Support

General Questions (Applicable to All)

For Active Investors

For Passive Investors (Holding amortizing loans without reinvesting)

For Empty / Inactive Accounts

• Advised Account Service is our most premium account type & offers a passive and relaxed way to invest and earn from lending to Baltic businesses. 
• Auto-invest ensures that you do not miss great opportunities. The tutorial for setting up is here. 
• Sign up for our quarterly investment commentary & insights. We share our observations with regard to investor sentiment in the Baltics, as well as outline general news and investment offers from Capitalia. We also share our managed funds results.
• Resources for investors our collection of articles useful for investors. Materials include practical tips and tools for investing in stocks, bonds, gold, and (later) crypto. 
• Statistics on the loans that have been co-financed with Capitalia. Data is renewed daily. 
• Tutorials page covers account statement & tax report, the benefits of diversification, withholding tax for private investors, and more.

1. You invest in a project.
2. The borrower makes a payment that covers interest (interest or late interest). 
3. Once the received payment is processed and is being distributed to investors, a part of the interest payment is automatically deducted from repayment to your account as withholding tax based on the applicable tax rate.
4. When you declare your income in your country of tax residence, you might be able to reduce the tax payable in your country by the withheld amount. Please consult your local tax legislation and seek professional advice if needed. 
5. You can see the withheld amount as a separate entry in the account statement, as well as in the bank transfer payment details text. The total withheld amount will be visible on your tax report which you can download from the Account statement page. 

• For investors who are tax residents of Latvia, the withholding tax rate is 25.5%, in line with the Personal Income Tax Act.
• Investors who invest as private persons and are tax residents of Lithuania can reduce their withholding tax rate to 0% if they provide a tax resident certificate. Note: In case your income on Capitalia platform is over EUR 5,000 the original tax resident certificate must be submitted to our office in Vilnius or Riga via post or in person. Tax resident certificates must be renewed every year and submitted to us no later than the 31st of January of the new year.
• For all other investors who invest as private persons, the standard withholding tax rate is 25.5%. The rate can be reduced if the investor provides a tax resident certificate. Note: In case your annual income on Capitalia platform is over EUR 5,000 the original tax resident certificate (2 copies) must be mailed to our office in Riga via post. Tax resident certificates must be renewed every year and submitted to us no later than the 31st of January of the new year. Please see the full list of reduced applicable tax rates:
• 
  

  Country	Double tax treaty rate (%)	Country	Double tax treaty rate (5)
  EU		Non-EU
  Austria	10	Albania	10
  Belgium	10	Armenia	10
  Bulgaria	5	Azerbaijan	10
  Croatia	10	Belarus	10
  Cyprus	10	Canada	10
  Czech Republic	10	China	10
  Denmark	10	Georgia	10
  Estonia	10	Hong Kong SAR	10
  Finland	10	Iceland	10
  France	10	India	10
  Germany	10	Israel	10
  Greece	10	Japan	10
  Hungary	10	Kazakhstan	10
  Ireland	10	Korea (ROK)	10
  Italy	10	Kosovo	10
  Lithuania	0	Kuwait	5
  Luxembourg	10	Kyrgyzstan	5
  Malta	10	Mexico	10
  Netherlands	10	Moldova	10
  Poland	10	Montenegro	10
  Portugal	10	Morocco	10
  Romania	10	North Macedonia	5
  Slovakia	10	Norway	10
  Slovenia	10	Qatar	5
  Spain	10	Saudi Arabia	5
  Sweden	10	Serbia	10
  		Singapore	10
  		Switzerland	10
  		Tajikistan	7
  		Turkiye	10
  		Turkmenistan	10
  		Ukraine	10
  		United Arab Emirates	2.5
  		United Kingdom	10
  		United States	10
  		Uzbekistan	10
  		Vietnam	10

• It must contain your full name and tax identification number
• It must confirm your tax residence for the current year
• It should specify that it applies to income generated in Latvia
• It must be in English and signed by the issuing tax office

In this article, we’d like to highlight the significant advantages of diversification in investing. Lending to businesses inherently carries the risk of not receiving back some or even all of the amount you’ve lent. To mitigate this risk, it’s crucial to adopt a strategy of consistent investment over time and across a range of projects. By doing so, you can achieve two key objectives:
 

1. Minimizing the impact of individual loan performance on your overall return.

2. Avoiding the pitfalls of poor timing.

The value of diversification is clearly demonstrated by the historical returns data from our platform. When we factor in loan losses and provisions for potential losses, we can see the following portfolio returns based on the number of loans invested in by each investor:
 

Chart: Portfolio Return on Investment vs. Number of Loans Invested

From this graph we can draw several clear conclusions:

1. All investors who have invested in 27 or more projects have achieved a positive net return above 5%;

2. Some investors that have built a relatively small portfolio of up to 20 loans can get higher than average returns, however, most small portfolios will deliver lower than average results;

3. Investing in all loans by Capitalia would bring a return of 10% (investors who have invested in more than 130 projects have a net return from 9.5% to 10.5%);

4. In many cases investors that have built portfolios with over 25 loans but have reported below average returns, have invested much higher than their average amounts in a few riskier loans;

5. Only 13 out of 800 active investors have a negative return. 

With these conclusions in mind we strongly recommend you to follow the following principles when investing in Capitalia (or anywhere else for that matter):
 

• Aim to continuously have a portfolio of at least 25 investments;

• Invest a similar amount in each project;

• Make smaller investments but invest in a larger number of projects;

• Use our Auto-invest tool for headache free automatic diversification. 

Below we provide a similar chart, but with returns of investors who have invested in more than 25 projects

Any fully capable natural or legal person residing in the European Union economic area can become an investor together with Capitalia. If your country of residence does not appear in the selection list, please contact support@capitalia.com so we can find a solution. During registration, the investor must provide contact information, submit identity documents, and complete the full identification procedure to prevent money laundering risks. Investors must also complete a financial competence test to verify knowledge in financial analysis.

In each loan project, investors can review the company description, available collateral, financial data, risk analysis, and other information. Investors can also request additional details about any company by contacting the Capitalia representative listed at the end of the project description. Standard loan agreement forms are available here - Loan agreement / Factoring agreement.

All companies that can be co-financed together with Capitalia are published in the Lending opportunities section of the Capitalia website. Loan projects below EUR 50,000 are published daily at 11:00 (Baltic time) without a separate email notice. Information about larger projects is sent electronically one business day before lending is enabled (the function is also enabled at 11:00 Baltic time). Notifications for projects larger than EUR 50,000 are sent automatically by email to Prime account holders one business day before lending is enabled. Standard account holders receive the email on the day the project is published (also at 11:00 Baltic time).

Please note that Capitalia does not offer virtual account balances, therefore all transfers are made to and from the investor's registered bank account. After evaluating a company, the lender can enter the desired investment amount on the right side of the project description. The minimum loan amount per company is EUR 200. In some situations, Capitalia also limits the maximum amount one lender can provide to a company. The investor then receives a transfer instruction by email, including the account number and payment reference details needed to finalize the loan transaction. Transfer instructions can also be downloaded from the My Loans section (login required). The transfer to the indicated Capitalia account must be made within two business days. Once funds are received in Capitalia's account, the investor is notified automatically by email.

A loan is issued to the company provided that the full required funding amount is collected from investors within the term stated in the project description. Funding for each project is usually open for two weeks unless stated otherwise. If the full required amount is not collected within this period, received investments are returned to investors within one business day. If the full amount is collected, Capitalia signs the loan agreement with the company and sends confirmation of the completed transaction to all investors. When funding is secured by a commercial pledge or other collateral types, investor confirmation may be sent within two weeks. Each investor owns a proportional share of the total loan issued to the company. According to the Terms of Use, lenders authorize Capitalia to conclude loan agreements, register pledges, supervise credit, distribute payments, and perform other necessary actions.

Capitalia primarily offers investors the opportunity to invest in loan instruments. However, some investment projects, such as bond trading, real estate, and equity investments, may be available only to qualified investors.

Funded companies make all payments related to signed loan agreements to Capitalia's account. Capitalia then allocates these payments and transfers funds to each investor's registered bank account within two business days. In some cases (for example, when only a small partial payment has been made), repayment can be held and transferred only once a larger amount is received from the client. Please review our Terms of Use for more details.

Information about signed loan agreements, received and scheduled payments, and related contracts is available to each investor after login in the My Loans section (login required). Investors also have access to the Account Statement section, where cash flow movements can be viewed for a selected time period.

Updates on funded projects are published weekly on Mondays by the end of the day (when there are updates). News can be viewed in the My Loans section (login required). To see the latest information, please log in on Monday evening or Tuesday.

Investors can update their details in the My Profile section. When changing country of residence, bank account, or other key information, renewed identity verification may be required.

Using co-financing opportunities is free of charge for investors. Capitalia earns revenue by charging companies a success fee of 1-5% for successfully funded transactions, as well as a regular management fee added to interest payments. All Capitalia costs, including minimum Capitalia co-financing and interest payments, are shown in each project section under Capitalia Interest.

There are two investor account types available for co-financing with Capitalia - Standard and Prime. Each new investor is automatically assigned a Standard account during registration. Every investor can upgrade to Prime, which offers several advantages. Additional details about benefits and upgrade options are available in the Account Types section (login required).

Capitalia applies the provisioning policy below for late loans based on the number of overdue days.

Capitalia offers investors an opportunity to participate in the secondary market by buying and selling* investments at nominal value to other investors (including accrued interest at the time of sale) after project funding has closed. Secondary market transactions appear in the co-financing section with a dedicated identifier. In secondary market transactions, the seller pays a 1% fee of the principal amount being sold. If the commission payment is not received within 48 hours, the reservation is canceled.
*In testing stage, only Capitalia can sell its investments on the secondary market. Investors will be informed as soon as this function becomes available to them.