Expert: Allowing Crowdfunding is a Very Important Change for Investment Account Owners
The law amendment passed by Parliament last week allows investment account funds to be used for crowdfunding going forward, which opens up a new opportunity for small investors in particular to engage actively in investing, according to Estateguru CEO Mihkel Stamm.
According to Estateguru CEO Mihkel Stamm, the amendment, which places crowdfunding alongside many so-called old classical investment instruments, has been anticipated by many. "The decision also reduces the pressure to maintain a private limited company to manage your investments. At the same time, investment account users now have an easier way to make active investments in different instruments in smaller amounts and thus better mitigate the risks inevitably associated with investing," comments Stamm, pointing out that, for example, on the Estateguru platform you can make investments starting from 50 euros, and this is always also protected by a first-ranking mortgage on the underlying real estate.
"As an important innovation, investors can now reinvest income earned from crowdfunding tax-free immediately, which increases capital efficiency," emphasizes Stamm, and adds that through an investment account it is possible to invest only through crowdfunding platforms that hold the appropriate license, of which there are currently two in Estonia. "The innovation that allows so-called bad loans to be written off in tax accounting in the future also adds flexibility for the investor and mitigates risks," explained Stamm, who is convinced that the law amendment will certainly encourage more people to invest and also increase the activity of current investors.
According to Stamm, the changes bring more competitiveness to Estonia's investment environment and make it more attractive internationally. "We have long been working on developing crowdfunding regulations through Finance Estonia and have taken pains to add this solution to the investment account system as well. Now our efforts have borne fruit," says the Estateguru CEO with satisfaction.
