An apartment in Portugal has changed hands, with the buyer paying directly in cryptocurrency in a reported first for the country. The house was bought for 3 bitcoins with no exchange for euros, under a new regulation allowing real estate transactions with digital currencies.
Buyer pays with bitcoin for apartment in Braga, Portugal
A three-room (two-bedroom) apartment in the Portuguese city of Braga was bought with cryptocurrency without converting it to fiat money. Local media reports have described the transaction as a first in the history of the country’s real estate market.
The new owner paid 3 Bitcoins (BTC) for the house, which was worth around 110,000 euros at the time of purchase. The title deed was transferred last Thursday, May 5, in the Póvoa de Varzim district of Porto, business news portal Idealista revealed.
The purchase was made with the help of the real estate agency Zome, the law firm Antas da Cunha Ecija and partners from the Swiss Crypto Valley. The President of the Portuguese Chamber of Notaries also attended.
Buying real estate directly with cryptocurrency is now possible in Portugal thanks to a new regulation recently approved by the Notarial Code, the body that, together with the Ministry of Justice, regulates notarial activity.
In the past, the coins had to be converted into euros before a payment was made to a seller. Now real estate acquisition can be a 100% crypto operation, where the digital money is exchanged for the rights to the real estate.
In order to conduct such sales, certain procedures must be followed in order to comply with anti-money laundering regulations. The source of the fiat funds – a bank account – used to purchase the digital assets must be stated and the public address of the crypto wallet presented before the coins are transferred.
The news of the crypto-funded real estate deal comes after a recent report by the Bank of Spain revealed that Portugal’s share of the volume of crypto transactions in the euro zone exceeds the weight of its gross domestic product (GDP) in the single currency area’s economy.
With a relatively affordable cost of living and a crypto-friendly tax system, Portugal has become a hub for tech innovation, a home for digital nomads and, most recently, refugees from Ukraine’s crypto sector. Profits from the sale of bitcoin and the like are not subject to income tax in the country.
Do you expect other European nations to allow property purchases through direct cryptocurrency payments? Let us know in the comments section below.
photo credit: Shutterstock, Pixabay, WikiCommons
Disclaimer: This article is for informational purposes only. It is not a direct offer, or a solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.