Each investor goes through a registration process that includes the gathering of legally required personal data. Fortunately, the number of properties in which an investor may participate is not limited by law, allowing for investment portfolio diversification. Legislation encourages the strategy of diversification by means of amount limits per investment (or per property). Thus, there are only limitations with regard to the investment amount per property, not the number of properties. If the investment in a property exceeds the amount limit of €1,000, an extended self-disclosure is required to determine whether the investor meets the legal requirements. No more than 25,000 euros can be invested in a single property.
The procedure depends on the amount limit, as follows:
Standard registration
For an investment of up to €1,000 per property and issuer, the personal data gathered via standard registration on the platform is sufficient.
Extended self-disclosure
For an investment amount of €1,001 to €10,000, the investor must have freely disposable assets in the form of bank balances and financial instruments of at least €100,000.
Or
For an investment amount of €1,001 to €25,000, the monthly income of the respective investor must be at least half as high as the amount to be invested per property.
The aforementioned amount limits do not apply if the investor is a corporation or a GmbH & Co. KG whose limited partners are also shareholders of the GmbH or are involved in the decision-making of the GmbH. This applies insofar as the GmbH & Co. KG is not an investment fund and is not a management company pursuant to the German Investment Code.
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