Portugal has emerged as a leading destination for cryptocurrency investors looking to convert their digital assets into tangible property. With progressive regulations and an increasingly crypto-friendly market, buying real estate with crypto in Portugal is becoming more accessible. This comprehensive guide explores the entire process, legal considerations, tax implications, and the best platforms to facilitate your property purchase using cryptocurrencies like Bitcoin, Ethereum, or stablecoins.
Legal Framework for Crypto Property Transactions in Portugal
Portugal’s approach to cryptocurrency has evolved significantly in recent years, creating a structured legal environment for property transactions using digital assets. Understanding this framework is essential before proceeding with any purchase.
Portugal’s legal framework for crypto property transactions has evolved since 2022
Current Legal Status (2025)
Since April 2022, Portugal has implemented specific regulations allowing property purchases using cryptocurrency. These regulations provide a clear framework for notaries to process property deeds related to cryptocurrency transactions. This groundbreaking change permits real estate transactions to be executed using virtual currencies directly without requiring conversion to euros.
The Order of Notaries (ON) has established comprehensive guidelines for monitoring these transactions to ensure compliance with anti-money laundering (AML) and anti-tax evasion regulations. These guidelines offer notaries explicit instructions on formulating property deeds related to cryptocurrency transactions, ensuring accurate documentation and legal protection for all parties involved.
Two Legal Models for Crypto Property Transactions
There are two primary models for real estate transactions involving cryptocurrencies in Portugal:
Model 1: Conversion Model
The buyer’s broker converts cryptocurrencies into traditional currency (euros). Once the transaction is confirmed and validated, the seller receives the proceeds in euros directly into their bank account. This is the more straightforward approach that many businesses have been practicing for years.
Model 2: Direct Exchange Model
This model involves a direct exchange of cryptocurrencies for property. The seller receives payment directly in cryptocurrency. This arrangement adds complexity, especially when funds exist exclusively in investment portfolios without broker custody, necessitating extra security and verification measures.
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The legal framework for crypto property transactions in Portugal can be complex. Our legal experts can help you navigate the requirements and ensure full compliance.
Schedule a Legal ConsultationTax Implications When Buying Property with Crypto in Portugal
Using cryptocurrency as the medium of exchange does not exempt you from standard Portuguese property taxes. Understanding the tax implications is crucial for a successful transaction.
Property Transfer Taxes
When purchasing property in Portugal with cryptocurrency, you’ll still be liable for the standard property transfer taxes, calculated in euros:
- IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis): This property transfer tax is calculated on the higher of the declared sale price or the rateable value (VPT) of the property. The euro equivalent of your crypto payment will determine this value.
- Stamp Duty (Imposto do Selo): A tax of 0.8% on the property’s value as declared in the deed (or its VPT, if higher).
These taxes must be paid in euros before the final deed is signed, regardless of whether the property purchase is made with cryptocurrency.
Cryptocurrency Capital Gains Tax
Portugal’s stance on crypto taxation has evolved. As of 2023, specific rules for crypto gains were introduced:
Portugal’s cryptocurrency tax structure distinguishes between short and long-term holdings
Tax Advantages
- Long-term holdings (more than 365 days) may be tax-exempt
- No VAT on cryptocurrency transactions for property purchases
- Cryptocurrency-to-cryptocurrency exchanges not immediately taxed
- Occasional trading generally exempt from transaction taxes
Tax Considerations
- Short-term capital gains (assets held less than 365 days) taxed at 28%
- Professional trading income taxed progressively (14.5% to 53%)
- Passive income from staking/lending taxed at 28%
- Disposal of crypto for property purchase may trigger capital gains tax
Important: Portugal’s tax laws regarding cryptocurrency continue to evolve. It’s strongly recommended to consult with a tax advisor familiar with both Portuguese tax law and cryptocurrency before proceeding with a property purchase.
Step-by-Step Guide: How to Buy Real Estate with Crypto in Portugal
The process of buying property with cryptocurrency in Portugal involves several key steps that must be carefully followed to ensure a successful and legally compliant transaction.
The complete process for purchasing Portuguese real estate with cryptocurrency
- Find a Property and Seller Accepting Cryptocurrency
Locate a property and confirm that the seller is willing to accept cryptocurrency as payment. This may require working with specialized real estate agencies familiar with crypto transactions. - Engage Legal and Financial Experts
Hire a Portuguese lawyer and tax advisor specializing in both property and cryptocurrency transactions. Their expertise will be invaluable throughout the process. - Prepare Documentation for AML/KYC
Gather comprehensive documentation proving the origin of your cryptocurrency funds. This includes transaction histories from exchanges, proof of initial purchase, and potentially tax payment records from your country of origin. - Agree on Transaction Model and Terms
Decide whether to use the conversion model (crypto to euros) or direct exchange model (crypto for property). Document this agreement clearly in the Promissory Contract of Purchase and Sale (CPCV). - Address Volatility Risk
Establish mechanisms to handle cryptocurrency price fluctuations between the CPCV and final deed (Escritura). This might include using stablecoins, specific conversion windows, or price adjustment clauses. - Find an Experienced Notary
Locate a notary comfortable with cryptocurrency transactions. Not all notaries have the necessary expertise, so your legal advisor can help identify appropriate options. - Execute the Transaction
Complete the cryptocurrency transfer according to the agreed model. For direct exchanges, provide wallet details and verify transfers. For conversion models, work with a reputable exchange to convert to euros. - Pay Property Taxes
Pay IMT and Stamp Duty in euros before the final deed signing, regardless of the payment method for the property itself. - Sign the Final Deed
Complete the property transfer at the notary’s office, where the deed will document the cryptocurrency transaction details. - Register the Property
Register the property in your name at the Land Registry Office (Conservatória do Registo Predial) to complete the process.
Need Help Navigating the Process?
Our team specializes in crypto-to-property transactions in Portugal. We can guide you through each step of the process to ensure a smooth and compliant purchase.
Get Personalized GuidanceBest Platforms to Buy Real Estate with Crypto in Portugal
Several specialized platforms and services now facilitate property purchases using cryptocurrency in Portugal. These platforms vary in their approach, accepted cryptocurrencies, and additional services offered.
Specialized platforms now facilitate crypto-to-property transactions in Portugal
| Platform/Service | Accepted Cryptocurrencies | Property Types | Services Offered | Fees | Key Features |
| Prometheus International | Bitcoin, Ethereum, Cardano | Luxury properties, primarily in Madeira | Direct sales, conversion services, legal support | 2-3% transaction fee | Pioneered crypto property sales in Portugal; specializes in high-end properties |
| Zome | Bitcoin, Ethereum | Residential apartments, houses nationwide | Direct exchange, notary coordination, legal support | Standard real estate commission (5-7%) | Partnerships with local cryptocurrency exchanges; completed first direct Bitcoin property exchange |
| Portugal Property | Bitcoin, Ethereum, USDT | Full range of residential and commercial properties | Conversion services, legal guidance, tax advisory | Variable based on services (2-6%) | Comprehensive support through entire process; strong legal expertise |
| Crypto Valley Real Estate | Bitcoin, Ethereum, and 20+ altcoins | Investment properties, development projects | Direct exchange, investment advisory, development opportunities | 1-3% transaction fee | Focus on investment properties; international client base; multiple cryptocurrency options |
| NovoMove | Bitcoin, Ethereum, Litecoin | Residential properties nationwide | Property search, legal support, crypto transaction facilitation | Standard agency fees plus 1% crypto handling | Specialized in helping international crypto investors; strong educational resources |
How to Choose the Right Platform
When selecting a platform to facilitate your crypto property purchase in Portugal, consider these key factors:
- Cryptocurrency Support: Ensure the platform accepts the specific cryptocurrencies you hold and wish to use for the purchase.
- Transaction Model: Determine whether you prefer direct exchange or conversion to euros, and choose a platform that specializes in your preferred approach.
- Legal Expertise: Prioritize platforms with strong legal support and experience navigating Portugal’s cryptocurrency property regulations.
- Fee Structure: Compare transaction fees, which can vary significantly between platforms and impact your overall investment.
- Track Record: Research the platform’s history of successful transactions and client testimonials to gauge reliability.
Researching platforms thoroughly is essential for a successful crypto property purchase
Challenges and Considerations When Buying Property with Crypto
While buying real estate with crypto in Portugal offers exciting opportunities, it also presents unique challenges that buyers should carefully consider before proceeding.
Volatility Risk
Cryptocurrency prices can fluctuate dramatically between the initial agreement and final transaction. This volatility can significantly impact the effective purchase price. Consider using stablecoins or implementing contractual safeguards to mitigate this risk.
AML/KYC Scrutiny
Crypto property transactions face intense scrutiny under anti-money laundering regulations. Be prepared to provide comprehensive documentation proving the legitimate source of your cryptocurrency funds. Insufficient documentation can derail the entire transaction.
Finding Willing Participants
Not all sellers, lawyers, or notaries are comfortable or equipped to handle crypto transactions. This limitation can restrict your property options and potentially extend the timeline for completing a purchase.
Working with experienced advisors can help navigate the challenges of crypto property purchases
Case Studies: Successful Crypto Property Transactions
Luxury Properties in Madeira
In 2021, two luxury properties in Madeira Island were sold for €4.1 million, with payments made in Cardano cryptocurrency. This transaction, facilitated by Prometheus International, marked one of the first significant crypto property sales in Portugal. The company used crypto-exchange accounts to receive the cryptocurrency payment, converted it to euros, and then transferred the funds to their bank account at Millennium BCP.
Apartment in Braga
In May 2022, a real estate agency facilitated the sale of a T3 apartment in Braga for 2.9 Bitcoins (valued at approximately €110,000 at the time). This transaction utilized the direct exchange model enabled by recent legislative changes. Representatives from various sectors, including the real estate firm Zome, legal experts, and the Chairman of Notaries, attended the deed signing, highlighting the collaborative effort required.
“The numbers reflect that there are people willing to conduct business with cryptocurrencies in Portugal, but that there is also a lot of work to be done to have a clearer and more global legislative framework.”
Future of Crypto Real Estate in Portugal
The intersection of cryptocurrency and real estate in Portugal is at the precipice of an exciting new era. As awareness of this investment opportunity broadens, Portugal is projected to witness significant growth in property transactions facilitated by cryptocurrency.
Portugal’s crypto-friendly approach positions it at the forefront of digital asset integration in real estate
Recent legislative amendments have acted as a catalyst, paving the way for a more vibrant and dynamic market while providing much-needed clarity and security. Real estate experts are optimistic about this burgeoning sector, anticipating increased demand from both domestic and international investors attracted by the prospect of leveraging cryptocurrency for property purchases.
As more transactions are completed using cryptocurrency, Portugal could strengthen its position as a leading crypto-friendly nation, attracting further investment and innovation in digital assets. The future promises exciting developments as Portugal continues to explore and embrace the possibilities of digital currency in the real estate market.
Conclusion: Is Buying Property with Crypto in Portugal Right for You?
Buying real estate with crypto in Portugal offers a unique opportunity to convert digital assets into tangible property in a country with progressive regulations and a growing acceptance of cryptocurrency transactions. While the process has become more structured since 2022, it still requires careful navigation of legal requirements, tax implications, and practical challenges.
For those with significant cryptocurrency holdings looking to diversify into real estate, Portugal presents an attractive option with its combination of crypto-friendly policies, beautiful landscapes, and high quality of life. However, success requires thorough preparation, expert guidance, and a clear understanding of both the opportunities and challenges involved.
Portugal offers unique opportunities for cryptocurrency investors to acquire premium real estate
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Request Your Free ConsultationCan I buy property in Portugal using any cryptocurrency?
While legally you can use any cryptocurrency, in practice, most transactions involve major cryptocurrencies like Bitcoin, Ethereum, and occasionally Cardano. The availability of platforms and services willing to facilitate transactions with specific cryptocurrencies varies, with Bitcoin and Ethereum being the most widely accepted.
Do I need to convert my cryptocurrency to euros before buying property?
Not necessarily. Portugal now allows two models for property purchases with cryptocurrency: the conversion model (converting crypto to euros before completion) and the direct exchange model (transferring cryptocurrency directly to the seller). The choice depends on the seller’s preferences and your specific circumstances.
What documentation do I need to prove the source of my cryptocurrency?
You’ll need comprehensive documentation including transaction histories from exchanges, proof of initial purchase, records of mining activities (if applicable), tax filings related to cryptocurrency from your country of origin, and bank statements showing any fiat-to-crypto conversions. The more thorough your documentation, the smoother the anti-money laundering verification process will be.