Buying real estate in Spain using cryptocurrency is a process that is becoming more and more common, especially among foreigners. Acquiring real estate in Spain with cryptocurrency is a completely legal and transparent procedure, provided that all legal requirements are met. Below, let's look at how the transaction is processed, the payment process, and taxation.
Transaction Processing.
The process involves transferring funds from the buyer's crypto wallet to the seller's crypto wallet. This requires verifying the source of the funds, confirming the authenticity of the crypto wallet, and providing a report from the exchange confirming the ability to make the payment.
A real estate purchase transaction with cryptocurrency can be done through an agreement between the buyer and the seller. However, cryptocurrency as a form of payment is not considered an official means of exchange in Spain. This means that cryptocurrency is usually either converted to euros before the transaction, or both parties agree on the payment form in cryptocurrency and fix the exchange rate at the time of the transaction.
There are notaries who are willing to work with cryptocurrency, accepting it to their crypto wallet and converting it into euros on the day of signing the sales contract. This method guarantees the security of the transaction, as the notary converts the euros directly to the seller's account. However, it is important to note that additional fees may be charged for such services - usually 2-4% of the transaction amount. The official contract is ultimately concluded in euros, which helps avoid uncertainties related to exchange rate fluctuations.
Taxes on the Transaction.
Taxation when buying real estate with cryptocurrency in Spain is similar to standard transactions:
- Property Transfer Tax (ITP). Depending on the autonomous community, it ranges from 6 to 10% for secondary housing.
- VAT (IVA). When buying new real estate (e.g., from a developer), VAT at a rate of 10% and a stamp duty (1-1.5% depending on the region) must be paid.
It is important to note that transactions with cryptocurrency in Spain attract special attention from tax authorities, as they require proof of the source of funds. This can complicate the process for non-residents and investors if they do not have sufficient documentation.
Our company has experience in handling transactions using cryptocurrency and is ready to assist at all stages to ensure the maximum protection of your interests and funds.
