Can You Buy Property Abroad Using Cryptocurrency? A Legal Overview for Irish Buyers

Introduction

Cryptocurrencies have moved from niche speculation to mainstream finance, and Irish investors are increasingly asking whether they can use digital assets to buy a holiday home, a rental investment or a retirement retreat abroad. The answer is yes, but the process is far from a simple “send Bitcoin, get the keys”.

Each jurisdiction has its own stance on crypto‑payments, anti‑money‑laundering (AML) obligations, tax treatment and conveyancing requirements. This article provides a practical legal overview for Irish buyers who want to purchase property overseas using cryptocurrency, with detailed examples from the United Kingdom, Portugal, Spain and Cyprus – the markets most popular with Irish expats and investors.

1. Why Crypto‑Based Property Purchases Are Gaining Traction

Benefit	How It Helps Irish Buyers
Speed – Blockchain transfers settle in minutes rather than days.	Faster cross‑border payments, especially when fiat conversions are costly.
Currency Diversification – Crypto can act as a hedge against euro or pound volatility.	Protects buying power if the euro weakens after a property is booked.
Access to Global Capital – Investors can tap crypto holdings without liquidating other assets.	Keeps other investments (e.g., pension funds) intact while funding a property.
Transparency – Every transaction is recorded on an immutable ledger.	Provides a clear audit trail for AML checks and tax authorities.

Despite these advantages, the legal framework remains the decisive factor. Below we break down the key steps and country‑specific rules you must navigate.

2. Core Legal Pillars You Must Satisfy

2.1 Anti‑Money‑Laundering (AML) & Know‑Your‑Customer (KYC)

All EU and UK jurisdictions require:

Proof of source of funds – A detailed history of how the crypto was acquired (exchange statements, wallet transaction logs, bank statements showing fiat‑to‑crypto conversion).
Identity verification – Passport, proof of address, and often a declaration of tax residency.
Beneficial‑owner disclosure – If the crypto is held through a company or trust, the ultimate owners must be identified.

Failure to provide this information can halt the transaction, trigger investigations, or lead to fines.

2.2 Tax Implications

Country	Capital Gains Tax on Crypto	Property‑Related Taxes	Notable Points for Irish Buyers
UK	10 % or 20 % (basic vs higher rate) on disposals.	Stamp Duty Land Tax (SDLT) on purchase, Council Tax annually.	Crypto‑to‑fiat conversion is a taxable disposal; keep records of the exchange rate on the day of purchase.
Portugal	0 % on long‑term holdings (>12 months); 28 % on short‑term gains.	IMT (property purchase tax), IMI (annual municipal tax), AIMI on high‑value homes.	Portugal treats crypto as a non‑taxable asset for private individuals, but conversion to euros for the purchase triggers a taxable event if within 12 months.
Spain	19–26 % depending on gain size.	Property Transfer Tax (ITP) in regions, plus annual IBI.	Spanish tax authorities consider crypto a taxable asset; you must declare both the acquisition and any subsequent sale.
Cyprus	30 % on crypto gains (as “other income”).	Transfer Fee (1 % of property price), annual Immovable Property Tax (exempt for many).	Crypto‑to‑fiat swaps are taxable; however, Cyprus offers attractive non‑dom tax regimes for foreign residents.

Tip for Irish investors: Keep a dedicated spreadsheet tracking every crypto transaction, the EUR value on the day of conversion, and the associated tax event. This will simplify reporting to Irish Revenue under the Foreign Income and Gains rules.

2.3 Conveyancing & Notarial Rules

Traditional fiat purchase – The solicitor prepares a contract, the buyer transfers funds to a client‑money account, and the title is registered.
Crypto purchase – Two models are common:
1. Conversion model – The buyer’s broker converts crypto to euros before the notary receives the funds. This is the simplest and most widely accepted.
2. Barter model – The seller receives crypto directly. This requires a notarial deed that records the crypto‑value and often a subsequent fiat conversion for tax reporting.

In Portugal, the Order of Notaries (ON) issued a 2022 regulation that obliges notaries to collect wallet addresses, transaction proofs and AML documentation before signing a deed. Similar guidance exists in the UK, where the Law Society advises solicitors to treat crypto as “property” for the purpose of the Money Laundering Regulations 2017.

3. Country‑Specific Legal Snapshots

3.1 United Kingdom (England, Wales & Scotland)

Legal status: Crypto‑assets are classified as “property” under the Financial Services and Markets Act 2000.
Regulatory body: The Financial Conduct Authority (FCA) oversees AML compliance for crypto‑exchanges; solicitors must perform enhanced due diligence.
Key steps:
1. Choose a solicitor experienced in crypto‑transactions (e.g., firms listed on the Law Society’s Crypto‑Specialist Register).
2. Provide a source‑of‑funds declaration covering the entire crypto chain.
3. Agree on a valuation mechanism – many parties use the spot price from a reputable exchange (e.g., Coinbase) at a pre‑agreed time.
4. The solicitor’s client‑money account receives the fiat equivalent after conversion; the crypto is retained by the buyer or transferred to a third‑party escrow if the barter model is used.
Recent case law: In R (on the application of the Financial Conduct Authority) v. CryptoCo Ltd (2023), the UK High Court affirmed that failure to disclose crypto source‑of‑funds constitutes a breach of AML rules, reinforcing the need for full transparency.

3.2 Portugal

Legal status: No specific statute; the Order of Notaries (ON) provides procedural guidance. Crypto is treated as a non‑legal tender, so transactions are considered barter.
Regulatory body: Banco de Portugal and the Financial Intelligence Unit (FIU) enforce AML.
Key steps (per Global Citizen Solutions, 2025):
1. Documentation: NIF (tax number), passport, wallet address, transaction history, and proof of the fiat source that funded the crypto purchase.
2. Notary declaration: The notary records the euro‑equivalent value of the crypto at the signing moment, and files the details with the FIU.
3. Conversion threshold: For deals above €200,000, an additional supervisory report is required.
Tax advantage: Long‑term crypto holdings (>12 months) are exempt from capital gains tax, making Portugal attractive for investors who wish to retain crypto after the property purchase.

3.3 Spain

Legal status: Crypto is considered intangible assets under the Spanish Civil Code. The Spanish Tax Agency (AEAT) treats disposals as taxable events.
Regulatory body: Banco de España and the Commission for the Prevention of Money Laundering and Terrorist Financing (SEPBLAC).
Key steps:
1. Obtain a NIE (Número de Identificación de Extranjero) – mandatory for any property transaction.
2. Provide a certified translation of the crypto wallet statement (Spanish notary requires documentation in Spanish).
3. Use a licensed crypto‑exchange that can issue a tax‑certificate confirming the market value at the transaction date.
4. The notary incorporates the euro‑value into the Escritura Pública (public deed).
Practical tip: Spanish banks are generally reluctant to accept crypto directly; most buyers convert to euros via a reputable exchange before the notary receives the funds.

3.4 Cyprus (including Northern Cyprus)

Legal status: Crypto is regulated as a financial instrument under the Cyprus Securities and Exchange Commission (CySEC).
Regulatory body: CySEC and the Financial Intelligence Unit (FIU).
Key steps:
1. Register with a Cyprus‑licensed crypto service provider that can issue a valuation report.
2. Submit the report, wallet address, and source‑of‑funds evidence to the notary.
3. For purchases exceeding €150,000, the notary must file a suspicious transaction report with the FIU if any irregularities are detected.
Tax nuance: While crypto gains are taxed at 30 %, the Non‑Dom regime offers a 0 % tax on foreign‑sourced income for qualified residents – useful if you intend to keep the crypto holdings abroad.

4. Practical Checklist for Irish Buyers

Step	What to Do	Documents Required
1. Choose the jurisdiction	Consider tax treaty with Ireland, language, and market stability.	N/A
2. Engage a crypto‑savvy solicitor/notary	Verify experience with blockchain‑based conveyancing.	Solicitor’s credentials, client references.
3. Conduct AML/KYC	Gather source‑of‑funds evidence for the entire crypto chain.	Exchange statements, bank statements, wallet export (CSV), narrative of acquisition.
4. Determine valuation method	Agree on a specific exchange and timestamp (e.g., Coinbase Spot price at 12:00 GMT on signing day).	Exchange screenshot, signed valuation agreement.
5. Tax planning	Estimate any Irish tax liability on the disposal (crypto → fiat) and on the property itself.	Irish Revenue “Foreign Income” worksheet, tax adviser’s letter.
6. Prepare legal documents	Draft purchase contract, include crypto‑payment clause, and any escrow arrangements.	Contract, escrow agreement, notary instructions.
7. Execute conversion (if required)	Use a regulated exchange to convert crypto to euros; retain proof of conversion.	Exchange receipt, bank deposit slip.
8. Sign the deed	Notary records the euro‑equivalent value and files AML reports.	Passport, NIF/NIE/NIF, proof of address, crypto wallet details.
9. Register the title	Submit the deed to the land registry of the chosen country.	Certified deed, registration fee receipt.
10. Ongoing compliance	File any required annual tax returns in Ireland and the foreign jurisdiction.	Annual tax returns, property tax bills.

5. Risks and How to Mitigate Them

Risk	Description	Mitigation
Price volatility	Crypto value may swing dramatically between agreement and settlement.	Use a price‑lock clause that fixes the euro value at a specific exchange rate; consider a forward contract with a crypto‑derivatives provider.
Regulatory change	Governments could tighten crypto rules mid‑transaction.	Keep an eye on EU MiCA (Markets in Crypto‑Assets) implementation – expected to become fully effective in 2025.
Liquidity constraints	Some exchanges have withdrawal limits that could delay conversion.	Choose an exchange with high daily limits or pre‑arrange a OTC (over‑the‑counter) desk for large transfers.
Legal enforceability of smart contracts	Not yet fully recognised in many jurisdictions.	Rely on a traditional written contract and use smart contracts only for ancillary steps (e.g., escrow release).
Tax reporting errors	Mis‑reporting can lead to double taxation or penalties.	Engage a cross‑border tax adviser familiar with Irish, EU and crypto tax law.

6. Frequently Asked Questions (FAQs)

6.1 Can I pay the seller directly in Bitcoin?

Yes, but only if the seller agrees and the local notary accepts a barter transaction. In practice, most sellers prefer the conversion model because it simplifies tax reporting.

6.2 Do I need a Portuguese NIF if I buy a house in Portugal with crypto?

A NIF (tax identification number) is mandatory for any property transaction in Portugal, regardless of payment method. It can be obtained online through a Portuguese tax representative.

6.3 Will Irish Revenue tax my crypto‑to‑fiat conversion for a foreign purchase?

Irish Revenue treats the conversion as a disposal of a chargeable asset. You must declare any capital gain (or loss) in your Irish tax return, even if the proceeds are used to buy foreign real estate.

6.4 Are there any countries where crypto purchases are outright prohibited?

Yes. Countries such as Algeria, Bangladesh, Nepal and Morocco have explicit bans on crypto transactions. Always verify the local stance before proceeding.

6.5 How long does a crypto‑based property purchase usually take?

When using the conversion model, the timeline is similar to a standard purchase – 6–10 weeks from offer to completion. The extra AML documentation may add 1–2 weeks.

7. Bottom Line for Irish Investors

It is legally possible to buy property abroad with cryptocurrency, but you must comply with AML/KYC, tax and conveyancing rules in the chosen country.
Portugal currently offers the most tax‑friendly environment for long‑term crypto holders, while the UK provides a mature legal framework and robust professional support.
Spain and Cyprus are viable options, but they require careful coordination with local notaries and tax advisers.
Professional guidance is essential. A solicitor or conveyancer experienced in crypto, a reputable crypto‑exchange, and a cross‑border tax adviser will dramatically reduce risk and avoid costly delays.

By following the checklist above and staying up‑to‑date with evolving regulations (especially the EU’s upcoming MiCA rules), Irish buyers can unlock the speed, flexibility and diversification benefits of crypto while safely securing a slice of paradise abroad.

Conclusion

The marriage of cryptocurrency and overseas real estate is no longer a futuristic fantasy; it is a practical, albeit complex, reality for Irish investors. Understanding the legal landscape—from AML requirements to tax treatment and country‑specific conveyancing—empowers you to navigate the process confidently.

Whether you’re eyeing a seaside villa on the Algarve, a historic townhouse in Dublin’s Spanish sister city of Barcelona, or a modern flat in London, the right preparation will let you turn those digital coins into tangible property—and do so in full compliance with Irish, EU and local law.

Ready to make the move? Speak to a crypto‑savvy solicitor today and start the journey from blockchain to doorstep.