ALL CATEGORIES

INVESTORS

How do I declare income when filling in my tax return?

If you are a resident in Portugal:

• And received income from projects with Portuguese promoters: At the end of the year, when filling out your IRS, you have nothing to declare because your interest was already subject to withholding taxes, that have been declared directly to the Tax Authority by Goparity (article 71 of the IRS Code). If you want to opt for bundling (englobamento), you must declare the income obtained through investments in GoParity in Annex E (Table 4B, with code E20) in your annual statement.

• If you are a resident in Portugal and received income from projects whose promoter has no fiscal headquarters in Portugal: Goparity does not withhold tax, so the investor will receive the installments at their gross value. In the IRS statement, the investor must include the Anexo J in the Model 3 IRS Statement to declare income earned abroad, namely capital income from investments through non-resident promoters.

If your tax residence is NOT in Portugal:

• And you received income from projects with promoters in Portugal: this income is subject to these tax retention rates. These rates are automatically retained from the earned interest and subsequently declared to the Portuguese Tax Authorities. In this situation, if you're based in a country that is not Portugal, you can request that we activate the Double Taxation Agreement pertaining to your country of residence, which will mean a reduced rate of retention when investing in projects with a promoter based in Portugal. This agreement is valid for 1 year and renewable. Please send this request to hello@goparity.com.
• And you received income from projects with promoters that are not from Portugal: You must declare your income earned with Goparity in your country of residence. 

Information for Spanish investors

Starting in May 2024, Spanish fiscal residents who invest in projects with promoters based in Spain will be subject to a withholding tax rate of 19% on the interest generated. This means that when you file your taxes at the end of the year, you won't need to declare anything since the interest has already been subject to withholding taxes.

Differently, for residents of other EU countries investing in projects based in Spain, they will receive the payments at their gross value. They are then required to report the income earned through Goparity in their respective countries of residence.

Non-EU residents investing in projects based in Spain will also be subject to a withholding tax rate of 19% on the interest generated. They may have the option to activate the double taxation agreement. To activate this, please request it via email to hello@goparity.com

At the beginning of each year, we send all Investors their Income Statements.

Disclaimer: As MangoPay, our electronic payments partner, is an electronic money institution, the account / IBAN does not need to be declared to the IRS/Tax Authority.