Starting next week, it will be possible to buy houses in cryptocurrencies. But notaries will follow strict rules.
In Portugal, the appetite for purchasing real estate with cryptocurrencies has increased, above all, by foreign investors. This is because the country is seen abroad as a “tax haven” for crypto-businesses. But the rules will start tightening as early as next week. The Order of Notaries (ON) is preparing a regulation that will give clear instructions to notaries on how to make deeds for the purchase and sale of houses in cryptocurrencies. And they will be alert to possible suspicions of money laundering.
Buying houses in cryptocurrencies is not a new topic. But it can be done differently as of next week. So far, ON has not registered purely digital businesses. This is because when buying a house with cryptocurrencies, first the conversion into euros takes place and only then the deed is signed, says Portuguese journal Expresso.
With the new regulation being finalized by ON, it will become possible to carry out real estate transactions with virtual currencies, treating this as a barter business, that is, where goods are exchanged for cryptocurrencies. And it will be treated as a risky business for the purposes of preventing money laundering and other types of tax crimes. For all this, notaries will have to follow specific instructions to filter and get to know these crypto-businesses.
How will real estate deals in cryptocurrencies be done?
Anyone who wants to buy a house in cryptocurrencies from next week will have another way of doing business. But, on the other hand, you will have to communicate up to five days before the deed the following data to the notaries, which must then be sent to the DCIAP and the Financial Information Unit, according to the same newspaper:
* Identify the parties involved in the business (name, profession, address);
* Reveal the price and type of cryptocurrency;
* Present proof of purchase of cryptocurrencies (that is, registrations will be required from the acquisition of virtual currencies to the moment of business);
* Send information about the wallets (storage wallets);
If the real estate transaction with cryptocurrencies exceeds 200 thousand euros, in addition to the prior communications mentioned above, there are other rules to comply with:
The operation must be communicated to the authorities;
It will be necessary to compare the value of cryptocurrencies at the date of the promissory contract and their value at the date of deed.
It should be noted that it will continue to be possible to do real estate business in cryptocurrencies as has been done until now: converting virtual currencies into euros on the date of deed. In this case, the seller converts the cryptocurrency into euros at the bank and, then, it is up to the broker to avoid the risks on the origin of the money. The notary, in turn, will follow the normal procedures.