Platforms usually offer 10–16% per annum, but the actual net return after defaults, fees, and taxes varies a lot. For a well-diversified portfolio across 3–4 MiFID II platforms, a realistic return would be around 8–12% per annum. The 14–16%+ yields offered by newer platforms are usually a risk premium that will sooner or later show up as higher defaults.
Let’s break down the math 👇
🔘 Variable 1. The gap between advertised and actual returns
European P2P/P2B platforms usually offer anywhere from 6.75% (Bondora Go & Grow) to 14–16% (high-risk, unlicensed platforms). The market average for MiFID II platforms is around 10–12%.
According to global market data, the average net return is around 6.5% per annum.
🔘 Variable 2. Defaults are the main killer of profitability
The global default rate for P2P/P2B loans is around 4.5%, although for European platforms it is significantly lower: 2–8%, depending on the loan type and platform quality. On American platforms, it has historically been higher, around 14–17%. Meanwhile, the recovery rate in the global market is 40–60%.
🔘 Variable 3. Platform fees
A 1% annual commission on a portfolio yielding 8% equals 12.5% of the total return earned each year. Over 10 years, this fee can cost tens of thousands of euros because of lost compounding.
Since May 2025, Mintos has charged 0.29% per annum for Custom Loan Portfolios. High-Yield Bond Portfolios will be charged 0.39% per annum from January 1, 2026. This isn't much, but it's a constant drag on your returns.
🔘 Variable 4. Taxes
Taxation of P2P income varies across EU countries. In Germany, it's 26.375% (Abgeltungsteuer + Solidaritätszuschlag) on investment income. In Portugal, it's 28% on interest. In Estonia, it's 22%, with the option to defer taxes through an investment account while the funds remain invested through ECSP platforms. An extreme case is Ireland, where the effective tax rate reaches 52%, and default losses are not deductible from interest income. For example, if an investor earned €1,000 in interest but lost €600 to defaults, taxes are still levied on the full €1,000. In a bad year, the effective tax rate on actual profits can exceed 100%.
With a high tax rate of 35%, a stated return of 15% turns into a net return of 5.85% after defaults and taxes. This is the worst-case tax scenario. For a European investor with a tax rate of 20–26% and the ability to offset default losses, the net return is higher.
So, the stated return is just one number. After defaults, it's usually 2–4 percentage points lower. Fees and cash drag reduce it by another 1–2 percentage points. After taxes, the final result depends on where you live: from 22% in Estonia to 52% in Ireland.
If you'd like a more detailed breakdown, read our full article on Medium:
medium.com/@8lends/how-much-can-you-earn-with-p2p-lending-in-europe-in-2026-2b393d449b81
