Frequently Asked Questions
General inquiries
What Urbanitae does and how it works.
What is Urbanitae?
Urbanitae is the meeting point for small investors and the best real estate developers. Our crowdfunding platform allows anyone to invest in the real estate sector, just like large investment funds, but with small amounts and without having to worry about paperwork and management. The union of many small investors –the component called crowd– provides enough financial muscle to access projects that are normally only available to professional investors. A clear example of the old saying strength in numbers.
Who are we?
We are a real estate investment company born to democratize real estate investment. We believe that the opportunities offered by the sector should be available to everyone: thanks to technology, it is now possible to invest in large projects with small contributions.
The differential value of Urbanitae is the professionalism and transparency that characterize its team. Formed by specialists in technology, fintech, and real estate investment, the professionals at Urbanitae combine the rigor required for real estate investment with the innovative spirit and customer service that characterize the fintech sector.
What do we do?
Urbanitae is the meeting point for small investors and real estate developers. We are a real estate crowdfunding platform, which offers the small investor the possibility of investing in real estate projects hitherto only available to professionals in the sector.
Our platform allows investors to acquire shares in real estate projects previously validated by our team of experts and manage their investments through their control panel.
At the same time, the platform is an alternative financing channel for real estate developers accredited by Urbanitae, who can develop and finance their projects with reliability and speed.
The selected projects seek to generate very attractive returns for the investor, both from the income generated by the rental of the properties and from the revaluation generated by their sale.
Urbanitae and the developers are in charge of all the management of purchase and sale, maintenance, rental of the properties, freeing the investor from costly procedures and paperwork.
What is crowdfunding?
The word crowdfunding comes from the union of crowd (collective or group) and funding (the act of financing something). In the case of Urbanitae, it is about bringing together many investors so that, together, they participate in large-scale real estate projects.
For the purposes of the applicable regulations, the crowdfunding or participatory financing service tries to connect the interests of investors and project promoters in terms of business financing through the use of crowdfunding platforms. This may consist of granting loans, or the placement –without a firm commitment basis– of negotiable securities and instruments admitted for crowdfunding issued by project promoters or by an instrumental entity, and the reception and transmission of client orders, in relation to the foregoing.
How do we select developers?
Urbanitae's network of developers is a fundamental part of our platform. Any developer can apply to register on our platform in the How it works section of the developers section of the website. Our investment and analysis team studies their track record and degree of professionalism before giving them access. Being a developer accredited by Urbanitae is a seal of quality and good performance.
How do we select projects?
Our team of analysts carries out an intensive study of the projects submitted to us by developers: only if they pass the filters set by Urbanitae are they published on the platform so that any registered user can invest in them. Urbanitae has a rigorous opportunity analysis process that covers several stages to minimize risk:
Pre-selection: Urbanitae carries out an exhaustive selection of opportunities before their publication. Various aspects are evaluated, such as location, project viability, developer quality, and other relevant factors.
Risk analysis: A detailed analysis of the risks associated with each project is carried out. This includes evaluating the specific risks of the real estate market, financial risks, and any other factor that may affect the project's viability.
Monitoring and control: Once a project is underway, Urbanitae carries out continuous monitoring to ensure that it develops as planned. Project milestones, costs, and any changes in circumstances that may affect the final result are monitored.
These measures are implemented to ensure transparency and security in investments, minimizing the risks associated with each opportunity published on the platform.
Who can invest in Urbanitae?
Urbanitae is aimed at any private or institutional investor who wants to invest in the real estate sector.
- Natural persons of legal age with Spanish nationality.
- Natural persons of legal age in possession of a foreigner identification number (NIE).
- Any company with a Spanish NIF.
How do I sign up for Urbanitae?
Natural persons:
The basic registration process on our platform is easy and fast: just provide your company name, address, e-mail, phone number, as well as the same information regarding your legal representative.
To be able to deposit money and invest on the platform, you will have to validate your account with any of our payment service providers, Lemonway or Mangopay, by providing a photo of your ID to verify your identity.
To be able to withdraw money from your Urbanitae account, you must provide a document that proves the ownership of your bank account so that the payment institution can verify it. (See What is Lemonway? and What is Mangopay?).
Legal persons:
In this case, it will be sufficient to provide your name and surname, address, e-mail, and phone number. To be able to deposit money and invest on the platform, you will have to validate your account with any of our payment service providers, Lemonway or Mangopay, by providing a photo of your ID to verify your identity, the company's deed, and a certificate from the commercial registry or the latest tax payment.
To be able to withdraw money from your Urbanitae account, you must provide a document that proves the ownership of your bank account so that the payment institution can verify it. (See What is Lemonway? and What is Mangopay?).
What is the minimum investment amount?
The minimum investment amount in real estate projects with Urbanitae may vary depending on the project, however, in most cases, the minimum investment is €500. It is important to note that the investment amount must always be a multiple of 10, which provides flexibility for investors to adjust their participation conveniently.
What is the maximum investment amount?
There is no maximum investment amount for real estate projects with Urbanitae.
What is the process for depositing funds and starting to invest with Urbanitae?
Once your identity is verified, you can deposit money into your Urbanitae account by bank transfer, credit or debit card, or bank deposit.
To ensure the financial security of our investors, Urbanitae uses an external payment institution called Lemonway, which is regulated and completely independent. This system protects our investors, as it keeps their capital in a segregated and secure account.
How do I invest in a project?
To make an investment, the first step is to deposit the desired amount into the wallet associated with your Urbanitae account. (See the section What is the process for depositing funds and starting to operate with Urbanitae? for more details on this process).
On our website, you will find the investment projects that are under review: if they are finally approved, the opening date and term are announced. This term marks the beginning of financing by Urbanitae users, allowing you to participate in real estate projects in a simple and transparent way.
What is the prefunding system?
The Prefunding system aims to expand participation opportunities in Urbanitae projects to a larger number of investors.
Specifically, this system allows any registered user to invest in the project as a pre-investment for a specified period (usually 24 or 48 hours).
This pre-investment phase ends either when the period concludes or when a maximum over-investment is reached, generally 200% of the funding target.
In the first case, if the fundraising exceeds the funding target, the pre-investments are proportionally reduced to ensure everyone's participation, with two exceptions: the minimum of €500 is respected and, in capital gain (equity) projects with a term of more than one year, the minimum final investment is guaranteed to be 5% for legal entities whose pre-investment represents more than 5% of the share capital.
If the fundraising is less than the target, the pre-investments do not experience reductions and the project will be opened for investment on the platform to reach 100%.
If the over-investment cap is reached before the deadline, the prefunding process is closed and the pre-investments are prorated with the same exceptions as in the case of exceeding the initial funding target.
How will the prefunding system be announced?
All Urbanitae projects are announced in the same way, communicating the opening to the entire investor base a few days in advance. The countdown email will indicate if the project opens with prefunding, as well as the date and time of the opening.
As always, in the days leading up to the opening, the project will remain 'under review' and investors can consult the relevant documentation as well as submit their questions to the investor support team and, if interested, transfer funds to their wallets.
This approach provides transparency and security and allows investors to prepare adequately before the investment process begins.
How does the investment process work for prefunding projects on Urbanitae?
On the date indicated in the 'countdown' email, we will open the project so that anyone who wants to can pre-invest during the set period (24 or 48 hours) or until the established over-investment limit is reached.
The conditions are the same as in other projects: €500 minimum investment, a cap of €3,000 for non-accredited investors and no limit for accredited ones, unless, due to high expected demand, a maximum ticket has been previously set for all investors.
It is essential to have the investment amount available in the wallet to participate in the Prefunding phase, as pre-investments are 100% binding. This process allows investors to commit early to the projects of their choice, thus securing their participation.
What happens when prefunding ends?
Once the prefunding period is over, two situations can occur:
- The funding target has been exceeded:
In this scenario, each investor's shares will be adjusted on a pro-rata basis, which means the final amount will be lower than requested. However, the minimum investment of €500 will be respected and, in capital gain (equity) projects with a term of more than one year, the minimum final investment will be guaranteed to be 5% for legal entities whose pre-investment represents more than 5% of the share capital. The excess funding will be refunded to the investors' wallets.
- The funding target has not been met:
In this case, the project will be opened for investment on the platform with the goal of reaching the necessary funding. All investments made during the Prefunding phase will become firm investments in the project, with no reduction in the amount. This approach ensures that projects have the opportunity to receive the full support needed for their execution, even if the initial target was not met in the Prefunding phase.
By how much can the funding target be exceeded during Prefunding?
All projects in the prefunding phase will have a maximum over-investment (overfunding), which, as a general rule, will be 200% of the funding target.
If at any time during the prefunding phase the maximum overfunding is reached (overfunding cap), the project will be automatically closed and no new investments will be accepted.
This may mean that a project closes for investment before the established prefunding deadline.
What will my investment be if the funding target is exceeded?
In case of exceeding the funding target, each investor's allocation will be determined by prorating the requested investments, subject to two limitations:
- The investment per investor cannot, under any circumstances, be less than €500.
- In capital gains (equity) projects of more than one year, a minimum investment of 5% of the share capital will be respected for legal entities that have pre-invested 5% or more of said capital.
This process ensures a fair distribution of investments in over-investment situations, while setting minimum limits for individual participation and respecting the specific conditions for long-term capital gains projects.
Will prefunding be done for all projects?
No, the prefunding system is designed to give investors more opportunities to participate in projects for which very high demand is expected. It will be used when the project conditions make it advisable.
With the aim of further expanding investor access, a maximum limit will sometimes be established for all participants, regardless of whether they are accredited or not. This measure is adopted to manage demand in specific projects and ensure an equitable distribution of investment opportunities among the Urbanitae community.
What fees does Urbanitae charge?
The only fee Urbanitae charges is the opening fee. It depends on the project, but in any case, it is between 5% and 7% of the funding target, in which it is included. That is, Urbanitae sets the funding target considering the fee.
At Urbanitae, we are characterized by our obsession with transparency. Our commitment is to ensure there are no unexpected fees and that it is completely clear how much we charge. We want investors to have a clear understanding of the associated costs through transparent and direct communication about fees.
What is a payment institution?
We want to give you maximum security and peace of mind, and for this, we use an external payment institution to guard and manage our investors' funds. When you deposit money into your Urbanitae account, you are not depositing the money to us, but to the account created for you by the payment institution. Each real estate project will also have its own account, separate from the others. What happens in one project will never affect the other projects on the platform.
According to the Bank of Spain, for these purposes, payment institutions are 'those that are authorized to perform payment services, such as transfers, direct debits, and payments made with cards.'
Urbanitae works with two payment institutions: Lemonway and Mangopay. Both are in charge of managing all fund movements for Urbanitae users and the vast majority of crowdfunding entities in Spain. This system ensures that your money is completely segregated from our accounts and under the custody of a regulated entity authorized by the Bank of Spain.
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What is the referral program about?
IMPORTANT: Between October 06 and December 31, 2025 (both inclusive), we are doubling the rewards of our referral program.
Both the invited investor and the inviting user will receive a payment or incentive in their Urbanitae wallet for the first investment of the invited user. The amount of said payment will be distributed 50% between the invited and the inviter; it will depend on the amount of the first investment, and will be received within the first ten days of the month following the closing of the project in which the investment was made.
The Urbanitae referral program is a way to thank our users for their trust and encourage them to introduce us to their acquaintances (see limitations section), inviting them to register on the platform and invest with us.
Every Urbanitae user can share a personal invitation link, available in their private area, in the upper right corner, in the <i>Invite</i> section. Once the invited user completes their first investment, both parties share a bonus, which can be up to 150 euros.
These are the program conditions:
- Beneficiaries of the referral program
- Inviting user: To access the program, you just need to be registered in Urbanitae and share the link available in the private area. Once the guest registers in Urbanitae through that link and makes their first investment, both will receive a bonus.
- Invited user: To be a beneficiary of the referral program, the guest must register using the sharing link of an Urbanitae user and invest on the platform. Once the first investment is completed, the inviter and the invited will receive a bonus.
Our referral program has two beneficiaries: the user who invites and the user(s) who are invited.
- Remuneration
Both the invited investor and the inviting user will receive a payment or incentive in their Urbanitae wallet for the first investment of the invited user. The amount of said payment will be distributed 50% between the invited and the inviter; it will depend on the amount of the first investment, and will be received within the first ten days of the month following the closing of the project in which the investment was made.
| Investment | 500 € 1.500 € | 1.510 € 3.000 € | >3.000 € |
|---|---|---|---|
| Payment | 50 € | 100 € | 150 € |
- Limitations
Under the referral program, you cannot invite first-degree relatives or legal entities whose administrator is the referrer himself.
This bonus is not cumulative with others that may be established in Urbanitae. In case of conflict, only the one with the highest amount would be paid.
Do I have to fill in the additional data for my account?
Yes, it is essential that you complete all the information we request before making your first investment. This information is necessary to ensure that your participation is duly registered in the commercial register. Completing this additional data is an important and mandatory step to ensure transparency and legality in investment operations on Urbanitae.
If I have any questions, who can I contact?
If you have any questions, you can contact us at contacto@urbanitae.com or at (+34) 911 23 25 22. We will be happy to help you.
What are the advantages of investing in real estate through real estate crowdfunding?
Investing in real estate has several advantages that have attracted numerous investors to this type of asset. Some of the most notable advantages include:
- Portfolio diversification: Real estate offers a way to diversify an investment portfolio. By adding real estate assets to a portfolio that may include stocks, bonds, and other financial instruments, investors can reduce overall risk.
- Cash flow: Owning real estate, especially when it comes to residential or commercial rentals, can generate recurring income through rents. This cash flow can provide financial stability and a steady source of income.
- Potential for value appreciation: Over time, real estate has the potential to increase in value. Value appreciation can generate significant profits when investors decide to sell the property in the future.
- Passive income: Investing in rental properties allows investors to generate passive income. Owners can profit from rents without the need for active participation in daily management.
- Inflation resistance: Real estate often has inherent resistance to inflation. In inflationary environments, property values and rents tend to increase, providing protection against loss of purchasing power.
- Diversity of options: There are various ways to invest in real estate, from residential and commercial properties to real estate crowdfunding and real estate investment funds. This allows investors to choose the option that best suits their goals and preferences.
It is important to note that, as with any investment, there are risks associated with the real estate market, and investors should perform adequate due diligence before making decisions.
What happens if a project does not go ahead after reaching its funding goal?
If a project does not materialize after reaching its funding goal, Urbanitae returns the funds to the investors through their accounts. This policy ensures that the funds are only used for projects that will actually be developed.
Are real estate crowdfunding platforms like Urbanitae safe?
Yes, real estate crowdfunding platforms like Urbanitae usually implement security measures and are subject to supervision by regulatory bodies. In the specific case of Urbanitae, you mention that it is supervised by the Bank of Spain and the CNMV (National Securities Market Commission). These regulatory bodies are responsible for ensuring that platforms comply with the necessary requirements and regulations to operate safely and transparently.
It is important to note that, despite security measures and regulatory supervision, all investments carry certain risks. Investors should conduct their own due diligence, understand the projects they invest in, and consider their own goals and risk tolerance before participating in any real estate crowdfunding platform.
Does Urbanitae operate only in Spain or in other countries as well?
Since the end of 2022, Urbanitae has been authorized by the CNMV to provide crowdfunding services throughout the European Union, in accordance with the new European regulation –Regulation (EU) 2020/1503–. As of the end of 2023, we have only financed projects located in Spain, but we already have a team in France, Portugal, and Italy with the aim of publishing investment opportunities in those countries in 2024.
What would happen if Urbanitae suspended its activity?
Investors' funds are deposited in an account in their name in an external and independent payment institution (Lemonway or Mangopay), so the suspension of activity by Urbanitae would not affect these funds, which would remain the property of the investors.
In the unlikely event of a suspension of activity by Urbanitae, there is an agreement with another entity to manage the investments and projects until their conclusion.
What are the differences between investing in a SOCIMI versus investing through Urbanitae?
SOCIMIs are listed companies that, in general, are in charge of acquiring and managing real estate assets mainly intended for rent, from which they obtain their profits. Although investing in SOCIMIs offers greater liquidity than other alternatives, they are not abundant in Spain and access to them is not universal, given their low free float (the shares that can be acquired on the Stock Exchange). On the contrary, Urbanitae allows each investor to decide which project they want to invest in, diversifying by segment, location or term. Hundreds or thousands of investors participate in each project, who with small amounts of money can access high returns associated with real estate development, with a moderate level of risk and in a framework supervised by the CNMV. However, the returns in either case are not guaranteed in any way.
What is crowd equity?
Crowd equity is a form of financing in which investors participate directly in a company's capital through their monetary contributions, which are considered a capital increase for the company.
In the context of Urbanitae, developers present specific projects for development. Investors, by financing these projects, raise funds for their execution and, in return, acquire a shareholding in the project company, as well as rights to receive dividends.
This modality is similar to buying shares in a company through a capital increase, but with the key distinction that the agreements between the partners are predetermined.
Who can apply for a loan?
Urbanitae only works with professional developers whose track record proves experience in similar projects, technical competence, and economic solvency.
The investment
How your investments are structured.
Why should I invest in Urbanitae?
Investing through Urbanitae is the easiest way to invest in the real estate sector, as the entire process of buying and managing properties is delegated to a professional. Furthermore, investing in the properties we publish will allow you to diversify your investment portfolio instead of concentrating it on a single property. You can invest with small amounts, which allows you to invest in many properties of different types and in different cities.
Urbanitae has a network of real estate developers with proven solvency and track record. These professionals select the best projects on the market to incorporate them into the platform, providing investors with access to real estate investment opportunities backed by experts in the sector. Diversification, accessibility, and collaboration with trusted developers are some of the key reasons to consider investing through Urbanitae.
What type of projects does Urbanitae invest in?
Urbanitae offers projects in the real estate sector through our network of accredited developers. The projects we seek are mainly in the residential and commercial sectors, although we are open to studying real estate projects of any type.
This diversity of projects gives investors the opportunity to participate in a wide range of real estate initiatives, adapting to their preferences and investment objectives.
How is the investment made in Urbanitae?
Once you have found a project that interests you, and as long as you have a balance in your Urbanitae account, simply click on Invest and specify the desired amount. The investment is made directly from the web platform, eliminating the need for bureaucratic procedures or travel. This simple and efficient process allows investors to access and participate in real estate projects conveniently and without complications.
How much can I invest?
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What is a non-sophisticated investor?
Any investor who registers with Urbanitae must take a test on investment knowledge. This test is mandatory to participate in the projects offered by Urbanitae.
Once this test is passed, the investor will be considered, by default, a non-sophisticated investor, and may take a second, optional, suitability and financial simulation test. Depending on their profile, they will be classified as a conservative, moderate, or risky investor.
Any investor can invest without limits, but non-sophisticated investors will be shown a risk warning if they invest 1,000 euros or 5% of their net worth. In addition, Urbanitae recognizes a pre-contractual reflection period during which the potential non-sophisticated investor may at any time revoke their investment offer or expression of interest in the crowdfunding offer without needing to justify their decision and without incurring a penalty. This period will begin at the time of the investment offer or expression of interest by the potential non-sophisticated investor and will expire at the end of four calendar days.
Am I a sophisticated investor?
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- Be a legal entity and meet at least one of the following criteria:
- Own funds of at least €100,000.
- Net turnover of at least €2,000,000.
- Balance sheet of at least €1,000,000.
- Be a natural person and meet at least two of the following conditions:
- Have a gross annual income of at least 60,000 euros or financial assets of more than 100,000 euros.
- Work or have worked in the financial sector for at least one year in a professional position that requires knowledge of the planned operations or services, or have held an executive position for at least 12 months in a legal entity as determined above.
- Have carried out significant volume transactions in the capital markets with an average frequency of 10 per quarter during the previous four quarters.
What do I have to do to become a sophisticated investor?
By default, all Urbanitae investors are considered non-sophisticated. To request treatment as a sophisticated investor, you must access your private area, go to the upper left part, where it says 'Non-sophisticated investor' and click on 'Become sophisticated'. You will then have to answer a questionnaire to determine if you meet the requirements to be a sophisticated investor (See Am I a sophisticated investor?).
What is the Urbanitae account?
The Urbanitae account is the account that is opened for you in an independent payment entity, in this case, Lemonway, when you register on our platform. This account is used to manage the financial transactions related to your investments and activities in Urbanitae.
By linking your account with Lemonway, we guarantee the security and segregation of funds, providing an additional layer of protection for investors on our platform.
What is the payment entity and how does it work?
(See What is Lemonway? and see What is Mangopay?)
How is the balance in the Urbanitae account topped up?
(See How is money deposited to operate with Urbanitae?)
What am I buying when I invest with Urbanitae?
The specific form your investment takes depends on the type of real estate project:
- Capital gain (equity) projects: By investing in this type of project, you are acquiring a stake in the ownership of the property. To facilitate the process and make it as efficient as possible, a limited liability company is formed, which is the one that acquires the property. As an investor, you will be given entry into the company's capital (via a capital increase) and your participation will be equivalent to the amount invested. For example, if you invest €1,000 in a €100,000 project, you will have 1% of the shares of the created company and you will be entitled to 1% of the profits it generates.
- Debt projects: In this case, you participate in the loan granted to the company through which the developer will carry out the project. At the maturity of the loan, you will recover your investment with the pre-fixed interest.
What are Urbanitae's investment strategies?
Urbanitae has three main investment strategies: capital gains, debt, and rentals.
What does the rental strategy consist of?
In summary, Urbanitae's rental strategy is based on the 'buy, renovate, rent, and sell' cycle.
This strategy prioritizes rental potential, so it focuses on acquiring properties at prices below market value in areas with good rental prospects.
Thus, residential investments will mainly focus on seeking returns through traditional or vacation rentals via participatory platforms. Investments in commercial or industrial properties will mainly focus on longer-term leases.
This strategy seeks to offer investors recurring income streams through rentals, while capitalizing on the long-term appreciation potential of the properties. Diversifying investments across various property types and areas helps to maximize the performance of the rental strategy.
What does the capital gains strategy consist of?
In summary, Urbanitae's capital gains strategy is based on the 'buy, renovate, and sell' cycle.
In these projects, priority is given to the short-term appreciation potential of the property. The capital gains strategy is based on acquiring properties at prices below market value, in areas with a notable short-term growth projection, and with high demand and ease of sale.
In this approach, the goal is to maximize profits by capitalizing on the capital gain generated by the improvement of the property and the growing market demand. The capital gains strategy can offer attractive returns in a shorter period compared to the rental strategy, but it also carries a higher level of risk associated with the short-term volatility of the real estate market.
What does the debt strategy consist of?
In this type of project, you invest in loans to the developer with first-rank mortgage guarantees on the asset. The terms are shorter and the target returns are lower than in capital gain projects, in line with the lower risk assumed.
When will I receive my dividends?
The timing of receiving your dividends depends on each project. In general terms:
- Rental Strategy: In this strategy, you will receive dividends generated by the monthly rentals. In addition to dividends, you will also get the capital gains generated when the property is sold. The investment's target term varies by project but is usually around 3 years.
- Capital Gains Strategy: In this strategy, you will receive the dividends generated by the project's capital gain once it is sold. The investment's target term also varies by project but is generally between 12 and 36 months.
It is important to note that the terms and payments may vary depending on the specific characteristics of each project. Detailed information on dividend distribution and the investment time horizon is provided specifically for each investment opportunity on the Urbanitae platform.
How are the investments structured?
Urbanitae uses special purpose entities, commonly known as investment vehicles or SPVs (Special Purpose Vehicles), to structure the purchase and sale of properties. This approach involves the creation of limited liability companies (S.L.) exclusively formed for the acquisition and future exploitation of each of the properties in the projects.
In practical terms:
- SPV (Special Purpose Vehicle): Each project is structured through an SPV, which is a separate legal entity created for that specific project.
- Limited Liability Company (S.L.): Within each SPV, a limited liability company is formed that acquires the property. Investors become partners in this S.L., and their ownership corresponds to the percentage of their investment in the project.
This approach ensures transparency and the separation of assets between different projects. Furthermore, by having an S.L. for each project, investors will always know exactly in which specific project they are investing their money.
Will I have to go to a notary?
No. Once a project's financing is complete, investors will be admitted to the company through a capital increase that does not require signing before a notary. This process is managed efficiently, eliminating the need for notarial procedures and providing investors with a more agile and convenient investment experience.
Who pays for the transaction costs?
Like the direct acquisition of a property, the purchase of a property through Urbanitae has associated costs. These costs are included in the financing target, are paid with the money raised in the project, and are clearly detailed in the sheet for each project. Detailed information about these costs is provided transparently in the sheet for each project, ensuring that investors have clear knowledge of all associated expenses before making the decision to invest.
When will I recover the invested money?
The investment in any Urbanitae project is recovered when the property is sold. The specific terms will depend on the investment strategy:
- In the capital gains strategy, the target term for recovering the investment is usually between 12 and 36 months.
- In the rental strategy, the terms will vary depending on the project but will generally be around 3 years. During this period, investors in the rental strategy may also receive dividends generated by the rents.
It is important to note that these terms are objective goals and may be subject to variations depending on the specific circumstances of each project. Detailed information about the target recovery term is provided in the sheet for each investment opportunity on the Urbanitae platform.
Does my Urbanitae account have any cost?
No, your Urbanitae account has no cost for you: neither for opening and maintenance nor for transfers sent or received. Urbanitae seeks to maintain a transparent investment experience with no hidden costs for investors.
How can I withdraw my funds?
To withdraw funds from your account, you just have to:
- In your private area, go to the Bank operations section.
- Click on Withdraw money.
- Select the account to which you want to deposit the money (you can register up to four accounts).
- Fill out the transfer request form (indicate the amount and concept).
- Click on Request transfer.
This process allows you to easily manage the withdrawal of your funds, offering you flexibility and control over your real estate investments in Urbanitae.
Can I withdraw my investment?
Non-sophisticated investors benefit from a reflection period during which they can revoke their investment offer or expression of interest in the crowdfunding offer at any time without needing to justify their decision and without incurring a penalty.
The reflection period begins at the moment the potential non-sophisticated investor makes an investment offer or expresses interest and expires after four calendar days from that date. Investors can exercise the right to revoke their investment by sending an email to contacto@urbanitae.com within a maximum of 4 calendar days from when they made their investment. In case of withdrawal by the investor(s), Urbanitae reserves the right to close the project or to complete the initial investment target with new investors.
What are the main risks I can incur?
In capital gain projects, there are three main risks:
- Term risk: it is possible that the developer takes longer than expected to complete the works, either because their estimates were not accurate or due to delays in obtaining the license or the developer loan.
- Cost risk: it may happen that construction costs rise and cannot be passed on to the selling prices of the homes, affecting profitability.
- Commercial risk: it cannot be ruled out that the developer takes longer than expected to sell all the homes or has to do so at a lower price than estimated.
In debt projects, the main risk is default. If the developer is unable to meet the repayment of the capital with interest, it might be necessary to execute the loan guarantees and sell the assets to recover the investors' capital.
In rental projects, the main risk is the tenant: it could happen that the tenant leaves the rented asset early and it would be necessary to find a new one, which could be delayed and require different conditions than originally planned.
In the worst-case scenario, these risks can lead to total loss, partial loss, or temporary illiquidity of the investment during the project term. It is essential that investors understand and carefully evaluate these risks before making investment decisions.
What do projects with mortgage guarantees consist of?
Projects with mortgage guarantees at Urbanitae mean that the developer offers an asset as collateral for the loan received, and this asset is mortgaged in the name of a guarantee agent acting on behalf of the investors:
- Loan Guarantee: the developer provides an asset as collateral for the loan received for the project. This guarantee is mortgaged and is used to back the loan.
- Guarantee agent: by law, the mortgaged asset must be in the name of a guarantee agent who acts on behalf of the investors. This agent is responsible for administering and protecting the interests of the investors in relation to the mortgage guarantee.
- Execution of the guarantee: in case the developer cannot meet their payment obligations, the guarantee agent has the right to execute the mortgage guarantee. This involves the sale or liquidation of the mortgaged asset to recover the funds and reimburse the investors, in whole or in part, as agreed.
Projects with mortgage guarantees aim to provide an additional layer of security to investors by backing the investment with a tangible asset that acts as collateral.
What is loan-to-value?
The loan-to-value (LTV) is a financial indicator that represents the percentage of the loan with respect to the value of the property that serves as mortgage collateral. For example, if the loan is 80,000 euros and the appraisal value of the property acting as collateral is 100,000 euros, the LTV of the loan is 80%. The LTV is an essential tool in real estate finance to assess the risk and viability of a loan, as it provides information on the proportion between the debt and the value of the asset. A lower LTV is generally considered more favorable, as it implies less risk for the lender by having a larger proportion of collateral backing the loan. At Urbanitae, the LTV is used as part of the risk analysis to assess the security of the loans and provide transparency to investors about the relationship between the loan amount and the value of the mortgage collateral.
What happens when a developer cannot repay the loan?
In the event that the developer cannot meet the loan payment, the guarantees provided for in the loan agreement will be executed, such as the foreclosure of the mortgage on the property subject to the project or other assets or goods that the developer has provided as a guarantee.
How is the recovery of a project with mortgage guarantees managed?
When a debt with a mortgage guarantee defaults, the first thing to do is to study the reasons with the developer, see the viability of future payment and negotiate, if financially viable, an extension adding the penalty for delay. In case the negotiation does not ensure the repayment of the loan, foreclosure will be urged. Remember that in debt projects the mortgage is registered in favor of a Guarantee Agent, who has (and has been provided with a reserve of funds to do so) the mandate to execute the debt on behalf of the investors. Foreclosure is always the last option, because although it is a very robust guarantee, legal processes can extend for months before being resolved. But it constitutes a very real threat to the developer, because it means they could lose all the value contributed to the project, and they will look for a way out to avoid the execution. It must be taken into account that interest in favor of the investor continues to accrue during the months that the foreclosure is delayed.
Does a mortgage guarantee foreclosure have any cost for the investor?
No, it does not. The loan agreement already includes the remuneration of the Guarantee Agent and a fund to cover possible expenses in a potential foreclosure. In case there were additional unforeseen expenses, formulas would be sought to defer their payment until the moment the asset is sold and the debt is settled.
Profitability
Everything about taxes, terms, and returns.
How do I make my investments profitable?
When you invest in a project on our platform, you become the owner of a percentage of the SL (Limited Company) established for the acquisition and management of the property. Once the financing phase of the project is closed and the necessary renovations have been undertaken to be able to exploit the property, there are two ways to make it profitable: by renting it (income) or by selling it (capital gains).
Rental Projects:
Properties acquired under the rental strategy will be placed on the rental market as soon as they are ready. The rental can be through a standard rental contract or through vacation rental platforms such as Vrbo or Airbnb. Once the rental management costs have been covered, the remaining amount will be distributed among the investors as dividends. Dividends will be settled monthly: they will be transferred to your Urbanitae account, from which you can invest in other projects or withdraw the funds to your current account.
Capital Gain or Equity Projects:
Properties acquired under the capital gains strategy will only generate profitability when they are sold. The sale period will vary depending on the project, but will generally be between 12 and 36 months. Properties acquired under the rental strategy will also be sold when their investment objective period is met. Once the property is sold, each investor will receive their proportional share of the sale in their Urbanitae account.
This structure provides investors with the flexibility to choose between rental and capital gains strategies, thus diversifying their portfolios and optimizing the profitability of their real estate investments.
How is the estimated return indicated in Urbanitae's projects calculated?
Following the regulator's provisions, since May 2022 we only publish the estimated profitability data for debt projects. In these projects, where the investor acts as a lender to the developer, the profitability responds to the loan conditions agreed between Urbanitae and the developer, specifically the interest rate and the term fixed for its repayment.
In rental projects, we can publish the estimated annual return as a dividend.
In capital gains (or equity) projects, the regulator does not allow us to publish an estimate of the expected return, but it does authorize the publication of the income and expense forecasts associated with a project (the breakdown of these forecasts, as always, is available on the website, in the project's economic summary). It is the investor who, after examining these estimates, must calculate the estimated profitability of the project. In all cases, the formula is as follows:
Estimated Return = ((Forecasted Income – Estimated Costs) / Total Equity) x 100
The regulator also requests that we consider three scenarios for each capital gains project: a favorable base scenario and two more in which deviations in costs or sales prices are foreseen:
- Favorable scenario:
This scenario is the one we take as a basis in all projects. It is based on the estimates of the selling prices of the assets (for example, the homes) and the promotion costs audited by Urbanitae and validated by Tecnitasa, an independent appraiser.
- Moderate scenario:
In this scenario, we make an upward deviation in the construction costs foreseen by the constructor or a downward deviation in the sales prices.
- Unfavorable scenario:
In accordance with the regulator's requirements, in this scenario we stress the model enough to generate a negative net result, that is, for the investor to lose money. To do this, we consider higher construction costs and lower sales revenues.
What return will I get by investing with Urbanitae?
As with any investment, profitability is not guaranteed and will depend on each project and market conditions. The accredited developers we work with set profitability objectives for each project and our team of analysts studies them to verify their viability.
The gross target returns for rent are in the range of 4-7%, calculated on the investment cost, after deducting all renovation and transaction costs.
In general, the gross target return for appreciation that we seek is between 13% and 18% per year, with an execution period for the entire process of between 12 and 36 months. However, it is important to note that these numbers may vary depending on the specific characteristics of each project.
Remember that investment always involves risks, and it is crucial to carry out a careful evaluation of each opportunity before deciding to invest.
How are dividends taxed?
The profits you obtain from your investments with Urbanitae are taxed as savings income. For any questions about taxation, it is essential that you consult with your tax advisor. The details below should be used only as a guide.
Natural persons resident in Spain:
You are taxed on dividends received as income from movable capital in the savings tax base of the IRPF (Personal Income Tax) according to the following scale:
- Up to €6,000, at 19%.
- From €6,000 to €50,000, at 21%.
- From €50,000 onwards, at 23%.
Dividends will be subject to a 19% withholding (payment on account of the IRPF).
Companies resident in Spain:
If you have a stake of less than 5% of the company, the dividends are included in the corporate income tax base, being taxed at the tax rate that corresponds to the purchasing company.
Dividends subject to a 19% tax withholding.
If you have a stake equal to or greater than 5% of the company, the dividends are exempt from taxation and, therefore, are not included in the corporate income tax base. Likewise, dividends are exempt from withholding.
Note: for this to apply, it is a requirement to own the stake for more than one year prior to the date of the dividend distribution agreement or to maintain the stake for the time necessary to complete the one-year period.
Investor resident in a country with a double taxation agreement (DTA) with Spain
DTAs follow a shared taxation regime with respect to dividends, in the sense that they can be taxed in the country of residence of the recipient and in the one where said dividends originated, although, in this case, with a limit that is generally set at 15%.
Therefore, when a resident of a country that has signed a DTA with Spain receives dividends from a Spanish entity, these may be subject to taxation in Spain with the limit provided for in the DTA (generally 15%, although the applicable DTA will have to be consulted in particular).
Investor resident in a country that does not have a DTA with Spain
In the case of investors residing in countries without a DTA with Spain, dividends received from a Spanish company will be taxed in Spain at a rate of 19%; they are dividends subject to withholding.
How are rental projects taxed?
As in equity or capital gains projects, with your investment you become part of a company, in which you have a percentage of participation by virtue of the capital contributed. The entry into said company is done via a capital increase, with part of the funds at nominal value and part as a share premium.
Quarterly, the proportional part is paid to each investor and it is done by returning the share premium, which is technically like a return of part of the capital contributed to the company, so it does not entail tax withholding as it is not considered a profit: while the rental payments accumulate in the company so that the gain is computed at the end of the operation when the asset in profitability is sold and the capital gain from the sale and what was generated by the rent is returned.
How is the referral program taxed?
At Urbanitae we have an incentive program for registered investors who invite others to sign up and invest in Urbanitae (see What does the referral program consist of?) This allows for a capital gain, paid by Urbanitae, which is not subject to IRPF withholding, and is also exempt for VAT purposes. However, as with any capital gain, it will be necessary to declare it in the IRPF settlement (the fact that there is no withholding does not mean that you do not have to pay tax on the profits obtained).
In any case, we recommend that all investors, in case of doubt, seek specialized tax advice.
Once I have invested, how can I find out about the project's progress?
All project documentation can be found in your private area: under Documentation, in the Internal Documents section. In addition, every three months, updates on each project sent by each developer are uploaded to keep you fully informed of the progress of your projects.
This transparency in communication will allow you to closely follow the development of your investments and make informed decisions throughout the project's life cycle.
To which account are my profits transferred?
All income generated by your investments is transferred directly to your Urbanitae account. This provides you with the convenience of having your profits centralized in your platform account, from where you can decide whether to reinvest them in new projects, withdraw them to your current account, or use them according to your financial preferences.
What is the total return of a project?
The total return on a fixed-rate project is calculated by dividing the total profit obtained by the investor, represented by the interest generated, by the capital loaned. This result is multiplied by 100 to express it as a percentage. For example, if you make an investment of €5,000 in a project and, after 18 months, you obtain €1,000 in interest or capital gains, the total return of the project would be 20%. This indicator provides a comprehensive view of the profitability generated in relation to the amount invested.
What is the annual return of a project?
The annual return on a fixed-rate project is calculated by annualizing the total return of the project. To obtain it, the total return of the project is divided by the number of months it has been active and multiplied by 12 (the months in a year). For example, if you make an investment of €5,000 in a project that, after 18 months, generates a return of €1,000, the total return of the project is 20%, but the annual return would be 13.33%. This calculation provides an annualized rate of return to evaluate the performance over a period equivalent to one year.
What is IRR?
The IRR, or internal rate of return, is a financial measure that represents the interest rate or profitability generated by an investment project. This rate measures the percentage of profit or loss expected from an investment and allows for the evaluation of a project's profitability. In other words, the IRR indicates the rate of return that makes the net present value of the future cash flows of the investment equal to zero. Using the IRR is useful for comparing the profitability of different projects and making informed investment decisions.
Financial vocabulary
What you need to know to invest with peace of mind.
What is crowdlending?
Crowdlending can be considered a variety of collective or participatory financing known as crowdfunding. In this case, investors come together to act as lenders for a specific project.
As in all projects, a limited company is established ad hoc, but investors do not enter into the capital, but act as lenders who, once the repayment period concludes, will receive their money with the previously agreed profitability. At Urbanitae, this modality is applied to what we call 'debt projects'.
What is the forecast of income from sales?
It is the estimate of the value of the income produced by the sale of the finished property based on the estimated unit prices of the homes.
What is the cost of the land?
It is the value of the plot agreed between the developer and the owner in the purchase option or in the deed of sale.
What are construction costs?
It is the estimate of the economic resources necessary to complete the construction of the project.
What are the promotion management expenses?
It is the estimate of the economic resources necessary for the development of the promotion not directly related to construction (technical fees, licenses, insurance, appraisals, etc.).
What are financial expenses?
It is the estimate of the economic resources necessary to face the payment of the interest on the developer loan.
What is the estimate of the corporation tax?
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What is the forecast of the net operating result?
It is the forecast of the economic result of the project, which is obtained from the difference between the estimate of total income and the estimate of total expenses, after deducting corporate tax.
What is the forecast of the result on the contributed capital?
It is the basis we use to estimate the profitability of an equity project: the ratio between the forecast of the net operating result and the capital contributed.
MyInvestor
What is MyInvestor?
MyInvestor is a 100% digital neobank owned by Andbank España, El Corte Inglés Seguros, and Axa España, launched in 2018. As of the end of 2023, it had more than 220,000 clients and a business figure of more than 4.3 billion euros. It offers its clients two ways to manage their wealth by investing in three ways: roboadvisor for indexed portfolios; a supermarket of funds and plans, and, since November 2021, in real estate crowdfunding with Urbanitae.
What is the Urbanitae-MyInvestor agreement about?
Since November 2021, MyInvestor clients can access the investment opportunities that Urbanitae publishes on its platform. The neobank's clients can make their investments directly from MyInvestor. However, the client who invests from MyInvestor will have, like any other, a Urbanitae user account.
Do MyInvestor investors have any advantage?
None. MyInvestor clients who invest on the platform do so under the same conditions as the rest of the investors.
Direct Investments
What is Urbanitae Direct Investments?
Urbanitae Direct Investments allows investors to directly acquire real estate properties, selected after an exhaustive analysis, with the support of a platform that manages the entire process from start to finish.
What type of properties are offered?
We mainly work with two types of investment opportunities:
- New construction: exclusive access to units in early or advanced stages, with competitive prices and high appreciation potential.
- Second-hand: properties primarily intended for rental, located in areas with high demand and profitability potential.
What is the difference between investing in new construction and second-hand properties?
New construction opportunities usually focus on the purchase of homes in the initial or advanced stages of development. They are oriented towards medium to long-term appreciation, as they are normally bought off-plan and do not generate immediate rental income.
In contrast, second-hand properties are mostly intended for rental. They tend to generate income from the very beginning and allow for a more precise calculation of the expected return. Additionally, they offer a more predictable model for those seeking recurring income.
In contrast, second-hand properties are mostly intended for rental. They tend to generate income from the very beginning and allow for a more precise calculation of the expected return. Additionally, they offer a more predictable model for those seeking recurring income.
What is the value proposition for the investor?
You will have exclusive access to previously analyzed opportunities, with the possibility of investing in a completely passive way. If you wish, at Urbanitae, together with our partners, we take care of everything: from identifying investment opportunities, formalization, financing, renovations, rental management, and any other need related to your investment. You decide how much you get involved, we accompany you from start to finish.
Does Urbanitae manage the property after the purchase?
Yes. We offer a turnkey service, from the search to the renovation, leasing, and day-to-day management, everything can be managed directly or through our partners.
What exactly does Urbanitae do for me if I invest in a second-hand home?
At Urbanitae, we not only give you access to selected and analyzed opportunities; we also accompany you throughout the entire process so you can invest in a simple, secure, and almost effortless way.
If you reserve a second-hand home, we help you with:
- Asset Selection: We will only show you properties that have passed a technical, legal, and financial analysis, with real potential for rental and appreciation.
- Formalization and Notary: We help you with all the necessary documentation and accompany you to the notary. If needed, we can even go on your behalf.
- Administrative Procedures: We take care of everything necessary after the purchase: changing utilities, contracting insurance, taxes, etc.
- Financing (optional): Through our partners, we help you manage the financing that best suits your profile.
- Renovation (optional): If the property requires it, we have trusted companies that can handle the entire turnkey renovation process.
- Leasing and Day-to-Day Management: Through our partners, we take care of finding tenants, signing the contract, and the complete management of the rental.
In short, you will find in Urbanitae a partner that accompanies you from start to finish, so you can have a truly passive investment experience.
Do I need a minimum capital to invest in Direct Investments?
Yes. As it is a real estate purchase, the minimum capital will depend on the value of the property, which varies in each case.
However, you can finance part of the purchase with a mortgage, which allows you to invest with less initial capital. In that case, at Urbanitae, together with our partners, we help you manage the entire process to get the best conditions.
However, you can finance part of the purchase with a mortgage, which allows you to invest with less initial capital. In that case, at Urbanitae, together with our partners, we help you manage the entire process to get the best conditions.
How do I access investment opportunities?
We have developed a new platform where you can explore all investment opportunities in a simple, orderly, and transparent way. Our goal is for you to have all the necessary information to make decisions with confidence, always maintaining the standards of clarity and transparency that define us.
Are there developments with multiple units in Direct Investments?
Yes. In new construction projects, you can see a development with several homes. You can be interested in more than one unit and reserve the one that best fits your criteria.
What happens when I reserve a unit in Direct Investments?
By reserving a unit, you pay a deposit of 1,000 euros and are added to the application list. An Urbanitae analyst reviews the reservations and allocates the unit: it is assigned to the first person who has correctly completed the reservation process. If the opportunity is awarded to you, you will receive all the documentation to formalize the investment. Otherwise, the deposit amount will be automatically refunded to you.
How do I know if I have been allocated a unit or not?
You will receive an email with the allocation confirmation. If you have not been selected, we will also inform you (except in previous phases where the reservation is on hold). You will always have visibility of the status in your personal area.
What if I reserve but then change my mind?
If you decide to cancel before being officially allocated the unit, there is no problem. But if the property has already been allocated to you and you ultimately do not proceed, you could lose the reservation deposit, as this reflects your commitment to the transaction. In any case, we accompany you throughout the process so that you can make decisions with complete confidence and support.
What happens once the property has been allocated to me?
Once the property has been allocated, you must sign a deposit agreement or a purchase contract to formalize the acquisition. This document details the specific conditions of the purchase, including deadlines, payments, and property characteristics.
We accompany you at all times so that you understand each step of the process and are supported by our legal team from the first minute until the signing before a notary.
We accompany you at all times so that you understand each step of the process and are supported by our legal team from the first minute until the signing before a notary.
What kind of return can I get in Direct Investments?
The return in Direct Investments can come from different sources, depending on the type of asset and your strategy as an investor:
- Rental income, if the property is intended for leasing (especially in second-hand properties).
- Property appreciation in the medium or long term, both in new construction and second-hand properties.
- Capital gain on a future sale, depending on the timing and market conditions.
In each opportunity, we show you a detailed estimate of the expected return, including net income, associated expenses, financing options, and possible scenarios at different timeframes.
Additionally, you can use our interactive calculator (on assets intended for rental) to adjust parameters and see how your investment evolves according to your profile and objectives.
How is the expected return calculated in Direct Investments?
In investments intended for rental (mainly second-hand properties), you will have access to an interactive calculator where you can adjust variables such as income, expenses, financing, or appreciation to estimate the return according to different scenarios.
In new construction projects, we do not offer a calculator because they are usually focused on appreciation, not immediate rental. Even so, we will provide you with all the relevant data from our analysis so you can make your decision with the maximum information and the support of our team.
In new construction projects, we do not offer a calculator because they are usually focused on appreciation, not immediate rental. Even so, we will provide you with all the relevant data from our analysis so you can make your decision with the maximum information and the support of our team.
What do the returns shown in the calculator mean?
We explain the main returns you will see in the calculator for those properties intended for rental:
Property Return
- Description: Ratio between the annual profit generated by the property (mainly from rent) and the total investment made in the purchase. It does not take financing into account, meaning it does not include mortgage payments.
- Example: If you invest 300,000 euros (including all initial expenses) and the property generates 15,000 euros per year after subtracting operating expenses (without taxes), the return would be 5% (15,000 / 300,000).
- Why it is important: It allows you to know the return of the property itself, regardless of whether it has been financed with a mortgage or not.
Return including mortgage capitalization
- Description: Ratio between the annual profit and the equity invested, also considering the part of the payment that amortizes debt. This amortization acts as a form of capitalization, reduces the capital you owe to the bank, and therefore increases your wealth, thus reflecting the real return on the investment.
- Example: After paying the mortgage payment (interest and principal), the available liquidity is 9,000 euros. Of that payment made, 4,500 euros have been used to amortize the loan, which reduces the debt and increases your wealth. Therefore, the real annual profit of the investment amounts to 13,500 euros. On an equity investment of 150,000 euros, the return would be 9% (13,500 / 150,000).
- Why it is important: It measures the full benefit of the investment, adding both the liquidity generated and the equity value you gain annually by reducing debt.
Return without including mortgage capitalization
- Description: Ratio between the annual profit and the equity invested, without including the portion of the payment intended to amortize debt. It only reflects the liquidity generated each year.
- Example: After paying the mortgage (interest and principal), the available liquidity is 9,000 euros. On an investment of 150,000 euros, the return would be 6% (9,000 / 150,000).
- Why it is important: It is a useful indicator to know how much liquidity your investment generates annually, although it does not reflect the entire real return as the one that includes amortization does.
Do the displayed profits include taxes?
The profits we show in the files do not include taxes. This is because taxation varies greatly depending on each case: it is not the same to invest as an individual or a legal entity, to be a tax resident in Spain or abroad, or the use given to the property.
Since there are many personal circumstances, we prefer not to generalize and not to give you figures that may not apply to your case. What we can do is help you analyze your specific situation and guide you on the estimated tax impact so that you can make decisions with the greatest possible clarity.
Since there are many personal circumstances, we prefer not to generalize and not to give you figures that may not apply to your case. What we can do is help you analyze your specific situation and guide you on the estimated tax impact so that you can make decisions with the greatest possible clarity.