Investing on EDC by Raizers

Why invest on EDC By raizers?

-To enable young companies to grow;

-To invest in companies that will have a direct impact on the local economy;

-To get involved in businesses near you;

-To invest in companies with potential for high added value;

-To develop your network and meet entrepreneurs;

-To create partnerships;

-To receive a tax exemption;

 

  • Risks

Please remember that all investment bears a risk, and so does investing in equity crowdfunding:

- A risk of partial or total loss of capital;
- A liquidity risk: the duration of the investment cannot be guaranteed.

TAX SYSTEM

  Income tax system (IR) Wealth tax system (ISF)
Tax exemption 18% of the amount invested 50% of the amount invested
Maximum amount

€ 9000 exemption for an investment of €50 000 for a single person

€ 18 000 exemption for an investment of €100 000 for a couple

€ 45 000 exemption for an investment of

€ 90 000

Conditions

Shares must be kept for a minimum period of 5 years

Subscription must take place before december 31st of the current fiscal year

Shares must be kept for a minimum period of 5 years

Subscription must take place before june 15th of the current fiscal year

Example A € 3000 investment allows a tax exemption of € 540 A € 8000 investment allows a tax exemption of € 4000
  Company eligibility conditions
The SME must meet the European Union definition
  • Having between 2 and 250 employees (50 for IR),
  • Making a turnover not exceeding € 50 million (<10m€ for IR),
  • Having a balance of less than € 43 million,
  • Headquarters of the SME must be within European Union, in Norway or Iceland,
  • Be subject to corporation tax (IS),
  • 50 % of the capital must be held by individuals or family business,
  • Less than 5 years of existence for IR.

And must not perform the following activities :

  • activities providing guaranteed incomes due to the existence of a regulated tariff exemption on production,
  • financial activity (except social company),
  • moveable properties management activity,
  • real estate activity (except social company),
  • solar energy business.

 

PEA PME

The PEA PME is an equity account which promote the investment in young company, listed or not on the stock exchange. It allows taxes exemption on dividend and on the added value under specifics conditions.

The maximum limit is € 75’000 and it's added with the classic PEA. Advantages are listed below :

  • Withdrawal before 2 years : the added value are taxed at 22,5%, plus social taxes
  • Withdrawal between 2 and 5 years : the added value are taxed at 19%, plus social taxes
  • Withdrawal after 5 years : the added value are not taxed, only social taxes

Concerning dividends, the limit is fixed at 10% .