In Portugal, for the first time, it is possible to buy real estate for cryptocurrency without converting into euros
An investor bought a three-bedroom apartment for 3 bitcoins, or about €110,000, in the Portuguese city of Braga. This is the first purchase of real estate for cryptocurrency without conversion into euros in Portugal and throughout the European Union.
Editor-in-chief, content creator
The transaction took place on May 5, 2022 in the presence of representatives of the real estate agency Zome, the law firm Antas da Cunha ECIJA, the Swiss company Crypto Valey and the chairman of the Portuguese notary office.
The opportunity to buy real estate for cryptocurrency appeared in April 2022. Portuguese notaries were allowed to conduct transactions 100% by transfers in cryptocurrency. Previously, it had to be converted into euros first.
In order for the tax service not to consider the operation as money laundering, the parties to the agreement must:
prove the legality of the money for which the cryptocurrency was bought;
trace the path of money to a digital asset — bitcoin;
provide a digital wallet number;
determine the parties to the transaction — their name, address, and sometimes profession;
prove that the money is transferred from the buyer’s digital wallet to the seller’s wallet at the very moment of transfer.
If the value of the property was above €200,000, then the participants in the transaction would also have to:
report it to the Portuguese authorities;
compare the cost of bitcoin during the preparation of the purchase and sale agreement and during the transfer of cryptocurrency.
Representatives of the Zome agency believe that soon more and more investors will start buying real estate for cryptocurrency.
Elena Ruda,
Chief Development Officer in Immigrant Invest, lawyer
In Portugal, cryptocurrencies are not prohibited and are not legally regulated in any way. The Central Bank of Portugal does not consider cryptocurrency transactions illegal. At the same time, the bank warns citizens about the lack of protection from the state: if the transaction is unprofitable, the losses will not be compensated.
Whether Portugal will allow foreigners to use cryptocurrency in the residence permit investment program is unknown. To buy real estate and become a resident of the country, investors buy objects for euros.
Why investors buy Portuguese property
To buy a liquid object. Real estate in Portugal is in demand among both residents of the country and foreigners. For example, in Lisbon, the share of foreign buyers is about 40%, according to the British online portal money.co.uk.
Real estate prices are growing by an average of 7% per year across the country. This is faster than the average for the European Union: in five years, objects have increased in value by 1.5 times. This estimate is given by the National Institute of Statistics of Portugal and Eurostat.
Receive additional income from the rental of real estate. The profitability of Portuguese objects is 2‑5% per annum, and in the high season it reaches up to 10%.
Become a resident of Portugal. In Portugal, there is an investment program residence permit — Golden Residence Permit Program. Two program options provide for the purchase of real estate.
How to get a residence permit in Portugal for the purchase of real estate
To become residents of Portugal through the purchase of real estate, investors choose between two options:
purchase of new objects worth from €500,000;
purchase of objects older than 30 years for restoration from €350,000.
Investment in real estate can be reduced by 20% if the investor buys a property in areas with low population density.
The main advantage of options with the purchase of real estate is the return on investment. The investor can sell the object after 5 years and return the investment. If the rise in real estate prices in Portugal continues, the investor will also earn on the difference in price.
Immigrant Invest real estate specialists offer properties from trusted developers, as well as select them individually for the investor.
Portugal Investment Property Examples
Portugal, Porto
30 m² — 60 m²
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Immigrant Invest is a licensed agent of the residence permit program in Portugal. If you want to become a resident of Portugal or travel around the Schengen countries without visas, please contact investment program experts for advice.
