Portugal has long been a magnet for expats looking for property investments. The same goes for Golden Visa holders looking for a second home in the country. With its crypto-friendly business environment, you can now buy real estate using Bitcoin and other cryptocurrencies.
Here’s a quick rundown of what you need to know.
Portugal's crypto-friendly stance
Portugal has become an investment haven for crypto investors, thanks to its progressive policies.
Tax-friendly environment for individual crypto investors
Flexible legal and regulatory framework
Growing acceptance of crypto in real estate transactions
However, recent tax policy changes have introduced a few shifts:
Long-term capital gains remain tax-exempt
Short-term gains and professional mining activities are now taxable
Despite these adjustments, Portugal maintains its appeal for digital asset investors.
Has anyone bought property using crypto in Portugal?
The answer is resounding YES, and there are two big cases to back this claim.
In 2021, two luxury properties in Madeira were sold for €4.1 million in Cardano. The transaction involved:
1) Converting crypto to euros before bank deposit
2) Using a crypto-exchange account for the initial payment
3) Providing proof of transaction and client details
A year later, in May 2022, a T3 apartment in Braga was sold for 2.9 Bitcoins (approximately €110,000). This transaction demonstrated:
Direct use of cryptocurrency in property purchase
Collaboration between real estate firms, legal experts, and crypto exchanges
Compliance with new regulations allowing direct crypto property sales
Viable ways and avenues for buying real estate with crypto
Two primary models have emerged for property buying using cryptocurrency in Portugal:
Model #1: Conversion - For this option, you (or your broker) must convert the cryptocurrency to traditional currency before the real estate transaction
Model #2: Direct Exchange Model - For this option, the property is directly exchanged for cryptocurrency
The Process of buying property with crypto
Choosing a Model: Decide between the conversion or direct exchange model
Compliance: Make sure your crypto transaction is up to scratch with EU’s Anti-Money Laundering (AML) regulations
Documentation: Provide detailed records of crypto acquisition and wallet information
Reporting: You must provide extra reporting for crypto transactions over €200,000
Conversion Reporting: For high-value transactions, crypto-to-fiat conversion values must be reported at key stages
What you need to know as an expat investor
Transparency is very important when buying property in Portugal, let alone using crypto. As an investor buying property with crypto, you must:
Trace the origin of your funds
Provide your wallet details
Identify all parties involved in the transaction
Verify wallet transfers
Maintain transparency throughout the process
How we can help
Crypto property buying is new and many things could go wrong. Let experts at International Wealth Ventures hold your hand every step of the way.