How P2P lending income is classified in Spain
Spain's tax code treats interest earned from peer-to-peer lending platforms as savings income (rendimientos del capital mobiliario), the same category applied to bank deposit interest, bond coupons and dividends. P2P investments are not considered business income unless the taxpayer operates a habitual lending activity, which is rare for retail investors. This classification determines the applicable tax rates and the section of the annual return where income must be declared.
Spanish tax residents are liable on worldwide income, meaning all P2P earnings - whether from domestic platforms or foreign platforms such as Mintos, Maclear or PeerBerry - must be reported to the Spanish tax authority (Agencia Tributaria) each year. The fact that a platform may be registered in Latvia, Switzerland or Lithuania does not exempt the income from Spanish tax.
Tax rates on P2P interest in Spain
Savings income in Spain is taxed on a progressive scale separate from employment or self-employment income. As of 2026, the national savings-income rates are:
- 19% on the first EUR 6,000 of net savings income
- 21% from EUR 6,001 to EUR 50,000
- 23% from EUR 50,001 to EUR 200,000
- 27% from EUR 200,001 to EUR 300,000
- 28% above EUR 300,000
Regional governments (Comunidades Autonomas) may apply small adjustments to these bands, so the effective rate can vary slightly by region. For most retail P2P investors earning a few thousand euros in annual interest, the effective tax will fall into the 19-21% bracket. An investor reporting EUR 1,500 in P2P interest pays 19% on that amount; an investor with EUR 8,000 in total savings income pays 19% on the first EUR 6,000 and 21% on the remaining EUR 2,000.
Declaring P2P income: Modelo 100
All Spanish tax residents file an annual personal income tax return known as Modelo 100, typically between April and June 30 each year for the preceding tax year. P2P interest is reported in the section for savings income, alongside other investment earnings. The form requires you to state the gross amount received, identify the source (foreign or domestic), and declare any foreign tax withheld, if applicable.
Many European P2P platforms do not withhold tax at source, meaning you receive the full interest amount but must calculate and pay Spanish tax directly. If a platform does withhold tax in its home country, Spain generally allows a credit for foreign tax paid up to the amount of Spanish tax due on that income, subject to double-taxation treaty limits. Investors claiming a foreign tax credit should attach documentation (platform statements, withholding certificates) to substantiate the claim.
Self-assessment is the norm: the taxpayer calculates the liability, and the Agencia Tributaria may later audit. Accurate record-keeping is therefore essential, and the obligation to declare applies even if overall tax liability is zero (for example, due to offsetting losses or low total income).
Foreign-asset reporting: Modelo 720
Spain requires residents to file Modelo 720 if the aggregate value of foreign assets in any single category exceeds EUR 50,000 at 31 December. The form covers three categories: foreign bank accounts, foreign securities and investment accounts, and foreign real estate and rights. P2P investments held with platforms outside Spain typically count toward the securities category.
Modelo 720 is informational, not a tax payment, but the penalties for non-filing or incorrect filing are severe. The deadline is 31 March each year. The threshold is per category: if your foreign P2P holdings plus other foreign securities total EUR 51,000, you must file, even if each individual platform account is below EUR 50,000. Once filed, you only need to refile if the category value increases by more than EUR 20,000 compared to the last declaration.
Investors with substantial balances across multiple European platforms should track year-end valuations carefully. The obligation exists regardless of whether income was earned during the year; the trigger is the balance threshold.
Can you deduct P2P losses or defaults?
Spanish tax law generally permits capital losses from financial investments to offset capital gains within the savings-income category, subject to certain ordering rules. However, the deductibility of P2P loan defaults is not straightforward. If you hold loan notes or participations that become irrecoverable, whether the loss is deductible depends on whether the investment is classified as a security, the platform's legal structure, and whether the loss is formally realised (for example, through a sale on the secondary market at a loss, or an official write-off by the platform).
In practice, many Spanish tax advisers take a conservative approach: losses recognised through a formal sale or liquidation are more likely to be accepted, whereas simply ceasing to receive interest on a defaulted loan may not qualify unless the principal is definitively written down. Given the variety of P2P structures - some platforms issue bonds, others operate as direct loan assignments, still others as funds - the precise treatment is case-specific. We recommend consulting a Spanish tax adviser before claiming a P2P default as a deductible loss.
Record-keeping for Spanish P2P investors
Spain's statute of limitations for tax assessments is generally four years, meaning you should retain records for at least that period. For each tax year, keep:
- Annual statements from each P2P platform showing gross interest earned, any foreign tax withheld, and year-end account balances
- Transaction logs for deposits, withdrawals, loan investments and repayments
- Documentation of defaults or write-offs if you intend to claim a loss
- Currency conversion records if the platform reports in a currency other than euros (use European Central Bank reference rates or the platform's own conversion at the transaction date)
- Modelo 720 filings and supporting calculations for foreign-asset declarations
Most modern platforms provide downloadable annual tax summaries. For platforms without automated reports, export transaction histories and reconcile them manually. Organised records streamline Modelo 100 preparation and provide audit defence if the tax authority raises questions.
Foreign tax credits and double-taxation treaties
Spain has tax treaties with many countries, including Latvia (home to Mintos and several others) and Lithuania (home to InRento and Capitalia). These treaties typically allocate taxing rights on interest income to the investor's country of residence, meaning Spain has primary taxing rights and the source country may withhold at a reduced treaty rate or not at all.
If a platform does withhold tax in its home country, you claim a credit on Modelo 100 for the foreign tax paid, up to the Spanish tax due on that income. For example, if a Latvian platform withholds 10% on EUR 1,000 of interest (EUR 100 withheld), and your Spanish marginal rate on that income is 21% (EUR 210 Spanish tax due), you pay Spain EUR 110 (EUR 210 minus the EUR 100 credit). If the foreign withholding exceeds the Spanish liability, the excess generally cannot be refunded, though treaty rules vary. Always attach proof of foreign tax paid when claiming the credit.