Viainvest Review

Viainvest stands out from other P2P platforms in several key ways:

• Investment Brokerage Firm license with oversight from the Latvian Central Bank
• Investor protection scheme covering up to €20,000
• Investment offerings structured as asset-backed securities with ISIN codes
• Sole connection to VIA SMS Group, providing integrated loan origination
• Completely fee-free investment structure

While these regulatory protections provide additional security, they also come with some limitations like the lack of a secondary market and mandatory 5% withholding tax.

Viainvest’s 60-day buyback guarantee functions as follows:

• If a loan payment is delayed by more than 60 days, the buyback guarantee automatically activates
• You receive back 100% of your invested principal
• You also receive all accrued interest up to the buyback date
• The process is automatic and requires no action from investors
• The buyback is executed by the VIA SMS Group companies that originated the loans

While the buyback guarantee has functioned reliably to date, it’s important to note that it depends on the financial health of the VIA SMS Group. If the group were to face severe financial difficulties, their ability to honor the buyback guarantee could be compromised.

Unlike some other P2P platforms, Viainvest does not offer a secondary market that would allow investors to sell their investments before maturity. This means:

• Once you invest in a loan, you must hold it until maturity (typically around 6 months)
• There is no option to sell investments to other investors
• Early withdrawal is not possible except in extreme circumstances at platform discretion

To manage liquidity needs, many investors create a “ladder” structure with staggered maturity dates or only invest funds they won’t need in the short term.

Taxation of returns from Viainvest involves two components:

1. Latvian Withholding Tax: A 5% withholding tax is automatically deducted from all interest payments before they’re credited to your account. This tax is paid to Latvian tax authorities.
2. Home Country Taxation: You may be required to declare and potentially pay additional taxes in your country of residence, depending on local tax laws.

Some investors may be able to reduce the Latvian withholding tax if their country has a tax treaty with Latvia, but this requires submitting a certificate of tax residency. Alternatively, the withholding tax paid may be eligible for a foreign tax credit in your home country.

Tax regulations vary significantly between countries. It’s highly recommended to consult with a tax professional familiar with both your local tax laws and international investing.

Viainvest has several protections in place in case of platform insolvency:

• Investor Compensation Scheme: As a licensed Investment Brokerage Firm, Viainvest investors are covered by the Latvian investor compensation scheme up to €20,000 per investor.
• Segregated Accounts: Client funds are held in segregated accounts, legally separate from Viainvest’s operational funds.
• Direct Claim Rights: The asset-backed securities provide direct claim rights against the underlying loans, which would likely persist even if Viainvest ceased operations.
• Regulatory Oversight: The Latvian Central Bank supervision provides additional safeguards and would likely oversee an orderly wind-down if necessary.

While these protections are stronger than those offered by many P2P platforms, no investment is entirely risk-free. The €20,000 protection applies to securities and cash, but may not cover losses due to borrower defaults.