Exciting News for Investors Purchasing Property with Cryptocurrency in 2024

We recognize the increasing appeal of cryptocurrency as a secure and efficient method for payments and investments.

Our team is committed to offering you seamless access to real estate acquisitions using cryptocurrency. We utilize robust and secure legal frameworks to ensure your investment is protected at every stage. With ELYSIUM ONE, you can confidently purchase your dream property using digital assets, knowing your transaction is handled with  professionalism and expertise.

Good news for investors looking to purchase property using cryptocurrency in 2024. Significant updates regarding cryptocurrency regulations are set to take effect in various countries, providing more clarity and opportunities for such transactions.

Spain

In Spain, cryptocurrencies have been recognized as a means of payment and are subject to specific regulations since the introduction of Royal Decree 7/2021 on April 28, 2021. This decree modified existing legislation to include definitions and regulations for virtual currencies, emphasizing their use as a medium of exchange, even though they do not possess the legal status of currency or money. Further regulatory developments occurred with the approval of Royal Decree 249/2023 on April 4, 2023, introducing obligations for declaring the possession and transactions of cryptocurrencies, effective from January 1, 2024.

According to updated cryptocurrency regulations, if the seller is willing to accept cryptocurrency, it is important to negotiate the terms and agree on the cryptocurrency to be used (e.g., Bitcoin, Ethereum). If the seller prefers euros, a FATF-compliant cryptocurrency exchange is required to convert cryptocurrency to euros. The final sales agreement (Escritura de Compraventa) must be signed in the presence of a notary. This document will be in Spanish and should include details about the cryptocurrency transactions. It is important for the buyer to pay notary fees by payment card, wire transfer, or cash, and the property tax (Impuesto de Transmisiones Patrimoniales - ITP) by bank draft or wire transfer. Afterward, the notary will submit the Property Title (Escritura de Compraventa) to the Land Registry (Registro de la Propiedad) for government registration.

Additionally, Spain has accelerated the implementation of the European Markets in Crypto-Assets (MiCA) regulation, set to be fully applicable in December 2025. This regulation establishes a comprehensive framework for crypto-asset services, enhancing legal certainty and investor protection.

Indonesia

In Indonesia, cryptocurrencies are not recognized as legal tender but are allowed as tradable commodities. This means that directly buying property with cryptocurrency is not possible, and the declared purchase amount must be converted to Indonesian Rupiah (IDR).

There are two ways to use cryptocurrency for a property purchase in 2024:

If the seller is willing to receive cryptocurrency, it is important to declare the full amount of the deal in IDR for the Binding Agreement, which outlines the terms and conditions of the sale in the presence of a notary.

If the seller prefers IDR, the cryptocurrency exchange INDODAX is required to convert cryptocurrency to IDR.

The seller must confirm receipt of the full amount for the property sale, and the notary will prepare the Lease Agreement (Akta Sewa Menyewa), which both parties need to sign. It is important to pay the notary fees and the property tax after deal.

Panama

On April 28, 2022, the National Assembly of Panama approved Bill No. 697, also known as the "crypto bill." This bill regulates the commercialization and use of crypto assets, providing the legal basis for private and public actors to use cryptocurrencies. As of June 2024, the bill is undergoing vetting for international AML regulations by the Supreme Court and final approval by the President of Panama. Once Bill No. 697 is in force, property deals might be settled using cryptocurrency.

As of June 2024, there are two ways to use cryptocurrency for a property purchase in Panama:

If the seller is willing to receive cryptocurrency, it is important to declare the full amount of the deal in PAB (Panamanian Balboa, equal to USD) for the Purchase and Sale Agreement (Contrato de Compraventa), which outlines the terms and conditions of the sale in the presence of a notary. A Declaration of Value (Declaración de Valor) is also required to obtain a permanent Residential Permit if the value exceeds 305,000 PAB/USD and from September 1, 2024 this amount will be 500,000 PAB/USD.

If the seller prefers USD, a reputable cryptocurrency exchange is required to convert cryptocurrency to USD for a cash payment. Full payment in cash for a property purchase is legal in Panama.

The seller must confirm receipt of the full amount for the property sale, and the notary will prepare the Public Deed (Escritura Pública), which both parties need to sign. It is important to pay the notary fees and the property tax (2% from the seller’s side). Afterward, the notary will submit the necessary documents to the Public Registry (Registro Público de Panamá) to register the property title under the new owner’s name.

These updates make 2024 an exciting year for property investors using cryptocurrency, offering more opportunities and clearer regulations in various countries.

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