According to Mihkel Stamm, this change, which places crowdfunding alongside more traditional investment instruments, has been long-awaited by many. “This decision also reduces the pressure on investors to manage their investments through private limited companies. Additionally, it simplifies active investments in various instruments with smaller sums, allowing investors to better manage the inherent risks of investing,” Stamm commented. He added that on the Estateguru platform, for instance, investments can start from as little as €50, secured by a first-rank mortgage on the collateral property.
“An important change is that investors can now reinvest profits earned from crowdfunding tax-free, thereby improving capital returns,” Stamm emphasized. He added that investment through an investment account is only possible via licensed crowdfunding platforms, of which there are currently two in Estonia. “Another update providing flexibility and reducing risk for investors is the ability to deduct non-performing loans from taxable income in the future,” Stamm explained. He is confident that this legislative change will encourage more people to invest and increase activity among current investors.
Stamm believes these changes will enhance the competitiveness of Estonia’s investment environment and make it more attractive internationally. “We have worked for a long time through Finance Estonia to develop regulations for crowdfunding and to ensure this solution is included in the investment account system. Now, these efforts have borne fruit,” said Stamm with satisfaction.
