Top countries where you can buy real estate using cryptocurrency

Published on 27th of May, 2024

Digital currency is gaining immense popularity both in the EU and around the world. Buying real estate with cryptocurrency has many advantages: security and transparency, the ability to make a transaction without intermediaries, no fees and taxes (or at a reduced rate).

However, cryptocurrencies have recently begun to replace traditional payment methods, and so far they have been legalized in a limited number of countries. The list of the most popular European regions with cryptocurrency includes Malta, Cyprus, Portugal, Switzerland, and Germany.

Buying real estate with cryptocurrency can be considered an investment. In turn, it allows you to obtain a temporary or permanent residence permit in a particular country. A person buys an apartment or a house for digital currency, becomes a resident, and can live there freely. Everything is convenient and fast.

Please note! The conditions for obtaining a residence permit or permanent residence for investment are constantly changing. Especially if you buy real estate using cryptocurrency. Before making a transaction, you should familiarize yourself with the current legislation

Top countries where you can buy real estate through cryptocurrency

Here are five countries that allow the purchase of real estate through digital currency. Despite the fact that this method of purchase is legalized, not all real estate can be bought with cryptocurrency. You need to find a seller who accepts this payment method or contact a real estate agency.

Description. 

To begin with, let's talk about buying real estate with cryptocurrency in different countries.

Malta

Malta legalized cryptocurrency back in 2018. This is one of the first countries in Europe where digital currency has become an official analog of traditional payment.

In Malta, you can buy real estate for cryptocurrency without converting it into fiat money. However, you will need fiat currency to pay taxes, commissions, and fees.

Cyprus

In Cyprus, cryptocurrency has no official legal status and is not enshrined in the law. However, it is very popular on the island, as it is not prohibited to conduct transactions through digital means.

In recent years, laws have also appeared that partially regulate the circulation of cryptocurrencies in Cyprus, although this does not make it legalized. Both residential real estate (apartments, houses, villas) and commercial real estate (offices, shops, business centers, warehouses, hotels) can be purchased with digital currency.

Portugal.

This is another cryptocurrency-friendly country. Again, there is no separate general law. However, several supporting laws have been passed that allow official payments in cryptocurrency. This payment method was legalized in 2022.

Switzerland.

Switzerland has adopted a sufficient number of laws that make cryptocurrency a legal payment method. The active development of digital means in this country began in 2018.

Keep in mind that Switzerland does not have a residence permit program for real estate investments. This means that buying an apartment or house is not enough to become a resident. To obtain a residence permit, you need to invest in other areas.

Germany.

In late 2022 and early 2023, Germany passed a law prohibiting the use of cryptocurrency as a payment method. This was done to combat money laundering and terrorist sponsorship.

However, it is theoretically possible to buy real estate in Germany with digital funds. To do this, you need to convert cryptocurrency into fiat money and buy residential or commercial real estate with it. This method remains legal and is very popular.

Terms of purchase

Let's take a look at the conditions for buying real estate with cryptocurrency in five EU countries.

Malta

The country accepts popular and reliable types of cryptocurrency, such as Bitcoin, Litecoin, and Ethereum. You cannot use cryptocurrencies that are not on the MFSA list.

Keep in mind that some real estate agencies may work with a specific currency or not accept it at all. When buying real estate with cryptocurrency, you must pay taxes. One of them is a tax on the difference in price between the digital currency and the value of the property in euros.

Cyprus.

Converting cryptocurrency into fiat money is optional. A law passed in 2021 allows you to buy real estate purely for digital currency. However, just like in Malta, you will need to convert it into fiat currency to pay taxes and additional costs.

Payment is accepted in reliable types of cryptocurrency - Bitcoin, USD Coin, Tether, Ethereum, and others. It should be borne in mind that a particular seller may refuse to accept cryptocurrency.

Portugal.

In Portugal, no conversion to fiat money (i.e., the local currency, the euro) is required to buy real estate. You can pay for the purchase entirely digitally, except for additional costs.

The good news is that cryptocurrency transactions are not taxed in Portugal.

Switzerland.

Payment with cryptocurrency in Switzerland is possible both without converting to fiat money and by converting it. It all depends on the specific seller and real estate agency.

The legislation does not state that it is prohibited to buy real estate or make other payment transactions with cryptocurrency. Therefore, theoretically, conversion to fiat funds is not required, unlike in Germany.

The same types of digital currency are accepted in Switzerland as in other countries on our list - Bitcoin, USD Coin, Tether, Ethereum.

Germany.

As we have already mentioned, the law in Germany is strict regarding cryptocurrencies. You cannot directly use this type of payment to buy real estate. First, you need to convert to the local currency (euros).

Documents required

The next important point is what documents are required to purchase real estate for cryptocurrency. The list of documents is almost the same as that required for traditional payment methods.

Malta

To buy real estate for digital currency in Malta, you need to provide the following documents:

• passport
• proof of residence;
• a certificate confirming the source of income;
• a certificate of no criminal record (if necessary);
• AIP real estate purchase permit (for non-EU citizens);
• purchase and sale agreement;
• marriage certificate (if required).

Please note that this is an approximate list, and the number of documents may change. All documents must be apostilled.

Cyprus

In Cyprus, the list of required documents is almost the same as in Malta. In addition, these countries require a receipt of payment of administrative tax. Proof of payment of other taxes may also be required.

Portugal.

In Portugal, you need to provide a similar list of documents:

• passport
• taxpayer identification number;
• bank statement;
• income tax return for the year;
• marriage certificate (if necessary).

You may also need a certificate of no criminal record, health insurance, a certificate of no debts from the tax service, and birth certificates of children.

Switzerland.

In Switzerland, the list of required documents is similar:

• passport
• identity card
• a certificate of income;
• a statement of the origin of the money;
• purchase and sale agreement;
• no criminal record and no encumbrances;
• tax return from the tax service;
• permission to purchase the property;
• marriage certificate.

Germany.

In Germany, the list of required documents is similar to Switzerland. Some papers may differ, but basically the package of documents is the same.

Advantages of the country

Let us briefly consider the main advantages of the five countries described above.

Malta

Malta can please you with:

• favorable climate
• high quality education and healthcare;
• low taxes;
• traveling in the Schengen area;
• security;
• stable economy

Cyprus.

Advantages of living in Cyprus:

• comfortable warm climate;
• good ecology;
• excellent education and healthcare system;
• high level of security;
• affordable real estate prices;
• low taxes.

Portugal

Now about Portugal:

• warm climate and good ecology;
• safe
• quality medicine;
• excellent education;
• part of the Schengen zone.

Switzerland

Switzerland has many advantages:

• stable economy;
• clean environment;
• excellent healthcare and education;
• absence of crime;
• good pension system;
• political stability.

Germany

Finally, let's look at Germany:

• high quality of life;
• security
• excellent healthcare system;
• good education;
• stable economy

Buying real estate with cryptocurrency is a modern, convenient, and fast payment method. Digital currency continues to gain popularity. Soon, perhaps, even more countries will use it along with traditional methods.

Anyone who meets the requirements and has the necessary documents can buy real estate in five excellent European countries. They can count on a high standard of living, excellent ecology, and stability.