Buying property with crypto

[cheezcarls]

In the Philippines, there’s a city in the Visayas group of islands (Iloilo City a.k.a The City of Love) where a real estate firm is accepting Bitcoin for payments in buying properties. That’s what I’ve remembered coming from a beautiful friend of mine who is now focusing on her real estate career. Philippines is currently a crypto-friendly country, and massive adoption is still a long way to go.

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[tabas]

In the Philippines, there’s a city in the Visayas group of islands (Iloilo City a.k.a The City of Love) where a real estate firm is accepting Bitcoin for payments in buying properties. That’s what I’ve remembered coming from a beautiful friend of mine who is now focusing on her real estate career. Philippines is currently a crypto-friendly country, and massive adoption is still a long way to go.

How many successful real estate purchase they've made through bitcoin? that's a good business if they've been doing that when the price of bitcoin is still under $20k.
Are they selling those bitcoins quickly once they've received the payment from the buyer? or they keep it? such an interesting question because we're just seeing another all time high.

[dansus021]

I've just joined the forum earlier tonight (UK), so hello to everyone.

I'm not rich but have sufficient bitcoin/crypto to be wondering about the possibility of buying a modest house/property/land if crypto continues to rise next year and property prices collapse significantly. So I was wondering about the potential to buy property with crypto, not just here in the UK (preferably), but globally?

Property prices are currently high and (crazily) going higher (here), but if the anticipated collapse happens next year I want to know my options, especially if crypto goes to new ATH during that period, as I hope/anticipate. Can you buy a house with crypto, or do I need to convert to fiat (£ etc.) before I do so? What are the tax repercussions, even if I can? Etc..

Any advice/thoughts welcomed, lest I skewer myself next year. Enjoy your weekend.

first of all there's possibilities to buy a modest house/property/land but it depend on owner, are the owner accept the crypto as payment and modest house/property/land go straight to using deed for land form. and second one regulation some country allow crypto as asset not payment system like in my country. maybe in the next few year some property agent will start using crypto as payment system

[stomachgrowls]

I've just joined the forum earlier tonight (UK), so hello to everyone.

I'm not rich but have sufficient bitcoin/crypto to be wondering about the possibility of buying a modest house/property/land if crypto continues to rise next year and property prices collapse significantly. So I was wondering about the potential to buy property with crypto, not just here in the UK (preferably), but globally?

Property prices are currently high and (crazily) going higher (here), but if the anticipated collapse happens next year I want to know my options, especially if crypto goes to new ATH during that period, as I hope/anticipate. Can you buy a house with crypto, or do I need to convert to fiat (£ etc.) before I do so? What are the tax repercussions, even if I can? Etc..

Any advice/thoughts welcomed, lest I skewer myself next year. Enjoy your weekend.

Dont know if these sites were real but its stated that you can purchase up house or real estate with crypto.

https://bitcoin-realestate.com/
https://cryptoemporium.eu/category/property/

Check these companies too:
https://builtin.com/blockchain/blockchain-real-estate-companies

[aioc]

Developers always opted for fiat, you are lucky if you find some company that is accepting Cryptocurrency, because of the volatility of the market, the price of the property changes from time to time, because we all know developers they always value it at the highest possible price depending on the zoning, it's better to follow the market and sell your Crypto on profit and buy the property that you like, it's advantageous both from buyer and seller that the price is not within the volatility of the market.

[zasad@]

Is it really possible to buy real estate for cryptos? I have some money in Bitcoin and am willing to invest it into real estate

If your country does not have a clear cryptocurrency legislation with good practice, then it is better to buy real estate for fiat.
Another question is the tax legislation of your country and how the control procedure takes place when a citizen has a large amount of money in his account or when you buy expensive real estate.
For example, in my country, all data on purchases of apartments or cars goes to the tax office. If the purchase is more than $40,000, then the IRS checks my official income and paid taxes. If I paid little taxes, but bought an expensive apartment, then I bring several loan agreements or donations of money from close relatives that I took money from them to buy an apartment or car.
While this method works in my country, how do you confirm your income in your country or do you have no control?

[Becassine]

Interesting topic if ever there was one, even if it is from 2020.
 
With anti-money laundering laws and capital gains taxes, it is essential to consult a tax lawyer. Real estate purchases in bitcoins vary not only by country, but also over time. In 2014, a property had been sold in the US for example (https://www.wsj.com/articles/lake-tahoe-property-sells-for-1-6-million-in-bitcoins-1407534997)

There are real estate agencies that specialize in selling, buying and renting crypto property, like here in Switzerland (https://bithome.ch/service-buy-sell-real-estate-cryptocurrency-bitcoin/)

Sites like these (https://cryptorealestate.cc/) are downright dreamy, those lucky enough to have bitcoins from the 2010s, can buy just about anything.

It's a safe bet that anyway, a big bitcoin holder will pay a big capital gains tax.

An interesting article  : https://bitcoinmagazine.com/business/can-you-buy-a-house-with-bitcoin

[zasad@]

Interesting topic if ever there was one, even if it is from 2020.
 
With anti-money laundering laws and capital gains taxes, it is essential to consult a tax lawyer. Real estate purchases in bitcoins vary not only by country, but also over time. In 2014, a property had been sold in the US for example (https://www.wsj.com/articles/lake-tahoe-property-sells-for-1-6-million-in-bitcoins-1407534997)

There are real estate agencies that specialize in selling, buying and renting crypto property, like here in Switzerland (https://bithome.ch/service-buy-sell-real-estate-cryptocurrency-bitcoin/)

Sites like these (https://cryptorealestate.cc/) are downright dreamy, those lucky enough to have bitcoins from the 2010s, can buy just about anything.

It's a safe bet that anyway, a big bitcoin holder will pay a big capital gains tax.

An interesting article  : https://bitcoinmagazine.com/business/can-you-buy-a-house-with-bitcoin

I think now the problem is what is your legal income and can you confirm it. In many countries, real estate purchases are controlled by tax authorities because it is very easy. Only in some countries they ask you about income and taxes, and in other countries they don’t ask you yet. But the key word is "yet". Your most vivid emotions will be when the tax office asks for your tax returns, and you have nothing to provide.

[virasog]

Interesting topic if ever there was one, even if it is from 2020.
 
With anti-money laundering laws and capital gains taxes, it is essential to consult a tax lawyer. Real estate purchases in bitcoins vary not only by country, but also over time. In 2014, a property had been sold in the US for example (https://www.wsj.com/articles/lake-tahoe-property-sells-for-1-6-million-in-bitcoins-1407534997)

There are real estate agencies that specialize in selling, buying and renting crypto property, like here in Switzerland (https://bithome.ch/service-buy-sell-real-estate-cryptocurrency-bitcoin/)

Sites like these (https://cryptorealestate.cc/) are downright dreamy, those lucky enough to have bitcoins from the 2010s, can buy just about anything.

It's a safe bet that anyway, a big bitcoin holder will pay a big capital gains tax.

An interesting article  : https://bitcoinmagazine.com/business/can-you-buy-a-house-with-bitcoin

I think now the problem is what is your legal income and can you confirm it. In many countries, real estate purchases are controlled by tax authorities because it is very easy. Only in some countries they ask you about income and taxes, and in other countries they don’t ask you yet. But the key word is "yet". Your most vivid emotions will be when the tax office asks for your tax returns, and you have nothing to provide.

Well, only the crypto friendly nations citizens can buy and sell property through bitcoin legally. Most of the time when you buy a property, you need to complete its whole documentation so that the government may give you the NOC to buy or sell the property. In this case, you need to show the proof that you actually paid the amount through the banking channel or through cash. So now if you paid using the bitcoins, you will mention it in the legal documents and only the country that accepts bitcoin will recognize this transaction.

[meser#]

I hate to say this, but in my country Turkey shopping using cryptocurrencies is forbidden. I can hear that you are saying: what a nonsense! Yes you are right you can buy even gumble with your cryptos in Turkey. You can buy and sale the crypto currencies but you can't use for shopping You have to cash out firstly

On the other hand, real estate sales/rent prices getting higher and higher day by day. One of the reason is high inflation and this is causing Turkish Lira is getting worthless against other currencies like dollar and euro. Many landlords trying to sale their properties or trying to find new renter. But mostly their dream's customer is foreigner people. And many foreigner buys properties in here due to many reasons. Like citizenship or their salaries in make them richer in here. My personal opinion is don't think about buying properties in Turkey. Come here as a tourist not a landlord

[zasad@]

Interesting topic if ever there was one, even if it is from 2020.
 
With anti-money laundering laws and capital gains taxes, it is essential to consult a tax lawyer. Real estate purchases in bitcoins vary not only by country, but also over time. In 2014, a property had been sold in the US for example (https://www.wsj.com/articles/lake-tahoe-property-sells-for-1-6-million-in-bitcoins-1407534997)

There are real estate agencies that specialize in selling, buying and renting crypto property, like here in Switzerland (https://bithome.ch/service-buy-sell-real-estate-cryptocurrency-bitcoin/)

Sites like these (https://cryptorealestate.cc/) are downright dreamy, those lucky enough to have bitcoins from the 2010s, can buy just about anything.

It's a safe bet that anyway, a big bitcoin holder will pay a big capital gains tax.

An interesting article  : https://bitcoinmagazine.com/business/can-you-buy-a-house-with-bitcoin

I think now the problem is what is your legal income and can you confirm it. In many countries, real estate purchases are controlled by tax authorities because it is very easy. Only in some countries they ask you about income and taxes, and in other countries they don’t ask you yet. But the key word is "yet". Your most vivid emotions will be when the tax office asks for your tax returns, and you have nothing to provide.

Well, only the crypto friendly nations citizens can buy and sell property through bitcoin legally. Most of the time when you buy a property, you need to complete its whole documentation so that the government may give you the NOC to buy or sell the property. In this case, you need to show the proof that you actually paid the amount through the banking channel or through cash. So now if you paid using the bitcoins, you will mention it in the legal documents and only the country that accepts bitcoin will recognize this transaction.

It is very difficult to find two people, one of whom wants to sell real estate for bitcoins, and the other person wants to pay with bitcoins. But this is ideal. As a rule, a property can have several owners. For the buyer, this limits the huge market because many sellers want fiat.
But this does not save you from tax control.

[Becassine]

Unfortunately, it's illegal to buy property in the EU with BTC. To those who are not familiar with this business, it's also illegal to pay in a foreign currency like the US dollar, or to pay cash save in one country.  Even if the buyer accepts BTC, the transaction must be in the currency which is legal tender in the country, and the price shall be written in the contract. Sorry, but there's no choice.

Some tax and legal rules are not the same in the European Union and it is absolutely not illegal in France to pay in bitcoins. Nevertheless, you have to prove the origin of the funds and pay taxes and notary fees in Fiat.

In France, there is what is called the dation in payment: originally an heir could pay his debts by transferring works of art for example, in the same way a real estate developer can "exchange" a piece of land or a real estate for an apartment (for example a person sells his house on a piece of land on which the developer will build a building, the developer then offers in addition to transfer an apartment in the said building).

More infos : https://www.nexity.fr/terrains/guide-terrain/conseils-vente/dation-en-paiement-definition

One day the majority of countries will accept bitcoins in the same way as they accept a work of art to pay a tax debt, it is only a matter of time. In some countries you can already pay your taxes with bitcoin.

[crwth]

Reading this now, I hope the OP has an update on his decisions. Did he HODL? Or decided to convert his crypto already with fiat to buy something. This has been 3 years already, and I hope it's good news. Maybe merit worthy once he updates lol.

[zasad@]

Unfortunately, it's illegal to buy property in the EU with BTC. To those who are not familiar with this business, it's also illegal to pay in a foreign currency like the US dollar, or to pay cash save in one country.  Even if the buyer accepts BTC, the transaction must be in the currency which is legal tender in the country, and the price shall be written in the contract. Sorry, but there's no choice.

Some tax and legal rules are not the same in the European Union and it is absolutely not illegal in France to pay in bitcoins. Nevertheless, you have to prove the origin of the funds and pay taxes and notary fees in Fiat.

In France, there is what is called the dation in payment: originally an heir could pay his debts by transferring works of art for example, in the same way a real estate developer can "exchange" a piece of land or a real estate for an apartment (for example a person sells his house on a piece of land on which the developer will build a building, the developer then offers in addition to transfer an apartment in the said building).

More infos : https://www.nexity.fr/terrains/guide-terrain/conseils-vente/dation-en-paiement-definition

One day the majority of countries will accept bitcoins in the same way as they accept a work of art to pay a tax debt, it is only a matter of time. In some countries you can already pay your taxes with bitcoin.

And how do people in France solve problems if they cannot confirm the legality of buying cryptocurrency?
I heard that in countries like France, Germany there are very strict taxation and control over real estate purchases.
I think that there is less and less time left for the cryptocurrency to remain out of control.

[Fiatless]

<…>

We’ve got an ongoing (*) case study on the Spanish local board (see Me he comprado un piso con bitcoin). A person from that board recently bought a flat in Spain, and paid using Bitcoin a sum that is equivalent to just 100K€. All legally backed, notary to testify and so forth, but … the amount that was actually paid in BTC was written down in the deeds as cash, rather than BTC.

It therefore seems slightly on the hush-hush side when Bitcoin comes into the equation, and the notary hinted (without detailing) that payments stated in BTC are rather troublesome. The flat was cheapish, and cash can still be used between individuals for large sums (as opposed to when one side is a company), although above 100K would have triggered further burocracy.

This is a piece of uncommon news, I am glad to hear it. The buyer was fortunate to have someone that he could pay with Bitcoin. It will save a lot of bank charges and bureaucratic processes. Making such payments using a commercial bank will attract a lot of scrutiny and high bank charges. I like the idea of buying a house with Bitcoin because it will help to promote the privacy of both parties. Some bankers in my country act as agents to criminals. Immediately they observe that a certain customer has transferred such an amount, they can inform their gang which could lead to attacks.

I don't know the legal implication of buying a house with Bitcoin in my country. Banks are restricted from engaging in crypto transactions but bitcoin is still an acceptable means of payment. Stating that the property was bought with bitcoin will be ideal and the transaction details should be included in the payment receipt.

[Becassine]

And how do people in France solve problems if they cannot confirm the legality of buying cryptocurrency?
I heard that in countries like France, Germany there are very strict taxation and control over real estate purchases.
I think that there is less and less time left for the cryptocurrency to remain out of control.

That's the question: if the user has had btc for a long time and even earned them years ago by playing on sites that have disappeared or mined btc, if he bought them and no longer has the bank statements (perhaps he's even changed bank since then and there are no archives), it's not going to be easy, if only to declare the capital gains to the tax authorities. In any case, he'll only be able to recover modest sums in PtoP, otherwise the bank's red lights will be going off all over the place.

It will not be easy anyway.

[Bushdark]

Reading this now, I hope the OP has an update on his decisions. Did he HODL? Or decided to convert his crypto already with fiat to buy something. This has been 3 years already, and I hope it's good news. Maybe merit worthy once he updates lol.

Since this post was created many months ago, op would have made his decision especially now that the market his struggling to break out the support of $30k and wondering down the lower trend. Buying properties with cryptocurrency is a good idea if the bother parties decided to make the transaction with the need for bank coming in between the transaction. Although there could be some challenges but the but parties must be ready to agree on who's going to pay for the network fee or it will be shared between them since it is based on agreement and how they want to make the trade.

[countryfree]

And how do people in France solve problems if they cannot confirm the legality of buying cryptocurrency?
I heard that in countries like France, Germany there are very strict taxation and control over real estate purchases.
I think that there is less and less time left for the cryptocurrency to remain out of control.

That's the question: if the user has had btc for a long time and even earned them years ago by playing on sites that have disappeared or mined btc, if he bought them and no longer has the bank statements (perhaps he's even changed bank since then and there are no archives), it's not going to be easy, if only to declare the capital gains to the tax authorities. In any case, he'll only be able to recover modest sums in PtoP, otherwise the bank's red lights will be going off all over the place.

It will not be easy anyway.

It's totally impossible to buy any property with BTC in France. Proof of funds is not an issue, you wouldn't find a notary to make the sale.
Was there last month, I'm thinking about buying a barn in Normandy, but I didn't even ask about BTC, it would have been a waste of time.

[Becassine]

And how do people in France solve problems if they cannot confirm the legality of buying cryptocurrency?
I heard that in countries like France, Germany there are very strict taxation and control over real estate purchases.
I think that there is less and less time left for the cryptocurrency to remain out of control.

That's the question: if the user has had btc for a long time and even earned them years ago by playing on sites that have disappeared or mined btc, if he bought them and no longer has the bank statements (perhaps he's even changed bank since then and there are no archives), it's not going to be easy, if only to declare the capital gains to the tax authorities. In any case, he'll only be able to recover modest sums in PtoP, otherwise the bank's red lights will be going off all over the place.

It will not be easy anyway.

It's totally impossible to buy any property with BTC in France. Proof of funds is not an issue, you wouldn't find a notary to make the sale.
Was there last month, I'm thinking about buying a barn in Normandy, but I didn't even ask about BTC, it would have been a waste of time.

It's complicated, but not impossible. As I explained earlier, you can use the "dation in payment". In addition, a real estate series on Netflix shows an investor who absolutely wants to pay in BTC; in the docu they don't explain anything, but we can say that as long as the State receives its share (in fiats), then it's possible. After that, it's silly: it's better to resell your btc, pay your flat tax and simplify everything for the notary.

Dation en paiement: this is a method of settling a debt in which the debtor, with the creditor's agreement, hands over to the creditor something other than that initially stipulated in the contract.

Everything you need to know about dation in payment : https://www.village-justice.com/articles/dation-paiement-comme-modalite-reglement-une-dette,38798.html


And if your notary doesn't know about bitcoin, he does know about dation in payment. All that remains is to set the price of the property, and if the seller agrees to a fixed amount of btc at the time of the promise to purchase (even if it means having to put up with market fluctuations).

[zasad@]

And how do people in France solve problems if they cannot confirm the legality of buying cryptocurrency?
I heard that in countries like France, Germany there are very strict taxation and control over real estate purchases.
I think that there is less and less time left for the cryptocurrency to remain out of control.

That's the question: if the user has had btc for a long time and even earned them years ago by playing on sites that have disappeared or mined btc, if he bought them and no longer has the bank statements (perhaps he's even changed bank since then and there are no archives), it's not going to be easy, if only to declare the capital gains to the tax authorities. In any case, he'll only be able to recover modest sums in PtoP, otherwise the bank's red lights will be going off all over the place.

It will not be easy anyway.

It's totally impossible to buy any property with BTC in France. Proof of funds is not an issue, you wouldn't find a notary to make the sale.
Was there last month, I'm thinking about buying a barn in Normandy, but I didn't even ask about BTC, it would have been a waste of time.

It's complicated, but not impossible. As I explained earlier, you can use the "dation in payment". In addition, a real estate series on Netflix shows an investor who absolutely wants to pay in BTC; in the docu they don't explain anything, but we can say that as long as the State receives its share (in fiats), then it's possible. After that, it's silly: it's better to resell your btc, pay your flat tax and simplify everything for the notary.

Dation en paiement: this is a method of settling a debt in which the debtor, with the creditor's agreement, hands over to the creditor something other than that initially stipulated in the contract.

Everything you need to know about dation in payment : https://www.village-justice.com/articles/dation-paiement-comme-modalite-reglement-une-dette,38798.html


And if your notary doesn't know about bitcoin, he does know about dation in payment. All that remains is to set the price of the property, and if the seller agrees to a fixed amount of btc at the time of the promise to purchase (even if it means having to put up with market fluctuations).

Why complicate real estate transactions?
If the cryptocurrency is not prohibited and you pay taxes, then you can sell the cryptocurrency and buy real estate, having coordinated all issues with the bank.
If you do not declare income, then the bank or tax will be forced to do an audit.