Your Essential Guide to Buying Property in Portugal with Crypto

Over the past few years, Portugal has emerged as being hands-down one of the most crypto-friendly countries in the world, with many investors settling in Portugal or doing business in the country to tap into the country’s favorable approach to crypto.

A current hot topic amongst crypto investors and property buyers is whether buying property in Portugal with crypto is possible. And, to keep it simple, yes, it is. While specific laws relating to crypto in real estate are continually evolving, the Order of Notaries (Ordem dos Notários) issued guidance back in 2022, empowering notaries to facilitate digital transactions for property purchases.

In this article, we’ll cut through the noise and delve into how you can proceed if you are seeking to snap up your dream home in Portugal with crypto.

Understanding Portugal’s Crypto Landscape

Portugal has rapidly become one of the most crypto-friendly countries in the world for investors. Crypto earnings in Portugal are tax-free, and the country has created a streamlined approach for cryptocurrency businesses in terms of the legal and regulatory challenges that are not commonplace in other countries.

In 2024, our residency and citizenship partner, Global Citizen Solutions, released its Global Report on the Best Jurisdictions for Crypto Investors. The comprehensive, data-driven study analyzed the global landscape for crypto investment and evaluated 75 countries across 13 indicators, which included economics, technology, regulatory environment, innovation, governance, and green transition.

Portugal ranked in 6th position, behind Switzerland, Singapore, United Arab Emirates, Liechtenstein, and the Netherlands, underlining its status as a favorable environment for crypto investors.

Portugal’s high ranking as a crypto-friendly nation and attractiveness to investors are based on crypto-tax incentives, such as investors benefiting from tax exemptions on personal crypto gains. Portugal also allows crypto holders not to pay any taxes for their assets, as long as they have held them for more than one year. Companies that provide crypto-currency-related services, however, will be taxed on capital gains, with this rate ranging from 28 to 35 percent.

Rules for Buying Property in Portugal with Crypto

Buying property in Portugal with crypto is not a new topic. Given the booming Portuguese real estate market and Portugal’s favorable approach to cryptocurrencies, it’s a no-brainer that crypto traders and property buyers would be asking questions about whether it’s possible to buy real estate and secure their dream property with cryptocurrencies.

Rules relating to purchasing property in such transactions have become more advantageous to investors in recent years, with Portugal offering a streamlined process for buying property in Portugal with crypto. 

The Order of Notaries (ON) has worked on regulations that will provide clear instructions on how to create property deeds for the purchase and sale of houses in crypto, in addition to being strict in looking out for any signs of money laundering.  

While in the past, the ON has not registered purely digital businesses – as when you buy a house with cryptic, first the conversion into euros takes place, and after this, the property deed is signed – the new regulations make it possible to conduct real estate transactions with virtual currencies. This has made Portugal very attractive for property buyers seeking to purchase property in the country with crypto.  

Crypto Real Estate Transactions

The decision to establish standardized rules regarding buying property in Portugal with crypto came about after there was significant interest in real estate negotiations concerning payment in Bitcoin and other digital currencies.  

The ON has commented that they are on the strict lookout for cryptocurrency transactions for any signs of money laundering while also wanting to create transparent rules for cryptocurrency transactions so property buyers will easily be able to buy property with crypto. 

How to Make Property Purchases with Crypto

There are two main models for negotiating buying a property with crypto. The simplest is when the buyer’s broker converts the value of the digital asset into traditional currency.

When the transaction is finalized, the seller will receive the money in the local currency in their bank account. With most businesses, this is how the process of property negotiations has been conducted.  

However, there are complications when negotiations involve the exchange of crypto assets between the two parties – the buyer and the seller – when the sellers also receive payment for transactions in crypto. This is further complicated if the funds are only in investment portfolios and there is no custody of brokers.  

Their operations are the key focus of the regulations from the ON, which were launched to give Notary officers the necessary tools to break down crypto transactions in detail and improve transparency.  

What the Rules Mean in Practice

The rules from the ON came into force in April 2022. Under these regulations, notaries need to receive, in advance, a series of documents from the two parties. Alongside the personal identification documents, they will need to be presented with complete records of the time of acquisition and the storage wallets involved in the transaction.  

After this, the information is passed on to Portugal’s supervisory authorities, the Central Department of Investigation and Criminal Action (DCIAP), and the Financial Information Unit to ensure compliance.  

Provided there are no objections and after prior communication between themselves, DCIAP and the Financial Information Unit, the notaries can continue to carry out the property deed. For businesses with values that are more than €200,000, there will be an extra stage of communication to authorities after the completion of the operation.  

Notaries need to report the conversion of the value of assets into the recognized currency, such as euros or dollars, given the high volatility of cryptocurrencies. This is done at the signing of the promissory purchase agreement and at the time of the sale.  

The ON has also implemented a training program for Notary officers so that they are up-to-speed and kept abreast of developments. Since the start of 2022, the sector has received many requests to buy property in Portugal with crypto. The first recorded case of a home being purchased with crypto in Portugal was in the northern city of Braga in May 2022.  

Key Takeaways of Using Crypto to Buy Property in Portugal

The first essential thing to bear in mind when using crypto to buy your ideal property in Portugal is that you know where the money initially comes from. In other words, which bank account are the funds from, and what pathway has the money taken to end up as a digital asset?

You will need to provide information on the digital wallet number, be able to identify the parties involved in the business and verify that the money goes from one wallet to another at the time of the transaction.  

To put this simply, cryptocurrency investors will need to be able to follow the money’s journey to ensure transparency when buying real estate in Portugal. This is because, for digital currencies, there is potential for money laundering and tax crimes, which they will be stringently on the lookout for.  

For crypto investors looking to relocate, the rules and regulations regarding crypto make Portugal one of the easiest countries to immigrate to, where they can buy a property with digital assets. Investing in Portuguese real estate can be a key way to protect your future, particularly in this ever-changing world – buying property as a Plan B, is a smart move.

When buying property in Portugal, make sure you have a trusted realtor in Portugal or, preferably a buyer’s agent to guide you through the process. Alongside this, we highly recommend having an experienced real estate lawyer in Portugal to ensure all legal requirements are met. If you are asking yourself how long does it take to buy a house in Portugal? It may be faster than you may first imagine, with it being possible to navigate the process in between 1 and 4 months. 

At Goldcrest, we are more than happy to guide you through the buying process, from sourcing property through to acquisition and beyond. We can also introduce you to top lawyers who can assist you with all the legal intricacies.

Goldcrest: How We Can Help You 

Goldcrest is a buyer’s agent that is based in Lisbon. We provide expert, impartial advice on real estate investments and how to buy property in Portugal. From scouting out the perfect property through to property acquisition, we have you covered throughout the process.

If you are looking to purchase property in Portugal, don’t hesitate to get in touch. Our team of skilled experts is available to solve all your real estate doubts, helping you with the property search and offering insightful expertise and strategic advice.

Why choose Goldcrest?

• Local knowledge: With offices located across Portugal, our presence nationwide allows us to assist you personally across the country.
• Independent service: As an independent buying agent, we do not represent any development or project. Our service is entirely tailored toward each individual client, providing you with everything you need to secure the perfect property at the best possible price. As an impartial advisor on the market, we work solely on behalf of our client and provide a service tailored to your needs and requirements.
• Streamlined process: Our real estate agents speak English and Portuguese, and our service is completely focused on providing you with a hassle-free buying experience, saving you time.
• Experienced team: Our expert real estate team has a vast local knowledge of the Portuguese property market. We have cutting-edge technology and metasearch tools at your disposal to provide full market coverage, ensuring the best investment choices and negotiated prices.
• Network of partners: We have a close network of partners, including lawyers, property management services, builders, architects, designers, and landscape gardeners, again saving you time and hassle by providing you with trusted experts in their field of work.