Estateguru chief says Estonia law change will boost investing
Mihkel Stamm, chief executive of Estateguru, said a recent law change in Estonia should encourage more people to invest and better manage risks.
Estonia passed amendments to the Income Tax Act and the Funded Pensions Act on 13 November, making some of the rules more flexible for smaller investors. Under the changes, investments in crowdfunding will be allowed through an investment account and these accounts can be opened through investment firms and payments institutions, not just lenders.
As long as the provider is licensed under a European Parliament and Council regulation, they can offer securities or loans that can be held in an investment account.
Stamm said in a post on the platform’s website that the changes have been long-awaited by many and the decision “reduces the pressure on investors to manage their investments through private limited companies”.
He added: “An important change is that investors can now reinvest profits earned from crowdfunding tax-free, thereby improving capital returns.”
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He also believes that the amendments will help make Estonia more attractive for investors.
“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,” he noted.
Read more: Estateguru to launch new investment portal as it eyes profitability
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