Before purchasing an apartment with cryptocurrency, it’s essential to grasp the fundamentals: what exactly you are paying with, how the process works, and the potential challenges you might face.
Bitcoin — the first cryptocurrency — was introduced in 2009 as a decentralised digital alternative to traditional money, designed to operate independently of banks and governments. Since then, numerous other cryptocurrencies have emerged, including Ethereum, Ripple, and Litecoin. Today, thousands of digital currencies exist, but only a select few have gained widespread adoption and practical use.
Cryptocurrency has evolved from a niche technology into an integral part of the global financial ecosystem.
Crypto exchanges now function similarly to banks, enabling users to:
- Pay for everyday goods and services
- Receive salaries and make payroll payments
- Transfer funds internationally with fewer restrictions and lower fees
- Invest in various assets, including real estate
Understanding these key points will help you navigate the complexities of buying property with digital currency.
What Are the Main Cryptocurrencies?
- Bitcoin (BTC) remains the most renowned and widely used cryptocurrency, especially for international transactions.
- Ethereum (ETH) offers greater flexibility through smart contracts and is favored for its fast transaction speeds.
- Tether (USDT) is a stablecoin pegged to the US dollar, making it a popular choice for those seeking to avoid the volatility common in cryptocurrencies.
- Other coins like BNB (Binance Coin), ADA (Cardano), and SOL (Solana) are occasionally accepted but less frequently and not universally.
Among these, Bitcoin and Tether stand out as the most universally accepted cryptocurrencies in real estate transactions worldwide.
Types of Calculations
Buying real estate with cryptocurrency varies by country, seller preferences, and transaction structures. While some places allow straightforward transfers of crypto, others require multiple steps.
The three main practical methods are:
The buyer transfers cryptocurrency directly to the seller’s wallet. The notary then registers the transaction after confirming the transfer via the Transaction ID (TXID) and fixing the payment amount in fiat currency.
Pros: Fast and convenient.
Cons: Not widely used yet for real estate deals.
- Conversion via Licensed Agency
The most common approach: the buyer sends cryptocurrency to a licensed intermediary who converts it to fiat currency and transfers the funds to the seller.
Pros: Legal, secure, and widely accepted.
Cons: Intermediaries charge commissions, typically between 1% and 5%.
Some countries are experimenting with real estate sales through NFTs, where property ownership is represented by a digital token. The first recorded NFT property sale occurred in Kyiv in 2017, with an apartment sold for 36 ETH via auction.
Pros: Potentially faster registration, lower taxes, simplified ownership transfer.
Cons: Still rare and considered experimental.
Advantages of Buying Real Estate with Cryptocurrency in 2025
- Speed of Transaction
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- Transfers of BTC or USDT usually take 10–30 minutes, regardless of the amount.
- No waiting for slow bank processes like SWIFT (3–5 days) or central bank approvals.
- No Transfer Limits
- Large transfers (e.g., $1 million) are possible without restrictions
- Banks often block transfers above $50,000 without extra documentation.
- Lower Fees Compared to Banks
- SWIFT fees: 1–3% plus hidden spreads.
- Crypto network fees: 0.1–1%, depending on network and exchange.
- Privacy and Anonymity
- No need to justify the source of large cash amounts to banks.
- AML checks focus on the crypto’s origin, not personal income.
- Easy Access to Overseas Property Without Bank Accounts
- Buy property in countries like Portugal without opening a local bank account.
- A wallet and passport are sufficient; the notary handles the rest.
- Protection Against Inflation
- If cryptocurrency appreciates (e.g., BTC rising 40% in a year), you effectively get a discount on the property price.
- Flexible Payment Options
- Partial payments are possible (e.g., 50% crypto, 50% cash).
- Trade-ins using NFTs or other cryptocurrencies may be arranged.
Cryptocurrency simplifies real estate purchases by eliminating banks from the process, speeding up transactions, reducing fees, and providing access to foreign property markets with less bureaucracy.
Legal Risks and Important Nuances of Cryptocurrency Real Estate Transactions
Buying real estate with cryptocurrency offers convenience, but it comes with legal complexities and risks that must be carefully considered:
Cryptocurrency prices can fluctuate significantly—often by 5–10% within a single day. To avoid disputes, the transaction amount is typically fixed in a stable fiat currency such as euros or dollars at the time of signing the contract.
- AML (Anti-Money Laundering) and Verification
When intermediaries or crypto exchanges are involved, they are legally required to verify the origin of funds, especially for transactions exceeding $10,000. Private sellers also often request proof confirming that the cryptocurrency was acquired legally.
Tax treatment varies widely depending on jurisdiction:
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- Some countries exempt cryptocurrency real estate purchases from taxation.
- Others treat these transactions as regular sales, imposing capital gains or transfer taxes.
- Intermediaries typically charge commissions ranging from 1% to 5% of the transaction amount, depending on services rendered.
- Security and Safety
- Always work with trusted, reputable exchanges (e.g., Binance, Kraken) and certified agents.
- Request official proof of transaction, including the TXID (Transaction ID).
- Cryptocurrency transactions are irreversible—sending funds to the wrong wallet address will result in permanent loss.
- Regulatory Compliance
- Verify that cryptocurrency payments are legally permitted in the country of purchase.
- BTC and USDT are generally the safest and most widely accepted cryptocurrencies for property deals.
- Fix the payment amount in a stable fiat currency within the contract to minimise risk.
- Conduct thorough due diligence on intermediaries and ensure full legal registration of the transaction.
