Is it possible to buy real estate with cryptocurrency in Spain

Yes, this is already a reality. Recently, the first real estate transaction was successfully completed, paid for with cryptocurrency - three bitcoins (approximately 110 thousand euros) for an apartment in Braga, Portugal. This has opened up new perspectives, but whether this approach will become a widespread trend and how it will affect Russians remains to be seen.

Can cryptocurrency transactions be carried out legally in Spain?

Thus, there are no actual restrictions on transactions with cryptocurrency, including the purchase of real estate with bitcoins. Moreover, similar offers periodically appear on popular classifieds sites such as Idealista, the leading property portal in Spain.

However, in practice, transactions using cryptocurrency have not become widespread. Let's try to figure out why.

What are the advantages of cryptocurrency

Of course, the Russians are primarily interested in circumventing sanctions restrictions. Settlements with the seller in cryptocurrency can indeed allow you to do without banking services. This means that the buyer will be able to transfer an amount over 100 thousand euros to the seller from anywhere in the world, including Russia, without additional restrictions and without the need to prove his reliability to banks.

However, in practice everything may not be so simple. The reality is somewhat different from expectations.

What problems does cryptocurrency not solve:

If we consider the first real estate transaction for cryptocurrency in Portugal as an example, then the unusual form of payment did not relieve the participants from control by the authorities. The buyer still had to prove the legality of the origin of his funds. Moreover, collecting the necessary documents for three bitcoins was more difficult than for regular money.

The only difference was that it was not the bank that checked the purity of the transaction, but the notary, who is also responsible for the transactions certified by him.

Moreover, Bitcoin transactions do not provide complete anonymity, no matter how much anyone might want it. Historical fact: Spain was the second country in the world after the United States, which was able to confiscate bitcoins from scammers back in 2013. Precedents for exposing those who tried to hide their tracks using cryptocurrency have long existed, and the technique has been proven.

A cryptocurrency transaction does not exempt either the seller or the buyer from taxes. Moreover, such transactions add problems, since cryptocurrency is considered a product and is subject to VAT when buying or selling.

The main factor that stops Spaniards from trading for cryptocurrency is the high risks associated with market volatility. The price of Bitcoin can change greatly: we have seen it rise above 60 thousand dollars per coin, then fall to twenty thousand, and then begin to rise again. Few property owners are willing to take risks and receive an amount for their real asset that can change significantly.

Professional opinion

When asked about the possibility of conducting real estate transactions in Spain through cryptocurrency, we received an answer from a real estate expert from GG Barcelona Real Estate. He noted that many customers are interested in this opportunity, especially those who face difficulties with regular bank transfers. Most still prefer to use traditional methods of making transactions, taking into account current regulations. However, there is a certain group of clients who are actively interested in the possibility of conducting transactions through cryptocurrency. These clients typically have experience in investing and mining cryptocurrencies, and are well aware of the risks associated with using cryptocurrencies in real estate transactions.

If we look at residential real estate transactions in Spain from the point of view of local sellers, most of them do not show much interest in using cryptocurrencies. This is understandable, since with high demand it is easier and faster for them to sell for regular money. Some agencies, however, manage to convince Spanish sellers to consider using cryptocurrency wallets, but this is often accompanied by a price reduction to compensate for the possible risks.

Developers demonstrate a completely different attitude towards transactions through cryptocurrencies. This has become common practice for many major players in the construction industry, and the number of such transactions is growing rapidly.

From the state's point of view, there are no obstacles to such transactions. Despite some shortcomings in the legislative framework, transactions take place without problems and are completely legal.

Our agency has been actively involved in such transactions in recent months, ensuring legal clarity and guarantees. We have everything necessary for this: experienced lawyers, banking specialists who accompany transactions, and, of course, notaries involved in registering documents.

For us, this is another tool in the arsenal that can be used in the absence of other options or for specific client needs.

In theory, the Spanish authorities do not impose obstacles to transactions using cryptocurrencies.

We are ready to cooperate with our lawyers to prepare such transactions at the client’s request. However, it is worth carefully weighing the pros and cons. The advantages of using cryptocurrency for settlements are practically absent, and additional problems and difficulties arise. For example, when considering commercial real estate, the choice of objects is significantly narrowed.

If someone wants to become one of the first buyers of real estate using cryptocurrency in Spain, we can help and point them in the right direction. However, in practice, the use of electronic money remains only one of the possible options and, unfortunately, is not always the best choice. I would like to emphasize that this can only be recommended for professional players in the cryptocurrency market.