Though it required some extra steps, a Portuguese home buyer just facilitated a Bitcoin real-estate purchase without conversion to euros.
The first-ever Portuguese real-estate purchase has been settled for Bitcoin – without involving a conversion back to fiat money.
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Buying a Home With Bitcoin
The real estate market experienced another moment that marks its history in Portugal . The first house sold entirely in cryptocurrencies took place this Thursday, May 5, 2022. It is a T3 apartment in Braga that was purchased for three bitcoins , that is, about 110 thousand euros. This means that for the first time in Portugal and Europe, a house was traded only with cryptocurrencies without any conversion to euros.
The deed of this house was signed in Póvoa de Varzim, district of Porto, in a transaction carried out entirely in cryptocurrencies . With the new regulation of the Order of Notaries released last month, it is now possible to carry out a 100% crypto operation . How? Through an exchange: the buyer hands over his cryptocurrency to the seller and there is an exchange of digital money for the right to the property. Note that, before this regulation, when buying a house was first necessary to convert cryptocurrencies to euros to carry out the operation.
"This deed represents a historic milestone, the transfer of a digital asset to a physical asset - a house - without any conversion to euros", highlights Zome on its page , which participated in the operation together with the law firm Antas da Cunha ECIJA, the Chairman of Notaries in Portugal and other Crypto Valey partners in Switzerland.
For Carlos Santos, chief technology officer at Zome, "the future of mediation will pass through crypto assets , so we believe that this transaction will start a whole new world of possible business", he highlights quoted in a statement sent to the newsrooms.
“This type of business will have an exponential increase and Portugal is showing very promising signs in terms of the digital economy , so we believe that this operation can be a great opportunity for growth and value creation ”, adds Nuno da Silva Vieira, lawyer and partner responsible for the Legal Intelligence practice area of Antas da Cunha ECIJA, mentioned in the same document.
Buying and selling houses in cryptocurrencies: what do you need to take into account?
But to carry out this transaction in cryptocurrency , it is necessary to follow a set of procedures, which are not required in an ordinary deed, to ensure the control of money laundering , explain the experts contacted by TVI/CNN Portugal:
It was necessary to understand where the money came from (bank account);
Understand the path of money to reach the digital asset ( bitcoin );
Inform the number of the digital wallet ;
Identify the parties involved in the business (name, profession, address);
Prove that the money goes from one wallet to another at the time of the transaction.
If the real estate transaction with cryptocurrencies had exceeded 200 thousand euros, in addition to the aforementioned prior communications, the operation would have to be communicated to the authorities and it would still be necessary to compare the value of the cryptocurrencies on the date of the promissory contract and its value on the date of the deed. , wrote the Express.
The Central African Republic, for instance, has now become the second country to establish Bitcoin as legal tender. Panama has also legalized the use of cryptocurrencies for tax payments and does not place capital gains taxes on digital assets.
On the property front, Latin American Proptech firm La Haus has begun accepting Bitcoin for home payments through OpenNode. The company sold a Mexican apartment for 5.78 Bitcoin in January.
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Article Source:
https://www.idealista.pt/news/imobiliario/habitacao/2022/05/06/52164-casa-em-braga-e-comprada-por-3-bitcoins-e-a-1a-transacao-100-cripto?gallery-item=0
https://cryptopotato.com/historical-first-portuguese-home-purchased-directly-using-3-bitcoin/