On Thursday, an apartment was purchased in Braga, Portugal, using only cryptocurrencies, without conversion to fiat.
This comes after the ratification of regulations drafted by the Order of Notaries. The deed for the T3 apartment property was signed in Porto after the buyer paid 3 BTC (or $115,000) directly to the seller.
Prior to the new regulations, crypto was converted to euros for a property purchase.
“This deed represents a historic milestone, the transfer of a digital asset to a physical asset – a house – without any conversion to Euros,” said real estate company Zome on its Facebook page. The deal was realized through strategic partnerships with a law firm, the Chairman of Notaries in Portugal, and Swiss partners.
Zome’s CTO stated in a press release that he hopes this landmark transaction will trigger off a spate of new business opportunities.
Attorney Nuno da Silva Vieira with Antas da Cunha ECIJA stated that “[t]his type of business will have an exponential increase and Portugal is showing very promising signs in terms of the digital economy, so we believe that this operation can be a great opportunity for growth and value creation.”
Crypto purchases treated as a barter business
For any real estate transaction In Portugal, the Order of Notaries requires the bank account details for the source of the funds, the money trail from fiat to bitcoin, the buyer’s wallet address, identification of both the buyer and seller, and proof that funds have been moved from the buyer’s crypto wallet to the sender’s crypto wallet.
If the transaction exceeds 200,000 euros, the authorities have to be informed accordingly. There should also be a comparison between the price of the cryptocurrency at the promissory note and the price on the title deed’s date.
Portugal’s progressive outlook
Portugal is becoming an attractive destination for crypto enthusiasts. Cryptocurrency gains are exempt from value-added and capital gains taxes, except if these gains came from professional trading activity. There are five registered virtual asset service providers in Portugal.
While this transaction marks the first time digital assets have been exchanged for a property as in a barter business, it is still possible to purchase property by converting cryptocurrencies to euros on the date of the deed. Banks will convert cryptocurrency to euros on behalf of the seller.
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