Tax withholding for investments in Notes - Q&A
Dear Investors!
We have noticed that many of your questions related to Notes were about withholding tax. This is why we decided to move the discussion about it to a separate thread. Please post your questions or doubts below and we will make sure to answer all of them.
Short recap from our latest Blog post:
Tax withholding for investments in Notes
When private individuals invest in Notes, we’re legally required to deduct a withholding tax from their income, depending on their country of tax residence. Importantly, investors are entitled to relief from double taxation under double tax treaties.
While income tax differs from country to country, we don’t expect the withholding tax to be higher than the income tax that individuals are currently paying for income from investments via claims. We’ll provide more details on tax withholding on the date of Notes launch.
Please feel free to share your questions! Thank you!
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¿Que tal Angus?
Final part:
Also for non-Spanish platforms with Spanish loan originators, you can end up paying your Spanish taxes twice if do not provide the tax certificate (not the case of mintos).
Sorry, the antispam protection of this forum is killing me.
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Robert
If you want my unofficial answers from my knowledge of international taxation (not a tax advisor or profesional but I read many double taxation treaties for my personal invesments) read my previous posts. I recommend that you read the taxation double treaty between Latvia and your country of tax residence.
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Robert
I updated my posts regarding your question. If you do not live in a tax haven, Campaign rewards, late interest and secondary market sales are not likely to be subject to withholding tax, but just in case is better to provide the certificate of tax residency from a not-tax-haven country.
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ismresp
Muchisimas gracias!!!
Many many thanks for the clear steps necessary to perform and the quantified impacts of both directions.
Unfortunately I am not a small time investor... But...as previously I was able to "net off" other investment losses against the Mintos profits in my annual declaration things were "below the radar".
Now, due to:
- Tax issues with Notes
- Recoveries
- Pending Payments
- RUB investments
- KZT investments with mintos 4,5% currency exchange fee
- Lack of secondary market for claims
Other investment possibilities will suit my investment needs better. I still believe in the Mintos project & product and will maintain my shareholdings, but will gradually wind down the investment here - in my particular case it doesnt make sense anymore (risk vs reward).
This decision is independent of the wonderful advice youve given!!!
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You are right. I have not explain it correctly. You pay almost all your taxes in your country of residence, and also pay taxes in the foreign country only for income that comes from that country. I have edited my post to explain it better.
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According to the following page claims would will stop being available in the primary market on the 1st of July of 2022:
https://www.mintos.com/blog/notes-to-launch-on-mintos-on-25-may/
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Dear Robert, a Q&A Article was published some time ago. You can find it here: https://www.mintos.com/blog/mintos-investors-qa-lets-talk-about-notes/
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