portuguese Tax Authority analyzed the possible classification of cryptocurrencies within certain types of income that are subject to Portuguese tax, notably capital gains, capital income and income from business activities, and decided that, as a general rule, natural persons should not be taxed in respect of gains derived from the valuation or sale of cryptocurrencies, except that, in the case of sale of cryptocurrencies, if they correspond to the individual’s main recurrent activity, income obtained from such activity could be subject to Portuguese tax.  It should also be noted that this was only a partial decision that did not elaborate on other types of income derived from other cryptocurrency-related activities (e.g. mining and farming activities).

Have a look at the 2016 binding information as it’s the most relevant document for crypto investors. The linked document is in Portuguese, but it consists of the Portuguese tax authority’s reply to a direct question about crypto taxation.

I’ll provide a basic interpretation (in my own words, not a word-for-word translation) for those of you who don’t understand Portuguese:

Cryptocurrencies or virtual currencies are not technically considered money due to not having legal tender in Portugal. However, they can be exchanged, with a resulting profit, for real currencies (euros, dollars, or other) at exchanges, with the prices being determined by the demand for said cryptocurrency.

Thus, cryptocurrencies can generate different types of taxable income:

  1. Gains obtained from the purchase and sale of virtual currency units/exchange from the cryptocurrency to real currency (whatever it may be)
  2. For obtaining commissions for the provision of services related to obtaining cryptocurrency.
  3. For gains derived from sales of products or services in cryptocurrency

This document only considers the first scenario. This is the scenario faced by most crypto investors.

The profits from this activity are candidates for three categories of income types:

  1. Capital Gains – category G (e.g. sale of an apartment, sale of shares)
  2. Capital Yields – category E (e.g. rent of an apartment, dividends)
  3. Professional Income – category B (e.g. consultancy, freelance work)

Category G

Article 10 of the IRS Code specifies the cases that are taxable as capital gains. The key thing to note here is that when the legislator created this law, they resorted to a closed type, meaning that the law is specifically for the items mentioned and nothing else. Since cryptocurrencies do not fall within the specific cases mentioned, and their value is merely determined by supply and demand, therefore we can conclude that they are not taxable within this category.

Category E

This category clearly does not apply to the sale of crypto assets since it relates to yields on capital e.g. dividends, rental income. On the other hand, I would note that the income derived from services such as YouHodler and other crypto interest accounts would probably fall in this category. The same goes for income from crypto staking e.g. Ethereum staking.

Category B

Here’s the tricky one. Category B relates to the income of a self-employed worker. When a type of income can be classified as of category B or any of the other two categories considered here, category B would prevail. So in this category income can be taxed whether it comes from sales, whether it is capital income, or any other nature, pursuant to paragraph 1 of article 3 of the IRS Code.

To determine whether the income falls into this category, one would need to consider its frequency and the orientation of the activity towards obtaining profits. If the existence of the exercise of a business or professional activity is verified, then the taxpayer is obliged to comply with the declarative obligations contained in paragraph 6 of article 3 of the Code of IRS, i.e. to issue an invoice or equivalent document (electronic invoice-receipt), whenever you sell some product or provide a service.

The reason I say that it’s a tricky one is that crypto traders need to consider carefully whether their activities would be considered professional income or not. Here I would suggest that if you’re in doubt you should consult a tax lawyer. The general rule worldwide is that if trading is your main source of income and you are opening and closing positions on a daily basis you would most likely classify as a professional trader and your income will fall in this category – therefore not being tax-free.

The conclusion of the document states clearly that the sale of cryptocurrencies is not taxable in Portugal unless due to its frequency it constitutes a professional or entrepreneurial activity, which would make it taxable under category B.

This latter point also results in a lot of questions about whether or not one would be classified as a professional trader.

There are several factors that determine whether one’s trading activity is professional or not. These include:

  • Number of trades per day/week/month/year.
  • Holding period of financial products
  • Complexity of traded financial products
  • Number of trading platforms used
  • Debt-to-equity ratio, credit financing
  • Profit level and relationship to other income
  • Additional relevant trading activities (such as advice)
  • Traders’ main activity (where else do you get your money from?)

The fact that one of the factors listed above applies to you does not automatically make you a professional trader. Ultimately one must look at every individual’s overall situation, and this can only be reliably done by involving a tax lawyer who will give you a written opinion.

In summary, cryptocurrencies in Portugal are only taxable if you do it as a professional trading activity and therefore you need to open an activity as a trader and pay taxes according to your profit, otherwise they are considered non-taxable in Portugal due being unable to fit in any category.

Note that the above is true for individuals but not for corporate entities. If you hold your crypto in a Portuguese company, all the gains from cryptocurrency trading are taxed together with any other profit the company had, irrespective of whether the company is engaged in trading or whether it held the crypto as a long-term investment.

Contact me if you need to speak to a tax lawyer who knows how to deal with crypto. It’s very important that you assess your individual case before making any decisions.

Filed under: Cryptoassets, Money

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