The use of cryptocurrency to purchase real estate has surged by 300% over the past year, cementing its role as a viable, albeit complex, transaction method in the 2025 property market. Investors are increasingly using digital assets like Bitcoin and Tether to buy property globally, attracted by the speed of transactions, but the practice is laden with risks ranging from price volatility to stringent anti-money laundering regulations.
The Appeal of Digital Asset Transactions
The primary driver of this trend is efficiency. A cryptocurrency transfer can be completed in 10-30 minutes, compared to the 3-5 days required for a traditional international SWIFT bank transfer. This speed, combined with lower transaction fees and the circumvention of conventional banking limits, makes it an attractive option for cross-border purchases.
The most common method involves conversion, where a buyer sends cryptocurrency to a licensed agency that converts it into fiat currency to pay the seller. This ensures legal compliance and is the preferred structure in many jurisdictions. For these deals, Tether (USDT), a stablecoin pegged to the U.S. dollar, is often used to minimize currency risk, alongside the widely accepted Bitcoin (BTC).
Navigating a Minefield of Risks and Regulations
Despite the advantages, purchasing property with crypto requires navigating significant legal and financial hurdles. The most prominent risk is price volatility. The value of cryptocurrencies can fluctuate dramatically, making it essential for sales contracts to fix the property price in a stable fiat currency like the Euro or U.S. dollar.
Other major considerations include:
- Anti-Money Laundering (AML) Checks: Buyers must provide extensive documentation proving the legitimate origin of their crypto funds for any significant transaction.
- Tax Implications: The tax burden on capital gains from cryptocurrency varies dramatically between countries, ranging from zero to over 40%.
- Operational Security: The irreversible nature of blockchain transactions means a simple typo in a digital wallet address can result in a total and irretrievable loss of funds.
Cyprus a Top Destination for Crypto Purchases
Several countries have become hubs for crypto real estate deals, with Cyprus ranking among the top 10 global destinations. The island is considered a crypto-friendly “grey zone” where transactions are facilitated through licensed conversions. Buyers should be aware of local tax laws, which include a 20% tax on capital gains and applicable stamp duties.
As the market matures, a professional approach involving legal checks, proper documentation, and secure transaction methods remains critical for a successful purchase.
Source: Cyprus Mail