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The Automatic investment function allows investing a pre-determined investment amount in loan projects based on stipulated risk, geography, and term preferences. Investors can create their own automatic investment algorithm or use our offered strategies. Using Auto-invest ensures that you do not miss great opportunities and achieve a well diversified portfolio.


The first step is to access the Auto-invest area. You need to login into your profile and then in the Invest menu choose Auto-invest.

We offer to choose one of the predefined strategies by Capitalia or create your own customized strategy. 

In predefined strategies, you only need to enter the Total investment amount. In the Custom strategy, you choose settings such as Countries, Term, interest rate, and can adjust the desired allocation to each Risk rate.

The essential part of any Auto-invest strategy is choosing the total investment amount (Investment amount field) that you want to achieve with this strategy. We recommend building a portfolio of at least in 50 different projects, however, the more projects you invest in the more diversified your portfolio will be, meaning that any single project delay or loss will not have a significant impact on overall portfolio performance.

The final step is to Activate and Save your strategy as shown below:



Once you Activate and Save your strategy it will be running until you turn it off. Once the target is reached, Auto-invest will resume investing once any of the previous projects are repaid. Auto-invest works ONLY when your Wallet balance is sufficient for next investment.

Below we also share useful tips.

The smoothest automatic investing so far

The intended way of using Auto-invest is to invest in a large number of projects, maximizing diversification instead of picking projects individually. For this the Investment Wallet feature brings the true benefit of automated investments - you add funds once to your wallet and everything else is taken care of automatically. Just make sure to add enough funds to the wallet to last either for the total strategy amount or at least for 1-2 months' worth of investments. Reach out to us at support@capitalia.com and we can indicate this specific amount suggested for your individual strategy. 

Why it is important to keep funds on the Investment Wallet

All investments, including auto-invest are possible only from the available wallet balance. This means you should keep the wallet balance sufficient at all times.

Tip on the Total investment amount
Reflection period

Once you activate Auto-invest for the first time, or make significant changes (for example changing from one predefined strategy to another) a 4-day reflection period will be in force. This means Auto-invest will wait for 4 days before it starts investing allowing you to have a cool-down period in case you change your mind.

In the era of digital advancements, cybercrime rates are escalating, rendering the reliance on mere passwords insufficient for ensuring complete account safety. Understanding the paramount significance of user security, Capitalia has recently integrated Google Authenticator into our security measures. This implementation enhances security compared to only password login and is required for all users.

What is Google Authenticator?

Google Authenticator is an app that generates a unique time-limited, six-digit code which you will need to enter during the login process. It is straightforward to use the app on your phone and it is available for free both on Android and iOS devices. 

A step by step guide 

1. Login to your Capitalia account and go to My profile. Then open the last tab named Two-step Verification Setup


2. Download the Google Authenticator app from the App Store or Google Play Store and open it to set it up (skip this step in case you already use this app). 

3. Once Google Authenticator app is set up and open on your phone, click the + sign in the bottom right corner, and choose Scan a QR code.

4. Scan the QR code shown in your browser (My profile -> Two-step Verification Setup) using the app, and Capitalia account will be added in the list.



5. Input the 6 digit code from your Google Authenticator app and select “Save”.

6. Once you click “Save”, you’re all set and Capitalia will ask you to login again using the Google Authenticator code. You can choose to trust the device for 30 days, in which case this 6 digit code from the app would not be required on that device for next 30 days. 

Google Authenticator is one of the applications that supports this way of 2FA, you can also use Authly, Microsoft Authenticator, or other possible alternatives.

Using the two factor authentication and the Google Authenticator app is required for more secure access to your account. If you are unable to use Google Authenticator contact support@capitalia.com.

Invest from EUR 200
With us you can invest in loans to Baltic small and medium companies. You can use automated strategies for best diversification or select individual projects manually. The minimum investment in one project is from EUR 200. Investing on Capitalia is totally free for investors.
 
Complete your registration
Make sure to complete all the steps of registration. After you complete the registration in full you will need to wait for your account to be validated. For individuals it usually takes up to 48 hours, for companies - up to 72 hours. The following documents are required for account validation and they help us to build a trusted relationship with you and prevent illegal activity on the platform. We are a licensed financial institution and activities are subject to financial laws, including anti-money laundering laws.
 
Individuals
-       A personal identification document (ID, passport, driving license) and a selfie (service provided by Onfido and is a step of the onboarding process)
-       A bank account statement showing your IBAN and Name, Surname (this is needed later, when you are setting up your account for funds withdrawal)
 
Companies
-       Personal identification document of company representative as well as of beneficial owners
-       A bank account statement showing your IBAN and company name
-       Latest version of Articles of Association
-       Extract from official company register of your country
-       In case the Ultimate Beneficiary Owners are not listed in the Extract, additional document about them is needed.
 
Aligned interests
Capitalia invests own funds in every published project in order to have a very clearly aligned interests with investors. You have peace of mind that we publish only such projects where we are willing to invest our own capital as well.
 
Monthly repayments on 1st and 15th
Each month you receive repayments from the projects in which you have invested. All our loan contracts with borrowers have either 1st or 15th of each month as a monthly repayment date. Repayments go directly to your Investment Wallet. We highly recommend to continue reinvesting these funds in new projects to continue growing your portfolio and increasing the level of diversification. In case you choose to withdraw funds to your standard bank account you can do it at any point. All transactions are free of charge. You can check the Account statement page to see transactions for any past period.
 
The importance of diversification
We recommend to investors to hold at least 25 active investments and the more investments you hold, the lower chances are of any single project default to have significant impact on your return. If you plan to invest EUR 5,000 on our platform, we recommend to make 25 x EUR 200 investments. More detailed information and analysis of our investors past returns can be found here.
 
Taxes
In case you are investing via a company account - there are no taxes applied. For individual investors we must follow Latvian legislation of taxation and personal income tax witholding is applied. For more information, list of countries with Tax treaties for reduced withholding tax and how to apply for it are available here.
 
Non Performing Loans
Investing in loans to small and medium companies carries a risk of capital loss. Capitalia uses its vast experience, being in the business of lending to companies since 2011, in handling all the loan repayment delays, restructurings and defaults. We take care of all required steps and cover all collection costs on behalf of investors. To date we have an exceptional Loan loss rate of just 1.18%.
 
Other useful links
1. Risk management 
2. Advised Account Service is our most premium account type & offers a passive and relaxed way to invest and earn from lending to Baltic businesses.
3. Auto-invest ensures that you do not miss great opportunities. The tutorial for setting up is here.
4. 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.
5. Statistics on the loans that have been co-financed with Capitalia. Data is renewed daily.
6. Tutorials page covers account statements & tax reports, the benefits of diversification, withholding tax for private investors, and more.
7. Investment Wallet. Everything you need to know about using it.

In order to invest in loans published on Capitalia platform investors must hold an Investment Wallet, which is usually created within 48 hours after finishing the registration. The Investment Wallet is your safe dedicated payment account that you can use to store money for investing on Capitalia platform, receive project repayments and withdraw cash to your standard bank account when needed. You will be able to access this Investment Wallet directly on Capitalia platform.
 
Key benefits for investors:
 
● Safety - your funds will be clearly segregated from Capitalia at all times and money will be transferred directly between investors and borrowers. Your money will be held in separated client-money accounts opened with large and safe partner banks, such as BNP Paribas
● Convenience - you will be able to top up the Investment Wallet with a single transfer and then make multiple investments to new projects directly on our platform without paying bank fees for each transaction 
● Reinvesting - since the repayments will accumulate in your Investment Wallet, it will be effortless to reinvest funds in new projects
● Auto-invest - your auto-invest strategy, as well as Advised account service will require even less attention as you will no longer need to make a new bank transfer for every project automatically booked for you
 
The keeping of the Investment wallets will be provided by the French licensed payment institution supervised by ACFR and widely used by many of the largest European crowdfunding platforms - Lemonway. Money kept in Investment Wallets is held in separated client-money accounts opened with partner banks, such as BNP Paribas.
 
Checking Investment Wallet balance

When logged in to your account on our platform you will always see the current Investment Wallet balance next to your account menu in the top right corner:



Clicking on the balance will take you to the dedicated Investment Wallet page where you will see sub-pages:
Balance - See available wallet balance
Statement - Obtain an account statement for the desired period of time
Adding funds - Will show you the information required to make a transfer for adding funds to the wallet
Withdrawing funds - Here you will be able to withdraw funds to your bank account.



Adding funds
To add funds to your Investment Wallet you will need to make a SEPA payment in EUR. You can add funds from any bank account, just make sure it is your bank account. The Name Surname, or Company title will have to match your profile information for payment to be accepted. Important - The beneficiary is Lemonway, and IBAN is individual for every investor. You can use the button Copy for convenience when making a bank payment in your internet bank. 



In case your bank requires a BIC for making SEPA payments, use the following BIC code - BNPAFRPPXXX 
In case an address is required, use the following: 8, rue du Sentier - 75002 Paris - France.

 
Withdrawing funds
To withdraw funds you just need to enter the amount, which you wish to withdraw and confirm it with your account password. You can withdraw any amount which is available on your Investment Wallet. Withdrawal will be done to your bank account indicated in your profile and visible on the Withdrawing funds page. 


 
Q&A regarding Investment Wallets
 
In whose name will the bank account (“wallet”) be opened?
In the name of Investor.
 
How will my accountant be able to access the bank account statement?
The statement will be available on the Capitalia platform, under the Investment Wallet menu. The user using the platform will have to get it and submit it to accounting.
 
Where will the money be held?
Money kept in Investment Wallets is held in separated client-money accounts opened with 4 tier-1 partner banks, such as BNP Paribas.
 
Will deposit guarantees apply at the bank?
Yes, for instance, BNP Paribas operates under Deposit Guarantee Scheme, where €100,000 per depositor is guaranteed. Customer funds regardless if an EU bank goes insolvent are guaranteed (up to EUR 100,000 per depositor) under provisions outlined by European Union regulation.
 
Where can I get more information about safeguarding of funds?
You can access more information here.
 
I finished registration/updated my profile but do not see my Investment Wallet
Wallets will become visible starting from October 16th, we will send an email about it and information on how to top it up with funds. If you just registered or just updated the required information on your profile - it can take up to 48 hours to get your Wallet opened.
 
Can I invest in a project if my Wallet balance is insufficient?
No, all investments, including Auto-invest, require to have sufficient wallet balance in order to make investments.

Here are some links that we believe are useful for getting the most out of investment opportunities with Capitalia: 

• 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.

After logging in to VMI, you need to select Paslaugos then in the search field enter Pažyma dėl pripažinimo rezidentu dvigubo apmokestinimo išvengimo sutarties tikslais and pick the form. 

Continue pressing the green button Pildyti, then click Pridėti, pick country Latvia and current year (2026). Continue ordering the form to your Mano VMI (to receive a signed e-document).

The certificate will be prepared in .adoc signed e-document format in a few days. Once it is ready, please submit it by sending to support@capitalia.com.

Tax Certificates will be valid until the end of January of next year. At the start of new year we will remind affected investors to obtain new Certificated and submit them to us.

Our platform operates from Latvia and we must comply with local legislation. Due to this when private individuals invest on Capitalia, we must deduct a withholding tax from their interest and late interest income received.

When the tax withholding happens:

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. 

Please note that no withholding tax is deducted from investors - legal entities. 
Please note that personal income tax rate in Latvia changed from 20% up to 25.5% starting from 1st of January, 2025.

The withholding tax rate depends on your country of tax residence. Currently, the following rates are applicable:

• 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

To register your tax residence and apply a reduced withholding tax rate, we are required to receive a tax resident certificate from you. Check with your local tax authorities to see how you can obtain a tax resident certificate in your country of tax residence. Your tax resident certificate must meet the following requirements to be accepted:

• 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

You can submit your tax resident certificate via email support@capitalia.com

The reduced withholding tax will be applied from the next month after Capitalia has received and processed your tax resident certificate. If the tax resident certificate is provided later, but not more than 3 years after the date of receiving interest, you can request repayment from the Latvian tax authorities.

Unless stated otherwise, your tax resident certificate remains valid until the end of the specified calendar year. You will need to submit a new tax resident certificate to reduce your tax withholding rate in the next calendar year.

An additional form only needs to be provided when you generate more than €5000 in income during one calendar year.

We kindly remind you that Investors have to declare income from investments in our platform themselves. The tax report is available under the Account statement section (after login in the right side top menu).





1. Shortcut for most common period selection. Once you click it the range in Item No. 2 changes and the page refreshes automatically;
2. Period selector in case you wish to manually select a specific period;
3. This will download your Tax report for the currently selected time period in PDF format;
4. Here you can download the same information just in Excel format;
5. Here you can see the summary for the selected period. 

A quick way to get a Tax report for last year: Open Account statement page -> select Last year (1) ->  Once the page refreshes click on Tax report (3)

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