Crypto Property Portugal: Legal & Tax 2025

Published on 22nd August, 2025

Q: I’ve heard Portugal is crypto-friendly. Can I actually buy a house there using Bitcoin or other cryptocurrencies in 2025?

A: Yes, it’s becoming increasingly possible to purchase property in Portugal using cryptocurrencies. While not yet mainstream for every transaction, the legal framework is adapting, and some sellers, developers, and even notaries are becoming more accustomed to these types of deals. However, it’s far from a simple swap of crypto for keys. There are significant legal, tax, and anti-money laundering (AML) considerations you must navigate carefully. Berkshire Hathaway HomeServices Portugal Property advises thorough due diligence.

Q: What are the main legal steps involved if I want to use crypto for a property purchase?

A: The process typically involves a few key stages where crypto meets traditional property law:

1. Agreement with the Seller: First and foremost, the seller must agree to accept cryptocurrency as payment or agree to a mechanism where crypto is converted to fiat (Euros) at a specific point to complete the sale. This needs to be clearly stipulated in the Promissory Contract of Purchase and Sale (CPCV).
2. Source of Funds & AML/KYC: This is a major hurdle. Both real estate agencies and notaries are subject to strict Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. You will need to provide exhaustive proof of the origin of your cryptocurrency – how you acquired it, transaction histories from exchanges, and potentially even proof of tax payments on crypto gains in your country of origin. This is non-negotiable.
3. Conversion to Fiat (Often Required): While direct crypto-for-property deals are conceptually possible, many transactions will still involve converting the cryptocurrency to Euros before the final deed (Escritura). This might happen via a specialised crypto payment processor or an exchange, with the Euro amount then transferred to the seller. The timing and exchange rate for this conversion must be clearly agreed upon.
4. Notary Involvement: The public deed of sale must be registered with a Portuguese notary. Notaries are increasingly aware of crypto transactions but will be extremely diligent regarding AML/KYC. Some notaries are more experienced with crypto than others; finding one comfortable with the process is key. Your legal advisor, recommended by PortugalProperty.com, can assist here.
5. Property Registration: After the deed is signed and payment confirmed (whether in crypto or converted fiat), the property is registered in your name at the Land Registry Office (Conservatória do Registo Predial).

Q: What about taxes? If I use crypto, do I still pay property taxes like IMT and Stamp Duty?

A: Absolutely. Using cryptocurrency as the medium of exchange does not exempt you from standard Portuguese property taxes. The transaction value for tax purposes will be determined in Euros.

• IMT (Imposto Municipal sobre as Transmissões Onerosas de Imóveis): This is the property transfer tax. It’s calculated on the higher of the declared sale price or the rateable value (VPT) of the property. The Euro equivalent of your crypto payment will be used to determine this value.
• Stamp Duty (Imposto do Selo): This is a tax of 0.8% on the value of the property as declared in the deed (or its VPT, if higher).

These taxes must be paid in Euros before the final deed is signed.

Q: Are there any specific crypto taxes I should be aware of in Portugal for 2025 related to this purchase?

A: Portugal’s stance on crypto taxation has evolved. As of 2023, specific rules for crypto gains were introduced:

• Capital Gains Tax (CGT): If you are a Portuguese tax resident and you are effectively “disposing” of your cryptocurrency (i.e., using it to buy property, which is an exchange of one asset for another), any gain you made on that crypto could be subject to Capital Gains Tax. Gains on crypto held for less than 365 days are taxed as ordinary income (at progressive rates up to 48%, plus a potential solidarity surcharge). Gains on crypto held for more than 365 days by individuals were previously often tax-free, but the rules have tightened. For 2025, it is crucial to get up-to-date advice, as the specifics of how the “disposal” for property is treated (especially if it’s your main home) can be complex. Non-residents might be taxed in their country of tax residence, depending on double taxation agreements.
• No VAT: Currently, the exchange of cryptocurrency for fiat currency, or its use to pay for goods and services (like property), is generally exempt from VAT in Portugal, following EU Court of Justice rulings.

Q: What are the biggest challenges or risks I should anticipate?

• Volatility: Cryptocurrency prices are highly volatile. Agreeing on a fixed crypto amount for a property whose price is set in Euros can be risky if the market moves significantly between the CPCV and the Escritura. Mechanisms to mitigate this (e.g., stablecoin usage, specific conversion windows, or price adjustment clauses) should be considered.
• AML/KYC Scrutiny: Be prepared for intense scrutiny of your crypto’s origin. Lack of clear, verifiable documentation can derail the entire transaction.
• Finding Willing Participants: Not all sellers, lawyers, or notaries are comfortable or equipped to handle crypto transactions. This is improving but can still be a limiting factor.
• Regulatory Changes: The regulatory landscape for crypto is still evolving globally and in Portugal. Rules can change, so staying updated is vital.

Q: So, what’s your final advice for someone considering this in 2025?

A: Proceed with caution and expert guidance. Buying property with crypto in Portugal is an exciting prospect but requires meticulous planning and transparency.

1. Engage Experts Early: Consult with a Portuguese lawyer and a tax advisor specialising in both property and cryptocurrency transactions from the outset. PortugalProperty.com can connect you with professionals experienced in this niche.
2. Ensure Full Transparency: Be prepared to disclose everything about the source of your crypto funds.
3. Understand the Tax Implications: Get clear advice on IMT, Stamp Duty, and any potential Capital Gains Tax liabilities in both Portugal and your country of residence.
4. Discuss Volatility Mitigation: Work with your lawyer and the seller to agree on how to handle crypto price fluctuations during the transaction period.

While complex, a crypto-funded property purchase in Portugal can be a reality for the well-prepared buyer in 2025.

Buying property with crypto in Portugal? Key 2025 steps: Seller agreement, AML/KYC, Notary, Taxes (IMT, Stamp, CGT). Expert advice is crucial! 

For more information, contact us at info@portugalproperty.com

Published in: Business / Money / Property