Question 1

What is real estate crowdfunding?

Accepted Answer

${color}[#3faae1](Real estate crowdfunding: definition)

Real estate crowdfunding is an investment that allows investors to lend to real estate operators. The platform brings together project owners and investors, allowing the former to finance his operation and the latter to make his savings grow. *

The operator, the borrower, issues a bond and the investor participates in the bond issue by becoming a lender.

${color}[#3faae1](Real estate crowdfunding market figures in France in 2021)

The real estate crowdfunding market in France is booming. Growth is accelerating every year to reach nearly €960 million collected in 2021** (+90% vs 2020). The number of operations financed through crowdfunding has exploded with more than 1,000 operations, i.e. +81% compared to 2020. The average duration of an investment is 21.2 months with an average gross annual return of 9.21%.

${color}[#3faae1](How does it work?)

By participating in a bond issue, the investor lends :

With an interest rate fixed in advance, typically between 8 and 12%;
Over a pre-determined period, typically 12 to 36 months.

The operator pays interest annually to its lenders and repays the capital on the maturity date of the project. This date usually corresponds to the sale of the operation.

${color}[#3faae1](What types of operations?)

The real estate operations concerned by real estate crowdfunding are varied:

Real estate development: construction of new housing;
Deve

Question 2

What taxation for real estate crowdfunding?

Accepted Answer

${color}[#3faae1](The taxation of real estate crowdfunding for French tax residents)

Real estate crowdfunding is a bond investment. The interest received is therefore subject to capital taxation, so you have two choices:

Flat tax: 30% tax on interest received during the year (12.8% tax and 17.2% social security contributions),
Integration with income and taxation at the marginal bracket of the income tax and social security deductions of 17.2%.

The second option applies to you if your income is less than €25,000 (for a single person).

${color}[#3faae1](How is the tax levied?)

When you receive interest, the platform pays the gross interest into your Raizers account and instantly deducts the Flat Tax. The platform takes care of the declaration and payment of these taxes to the French Treasury.

To follow these transactions, go to the My account section of your investor account.

${color}[#3faae1](How to be exempt from income tax?)

If you are exempt from income tax, and in order to be exempt from income tax deduction for the year Y+1, you must regularise your tax situation with the platform from your profile in the My tax area. The exemption from deduction must be provided to the platform before 30 November of year Y.

See How do I fill in my exemption from deduction?

${color}[#3faae1](You are a foreign tax resident)

If you are a foreign tax resident and you receive interest on our p

Question 3

What is the sale in future state of completion (VEFA)?

Accepted Answer

${color}[#3faae1](What is the sale in future state of completion (VEFA)?)

VEFA stands for sale in future state of completion. It consists, for a purchaser, of buying a home off-plan and therefore not completed. The VEFA is a contract between the purchaser and the developer which guarantees the completion of the construction for the purchaser and allows the developer to be paid as the work progresses. To do this, a payment schedule is set by the developer and the balance is paid on delivery of the property by the purchaser. In the case of a VEFA sale for residential properties, the developer is obliged to take out a Financial Guarantee of Completion to guarantee the completion of the work.

In addition, there are tax advantages linked to buying a new property: reduced notary fees because it is a new property (2 to 3% compared to 8% for an old property), the Pinel law which allows you to benefit from tax advantages by renting the property for a minimum of 6 years, and zero rate loans to finance up to 40% of the purchase of a new property, the costs of which are covered by the State.

${color}[#3faae1](Related articles)

Question 4

How do interest and coupons work?

Accepted Answer

${color}[#3faae1](How do interest and coupons work?)

A coupon is attached to a bond. It represents the interest paid to the holder of that bond, in this case the investor. Historically, bonds were printed on paper and accompanied by detachable coupons, with the payer withdrawing the corresponding coupon as soon as he made a repayment.

To illustrate, with a €1000 bond over 24 months at 10% interest rate, a coupon is 1000*10%, i.e. €100 to be multiplied by two, given that this interest rate is over 2 years. This bond therefore comes with two coupons of €100.

${color}[#3faae1](Related articles)

Question 5

How do I credit my account?

Accepted Answer

${color}[#3faae1](How do I credit my account?)

Before you can invest in any of our operations, you must fund your Raizers account. To do this, you must first validate your profile.

From your personal space, in the "My Investments" section, click on the "Credit" button

How to transfer funds

You can choose to credit your account by bank transfer or by bank card.

** By transfer in €**: you will find on the "Credit" page an IBAN and a BIC that you can enter in the interface of your bank and make a transfer of the amount of your choice.
By transfer in CHF: enter the amount you wish to credit. You will then find an IBAN, a BIC and a reference that you can enter in your bank's interface and make a transfer of the amount of your choice.
By bank card: you can pay up to €2,000 into your account by bank card. Please note that only payments in € are possible by bank card. You will be charged 0,8% of the credited amount for credit by bank card. The use of bank transfer remains free of charge.

${color}[#3faae1](What taxation for "non-residents" (tax residents other than France or Switzerland)?

If you are a natural or legal person and you are not fiscally domiciled in France, you are not subject to any taxation in France.

If you fall into this category, please sign the attestation on honour of non-resident for tax purposes available in your personal space, under the heading "My taxation". See the article: How do I fill in my exemption from deduction?

However, you will need to find out in your country of residence about the administrative steps to be taken in the case of bond income.

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