European High-Net-Worth Individuals Increasingly Use Cryptocurrency to Purchase Real Estate

Wealthy investors in Europe are increasingly using cryptocurrency to purchase real estate, a trend that has accelerated in 2025. According to a report from CoinDesk, hundreds of high-net-worth individuals (HNWIs) have used digital assets to buy properties ranging from apartments to villas in cities like Lisbon, Berlin, and the French Riviera. This shift is largely driven by the efficiency and cost benefits of using stablecoins for cross-border property transactions.

Stablecoins, particularly those pegged to the euro like EURC, are becoming the preferred medium for these transactions. Unlike volatile cryptocurrencies like Bitcoin, stablecoins maintain a fixed value, making them ideal for large property deals. Startups like Brighty have reported facilitating over 100 such transactions, leveraging euro-pegged stablecoins to avoid costly currency conversion fees and lengthy settlement times.

The legal and technical infrastructure supporting these transactions is maturing. Smart contracts now act as escrow agents, ensuring funds are released only after property ownership is legally transferred. This system offers transparency and reduces counterparty risk, appealing to investors who value blockchain's security features.

Why Is This Trend Gaining Momentum?

The adoption of cryptocurrency in real estate is driven by several practical benefits. First, it reduces foreign exchange costs typically charged by traditional banks. By using euro-pegged stablecoins, investors avoid these fees and can execute transactions more quickly. Second, the speed of settlement—often within hours instead of weeks—makes it easier for HNWI to move capital across borders without relying on banking intermediaries.

Stablecoins also offer transparency. Every transaction is recorded on a blockchain, providing an immutable record of ownership and payment. This is particularly appealing in high-value property deals where trust and accountability are essential. Additionally, as the European Union's Markets in Crypto-Assets (MiCA) regulation becomes fully implemented in 2024, the legal framework for these transactions has become clearer, encouraging more investors to participate.

What Are the Regulatory and Market Challenges?

Despite the advantages, the trend is not without challenges. Regulatory alignment across European countries remains a work in progress. Tax treatment for crypto-based property purchases can be complex, varying by jurisdiction. Some countries treat the use of cryptocurrency as a disposal of the asset, potentially triggering capital gains tax in the investor's home country. Investors must therefore consult local tax advisors to navigate these complexities.

Another challenge is the potential for regulatory changes affecting stablecoin issuers. Smart contract bugs or the risk of a stablecoin losing its peg could introduce uncertainties into large transactions. To mitigate these risks, investors are advised to use well-established, regulated stablecoins and work with reputable escrow services.

The broader adoption of cryptocurrency in real estate is also influenced by the evolving market dynamics. While the EU has been proactive in adapting to crypto transactions, not all countries have embraced the trend. Portugal, Germany, and Switzerland are considered particularly receptive, but transactions are occurring across the EU as platforms ensure compliance with local real estate and financial regulations.

What Lies Ahead for Crypto Real Estate?

Looking forward, the trend is expected to grow as technology and regulation continue to evolve. One potential development is the tokenization of property titles, which could allow for fractional ownership in real estate through blockchain-based tokens. This would democratize access to premium European property markets, allowing retail investors to participate using smaller amounts of cryptocurrency.

However, tokenization would require significant legal and technological advancements before mainstream adoption. Until then, the model will remain primarily for high-value transactions by HNWI. Major investment banks like JPMorgan and Goldman Sachs have already begun analyzing tokenized real estate assets, signaling growing institutional interest in the space.

The broader financial market is also responding to the shift. Traditional real estate agencies are partnering with fintech firms to offer crypto payment gateways, bridging the gap between legacy property systems and modern digital finance. This collaboration is likely to accelerate as more investors seek the efficiency and security offered by blockchain technology.

In conclusion, the use of cryptocurrency in European real estate transactions represents a significant shift in how high-net-worth individuals approach cross-border investment. As regulatory frameworks solidify and technology improves, this method is expected to become more commonplace. The fusion of digital currency with tangible assets is reshaping the global landscape of wealth management and real estate investment.