how to buy real estate with cryptocurrency in the EU

Buying property in the EU with cryptocurrency

Buying property with cryptocurrency is a concept very few people would have imagined 6 or 7 years ago. Cryptocurrencies have taken the financial world by storm as they have turned into one of the most popular assets to be bought by investors. Their value still rises despite the occasional price fluctuations.  

As property is still one of the safest assets to diversify your investment portfolio, we will scrutinise how beneficial the combination of real estate investing with cryptocurrency can be for you.  

Some quick crypto facts

If you haven’t heard anything about digital currencies and cryptocurrency transactions, you probably haven’t been living on Earth in the last few years or you are not fond of news outlets and social media. In any case, this section is just for you.

According to Investopedia, “a cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralised networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers.”

One of the prime characteristics that make crypto stand out from the crowd of the older fiat currencies is that they are not issued by a central bank and therefore there is no control by any authority as such. 

Bitcoin was the first cryptocurrency, founded in 2009. Bitcoin remains the king of crypto even today with Ethereum, XRP and Tether being among the most popular cryptocurrencies. You can also invest directly in crypto, a move that you may consider after reading our blog. Our 20-year experience in the financial markets has shown that it is always best to take qualified financial advice before investing your hard-earned money, especially if you don’t have financial knowledge. 

Buying property with crypto in Portugal

If you have invested in cryptocurrencies such as Bitcoin and Ethereum, you may know that Portugal is one of the most crypto-friendly countries in the European Union (EU). Crypto earnings are not taxed in the Iberian country; therefore crypto investments are an attractive option. 

Going back to the country’s real estate market, we should note that it is on the rise with many non-EU citizens taking advantage of the Portuguese golden visa scheme as well as other visa options provided by the state authorities. 

In April, media sources said that the Order of Notaries (ON) would revise regulations regarding real estate transactions and crypto funds as a form of payment. According to reports, the Portuguese authorities “work on a regulation that will provide notaries with clear instructions on how to create deeds for the purchase and sale of houses in cryptocurrencies.” The amended regulations will be allowing the purchase of properties using digital currencies, following the example of a barter business. 

Purchasing a new home with crypto in Cyprus

Buying and selling properties is one of the main pillars of the Cypriot economy. Many property developers offer a wide array of housing options across one of the most beautiful islands in the Meditteranean. 

Developers are already accepting Bitcoin as payment for their properties, and this practice is on the rise. The process is simple as the only difference compared to a regular purchase is the transfer of Bitcoin or another type of cryptocurrency through a system of smart contracts. Transferring cryptocurrency from one wallet or account to another that you own is not subject to any type of tax.

Buy your home in Spain and pay with cryptocurrency

As one of the largest countries in the EU, Spain is a popular destination for expats who want to enjoy the hot sun. Places such as Costa Del Sol are packed with expats that take advantage of the large supply of available properties, buying their dream homes. 

According to a survey published by the property platform Inviertis, interest in the Spanish real estate market has skyrocketed 400% since November, becoming a refuge for investors in the face of uncertainty generated by rising inflation and the war in Ukraine. Commenting on using crypto assets as payment method, analysts at Inviertis noted that some crypto investors buy properties to diversify their portfolios. 

Cryptocurrencies must be converted into Euros before they can be used to buy property. The date of the purchase has to be agreed upon beforehand as the exchange rate will play a role. Such transactions are a bit easier than the regular ones as there may be fewer bank or intermediaries fees.  Capital gains from selling crypto during the transaction process will also be borne by the buyer. 

Selecting and buying a property in the EU

Low interest rates and a variety of options make the EU housing market an attractive investment option. Some countries such as Portugal, Spain and Cyprus offer citizenship and residency by investment schemes that give the opportunity to non-EU citizens to live and work in the bloc. 

The EU market is suitable for every potential buyer as there is a wide range of options, depending on the investor’s budget. Getting an expat mortgage isn’t as difficult as you think when you have Holborn’s expert team of financial advisers by your side. Speaking with an expert will assist you in better understanding the alternatives accessible to you and obtaining the best mortgage rates.

Invest in property with Holborn

Holborn’s property experts are among the most experienced and qualified in the global market. With over 20 years of presence in the competitive financial services industry and a wide range of developments to match your budget, Holborn gives you a full package of solutions that can help you diversify your portfolio. 

Whether you are looking for a property in the UK or abroad, take the opportunity to browse our catalogue or fill in the contact form to get in touch with us and learn how you can improve your financial status today. 

Get in touch

    By submitting this form, you agree to our Privacy Policy