The buyer of a Portugal apartment has paid in bitcoin directly, a first reported for this country. Under a new regulation, real estate transactions with digital currencies are now possible. The house was bought for just 3 bitcoins.
Braga apartment buyer pays bitcoin
The purchase of a three-room apartment (two bedrooms) in Braga, Portugal, was made with cryptocurrency. Local media reports have described the deal as a first in the history of the country’s real estate market.
Three bitcoins (BTC). The home was worth approximately 111,000 euros when it was purchased by the new owner. The title deed was transferred in Porto’s Póvoa de Varzim district this past Thursday, May 5, the business news portal Idealista unveiled.
The purchase was made with the help of real estate agency Zome, the law firm Antas da Cunha Ecija, and partners from Switzerland’s Crypto Valley. Also, the chairman of the Portuguese chamber for notaries was present.
Portugal now allows property purchases directly using cryptocurrency thanks to an amendment recently approved by the Order of Notaries. This body regulates notary activities and works in conjunction with the Ministry of Justice.
Before a buyer could be paid, coins needed to first be converted into euros. Today, real estate purchases can be done in 100% crypto. The digital currency is converted into property rights.
For such transactions to be legal and compliant with anti-money laundering laws, there are certain steps that must be taken. The source of the fiat funds — a bank account — with which the digital assets were purchased, has to be indicated and the public address of the crypto wallet presented, before the coins are transferred.
News of the crypto-funded property deal comes after a recent report by the Bank of Spain revealed that Portugal’s share in the volume of crypto transactions in the eurozone exceeds the weight of its gross domestic product (GDP) in the single currency area’s economy.
With relatively affordable costs of living and a crypto-friendly tax regime, Portugal has become a hub for tech innovations, a home for digital nomads and most recently for refugees from Ukraine’s crypto sector. In Portugal, income taxes are not applicable to gains from bitcoin sales and other similar transactions.
Are you expecting other European countries to permit real estate transactions using direct cryptocurrency payments as well? Please let us know your thoughts in the comment section.
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