Taxation is generally a complex topic, and it’s important not to underestimate the potential fiscal implications of any investment or financing activity. This article includes documents and resources intended to help Walliance users better understand—at a high level—the tax treatment of their earnings.

Please note that investments available through Walliance may generate income for investors that, depending on its nature, can be classified as either “capital income” or “financial income.” The applicable tax regime depends on the investor’s legal and tax status.

Walliance is a crowdfunding platform that allows investors to invest in or lend directly to the company developing and managing the underlying project. Investors do not directly acquire real estate assets but rather participate by financing or acquiring shares/interests in the company managing the project.

Walliance serves as a showcase for the project presented by the Offeror, who uses the platform to reach potential investors.

Crowdfunding enables the collection of resources—including relatively small amounts—from multiple investors to finance the development of the proposed project.

The platform’s sole role is to facilitate this capital raising. Regulation (EU) 2020/1503 on investor protection outlines the obligations and procedures for the relevant parties (Investor/Issuer/ECSP), in compliance with the legal safeguards established to protect the investing public.

As mentioned, taxation can be complex. Several variables can affect how your investment earnings are taxed. On the Walliance platform, investment opportunities can take the form of Equity, Lending, or Debt. When creating an account, users can choose whether to invest as an individual person (private account) or as a legal person (company account). The tax residence of the company you choose to invest in may be in Italy, Spain, France, or another country — just as each investor may reside in a different country.

Here are two tools to help you identify your specific tax situation, based on these different variables:

Your Mangopay Wallet, being a French payment account, is considered a foreign account for tax monitoring purposes if you are not a French resident. Therefore, holding funds in this account may trigger foreign account reporting obligations.
Mangopay SA, via Walliance, provides details on your Wallet’s average balance, opening balance, and closing balance.

These details will be available by the end of April of the following year in the “Taxation” area of your profile (Personal Account > “Services” > “Taxation”), in a summary report.

For more information on monitoring your Mangopay Wallet and the documents to submit in your tax return:

Earnings from Lending and Debt Crowdfunding are generally considered taxable income and contribute to your total taxable income. The applicable tax treatment depends on the tax laws of your country of residence.

If you choose to invest through Equity crowdfunding, you may enjoy a convenient benefit: in these cases, the company you invest in typically acts as the tax withholding agent. At the end of the investment, your capital plus net earnings (after taxes) will be deposited into your Wallet.

If you invest as an individual who is tax resident in Italy, and the investee company is also Italian, a 26% withholding tax will be applied at the source. As a result, you are not required to report these earnings on your tax return.

However, if your country of residence differs from that of the company you’ve invested in, you may be able to request a refund of any excess tax withheld or indicate your tax preferences, as explained below 👇 (see: Indicate your tax preferences).

During specific times of the year, you can update your tax preferences as originally set during your Walliance profile verification. This allows you to define how you want your investment income—on which earnings have not yet been received—to be treated for tax purposes. If you are a tax resident in certain countries, you can access this option from your Account > “Services” > “Taxation”. You may request the application of a tax treaty regime to avoid double taxation on your earnings from Equity and Lending investments (if available and more favorable for the taxpayer).

Annual Tax Summary
Walliance publishes an annual summary report by the end of April in your “Taxation” profile section. This document includes details of your investments and earnings.
It also includes Mangopay SA’s reporting data, such as your average balance, opening, and closing Wallet balances.
​

Investment Confirmation
This document summarizes your confirmed investment or financing. You can download it from your personal Dashboard by clicking the arrow next to the project name and then on the check-mark icon (✔︎).
​

Company Registration Report (only for Equity Investments)

This document certifies your registration in the shareholder register and indicates the number of shares you hold. It is usually available within 30 to 60 days after the Offer is finalized, in the “Updates” section of the project page.
​

Earnings Certificate (only for Lending and Debt Investments)
Issued by the Offeror after the loan is repaid, this certificate confirms the amount of earnings paid and the withholding tax applied.
It becomes available in the early months of the year following the year in which the tax was withheld, directly in your personal area.
This certification is not issued for Equity investments, as it is not required by law.