Buying an apartment with bitcoins

In Europe

Some countries in this part of the world began issuing bills regarding coins and tokens as early as 2018-2021. Many states do not prohibit citizens from using digital assets to pay for services and goods. In 2021, you can buy real estate for cryptocurrency in the following countries:

• United Kingdom.
• Switzerland.
• Estonia.
• France.
• Finland.
• Germany.
• Netherlands.
• Spain.
• Portugal.

Citizens of these states have a positive attitude to such transactions. They allow not to exchange the national currency of the countries for euros, which helps to save on money conversion. There is also a good chance that the seller of the apartment will concede the price if he plans to use the cryptocurrency for investment or trade.

Buying real estate for Bitcoin has other pluses:

• Speed. There is no need to use the services of lawyers and banks, so the buying/selling process is faster.
• Simplicity. The parties to the buy/sell process practically do not need to work with documents.
• Confidentiality. The country’s tax service cannot trace the transaction.
• Low price. Commission for payment transactions in the Bitcoin network is lower than in banking organizations.
• Transparency. Both parties can verify and document information about the transaction without using the services of banks and lawyers. This saves time and money.

Asia

Some countries from this part of the world are also positive about digital assets. For example, Japan recognized Bitcoin as legal tender back on April 1, 2017. It took the government just under 36 months to make this decision.

In 2021, you can buy real estate for cryptocurrency in Asia in 3 states already:

• Singapore.
• Indonesia.
• Japan.

For example, in Indonesia, the process of buying/selling apartments for Bitcoin is similar to the purchase of real estate for digital money in the United States. However, here it follows simpler rules:

• There are no currency controls.
• No need to confirm the origin of the funds.

Eastern Europe

As of 2021, there are no countries that allow the direct purchase/sale of an apartment for Bitcoin coins. However, citizens of states bypass the legislation if necessary, conducting legal transactions without consequences.

For example, in 2017, a one-room apartment in the western part of Kiev, Ukraine, was sold using blockchain technology. The process took place in the format of an NFT auction on the real estate transaction platform Propy. With an initial lot price of $20,000, the final sale amounted to $93,400.

NFT (Non-Fungible Token) – Non-Fungible Token. In fact, it implies a unit of account of ownership of something. The blockchain network records all information about the item and its owner. The concept of “non-interchangeable” means that an asset cannot be substituted for another. Each individual NFT is not equal to another such token.

Apartments in Kiev were sold according to the following algorithm:

1. Signing proprietary legal documents (on the non-free object) to transfer ownership to the future owner.
2. Conducting an NFT auction.
3. Receipt of payment by the seller.
4. Becoming a full-fledged owner of the property after identity verification.

NFT-tokens for an apartment

The owner can start receiving dividends for real estate. Tokenization – digitization of the real object for simplified and safer trading in it – allows to do this. Thanks to it, the owner of an apartment can turn the property into a marketable asset and distribute it among investors from all over the world. Emirex exchange has such a service.

Any type of apartment can be tokenized: from a residential apartment to a trophy property. This process solves the problem of low liquidity (the ability to sell an asset quickly without losing its price) in this market and the lack of access to foreign investors.

Tokenization takes place in 4 stages:

1. Real estate valuation.
2. Legal structuring.
3. Issuance of tokens.
4. Distribution of assets to investors.

It is also possible to buy real estate for NFT cryptocurrency. Such a transaction is carried out under an exchange agreement with an agreement on the offset of counterclaims. However, the buyer will have to try to find a real estate seller who will agree to such conditions.

How to buy an apartment for bitcoins

In Russia, cryptoassets are not an object of law. This is stated in article 128 of the Civil Code of the Russian Federation. However, they are property, as stated in No. 259-FZ. Based on this, Russian citizens have begun to circumvent the law, which is facilitated by the conclusion of a contract of exchange of digital money for real estate.

Under this scheme, the first party sells crypto-assets, and the second – an apartment. In the notary’s chamber, 2 contracts and an agreement on the offset of counterclaims are drawn up. In the latter document, both parties indicate mutual obligations. This is the only way to buy an apartment for BTC in the Russian Federation.

Selection of the object

First, the buyer needs to determine the apartment he wants to buy. There are 2 options for the development of events:

• Agree with the seller on the purchase for cryptocurrency.
• Initially find a lot with the possibility of payment with digital money.

On the territory of the CIS countries, buying an apartment for crypto-assets is only gaining popularity, and the search for a seller can take a long time. This is mainly due to the prohibition of such transactions by law and the complexity of the “workaround” process.

Contacting the seller

After choosing an apartment, you need to discuss the terms with the second party to the transaction. The first thing to find out is whether the seller agrees to the complexities of the process and the receipt of cryptocurrency as payment. Most people are likely to refuse because realizing the apartment is time-consuming as it is.

After contacting the seller, you should also arrange a personal meeting to inspect the property, so as not to buy a cat in the bag. If the results of the inspection of the apartment both parties agree on the deal, then you can proceed to the next step.

Drawing up the contract

In Eastern Europe, it is forbidden to conduct a direct transaction where the object of purchase is real estate. To buy an apartment for BTC, you need to make a mena. The notary chamber will request 2 contracts and an agreement on offsetting counterclaims. In accordance with these documents, one party sells cryptocurrency, the other – apartments. The agreement specifies the mutual obligations under the exchange contract.

Transfer of the amount and finalization of the transaction

First, the buyer of real estate must send cryptocurrency to the seller’s account. In the Bitcoin network, the processing of the transaction takes about an hour at a moderate workload. After receiving confirmation from the seller about the enrollment of crypto-assets, the notary certifies the apartment sale contract and the agreement on mutual obligations. The signed documents are sent to the Rosreestr for processing.

Registration of ownership

Rosreestr considers the transaction for about 5 days. The Federal Service almost always approves the exchange of cryptocurrency as property for the apartment and registers the title of ownership for the buyer. Upon completion of the transaction review, the Rosreestr will notify both parties. Then the buyer will be able to pick up the documents confirming his right to the apartment.

First real estate transactions for Bitcoin

In 2013, a house for BTC coins was first put up for sale in Canada. It was located on a small plot of land and looked more like a barn than a room for a full-fledged residence. The homeowner (unknown) said he needed the digital money to create an internet project.

The table below shows a few more first sales of apartments for crypto assets in different countries.

Frequently Asked Questions