Buy a home in Spain and pay in bitcoins

Buy a house in bitcoins, the most popular cryptocurrency and whose value has increased above 14,000 euros, it is possible as long as certain steps are followed and the purchase is recorded in euros. The question, for the moment, is whether it makes sense to get rid of an asset that has appreciated more than 1,000% and could still maintain its exponential path.

It is not yet a common currency in Spain, but idealistic ads are starting to appear in houses where part of the purchase can be done in bitcoins. The purchase through this payment instrument is totally legal, but must go through several intermediate steps, such as its translation into euros, and is subject by the Tax Agency to prevent money laundering.

The simplest process is to agree with the seller and set the exchange rate of bitcoins and euros. The exchange of bitcoins would be carried out before the public deed at the notary and in the deed would appear the price in euros agreed for the sale. The transaction is nothing more than an ordinary purchase, with only one previous step: the buyer has made the change from bitcoin to euros. The only exception is that the buyer who delivers bitcoins will have to pay for the capital gain that has been reported by the divestment in bitcoin and that, obviously, must prove the legitimate origin of the money.

The only one who would assume a certain risk when accepting bitcoins would be the seller, especially if the bitcoin, a clearly volatile value, depreciates from the moment of the transaction. If you obtain benefits you will have to pay taxes for the capital gain that has been reported to you.

The purchase with cryptocurrencies could be seen as a swap, the exchange of two goods, in which bitcoin would be no more than an instrument of value. However, as it is not reliable money issued by a central bank, notarial writing and management can not be done in bitcoin, but in euros. The notary can establish that the payment has been made in part or in full in bitcoin, although he should inform the Tax Agency if he suspects that bitcoins have illicit origin or not proven enough.

What differentiates a transaction with bitcoin from one to euros is that the receiver of the payment by cryptocurrencies will have to declare and pay taxes for the profits derived from the appreciation of the bitcoin when it diverts, something that in the case of a payment in euros does not happen , since it was not appreciated or devaluated in front of anything.

In cases of purchase with bitcoin, the cryptocurrency can be used basically as if it were cash, since it is totally anonymous. Among individuals, for example, there is no limit on the amount that can be contributed in cash, which could apply in the case of bitcoins. The Treasury, for its part, controls the illicit origin of cryptocurrencies and if they are used to launder capital, while working in a common framework that controls these payment instruments.

The sale of a house is taxed with the ITPAJD, if it is a used house, or with the VAT, if it is a new house. However, the tax base of these taxes is, in the first case, the real value of the property, and in the second, the total amount of the consideration. Even if the transaction is paid with euros or with bictoins, it does not affect the taxation of the sale on these two taxes.

Another thing is the alteration of the patrimony that becomes evident with the purchase of the house (before it had bitcoins and now a house).

What is clear is that until the bitcoin price stabilizes and investors begin to try to liquidate their holdings through brick investments, it will not be clear to what extent the status, taxation and framework can be clearly defined. legal that affects the bitcoin as a means of payment.

 

 

Adapted from:

https://www.idealista.com/news/inmobiliario/vivienda/2017/12/11/749215-comprar-casa-con-bitcoins-una-opcion-por-el-momento-poco-practica

 

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