If you are considering making your first investment in the world of property crowdfunding, you need to know that the amount you can invest will depend on what kind of investor you are.

In order to better control and protect non-professional investors and limit potential risks, crowdfunding platforms are regulated by the Business Financing Promotion Act  (Ley 5/2015 de fomento de la financiación empresarial), which limits the maximum that can be invested depending on the kind of investor you are: qualified or unqualified.


Unqualified investors

The difference between these two profiles is the maximum amount they can invest through crowdfunding.
Unqualified investors (non-professionals) can only invest a maximum of 3,000 euros in a single project and up to a total of 10,000 euros per year in a single property crowdfunding platform in Spain. In addition, the projects in which they invest can never be larger than 2 million euros.


Qualified investors

Conversely, qualified investors have no maximum investment limit. However, the project’s size has a maximum of 5 million euros. Act 5/2015, mentioned above, defines a qualified investor based on three requirements:

– Institutions, companies or funds with assets of more than one million euros.
Companies or investment funds with a turnover of more than 2 million euros or equity over 300,000 euros.
– Natural persons with an annual income of more than 50,000 euros or assets worth at least 100,000 euros.


How does a non-professional investor become a qualified investor?

In any case, if you want to move from one category to the other, you need to know that unqualified investors can become qualified investors provided they meet any of the aforementioned requirements, fill out a form and submit it to the Spanish Securities and Exchange Commission (CNMV). With Propcrowd, once you have registered on the platform, you have this option available in your account thanks to our partner Socilen, which has been authorised by the CNMV.