What is peer-to-peer investing?
Peer-to-peer investing is financing a project or a fundraising endeavor from a large group of people. It is more often managed by a specialized internet platform, such as iuvo.
What is iuvo and how does it work?
After the loan is granted by the Originator, it is uploaded on iuvo, where the Investors can see it and choose to invest in it. The Investor receives their profit from the principal with interest after the installment is payed off.
In case the Borrower stops paying the loan, the buy-back guarantee activates immediately and the Investor gets their investment back.
What is a credit originator?
The credit originators are regulated nonbank financial institutions. These companies loan money with their own funds, unlike the banks, which fund their credits with the deposits of their clients.
The credit originators in iuvo are companies with good reputation and long history. They make the standards for loaning, managing of loans, risk assessment, and debt collection.
Who are the borrowers?
All credits on the platform are given to the borrowers in advance and are based on contractual responsibilities.
Iuvo’s investors can access a certain information about the borrower of each loan. Due to security measures and the mechanism by which the p2p platforms function in Europe, the borrower’s identity is not revealed.
How is the platform regulated?
Iuvo Group OŰ is a company, licensed by the Financial Supervision Commission of Estonia, according to Decision № 4.1-1/133 of the Management board of the Commission. Iuvo Group OŰ is regulated credit intermediary from the Estonian Financial Commission.
The platform’s users are individuals or companies, at least 18 years old, and they need to have a valid bank account within the European Union or third countries that are currently considered as having equivalent AML/CFT systems to the EU.
This is the reason why we do not demand approval/permission from every national regulator, but as a credit intermediary we follow the strict rules of P2P Best Practices of FinanceEstonia and the Internal regulations of the platform.
All financial regulators in the countries of our originators are informed about our practice. We respond to all inquiries and we provide the needed information to the national regulators (In Bulgaria – BNB and KFN)
How is the income, generated from iuvo, taxed according to the Estonian Law regarding the Individuals?
The income tax rate in Estonia is 20%. In the annual Tax Report, the p2p lending income comes from:
1. Generated interest (received interest payment from the borrower)
2. Received payments from late fees
3. Income from the Secondary Market
Please, bare in mind that iuvo does not provide tax, financial, or legal advises. We recommend you to consult with your financial or tax consultant, if you have any further questions.
How is the generated from the investors profit being taxed?
The generated profit from the platform is taxed according to the law in the investor’s country of residence. The platform does not form a Tax report for the investors but will gladly cooperate with the needed information and reports about the generated income. File your Tax report to the local tax authorities according to the order of the country you live in.