Italy is historically a country of savers in love with “brick and mortar.” For generations, buying a home was seen as the only safe investment, a shelter against inflation, and a guarantee for the future. However, access to the traditional real estate market requires huge capital, taking out mortgages, and often exhausting bureaucratic management. Today, thanks to technology, this paradigm has changed radically.

Real estate crowdfunding has democratized access to investments in the sector, allowing anyone to participate in large projects with even very small budgets, sometimes starting from just a few hundred euros. You no longer need to buy an entire apartment to benefit from market returns: all you need is a smartphone and an internet connection to become a co-owner or financier of real estate developments in Milan, Rome, or major European capitals.

What is Real Estate Crowdfunding and how it works

Real estate crowdfunding is a form of collective investment that unites, via an online platform, two main actors: real estate companies seeking funds to carry out projects (construction, renovation, redevelopment) and private investors who wish to make their savings grow. Instead of a single large financier, capital is raised from a “crowd” of small investors.

There are two main macro-categories, each with different risk and return profiles:

• Lending Crowdfunding: Works like a loan. The investor lends money to the real estate company for a set period (usually 12-24 months) in exchange for an interest rate fixed at the start. At maturity, the capital is repaid along with the accrued interest. It is generally perceived as less risky and offers more predictable cash flows.
• Equity Crowdfunding: The investor buys shares of the special purpose vehicle carrying out the project, effectively becoming a partner. The profit depends on the success of the operation (e.g., the sale of the built apartments). Potential returns are higher compared to lending, but timelines are often longer, and the capital is subject to full business risk.

Real estate crowdfunding represents the meeting point between the solid Italian tradition of investing in property and the innovation of digital finance, making a historically illiquid and exclusive market liquid and accessible.

The market in 2025: between tradition and innovation

The sector is experiencing a crucial maturation phase. According to the latest data from the Polytechnic University of Milan Observatory, although the general crowdinvesting market has seen a slight physiological contraction after years of boom, the Real Estate Equity segment has shown surprising vitality, recording significant growth. This indicates that Italian investors, while prudent, are increasingly attracted by the possibility of actively participating in the profits of concrete real estate projects.

The current economic context, characterized by still significant interest rates, has made Lending Crowdfunding particularly competitive compared to other forms of fixed income. The gross average returns offered by platforms often stand above 10% annually, a figure that attracts those looking to protect their purchasing power from inflation without tying up funds for decades.

On a regulatory level, the entry into force of the European Regulation ECSP (European Crowdfunding Service Providers) has created a single and safe market. Authorized platforms must respect rigorous standards of transparency and investor protection, operating under the supervision of competent authorities (in Italy, Consob and the Bank of Italy).

Advantages and Risks: what to know before investing

Investing in digital real estate offers undoubted opportunities, but it is not exempt from risks. It is fundamental to approach this instrument with awareness, avoiding being dazzled solely by promised returns.

The main advantages include:

• Accessibility: Very low entry tickets (often from €50 or €500).
• Diversification: With the amount needed for a down payment on a studio apartment, you can invest in 10 or 20 different projects, reducing specific risk.
• Simplicity: No notaries, agencies, or maintenance. Everything is managed online.

The risks to consider carefully are:

• Project risk: If the builder goes bankrupt or the construction site halts, you can lose part or all of the capital (especially in Equity).
• Illiquidity: Unlike stocks on the exchange, it is not always easy to “sell” your share before the project concludes.
• Delays: In the real estate sector, delays in delivery or sales are frequent, consequently pushing back repayment to investors.

For a broader comparison between different asset classes, it may be useful to evaluate whether it pays more today to bet on real estate or the stock market, considering your time horizon.

The best platforms in Italy

The Italian landscape offers several excellent platforms, each with its own specificities. Choosing the right platform is the first step toward a solid investment strategy. It is essential to always verify that the portal is authorized under European regulation.

Among the most relevant names in the Lending landscape, we find entities like Recrowd and Trusters. These platforms stand out for the high number of projects presented and the speed of capital rotation, allowing investors to frequently reinvest obtained repayments. They are ideal for those seeking constant cash flows and contained project durations (often 12-18 months).

On the Equity front, Walliance and Mamacrowd (in its real estate section) are market leaders. Here, one participates in larger development operations, often residential or tourist-related. Due diligence (project analysis) is usually very in-depth. Additionally, platforms like Concrete Investing cater to a more sophisticated investor audience, sometimes with higher entry tickets.

Taxation: the Withholding Agent issue

One of the most critical aspects for the Italian investor is taxation. Tax management can vary drastically depending on the chosen platform and its legal structure. It is fundamental to understand if the platform acts as a withholding agent (sostituto d’imposta).

Warning: not all platforms pay taxes for you. The difference between “net” and “gross” can complicate your tax return.

If the platform acts as a withholding agent (usually those authorized that collaborate with Italian payment institutions), it will apply a 26% final withholding tax on interest or dividends. The investor receives the net amount and does not have to declare anything. This is the most convenient option for those who want to invest without bureaucratic worries.

If, on the other hand, the platform relies on foreign payment institutions and does not act as a withholding agent, the investor will receive the gross amount. In this case, it will be necessary to report the earnings in the tax return (often in the RW section for monitoring and in the RM/RL sections for taxation) and pay the taxes independently. To delve deeper into fiscal dynamics, it is advisable to consult a specific guide on the taxation of financial income.

Strategies for investing with small budgets

Investing small sums does not mean investing randomly. Even with 1,000 or 2,000 euros available, it is possible to build a resilient portfolio by applying a professional method. The golden rule is always diversification.

A good strategy could be never to allocate more than 5-10% of your budget to a single project. If you have 1,000 euros, it is better to invest 100 euros in 10 different projects rather than everything in just one. This protects the capital: if one project goes wrong, the other nine can compensate for the loss with their returns.

Furthermore, it is wise to diversify by geographic type (different cities, perhaps even abroad if the platform allows it) and by duration. Mixing short-term projects (12 months) with medium-term ones (24-36 months) helps manage liquidity better. Finally, before committing funds, always read the information set (KIIS) provided by the platform to understand the specific risks. Correct personal finance management starts precisely with awareness of one’s limits and goals.

Conclusions

Real estate crowdfunding has opened the doors to an exclusive market, allowing even small savers to invest in “brick and mortar” with flexibility and reduced capital. Technological innovation and new European regulations have made this instrument safer and more transparent than in the past, offering potentially interesting returns in a complex economic context.

However, ease of access must not make one forget that these are risky investments. The key to success lies in diversification, careful choice of platforms, and understanding fiscal mechanisms. Whether you choose lending to obtain periodic income or equity to aim for capital growth, the winning approach remains an informed and gradual one.

Frequently Asked Questions