Bitcoin & Real Estate
As the world is facing unprecedented economic difficulties, central banks are printing massive amounts of fiat money in the effort to save their economies. Because of this, a global hyper-inflation is due to occur in the near future. And therefore, many investors and high net income groups are changing their fiat positions into cryptocurrency, as this asset class (besides gold and silver) seems more reliable than the current monetary system, which is about to collapse globally.
As Bitcoin has a fixed total supply of 21 million Bitcoins (current circulating supply of 18 million BTC), and cannot be “printed” out of thin air, the market value of 1 bitcoin (or a fraction of it, called Satoshi), is more profitable in the long run than the value of unlimited printed fiat money, which will devalue rapidly over time.
The real estate sector is changing dramatically as new technologies and services influence the way society completes real estate transactions. One of the emerging technologies of the last decade is cryptocurrency. The growing popularity and acceptance of cryptocurrencies like Bitcoin has enabled individuals and professionals to buy or sell properties with cryptocurrency as the sole medium of exchange.
Caliber & Partners helps Bitcoin holders to purchase any type of Spanish real estate they find interesting. No matter if it is a new build or a resale property, or if the seller of the property only wants to get paid in Euros. Caliber & Partners will intermediate in the exchange to the desired currency. The price would need to be set and agreed upon in EUR (Euros), but is fully payable and transferible in BTC (Bitcoin).
Bitcoin and other popular cryptocurrencies are being used to purchase real estate all over the world. From home services to purchases and sales, the industry is exploring various ways to use cryptocurrencies. Property buyers are now paying with cryptocurrencies while sellers have the option to accept the digital currencies directly or have them converted into Euros. The power, openness and security of the Blockchain are also being explored by industry stakeholders as a viable option for recording property titles and transfers during the sales process.
Buying a home with cryptocurrency like Bitcoin is becoming more common each day. In fact, some believe that cryptocurrency will revolutionize the future of real estate transactions. Caliber & Partners (SPAIN), understands the significance of Bitcoin and other cryptocurrencies in the real estate industry. As this type of transaction becomes a more popular and accepted option for homebuyers and sellers
How does it work
Just like any other normal and every day real estate transaction, the price would need to be set and agreed upon in EUR (Euros), but is payable and transferable in BTC (Bitcoin). At the moment of receiving the transaction, a 24 hour “volatility stop” will be applied for the seller, to be able to choose whether or not keeping the received payment in Bitcoin, or to exchange the equal amount into Euros.
KYC and AML
For all real estate transactions in cryptocurrency, a KYC (Know Your Customer) process is needed. This is a manual process that includes physical verification of document scans. It is important because it makes sure that the customer and the information provided by them are real. This is, and needs to be, the same information as the real purchaser, documented in the final Title Deeds.
By first verifying customers’ identities and intentions, financial institutions are able to more accurately identify suspicious activities. KYC in the cryptocurrency sphere is something that is increasingly important as the industry matures.
Also an AML (Anti-Money Laundering) application needs to be filled out in order to determine the origin of the funds. The AML concept is much broader than KYC, and refers to a set of policies, laws, and regulations to combat generating income in a fraudulent way.
The Golden Visa program is a special type of residence created especially for all the citizens from outside the European Union who want to move to the Spanish territory and realizes an investment in Spain of at least 500.000€. This is a quick and easy way to obtain a Spanish residence permit.
If you require more information or if you would like to purchase a property with Bitcoin in Spain.