The acquisition of a beach villa, land, a factory, or any other real-world property in a country where the seller accepts Bitcoin or other cryptoassets as means of payment has complex legal, tax, and regulatory implications. Such a BTC2PROP transaction has to be carefully structured and executed.
To buy property with cryptos instead of cash or bank check is certainly not mainstream. However, the currently very limited appetite for sellers to accept cryptocurrencies will grow in the near future. See below the main questions when entering into a crypto transaction to buy or sell real estate.
In a true BTC2PROP transaction, the seller is willing to accept the Bitcoin transfer as genuine remuneration. This avoids the conversion into government-issued "fiat" currency, such as US$. At least the main purchase price is made without a crypto exchange or a bank. However, it might involve an escrow agent.
Although Bitcoin and other cryptocurrencies are typically legal tender neither in the jurisdiction of the buyer, nor the seller, the parties might deliberately agree on a barter trade or swap agreement using cryptocurrencies. However, the individual legal and factual implications have to be clarified on a case to case basis.
Bitcoin is not anonymous and private coins like Monero have its particularities. Without a proper risk assessment, a property acquisition for cryptocurrencies is not advisable.
A BTC2PROP transaction has to be carefully prepared to avoid loss and disappointment. There are certain obvious and somenhidden mechanics of buying a house with cryptocurrency.
For a crypto investor it makes sooner or later sense to diversify at least with a part of his crypto portfolio into international real estate. There are various understandable, legitimate, and by no means unethical reasons to avoid the detour via cash and financial institutions.
PUGNATORIUS offers guidance and transaction support to get the property acquisition or sale done successfully, efficiently, and in full compliance with legal and regulatory requirements. These services are typically accomplished as add-on to the professional services of the party's local lawfirm.
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