02 Mar Buying a property with Bitcoins in Spain
The virtual market for cryptocurrency is seeing a clear upward trend as the price of bitcoin is around 40,000 US dollars, a figure that is four times that of the last half of 2020. It seems that the traditional idea of money could disappear completely, accelerating the transition to digitization of transactions.
Among the goods that can be acquired through this currency, real estate is becoming increasingly relevant, since the sale of these assets through cryptocurrency in Spain is possible if it is registered in euros. That is, if we have the equivalent value of that house in bitcoins, the cryptocurrency must be translated into the currency of the country where we want to buy. In fact, in the EU the exchange of bitcoins to euros is not subject to VAT.
The operation of sale of goods must be previously agreed between both parties. The only problem is that since bitcoins are not decentralized, the property cannot in any way be notarized in cryptocurrencies, but must always be done in currencies linked to a central bank.
Tax obligations will remain the same, that is, paying with bitcoins does not exempt you from having to face the payment of taxes that have to be converted and declared in euros.
From Ramallo Abogados, we really hope these words make clearer and better the knowing and the issues you need to be aware if you are thinking to buy a property in Spain with Bitcoins, and we will be happy to advise you and handle any sale you are wondering to make at the Costa del Sol since the beginning of all, which is to find the best opportunity for you.