Cryptocurrencies in Real Estate Transactions in Portugal

The Portuguese real estate market has witnessed a significant transformation with the introduction of cryptocurrencies as a means of payment. This innovation not only challenges traditional methods of transaction but also raises legal, fiscal, and operational questions that deserve analysis.

First Crypto Paid Property Deeds in Portugal

In May 2022, Portugal made history by completing the first public deed for a property fully paid in cryptocurrency, without conversion to euros, in Europe. The transaction, handled by real estate agency Zome, involved the sale of a 3-bedroom apartment in Braga for 3 bitcoins, equivalent to approximately €110,000 at the time. This operation positioned Portugal as a European pioneer in this type of transaction¹.

How Real Estate Transactions with Cryptoassets Work

In Portugal, real estate transactions involving cryptocurrencies are generally structured as barter deals. The buyer delivers cryptoassets to the seller in exchange for the property, with no need for prior conversion into fiat currency. This model requires specific safeguards, such as:

Proof of cryptoasset ownership

• Demonstrating legal possession of the cryptocurrencies used in the transaction.

Simultaneous transfer

• Ensuring that the transfer of cryptoassets and the delivery of the property occur in a coordinated manner².

Anti-money laundering (AML) compliance

• Implementing measures to ensure the legality of the funds involved.

Legal and Regulatory Requirements

Although this is a relatively new topic in the real estate market, it is subject to legal requirements and oversight from regulatory entities. The Portuguese Notaries Association has defined specific guidelines for this type of transaction³:

Advance notification

• The parties must provide the notary with detailed information, including identification of the parties involved, type and value of the cryptocurrencies, and proof of acquisition, at least five days before the deed⁴.

Volatility analysis

• For transactions above €200,000, it is necessary to compare the value of the cryptocurrencies on the date of the preliminary contract and on the deed date, in order to mitigate risks related to price fluctuations.

Real-Life Examples in Portugal

Beyond the Braga case, other examples reflect the growing adoption of cryptocurrencies in the Portuguese real estate sector. In April 2022, an investor purchased land in Vila Real using only cryptocurrencies and with no financial intermediaries. The deal was formalized with the support of a solicitor’s office, demonstrating the practical viability of this model⁵.

Advantages of These Transactions

Speed

• Cryptocurrency transfers can be completed within minutes, reducing the overall transaction time.

Transparency and security

• Blockchain technology provides an immutable and traceable record of transactions.

Access to new markets

• Accepting cryptocurrencies can attract international and tech-savvy investors.

Challenges of These Transactions

Volatility

• If not properly managed, price fluctuations in cryptocurrencies may impact the actual transaction value.

Legal complexity

• The lack of clear regulation in Portugal can still create legal uncertainty.

Illicit activity prevention

• Effective AML measures must be in place to avoid misuse of funds.

International Examples

Portugal is not alone in adopting cryptocurrencies in real estate. Several countries have conducted similar operations, showing a global trend toward crypto integration in the property market.

United States

The U.S. leads in this area. Since 2014, the first house purchased with Bitcoin was sold in Austin, Texas. Since then, several companies and platforms have emerged to facilitate real estate transactions using cryptoassets.

• In 2017, a penthouse in Miami was sold for 455 bitcoins (around $6 million at the time), marking one of the first large-scale crypto property deals.
• Today, states like Florida and California have real estate agencies accepting Bitcoin, Ethereum, and other cryptocurrencies as payment.

United Arab Emirates

Dubai has become a hub for tech and financial innovation. The city actively promotes blockchain integration in both public and private sectors.

• Emaar Properties, the company behind the Burj Khalifa, announced plans to accept crypto payments for property purchases.
• In 2022, a luxury apartment in Palm Jumeirah was sold for 15 million dirhams (approx. $4 million) in cryptocurrency through Fäm Properties.

Spain

Spain has also joined the market:

• In 2021, a Barcelona-based company sold its first property using Bitcoin exclusively, via the Inviertis platform, as an investment.
• Some Spanish developers have started accepting hybrid payments, part in euros, part in crypto, to reduce currency fluctuation risks⁶.
• In 2025, the first home was purchased entirely with crypto, valued at €1.5 million.

Future Outlook

According to the Portuguese Notaries Association (via Expresso newspaper), a total of 13 real estate deeds using cryptocurrency were completed in Portugal in 2022. The regions of Lisbon, Algarve, and Braga led in the number of transactions. However, seven proposals were rejected due to noncompliance with legal requirements, underlining the importance of regulatory adherence.

With the growing digitization of the economy and increasing investor interest in digital assets, the use of cryptocurrencies in real estate is expected to continue expanding in Portugal.

However, the success of this integration will depend on the evolution of the legal framework and the ability of institutions to adapt to these new technologies.

European Regulation

In December 2024, the European Regulation on cryptoasset markets (MiCA) will implement uniform rules across the European Union, aimed at strengthening investor protection and ensuring that cryptoasset service providers are properly regulated and supervised.

Key measures include:

• Clear information on associated risks;
• Protection mechanisms in case of insolvency of service providers;
• The right to file complaints at no cost;
• Safeguarding client funds, which must be held in accounts separate from the entity’s own accounts.

The Portuguese Securities Market Commission (CMVM) also highlights that authorized financial intermediaries providing investment services may offer cryptoasset-related services, as long as they notify the competent authority in their country of origin.

The use of cryptocurrencies in the real estate sector represents a major innovation with enormous potential. With advancing legislation and growing investor interest, the future of cryptoasset transactions looks promising.

If you are interested in purchasing one of our properties using cryptocurrency, don’t hesitate to contact us, we’re fully prepared to support you in this new reality.

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Sources:

1.Diário de Notícias – Troca de imóveis por criptomoedas ganha adeptos em Portugal.

2.Cuatrecasas – Transações imobiliárias com criptoativos em Portugal.

3.RFF Lawyers – Aquisições imobiliárias com criptomoedas em Portugal.

4.IAD Portugal – Comprar imóveis com criptomoedas: eis o que deve saber.

5.ECO – Este investidor português comprou um terreno e pagou com criptomoedas

6.Idealista – Vende-se a primeira casa 100% online em Barcelona que aceita pagamento em bitcoins.