How to buy property for cryptocurrency in various countries
To buy real estate for cryptocurrency, you first need to find out if such a transaction is allowed in the country. Even if it is not possible to do it officially, a lot depends on the seller. The transaction will take place if the seller agrees to accept bitcoins or other digital assets, but the contract must specify the fiat currency (e.g. U.S. dollars or local money).
Portugal is on the list of the most cryptocurrency-friendly countries where crypto can be used to pay for real estate. In April 2022, new rules that structured the purchase of real estate for cryptocurrency came into force.
Before that notaries could not register cryptocurrency transactions, and digital assets first had to be converted into euros. Under the new rules, it's possible to make a such deal between buyer and seller in two ways:
- The buyer's broker converts the cryptocurrency into fiat money and sends it to the seller’s account..
- Conclusion of a barter transaction, when the property can be exchanged for cryptocurrency directly.
Notaries must obtain documents from the parties involved before executing the transaction. After identity verification all records of the transactions involved in the deal must be provided. The data is then transmitted to the supervisory authorities, including the Central Department of Criminal Investigation and Prosecution and the Financial Information Office.
If there are no objections, notaries draw up a deed of ownership. If the transaction exceeds €200k the parties will have to communicate additionally with the authorities to complete it. Due to the high volatility of crypto-assets, it is necessary to inform the notary of the conversion value in U.S. dollars or euros when executing the transaction. Subsequently, this will help to avoid claims.
How to buy real estate for bitcoins in other countries
Portugal is not the only country where you can buy real estate for cryptocurrency. For example, you can also buy a realty in the UAE, Germany, Turkey, Georgia, and Thailand.
Cryptocurrency payments in the UAE are legal and quite normal since 2017. Bitcoins are accepted without any complications by both secondary housing owners and developers. The transaction is fast and transparent, and the contract reflects the amount in dirhams.
In Germany, transactions with digital assets are completely legal. To buy a property, you have to make a transfer to the seller's cryptocurrency wallet. When the money is credited, the notary will formalize the transfer of the house to the new owner.
Georgians view cryptocurrency as an asset rather than fiat money. The purchase is done by barter, meaning that digital assets are exchanged for real estate. The amount in the contract can be specified in Georgian lari or other fiat currency.
Digital assets are a legal unit of account in Thailand, and buyers can pay for the property using cryptocurrencies. When preparing documents, the value of the house is indicated in Thai baht, while the cryptocurrency price is set during the transfer. To complete the transaction, the client should make a transfer to the seller's cryptocurrency wallet. The seller should convert the digital assets into local currency and fix the final amount.
The transaction is more complicated for foreigners. They can pay with cryptocurrency for housing rent, but it's very hard to buy Thai real estate if you are a foreigner. This is because that non-residents must accurately specify the purpose of payment and fill out an application to formalize the right of full ownership. This can only be done at the bank, and it makes the cryptocurrency payment option more complicated. IT-OFFSHORE can help you to solve this problem the most efficiently.
It is not possible to directly pay for the apartment in bitcoins in Turkey. You must contact the local real estate agency, which is crypto-friendly, to make a such transaction. This intermediary company will accept the cryptocurrency into their wallet, convert it, and transfer fiat money to the seller.