Another way for start-ups to find funds is to approach a recognised crowdfunding platform. Crowdfunding is form of financing projects by collecting funds from a broad audience.

If as a natural person, you grant a start-up a loan via a crowdfunding platform after 1 July 2015, the interest you receive on the first loan bracket of EUR 15.000,00 is exempt from withholding tax, hence free from any tax whatsoever. Please note that any interest received in excess of EUR 15.000,00 is taxable.

This tax cut is subject to a few conditions.

The loan must have a minimum duration of 4 years and must be granted to a start-up (micro-business or SME) whose registration with the Crossroad Bank for Enterprises does not exceed 48 months.

The start-up must use the funds to finance new economic initiatives.

A micro-business is a company that meets at least two of the following three criteria:

  1. Balance total: maximum 350.000,00 EUR;
  2. Turnover (ex VAT): maximum 700.000,00 EUR;
  3. Average number of staff: maximum 10.

An SME is a company or a natural person which/who, based on section 15 of the Company Code, does not surpass more than one of the following threshold levels:

  1. Balance total: 3.650.000,00 EUR;
  2. Turnover (ex VAT): 7.300.000,00 EUR;
  3. Average number of staff: 50.

If you want to know more about the measure or about crowdfunding in general, please don’t hesitate to contact us. We’ll be happy to provide the necessary information.