The trend to invest in real estate with crypto gained momentum in 2021 after the market explosion when bitcoin (BTC) hit the $60,000 mark.
Currently, many jurisdictions have amended their real estate laws to allow it to be purchased using cryptocurrencies. However, numerous real estate opportunities for cryptocurrencies remain untapped.
But still, tokenization will allow to position luxury real estate, limited to a certain region, and make it global and accessible to interested buyers and investors around the world.
>> So, which countries currently allow buying real estate with cryptocurrencies? <<
1. Thailand.
Thailand was one of the first Asian countries to legalize the use of cryptocurrencies. The country currently allows property buyers to make payments in cryptocurrencies.
Today, trading in major cryptocurrencies such as Bitcoin, XRP, Ethereum and Stellar (XLM) is allowed under the rules set by the Thai Securities and Exchange Commission (SEC).
It is important to note that individuals are allowed to deal with cryptocurrency. Regulated financial institutions operating in the country, including banks, are prohibited from doing so. Therefore, buyers wishing to purchase property in Thailand using cryptocurrencies should use alternative money transfer systems to settle transactions.
2. United Arab Emirates.
The United Arab Emirates is a popular place to do business and is turning into a major crypto hub with many international crypto organizations setting up their stores.
The country’s cryptocurrency market has multiplied over the past two years and is projected to increase another tenfold over the next few years if conditions do not change.
Currently, cryptocurrency users in the UAE can buy houses, villas, apartments and buildings using digital currencies through authorized agencies.
There are several restrictions, for example, the lack of provision of cryptocurrency services by banks. However, cryptocurrency transactions between individuals and some regulated real estate agencies are allowed.
3. Turkey.
Cryptocurrency is widely used in Turkey, with more than eight million Turkish citizens owning digital currencies.
The adoption was driven by a variety of factors, including runaway inflation that led to the devaluation of the Turkish lira. The national currency over the past two years has lost more than 50% of its value against the US dollar.
As more people use cryptocurrency for transactions, real estate agencies in the country are starting to accept cryptocurrency payments. Investors can purchase property in this transcontinental country through regulated real estate agencies.
Individuals who invest at least US$250,000 in fiat or the equivalent in cryptocurrencies when purchasing a property can also obtain direct citizenship through the Turkish golden visa program if they wish.
4. Portugal.
Portugal is one of the most cryptocurrency-friendly countries in the European Union. Therefore, it is not surprising that the government has provided investors with the opportunity to buy real estate using cryptocurrencies.
In previous years, the purchase of real estate with cryptocurrencies was allowed, but to complete the transfer of ownership, the money had to be converted into fiat to allow notaries to ratify crypto-related real estate transactions.
But in April, the situation changed, now digital currencies do not need to be converted into fiat for the transfer of ownership to be valid. The new rule classifies these types of transactions as barter.
5. Montenegro.
Montenegro is one of the more financially liberal countries in the Balkans, and the country does not have specific requirements for crypto transactions, including the purchase of crypto real estate.
Investors wishing to buy real estate in Montenegro using cryptocurrency face a minimum of problems if the transaction is authorized by a certified notary.
6. Georgia.
Georgia has a lot to offer investors and has a number of laws to encourage foreign investment.
For example, investors who want to invest their money in the country do not pay taxes on capital gains, including on income from investments in cryptocurrency. There are also no restrictions on foreign exchange transactions.
Although it is possible to buy real estate using cryptocurrencies in Georgia, it is important to note that cryptocurrencies are not regulated in the country, so the final purchase data entered in the property registry must contain an indication of the amount in fiat.
7. Canada.
Over 2.5 million Canadians own cryptocurrencies. This dynamic has resulted in more real estate firms in the country accepting payments in cryptocurrencies.
Some real estate brokers also provide crypto-to-fiat conversion services to smooth the process, since property sales on the official registry must be in Canadian dollars.
☆ Conclusion ☆
Cryptocurrencies are able to revive the real estate market, which is notoriously illiquid. Allowing the purchase of real estate with cryptocurrencies not only diversifies payment methods, but also makes it easier for international investors who operate crypto assets to purchase real estate around the world.
