Portugal has made history in its real estate market: a two-bedroom apartment in the city of Braga was purchased directly with 3 bitcoins, without any conversion to euros. Local media outlets report this is the first fully cryptocurrency-funded property deal in the country.
Regulatory Breakthrough and Transaction Details
The transaction was finalized on May 5, 2022, in the Póvoa de Varzim district of Porto. The 3 bitcoins paid were valued at approximately €110,000 at the time of purchase. The deal was facilitated by real estate agency Zome, law firm Antas da Cunha Ecija, and partners from Switzerland's Crypto Valley. The Chairman of the Portuguese Chamber of Notaries also participated in the signing.
The legality of this transaction stems from a new provision recently adopted by the Order of Notaries, the body regulating notary activities alongside the Ministry of Justice. Previously, cryptocurrencies had to be converted into euros before paying a seller. Now, the acquisition can be a 100% crypto operation, where digital assets are exchanged directly for property rights.
Compliance and Anti-Money Laundering Measures
Despite the fully crypto-enabled process, strict anti-money laundering rules must be followed. The buyer is required to disclose the bank account source of the fiat funds used to purchase the digital assets, and to present the public address of the crypto wallet before transferring the coins. These measures ensure the transparency of fund origins and help mitigate money laundering risks.
Portugal's Crypto-Friendly Environment Drives Innovation
Portugal has long been attractive for its relatively low cost of living and crypto-friendly tax regime. Capital gains from the sale of bitcoin and other cryptocurrencies are exempt from income tax. This has made the country a hub for tech innovations, a home for digital nomads, and most recently a refuge for Ukraine's crypto sector refugees. A report by the Bank of Spain revealed that Portugal's share of crypto transaction volume in the eurozone exceeds its GDP weight, underscoring its outsized role in the regional digital asset ecosystem.
Market Implications and Future Outlook
This landmark deal signals a new era for real estate investment in Portugal. By allowing direct cryptocurrency payments, the country opens doors for international investors holding digital assets who wish to diversify into tangible property. Other European nations are watching closely; while regulatory stances remain cautious in most jurisdictions, Portugal's move could catalyze similar policy changes across the continent. Experts anticipate an increase in crypto-based property transactions as more real estate agents and law firms become familiar with the required procedures.