Home listings are one of the most noticeable ways that cryptocurrency is being used in real estate and it is a strategy that is being used more and more to generate greater interest in the real estate market.
Given the growing popularity of cryptocurrency in Cyprus and around the world, purchasing real estate using cryptocurrency is a viable option in the current atmosphere. Developers are already offering properties for sale in Cyprus with cryptocurrency as a form of payment.
It is now a reality that the global trend for cryptocurrency is growing, and the number of people willing to conduct transactions in Crypto, or digital money, is growing. There is also the option to convert cryptocurrency into Fiat money for individuals who prefer to accept payment in the traditional manner using Euro or other currencies.
The purchase and sale of real estate is carried out as a standard transaction which appears as indicated below:
- The buyer collects all of the papers required for the purchase of the property;
- The lawyer will progress with all due diligence processes necessary to check the legal status of the property to make certain that it is free from any charges and/or encumbrances;
- An agreement is concluded between the purchaser and the seller.
- The buyer proceeds with payment of property.
- The seller receives a confirmation receipt;
- The deal is fixed; and
- The record of the change of owner is registered with the authorities, such as the Land Registry Office, etc.
CRYPTO AND CYPRUS REAL ESTATE
When it comes to the question of whether or not cryptocurrency is taxable in Cyprus and whether you have to pay taxes on converting cryptocurrency, it seems that Cyprus is in a more privileged position than other European countries. The reason is that funds that derive from Initial Coin Offerings (I.C.O.) are subject to taxes in Cyprus since they are deemed to be a taxable income. However, Cyprus has one of the lowest and most attractive corporate tax rates at 12.5% and this is reason for its greatest advantage in comparison with any another European country. The transferring of Crypto between wallets or accounts that you own is not taxable. You can transfer your own original cost base and dates by accruing and tracking your potential tax impact when you eventually sell.
On comparing Cyprus with Malta, Malta is more popularly known as a blockchain island, since Malta does not impose Capital Gains on Cryptocurrencies that have been held for a long time. There are of course many other Crypto-friendly countries in the world such as Portugal, Switzerland (which is a country known for its incredible banking standards) and Germany.
In Cyprus, the Prevention and Suppression of Money Laundering and Terrorist Financing Law L188 (I)/2007, (the AML Law) was amended through the L13 (I)/2021 (the Amending Law) to harmonize domestic legislation with the provisions of the 4th and the 5th AML Directives (Directives (EU) 2015/849 and 2018/843). The 5th AML Directive made several amendments to the 4th AML Directive (together the AML Directives) effectively extending AML/CTF controls to the below:
- Providers of exchange services between virtual currencies and fiat currencies (Exchange Providers); and
- Providers of custody services for virtual currencies (Custody Providers).
As a result of the amendments introduced by the 5th AMLDirective,EUMemberStates are required to ensure that exchange providers and Custody Providers are registered, and the persons holding management functions or who are the beneficiary owners of providers are fit and proper. In Cyprus, the Cyprus Security and Exchange Commission (CySec) has been designated as the competent supervisory authority for matters relating to crypto asset regulations and has been provided with powers to regulate through directives. By implementing the EU Directives, trading with cryptocurrencies in Cyprus is legally permitted. It is therefore safe to say that trading with Cryptocurrencies in Cyprus is conducted according to the rules of general Civil Law.
Cryptocurrencies are a new trend that can easily be implemented into property transactions as it is becoming even more popular around the world.
Here at Kuutio Homes, we have adapted to this trend and now accept Crypto as a form of payment for our properties. If you are considering purchasing a new Property in Cyprus with our without crypto contact us, we have a large portfolio of properties to meet any need and budget.
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