Legal framework of real estate investment in Spain: crowdfunding platform vs. private investment club

Real estate investment has diversified in recent years thanks to digitalization and the emergence of new financing models. Among the most widespread are real estate crowdfunding and private investment clubs, two formulas that share the objective of channeling capital into real estate projects but present important legal and operational differences.

Real Estate Crowdfunding: Regulated and Democratised Access

Real estate crowdfunding connects developers with multiple investors who contribute small amounts. This model has become established as a way for small savers to diversify their portfolios with smaller-scale projects.

In Spain, crowdfunding platforms:

• Are regulated by Law 5/2015 on promoting business financing.

• Must be registered and supervised by the CNMV (and in some cases by the Bank of Spain if they manage payments).

• Since 2023, also align with Regulation (EU) 2020/1503, which standardizes the framework across the European Union.

What does this regulation imply?

• The CNMV supervises the platform, not the viability of each project.

• The developer assumes full responsibility for the development.

• There is no guarantee of profitability: the risk remains on the investor.

In short, crowdfunding provides transparency and accessibility, but oversight is limited to the technological intermediary, not the success of each operation.

Private Investment Club: A Selective and Flexible Model

A private investment club brings together investors in a closed community to access specific real estate opportunities, usually with higher minimum ticket sizes.

Unlike crowdfunding:

• Does not require authorization from the CNMV as a lending platform.

• Is governed by general corporate, tax, and anti-money laundering (AML/KYC) regulations.

• Tends to focus on investors with greater capacity or experience.

These clubs offer more flexibility in structuring operations and, in many cases, access to off-market projects or those with greater investment volume. However, the absence of specific oversight also means that security largely depends on the management and transparency of the club itself.

Comparison: Crowdfunding vs. Private Club

Conclusion

Both models represent innovative ways to participate in the real estate sector in Spain. Crowdfunding opens the door to small investors under a regulated and accessible framework, while private clubs are usually aimed at profiles with greater investment capacity, offering exclusive operations with more attractive returns.

Before participating, every investor should assess their profile, the applicable regulations, and the level of trust in the manager or platform that channels the investment.

Want to take the next step?

If you are interested in investing in real estate and believe your profile matches the characteristics of a private club, we invite you to become part of the Ratio Investment Club, a place where you can access the best off-market opportunities selected and supervised by our experts, within a safe and transparent environment. Apply for your registration here.