With the new regulation as of April, it became possible to do real estate transactions with cryptocurrencies. The Portuguese authorities are treating this as a barter business, that is, where goods are exchanged for cryptocurrencies.
A barter business is a cashless exchange system, where two parties trade goods or services directly, without money entering the conversation. In Portugal crypto is not considered a currency as it is not regulated.
How does it practically work?
First you have to agree on the price and type of cryptocurrencies. The risk on the volatility is with the seller because the price is set in crypto and not in Euro.
You have to present the proof-of-purchase of the crypto currencies. This is obligated by law.
Exchange information of which crypto wallets will be used for the transaction and owned by the buyer and the seller.
Agree on the date on which the transaction takes place.
When the value is €200.000 or higher, the transaction needs to be communicated with the financial authorities (Finanças). It will also be necessary to compare the value of crypto currencies at the date of the promissory contract versus the actual transaction date. It is upon the financial authorities to decide whether they would like to request you to proof the origins of the crypto currencies. This means that you need to show the split of what you bought and what is considered capital gains.