A home in Portugal has been sold, with the client paying in cryptos. The home was bought for three Bitcoins without first getting converted to Euros following the passing of the new legislation allowing real estate properties to be sold in digital currencies.
Property Buyer in Braga Bought with Bitcoins
A 3-bedroom apartment in Braga, a city in Portugal, has been bought with cryptos without first converting the coins into fiat money. The deal was described as the first in the history of the nation’s property market.
The buyer parted with three Bitcoins to get ownership of the home, which was worth about 110,000 euros at the time of the deal. The property’s Title Deed was transferred to the new buyer on Thursday, 5th May 2022, reported Idealista.
The property transfer was facilitated by Zome (a real estate agency), Antas da Cunha Ecija (a law firm), and partners from Switzerland’s crypto valley. The chairman of the Portuguese notaries also participated.
New Orders of Notaries’ Provision for Properties Sale, Requirements
Purchasing properties in Portugal is now possible courtesy of the new provision in the Order of Notaries, which regulates notaries-related activities in partnership with the Ministry of Justice. Before the new provision was introduced, cryptos had to be converted to euros before transactions could be completed.
To make a crypto transaction when paying for property, there are a number of procedures that must be followed in order to comply with the stringent anti-money laundering rules.
- The source of fiat funds used to buy the digital assets must be indicated.
- The public address of the used crypto wallet.
The news of the property purchase comes hot on the heels of the report by the Bank of Spain indicating that Portugal’s share of crypto transaction volumes in the Eurozone surpasses the weight of GDP in a single currency area’s economy.
With a relatively low cost of living and a crypto-friendly tax system, Portugal is emerging into a tech hub and a home for digital nomads. In Portugal, gains from the sale of Bitcoins and other cryptos do not attract income tax.