PY - Frequently Asked Questions
We aim to answer all your questions regarding PYs with the FAQ below. Please do not hesitate to contact us at [email protected] if any of your questions remain unanswered after reading the FAQ.
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General Questions about PYs
Discover the basics of PYs: their purpose, how they work, and what they represent in our innovative crowdfunding model.
Rental Income & Discretionary Gifts
Learn how rental income contributes to discretionary gifts and understand the factors influencing these symbolic contributions.
PYs are symbolic units within the Propvance ecosystem, allowing participants to engage in a community-driven initiative focused on real estate. While PYs do not offer ownership or guaranteed returns, they provide the opportunity to receive discretionary gifts based on net rental income.
Unlike traditional investments, PYs do not provide ownership rights, voting power, or a claim on assets. They are symbolic, and discretionary gifts depend on financial performance.
Currently, there is no upper limit on PYs per participant. However, availability depends on the total number of PYs in circulation and demand.
PYs are distributed proportionally based on the contribution made during specific offering periods.
Donators typically receive 1 PY per €100 donated to a property.
Additional PYs may be offered during new funding rounds. Availability will depend on Propvance’s operational needs and future project expansions.
Discretionary gifts are typically distributed annually. However, this may vary based on rental income cycles and operational requirements.
If rental income decreases due to vacancies, maintenance, or market conditions, the discretionary gifts may be reduced or paused.
Discretionary gifts are calculated before taxes. Any applicable taxes at the participant’s end must be handled by the recipient according to local regulations.
No, Propvance cannot guarantee rental income levels, as they are influenced by external factors such as market trends, tenant demand, and maintenance costs.
Depreciation & Expiry
Understand how PYs depreciate over time and their symbolic lifecycle, ensuring clarity on their long-term value.
Withdrawal, Refunds & Reinvestment
Get details on withdrawing, discretionary refunds, and how to reinvest your contributions effectively.
Expired PYs hold no symbolic or financial value and cannot be reactivated or exchanged.
However, a year of the PY’s total lifetime is only abducted when a gift has been sent to the holder.
No, the depreciation rates are fixed as part of the lifecycle structure of PYs.
The expiration period aligns with Propvance’s long-term sustainability model, ensuring that resources are available for future participants and projects.
The minimum withdrawal amount is €50. If your gift is below this threshold, it will accumulate until the minimum is met.
No penalties apply for withdrawing gifts. However, processing fees may be charged depending on the withdrawal method.
Note: The withdawal will be 50% of the original PY value.
Reinvestment is simple: log into your Propvance account, choose the reinvestment option, and allocate your gifts toward new PYs.
Refund requests before the minimum 5-year holding period cannot be processed. Refund eligibility starts only after this period.
In rare occassions you will be allowed to withdraw early. Please contact support at [email protected] for more information.
Risks, Taxation & Legal Considerations
Explore the risks, tax obligations, and legal aspects of participating in the PY program for informed decision-making.
Transparency & Reporting
Stay informed with transparent reporting on rental income, property performance, and gift calculations.
Risks include:
- Market fluctuations impacting rental income.
- Operational costs exceeding forecasts.
- Uncertainty regarding future property valuations.
Participants must comply with their local laws, including tax regulations. PYs are not financial products, so they are not regulated by financial authorities.
No, Propvance is not liable for losses due to market changes, operational risks, or external economic factors. Participation is entirely at your own risk.
Disputes are handled through our formal resolution process, which involves mediation and, if necessary, arbitration as specified in the terms and conditions.
We provide detailed annual reports on property performance, including:
- Rental income breakdown.
- Operational expenses.
- Net income distribution.
Yes, participants will receive quarterly updates via email and can access performance reports through their online accounts.
Performance data is audited by an independent third party to ensure accuracy and transparency.
Fiscale Implications
Understand how to report discretionary gifts in your tax filings and comply with country-specific tax laws.
Operational & Technical Questions
Answers to your operational and technical questions, ensuring smooth participation in the PY program.
Yes, in most jurisdictions, discretionary gifts must be declared as income. Consult a tax professional for guidance.
Yes, Propvance provides annual summary reports to assist participants with tax filing.
This depends on your country of residence and local tax laws. Consult a tax advisor for details.
Yes, your Propvance account is accessible via any device with a secure internet connection.
Propvance uses advanced encryption and two-factor authentication (2FA) to secure your account and personal data.
Simply click “Forgot Password” on the login page and follow the instructions to reset your credentials.
Future Opportunities
Explore upcoming opportunities with PYs, including new projects and ways to maximize your involvement.
Yes, Propvance is actively exploring opportunities to expand its portfolio to include different types of properties and international markets.
While participants cannot directly suggest properties, feedback and ideas are always welcome. Contact us via our support page.
Propvance continuously evaluates its PY system to ensure sustainability and participant satisfaction. Enhancements and updates will be communicated transparently.