Blog
Real estate crowdfunding in the EU is going to be simpler and safer
New EU Regulation on business crowdfunding will come into effect in November 2021. Unified European legislation leads to overall simplification and cost reduction, and also strengthens investor protection.
On 7th October 2020, the European Parliament passed Regulation (EU) 2020/1503 on European crowdfunding service providers for businesses. This concerns real estate crowdfunding related to business financing.
Prior to this, legislation on crowdfunding was mostly based on national legislation. However, the real estate crowdfunding market is seeing impressive growth, and because of this the EU legislation needed to address this subject. A harmonized EU legislation will facilitate cross-border crowdfunding and also limit the costs. Regulation (EU) 2020/1503 establishes uniform rules in the EU regarding investment-based and lending-based crowdfunding services related to business financing.
Crowdfunding platforms can now ask for an EU passport, which will allow them to get a single authorization in order to offer their services across the EU.
The new regulation will also strengthen investor protection. First of all, real estate crowdfunding project owners will be required to provide precise information to the investor regarding the crowdfunding offer. In addition, Investors will also have to demonstrate that they have the ability to face potential losses by completing a suitability and appropriateness test.
The regulation will cover and be applicable to every EU real estate crowdfunding platform raising up to 5 million euros, calculated over a period of 12 months.
Regulation (EU) 2020/1503 came into force on 10th November 2020, and will be applicable from 10th November 2021.
More articles:
Markéta Poledníková
Markéta Poledníková
"I was extremely satisfied with the services provided by Holubová advokáti. The collaboration was always professional, systematic, and attentive to detail. At the same time, I greatly appreciated their human and personal approach. Everything was explained to me clearly, I had ample opportunity to ask questions, and I felt a genuine interest in resolving my situation. In my view, the combination of expertise and personal care is exactly what one should expect from legal services. I can wholeheartedly recommend them."
Martin Herna
Martin Herna
"I would like to take this opportunity to express my sincere gratitude to the law firm Holubová advokáti s.r.o. for their professional yet genuinely compassionate approach in an exceptionally difficult period of my life.
The firm successfully represented me in a dispute with my health insurance company concerning reimbursement for a medication that enables me to actively fight an oncological illness and has already begun to show positive treatment results.
From the very outset, I felt a high level of expertise, thoroughness, and a genuine interest not only in the case itself but also in the person behind it. All legal steps were explained clearly and comprehensibly, and the communication was factual, calm, and supported by clear arguments. In a time of great uncertainty, this provided me with a much-needed sense of reassurance and trust.
My special and greatest thanks go to JUDr. Klára Dvořáková, whose commitment, precision, and empathy meant more to me than can be conveyed in just a few sentences. Her work was not only highly professional but also marked by human sensitivity and deep respect for the seriousness of the situation.
I can wholeheartedly recommend this law firm to anyone seeking top-tier legal assistance combined with a truly human approach."
Dietmar Repka
Dietmar Repka
"We express our recommendations for the law firm Holubova Advokati.
Holubova Advokati was able to resolve a project for us with confidence, composure, and perseverance that German experts had deemed hopeless.
About 80 years ago, my grandparents and my father had to leave their home. The property has now been returned to our family through the inheritance that was initiated, and thanks to the excellent work of the law firm.
During the two-and-a-half-year negotiations, there were no language problems; everyone was always well informed about the current status.
Keep up the good work, everyone."