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Buy a car with cryptocurrency

In the first half of 2020, there were only 88 blockchain startups operating in Spain. The last three years have not shown any growth or decline in the cryptocurrency market. The relatively modest number of its participants is explained by the conservative attitude of the government of this country towards cryptocurrency and blockchain technology. In Spain there is no special legislation designed to regulate relations in this area. Cryptocurrency in Spain is neither permitted nor prohibited, it is not an official means of payment, but it is not illegal either.

Features of the Spanish cryptocurrency market

Officially, only the euro should be considered legal tender in Spain. In the case of a public offering, the cryptocurrency receives the status of “securities,” and in the event of a sale, it becomes a “commodity.” If virtual currency is considered as a security, then the issue is made in accordance with the requirements of the Spanish Stock Market Law. Buying cryptocurrency through   the corresponding platforms on the Internet and ATMs are considered as a transfer of rights. Any operation of this kind is possible only if there is an agreement between the parties and delivery of the object. Real-life cryptocurrency transactions do not fully meet these requirements, since they exclude the use of dematerialized claims, such as online payment claims.

However, the use of cryptocurrency in concluding a variety of transactions has not surprised anyone for a long time. Purchase and sale transactions related to real estate using cryptocurrency are carried out on a regular basis. Currently, buying and selling a car for cryptocurrency is no exception. True, the practical implementation of such a transaction is associated with a number of difficulties.

Cryptocurrency and the automobile market

Together with the increasing popularity of cryptocurrency, a variety of automobile companies have decided that this opens up new opportunities in terms of attracting customers. The most famous example is Tesla, which is actively researching the cryptocurrency market and encouraging its use as a means of payment.

In February 2021, the company informed the public that it had made a fairly large investment: 1.5 billion USD was invested in BTC. Then Tesla announced that it was ready to accept BTC for its electric cars. A little later, on March 24, 2021, Elon Musk spoke about the possibility of purchasing a Tesla electric car for bitcoins. However, this initiative was quickly curtailed. A very short time later, on May 13, 2021, Musk announced that the company was abandoning the sale of electric vehicles for bitcoins. This was done under an environmental pretext, which no specialist has been seriously considering for a long time. However, dealers of famous brands started selling cars for cryptocurrency much earlier. Some of them have not given up accepting payments in cryptocurrency to this day.

It is quite possible that in the future many companies and car dealerships will continue to experiment with a variety of technologies, including NFTs, in the business of trading cars. Using NFT, you can also register the right to own or use a vehicle, which is quite convenient for car sharing, although not entirely suitable for purchase and sale transactions.

Buy a Car in Spain for Cryptocurrency

Recall that in Europe, trading cars for cryptocurrency began already when it had not yet entered the media field and was available only to the most advanced people in the IT field. If the cryptocurrency market can overcome volatility, and changes in the legislative framework create more favorable conditions, then selling cars for crypto will become commonplace. In the meantime, the most common option remains the conversion of crypto into regular fiat money before transactions are completed.

This is exactly the route that people who buy cars in Spain follow. Fortunately, this state ranks first in Europe in the number of installed crypto ATMs. There are more than 2 thousand of them in Spain, and everyone is ready to cash out digital assets.

Is payment with cryptocurrency real in Spain?

There are quite a large number of places in the country where it is quite possible to pay with crypto without exchange. However, most of these outlets belong to well-known networks of non-Spanish origin. These are H&M, Amazon, Carrefour, IKEA, El Corte Inglés, MediaMarkt, Nike, Decathlon and even Uber. Direct transactions for Bitcoin in Spain remain quite rare. You can try to buy an apartment and order furniture from IKEA. This usually involves the use of a smart contract. It should be noted that in Spain, as in Germany, Bitcoin is the most popular. Even USDT is not exchanged everywhere.

International trading platforms and European marketplaces

In this situation, specialized marketplaces and European companies are very popular, ready to accept payment in cryptocurrency and deliver the purchase to Spain. One typical example is BitCars. This is a specialized automotive marketplace where Bitcoins can be turned into real cars. Mostly premium cars are traded on the exchange. In its structure, BitCars is closer to marketplaces. This trading platform has several analogues and new ones are constantly appearing.

Also, the car can be sold on some multi-commodity platform that supports transactions with cryptocurrency, for example, Crypto Emporium. The algorithm of actions in all cases is quite simple and logical. First you need to set up a crypto wallet that is compatible with Bitcoin or another cryptocurrency. It is then replenished with funds. Bitcoins can be purchased from a crypto broker. After this, you will need to transfer the tokens to the wallet, and an account will be created on the site where the decision was made to purchase the car. In this case, you will have to provide your personal data. All you have to do is go to the “Cars” section, add the car you like to the cart and make payment. It is important to select “Bitcoin” during checkout. as a means of payment. You will need to transfer the exact amount of Bitcoin to the wallet provided by Crypto Emporium. All you have to do is wait until the system processes the order and sends the car to the specified delivery address. According to statistics, cars of sellers from Germany are most often paid for with cryptocurrency.

Legislative difficulties

Spain has a law, Ley 10/2010, aimed at preventing money laundering and terrorist financing. Its provisions affect all major transactions, including the purchase and sale of cars. Spain is part of the EU, so common European legislation, in particular the European Directive AML6, also becomes relevant.

In general, the legislative framework is created in such a way that cryptocurrency cannot be used to evade taxes and commit various illegal actions. In the Spanish market, all major transactions are accompanied by a procedure for verifying the origin of funds. The buyer will be required to provide documents confirming the origin and legality of the cryptocurrency acting as a means of payment. New methods are constantly emerging to prevent transactions by persons included in the sanctions lists.

There is one more nuance. In Spain, all cryptocurrencies are subject to income tax, and in addition, also a tax on savings and wealth. When receiving cryptocurrency, income is recorded at the exchange rate at the time of the transaction. The tax must be paid based on the euro, not the digital currency. Rates for tax residents range from 19% to 45%, while non-residents must pay 24%. There may also be grounds for paying capital gains tax. When selling cryptocurrency, profits and losses are recorded, and the tax also varies from 19 to 23%. True, the purchase of cryptocurrency with regular money is exempt from taxes.

Buy a Car in Spain for Cryptocurrency

Of course, in communities, on forums, on social networks, you can try to find a private owner who is ready to receive cryptocurrency from wallet to wallet, and then provide the buyer with a car. It can be issued in the form of a gift, although this fact in itself may arouse suspicion from the tax authorities. In addition, in Spain, donations are taxed. The gift tax has a progressive rate from 7.65% to 34%. Increasing coefficients are applied, which depend on various factors, ranging from the value of the property to the degree of relationship and region of residence. In some cases, the rate can reach 81.6%.

The reality is that cryptocurrency is currently not yet a full-fledged means of payment and is used primarily as a speculative tool or a method of circumventing sanctions restrictions. Employees of various services and departments are well aware of the second option, so they strive to bring all such operations under strict control. Full-fledged trading of cars and other assets for cryptocurrency has not yet been established. The main obstacles to transactions with it remain volatility and the lack of a clear legal framework.

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High quality of life on the Costa Blanca
Rainer Schmitz, CEO of ALICANTE REAL ESTATE, in an interview Rainer Schmitz is the owner and managing director of the German real estate agency ALICANTE REAL ESTATE based in La Mata, Torrevieja. Together with his team, the trained office administrat...
27 October 2022
Real Estate Investments in Alicante, Torrevieja and La Mata
The Costa Blanca region is a unique and surprising region with an unusual culture, a beautiful nature and a high standard of living. Some people just want to visit it, while others want to be able to constantly enjoy all the benefits of relaxing and ...
27 October 2022
Do you want to sell your apartment? Turn to professionals!
Selling your apartment is not as easy as you would like it to be. The modern pace of life does not allow homeowners to sell their property on their own. You have to update ads, take buyers to inspect them and be aware of the legal details of the dea...
27 October 2022
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