An apartment in Portugal bought in Bitcoin without being converted into euros

The desire of many cryptocurrency holders is to be able to make purchases, particularly real estate, with their assets without going through the conversion into fiat currencies. A goal that came true for a happy buyer last week. He bought a flat in Braga, northern Portugal, for 3 bitcoins paid directly to the seller.

How was it possible to buy a property directly in bitcoins?

Portugal is already known to be especially cozy with crypto-investors, especially through an exemption from capital gains tax, has just taken a step further to consolidate its reputation as the El Dorado cryptocurrency in a rather tense Europe in the sector. Precisely, the Portuguese Order of Notaries has introduced new rules regarding transactions carried out through these digital assets.

Consequently, it is it is now possible to exchange crypto directly for real estate deed. A possibility that has become a reality according to the local media Idealista, with this first purchase of a flat in Braga for 3 bitcoins, made through the real estate Zome, in collaboration with a law firm and Swiss partners.

This event represents a historic step, the transfer of a digital asset to a physical asset – a house – without any conversion into euros.

Zome press release

A direct purchase but a tedious process

But as simple as it may seem, the transaction was only carried out following a complex procedure. Indeed, in order to combat money laundering, various procedures must be followed.

  • Understand the origin of funds in the bank account.
  • Trace the path from the euro to bitcoin.
  • Identify your digital wallet and save it.
  • Identify the parties involved in the transaction by name, occupation, and address.
  • Provide proof that BTCs move from the buyer’s portfolio to the seller’s portfolio at the time of the transaction.

If the transaction had exceeded the amount of € 200,000, it would have been necessary to communicate the transaction to the authorities, and to establish a comparison of the value of bitcoin on the date of the contract of the promise of sale and the date of the effective act.

If this real estate transaction raises high hopes, It remains to be seen how the European Union, in a very demanding mood latelythey will want to regulate these new practices. Portugal, which is one of its member countries, may have to challenge its favorable provisions in the context of harmonization of regulations.

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