Long awaited the law that several Latvian p2p lending platforms have been lobbying for will become effective on Nov. 14th 2022. This will lower the withholding taxes applied on interests earned by EU and EEA investors from 20% to 5%. Furthermore Mintos* says, that investors will need to only confirm their country of residence once. It will be no longer necessary for them to supply additional documentation or certificates a requirement which had put off investors from many countries. In several countries the 20% could not be fully deducted when declaring taxes with the local tax authorities. And while it could be lowered to 10% there was unliked paperwork associated with that, that needed to be repeated every tax year.
While the change has been announced by Mintos, it will also apply to other Latvian platforms like Twino* or Viainvest*.
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