Nectaro and Afranga are two of the most interesting newer platforms in European P2P, and they’re remarkably alike on the surface: both regulated, both yielding roughly 14%, both with clean default records, and both concentrated on a single lending group. If you’re building a high-yield, regulated corner of your portfolio, these two are natural rivals.
The short version: Nectaro pays slightly more, charges no tax at source, and has a better auto-invest setup. Afranga gives you more loan originators and ECSP regulation, but a 10% Bulgarian withholding tax eats into your net return and there’s no auto-invest. Nectaro is the more convenient platform; Afranga is the more diversified one.
Quick Comparison: Nectaro vs Afranga
| Feature | Nectaro | Afranga |
|---|---|---|
| Founded (current form) | 2023 | Bulgarian, ECSP-licensed |
| Country | Latvia | Bulgaria |
| Regulation | MiFID II (Bank of Latvia) | ECSP licensed |
| Avg. Returns | ~13.5% (14.91% in 2025) | ~13.9% |
| Buyback Guarantee | Yes (60 days) | Yes |
| Secondary Market | No (roadmap 2026) | Limited |
| Auto-Invest | Yes (+0.29% bonus) | No |
| Loan Originators | 2 (Dyninno-affiliated) | 6 (Stikcredit-heavy) |
| Default Record | 0.0% investor loss | Zero defaults |
| Withholding Tax | None at source | 10% (Bulgaria) |
| Fees | None | None |
Returns and Net Yield
On gross numbers these are nearly tied: Nectaro returned 14.91% in 2025 and averages ~13.5%, while Afranga runs above 13%, around 13.9%. The interesting gap is what you actually keep.
Afranga’s Bulgarian loan originators withhold 10% tax on interest at source. Depending on your country of residence and the relevant double-taxation treaty, you may credit some or all of it against your local tax bill, but not always in full. German investors, for example, can only credit 5% of the 10% withheld. Nectaro has no withholding at source, so your gross and pre-local-tax return are the same. For investors who can’t fully reclaim the Bulgarian tax, Nectaro’s net yield can end up meaningfully higher despite the similar headline rates.
Regulation
Both platforms are properly regulated, just under different EU frameworks. Nectaro holds a MiFID II license from the Bank of Latvia, which comes with the EUR 20,000 investor compensation scheme. Afranga operates under an ECSP license, the EU’s dedicated crowdfunding regulation, with segregated client funds held through Lemonway and an individual IBAN for each investor.
Neither framework is strictly superior for a retail P2P investor. MiFID II brings the compensation scheme; ECSP brings crowdfunding-specific oversight and segregated funds. Both put these two well ahead of the many unregulated platforms still operating in this space. Afranga’s compliance setup is solid for its size, with its finance and compliance head recognized on the Forbes 30 Under 30 Bulgaria list.
Diversification and Concentration
Afranga has the edge on breadth. It works with six loan originators across two countries, having expanded from a single-originator model into a small marketplace. Nectaro has just two originators, both inside the Dyninno Group.
The catch is that Afranga’s diversification is partly cosmetic: it leans heavily on Stikcredit and the Bulgarian market, so a problem there would hit hard despite the six-originator count. Nectaro’s two originators both belong to its parent, Dyninno, so its concentration is on a corporate family rather than a country. Both carry real single-point risk. Afranga’s is geographic and originator-led; Nectaro’s is group-led. On paper Afranga is more diversified, but neither is broadly spread the way Mintos is.
Convenience and Features
Nectaro is the more hands-off platform. Its auto-invest tool (with a +0.29% rate bonus) and Smart Reinvest feature let you set strategy once and leave it, automatically recycling early repayments to cut cash drag. Afranga has no auto-invest, which means manual loan selection and reinvestment, a real inconvenience if you’re investing regularly and don’t want to log in constantly.
On liquidity, both are constrained. Nectaro has no secondary market yet; Afranga’s is limited and not fully functional. Neither is the platform to choose if easy early exit is a priority.
Who Should Choose Which?
Choose Nectaro if you:
- Want a higher net return with no tax withheld at source
- Prefer hands-off investing via auto-invest and Smart Reinvest
- Value the MiFID II compensation scheme
- Are comfortable with two Dyninno-affiliated originators
Choose Afranga if you:
- Want more loan originators (six) and ECSP regulation
- Can fully credit the 10% Bulgarian withholding tax at home
- Don’t mind manual loan selection (no auto-invest)
- Like the transparency of detailed per-loan documentation
Use both if: You want two regulated, high-yield platforms that diversify each other geographically, Latvia and Bulgaria, while keeping your overall P2P allocation in properly licensed venues.
Verdict
For most investors, Nectaro is the more practical choice. The slightly higher return, the absence of withholding tax, and a proper auto-invest tool make it easier to own and, for many, more profitable on a net basis. Afranga is the better pick if you can fully reclaim the Bulgarian tax and you specifically want more originators and an ECSP-regulated venue in a different country.
I’d happily hold both as secondary allocations in a diversified P2P portfolio. They’re among the stronger regulated newcomers, and together they spread your risk across two markets and two regulatory frameworks. Just size each with its concentration risk in mind, Dyninno on one side, Stikcredit and Bulgaria on the other.
For the full detail, read my Nectaro Review and Afranga Review.
Frequently Asked Questions
Which has the higher net return, Nectaro or Afranga?
Gross returns are similar (~13.5-15% for Nectaro, ~13.9% for Afranga), but Afranga withholds 10% Bulgarian tax at source that you may not fully reclaim depending on your country. Nectaro withholds nothing at source, so its net return is often higher in practice.
Are both Nectaro and Afranga regulated?
Yes. Nectaro holds a MiFID II license from the Bank of Latvia with the EUR 20,000 compensation scheme. Afranga holds an ECSP license with segregated funds through Lemonway. Both are properly regulated, just under different EU frameworks.
Does either platform have auto-invest?
Nectaro does, with a +0.29% rate bonus and a Smart Reinvest feature. Afranga does not, so you select and reinvest in loans manually. For hands-off investors, Nectaro is the more convenient option.
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