Tax Shelter Tracer

Lower your taxes for 2020.

What is the Tax Shelter Tracer?

The Tax Shelter Tracer is an automated portfolio which will allow any Belgian taxpayer to invest a minimum of €10,000 in 5 Tax Shelter companies and to get back at least €4,500 through their 2020 tax return.

Subscribe to the Tax Shelter Tracer

Advantages

45% tax reduction

Get 45% of your investment back through tax reduction (we take care of all the necessary documentation).

Privileged access and pricing

Book your seat to invest in the next 5 Tax Shelter eligible start-ups at a lowered subscription fee of 4% (instead of 5%).

Diversification

Diversify your assets and minimise the risk linked to this type of investment.

Possible return on investment

Thanks to his Tracer, you could be able to have a net capital gain of €11,429. See calculations below.

Jungle Bells events

Access start-ups who have had the chance of presenting at our Jungle Bells events and get to attend the events for free.

Full Control

You maintain full control over your investments thanks to an opt-out option (for each investment) and 24/7 access to your online portfolio.

Possible return on investment

An average of 40% of young companies go bankrupt after 3 years while 30% make an interesting exit after 5 years (×5 the investors’ initial investment). The remaining 30% are still operational but investors do not gain any profit (×1 the investors’ initial investment).

Based on this data, a 4% subscription fee on each investment and a €100 setup fee, there is a theoretical scenario of your return on investment if you decide to invest in our Tax Shelter Tracer.

If you invest €10,000 in 5 companies, meaning €2,000 per company, with the benefit of a 45% tax deduction thanks to Tax Shelter, you could benefit from a net capital gain ranging from €7,619 to €15,238.

Subscribe to the Tax Shelter Tracer

Frequently Asked Questions

  1. What is the Tax Shelter Tracer?

    By subscribing to this Tax Shelter Tracer 2020 today, you get the opportunity to book your seat in the next 10 Tax Shelter eligible investments and lower your 2020 taxes.

  2. How much does this service cost?

    A limited and non-refundable set-up fee is requested for subscribing to a Tracer (€100). This fee covers the service and the access to exclusive investment opportunities.

    For each investment in a start-up, a subscription fee (4%) will be applied to cover the management of your investment.

  3. What is Tax Shelter?

    The tax shelter for startups is a new incentive to encourage entrepreneurship. By investing in eligible startups, get back 30% or 45% of your investment through tax reduction.

    For more information, see our dedicated ebook on the subject.

  4. How does the Tax Shelter timing work?

    If you subscribe today to the Tax Shelter Tracer 2019, you will benefit from this fiscal advantage (and get back 45% of your investment through tax reduction) on your 2019 fiscal year because the purpose of this Tracer is to invest in ten start-ups that are Tax Shelter eligible during the year 2019.

    So when filling in your tax report in 2020 (based on your 2019 revenues), you will be able to enjoy tax reduction thanks to your Tracer.

    Please note that the decisive moment is not the moment you subscribe to the Tracer nor the moment when the money is withdrawn from your account but it is the moment when the money has been invested in the start-up, when the notary finalises the capital increase. In any case, Spreds ensures that the 10 key dates (10 notary closings) take place during the 2019 fiscal year.

  5. What’s the difference between the Tax Shelter Tracer and the other Tracers?

    Each Tracer has its own set of characteristics.

    This Tracer enables investors to create of a portfolio of investments in 10 Tax Shelter eligible startups eligible meeting certain criteria.

    To be eligible for Tax Shelter, a startup must have been established in the last 4 years (48 months). The companies present in the Tax Shelter Tracer will therefore probably only be companies in the “startup phase”. On the one hand, the risk of bankruptcy is therefore greater, but on the other hand, there also is a possibility of strong growth in the event of a positive market return.

    The startups selected for the Tax Shelter Tracer will all have to meet a set of specific characteristics in order to ensure that they meet the criteria of the Tracer.

  6. How will the startups included in the Tax Shelter Tracer be selected?

    Start-ups entering the Tracer Tax Shelter will have all of the following features:

    Eligibility

    • It must be a resident company or a company from the European Economic Area that has a "Belgian establishment" in Belgium.

    • The start-up will have to go to the notary within 4 years of its incorporation.

    • It must take the form of an SA or SRL.

    • It must be a micro-company or a small company:

      • Micro company: the balance sheet total is no more than €350,000; the turnover, excluding VAT, does not exceed €700,000; the average number of workers employed during the year is no more than 10.
      • Small company: number of employees employed, as an annual average: 50; annual turnover, excluding vat: €9,000,000; balance sheet total: €4,500,000.
    • Tax Shelter: at least €100,000 must be available for Tax Shelter.

    • Validation of the project :

      • at least 2 active entrepreneurs (= working at least part-time for the company) who have subscribed to shares for a cash contribution of at least € 15,000;
      • incubated, followed by an accelerator or supported by a studio or have €25,000 of co-investment.
    • The company:

      • may not have been formed on the occasion of a merger or demerger of
      • cannot be an investment, treasury or financing company;
      • cannot be a "real estate company "*;
      • cannot be incorporated in order to conclude management or administration contracts or to obtain most of its profits from management or administration contracts;
      • may not have already, in the past, carried out a capital reduction or distributed dividends;
      • is not subject to collective insolvency proceedings or is not in the conditions for collective insolvency proceedings;
      • may not have received after payment of the amounts by the taxpayer an amount of tax-privileged contributions in excess of €250,000 during its existence;
      • is not listed on the stock exchange.
    • The company will not become :

      • an investment, financing or treasury company; or
      • a management company or whose management activities are the main source of income; or
      • a real estate company.
    • The company will not use the funds raised for the distribution of dividends or for the acquisition of shares or units, nor for the granting of loans.

    Registered on Spreds

    The company must have completed the registration form on the Spreds site.

    Finance

    • Must have completed the entire questionnaire (approximately 30 minutes).

    • Provided all financial information for the current year as well as for the next two years :

      • a cash flow statement which includes the capital increase;
      • the income statement;
      • whether a new round is required within the next three years;
      • a financial plan that shows that there is enough cash to survive 6 months without income.

    Signing of the contract

    Sign the "Service Agreement" contract including its appendices "Term Sheet", "Representations & Warranties" and "Terms of Business" (the latter must be signed electronically when creating your profile).

    Shareholders

    • Valuation: the Tracer follows the valuation of the company if at least one of the professional investors has invested €25,000.

    • Default valuation: if the conditions for this valuation are not met, the default valuation is :

      • by a maximum of €1,000,000 if the turnover is less than €100,000 or by a maximum of 10x the turnover if the turnover is more than €100,000 (pre-money valuation);
      • a maximum of €666,667 (post-money valuation) if the company is incubated (i.e. 15% of the shares for €100,000).
    • Directors: at least one director or observer is appointed by Spreds Finance (the professional co-investor mentioned above or an independent Director).

    Compliance

    Code of Ethics: compliance with our Code of Ethics.

    Pitch

    • Fill out their online profile at www.spreds.com.

    • Validate the Information Note or Prospectus.

    • Launch a private and/or public campaign (consisting of a private phase followed by a public phase).

    *What is a real estate company? It is a company whose main corporate purpose or main activity is the construction, acquisition, management, development, sale or rental of real estate for its own account, or the holding of interests in companies with a similar purpose.

  7. How can I reduce my taxes?

    By investing via Spreds in crowdfunding campaigns eligible for Tax Shelter, you can benefit from a tax reduction of up to €45,000 each year!

    For more information, see our dedicated ebook on the subject.

More questions? Visit our complete FAQ.