Daně a legislativa ČR
Taxes on P2P and Crowdfunding Investments
Key takeaways
- Interest and yield income from P2P and crowdfunding investments are taxable in the Czech Republic.
- They are typically classified as other income under Section 10 of the Income Tax Act.
- Neither the holding-period test nor the value threshold applies to these returns — you pay tax every time.
- Foreign platforms generally do not withhold tax on your behalf — the responsibility rests with you as the investor.
- Keep a record of your income and any losses, as you will need it for your tax return.
Returns from P2P lending and crowdfunding investments are taxable income in the Czech Republic, regardless of how long the investment was held or the size of the return. Unlike the sale of shares, there is no holding-period exemption or value threshold — every crown of interest or yield is subject to tax.
Which income category P2P returns fall into
Interest income from P2P platforms and returns from crowdfunding bonds typically fall under Section 10 of the Income Tax Act — other income. The exact category depends on the specific product structure: bonds may be taxed differently from direct loans. We always recommend consulting a tax adviser for the precise classification.
Foreign platforms and withholding tax
Many of the P2P platforms popular in the Czech Republic (Bondora, Mintos, Peerberry, and others) are registered abroad. These platforms generally do not withhold Czech tax on your behalf. You must therefore track all credited interest yourself and include it in your tax return. Income from foreign platforms must be converted to Czech crowns using the CNB exchange rate.
What you need to track
- Total interest credited during the calendar year
- Any losses from unpaid loans (whether these can be deducted depends on specific conditions — check with an adviser)
- Exchange rates used when converting from a foreign currency
- Platform statements or transaction exports
Real-estate and business crowdfunding
The same principle applies to real-estate crowdfunding (for example through bonds) — interest income is taxable. If a platform distributes a share of profits, this may be treated as income from capital assets taxed at 15%. The structure varies from project to project. A comparison with ETF investing is offered in the article on what an ETF is and how it differs from a mutual fund.
This article does not constitute tax advice. Tax rules may change and individual circumstances vary — always verify the current conditions or consult a tax adviser. See also taxes on ETFs in the Czech Republic.
FAQ
Are returns from P2P platforms always taxable?
Yes. No holding-period exemption or value threshold applies to P2P lending and crowdfunding returns. The full return is taxable income, typically as other income under Section 10 of the Income Tax Act.
Do I need to declare income from a foreign P2P platform in the Czech Republic?
Yes, a Czech tax resident is taxed on worldwide income. Foreign platforms generally do not withhold Czech tax on your behalf, so the responsibility for filing rests with you. Income must be converted to CZK using the CNB rate.
Can I deduct losses from unpaid loans against my returns?
Whether deduction is possible depends on the specific structure and current interpretation of the law. This is one of the most complex questions in P2P taxation — consult a tax adviser.