This is a first for Portugal and more widely for Europe: a real estate transaction took place entirely in cryptocurrencies. In the city of Braga, in northern Portugal, an apartment sold for 3 Bitcoins (BTC), or about 110,000 euros at the time of sale.
An apartment sold in Bitcoin in Portugal
In the north of Portugal, in the city of Braga, where the majestic Santuário do Bom Jesus do Monte is located, an unusual real estate transaction took place.
For the first time in the history of the country, and more broadly in Europe, an apartment was sold in Bitcoin (BTC) without the latter being converted into euros.
Indeed, following a new regulation of the Order of Notaries effective since last month, it is now possible to buy real estate in Portugal by paying only in cryptocurrencies.
A deal of this kind is settled in the same way as a usual transaction, the 2 parties sign a deed of sale, and the buyer gets the right of ownership after paying the previously agreed sum to the seller of the property.
This new type of transaction heralds a new era according to Zome, the real estate company that handled the sale of the property in collaboration with a law firm:
“This act represents a historic step, the transfer of a digital asset to a physical asset – a house – without any conversion to euros.”
Note that until now, it was already possible to buy real estate by paying in cryptocurrencies, but these had to be converted into euros for the transaction to be possible. Now, these transactions can be done directly in Bitcoin, without any prior transformation or conversion.
Real estate and Bitcoin: a successful formula
Since last year, the measures favorable to the union of the real estate market with that of cryptocurrencies are increasingly numerous, and internationally.
In Spain, not far from where this unusual transaction took place, a bill had been proposed last year by the Popular Party to be able to allow Spanish real estate companies to use cryptocurrencies to be able to take out loans.
On the American side, it was Magnum Real Estate Group that announced it was now accepting cryptocurrencies as a means of payment last September, following the lead of Mercado Libre, which made a similar announcement in the Latin American market.
More recently, it was Dubai-based real estate developer DAMAC Properties that announced it would accept Bitcoin as a payment method for properties available for sale in the region.
As for Portugal, this is another opportunity for the coastal country to show its interest and openness to cryptocurrencies.
Indeed, it is an attractive country for Bitcoin holders, since there they are completely exempt from taxes on their capital gains as long as it is not related to the professional field.