In an era where digitization permeates every aspect of our lives, the integration of cryptocurrencies is changing the way we perceive and conduct financial transactions. In this blog, we introduce the collaboration between Croatia Sotheby’s International Realty and Electrocoin Ltd., a company that has been specializing in cryptocurrency trading mediation and crypto payment processing since 2014.

In Croatia, EUR is clearly defined as the legal means of payment. To comply with this legal provision while still allowing clients to pay with cryptocurrencies, Croatia Sotheby’s International Realty has decided to partner with Electrocoin, a company that, through its PayCek platform, enables automatic and instant conversion in the payment process from cryptocurrency to EUR, thus fulfilling all required legal obligations.

Electrocoin Ltd. leads the integration of cryptocurrencies into real estate transactions. Specializing in cryptocurrency trading mediation and crypto payment processing, Electrocoin operates under the supervision of the Croatian Financial Services Supervisory Agency (Hanfa). As the first company registered in the Register of Virtual Asset Service Providers in Croatia, Electrocoin has been a pioneer in the crypto world.

With its proprietary cryptocurrency payment processing system, “PayCek,” Electrocoin, in collaboration with Croatia Sotheby’s International Realty, enables buyers to seamlessly purchase properties listed by the agency using cryptocurrencies.

Here’s how the process works:

1. Sales Agreement

The buyer and seller initiate the process by entering into a standard real estate sales agreement.

2. Assignment Agreement

Subsequently, based on the real estate sales agreement, the buyer concludes an Assignment Agreement with Electrocoin and the seller. This agreement lays the foundation for the cryptocurrency transaction.

3. Cryptocurrency Payment Instruction

Using its “PayCek” system, Electrocoin generates a cryptocurrency payment instruction tailored to the specific transaction.

4. Execution of Cryptocurrency Transaction

The buyer executes the cryptocurrency transaction, initiating the transfer of digital assets as payment for the property.

5. Processing of Transaction by Electrocoin

Electrocoin carefully processes the cryptocurrency transaction and transfers the equivalent amount in EUR to the seller’s account.

6. Confirmation and Communication

The buyer receives confirmation of the completed transaction via email. Simultaneously, the buyer informs the seller of the successful transaction.

7. Tabular Statement

Upon confirming full payment, the seller issues a tabular statement, finalizing the real estate transaction.

Integrating cryptocurrencies into real estate transactions marks a new era in the industry. Through this collaboration, Croatia Sotheby’s International Realty offers its services to a new generation of clients, ensuring fast and secure transaction processes. This represents a step forward for the Croatian real estate market.

In the last few years, there has been a lot of talk about a new generation of investors investing significant funds in cryptocurrencies. Although until recently, local market investors were still quite skeptical about digital assets and did not easily engage in cryptocurrency trading, current data show that this market is currently on a real upswing.

The consequences that followed the coronavirus pandemic have affected every segment of our daily lives and our habits; therefore, it does not come as a surprise that we quickly adopt new trends, and we readily adapt to the changing market situation faster than ever.

Crypto investors – current trends and doubts

While many people are starting to get acquainted with the cryptocurrency market in the desire to make a profit through safe and prudent investment, experienced crypto investors around the world use their digital currencies to invest in real estate. The growing trend of buying real estate in cryptocurrencies has been registered worldwide, and it seems that global trends are increasingly being accepted by investors in the local market as well.

Croatian properties have attracted great interest among international clients, and ever since the country joined the EU, many clients have decided to look for investment opportunities in attractive destinations on the Adriatic. At the beginning of 2023, Croatia will enter the eurozone, which is yet another reason for international clients to plan their new investments with additional security and optimism. In line with clients’ growing interest in real estate on the Adriatic coast and the increasing number of inquiries from crypto investors, we often get asked: ‘Is it even possible to buy real estate in Croatia with cryptocurrencies?’

Villa Virtuosa – island of Brač

A Quick Tax Guide to Buying With Cryptocurrencies

Analyzing the most common doubts and tax issues crypto investors face, we contacted the authorized tax advisor, Ms. Ivana Zec, who gave us her expert insight into the most important tax aspects that need to be considered when buying with cryptocurrencies. More detailed information is provided below.

Cryptocurrency-related transactions are part of a trend that is increasingly drawing the attention of tax advisors, accountants, and the Tax Administration itself. There are more and more specific actions and processes that are designed in the digital world, which should be incorporated into existing legal provisions for the purpose of taxation and accounting.

When talking about cryptocurrencies, it is important to emphasize that their acquisition is not taxable, but from the tax point of view, the owners of cryptocurrencies should be aware of the importance of sale or conversion into any other fiat currency. Namely, at the moment of selling or exchanging cryptocurrency for Croatian kuna or Euro or any other fiat currency, a potential tax liability arises for the cryptocurrency holder.

If the cryptocurrency holder is a natural person, the difference between the sale and purchase value is taxable with capital gains tax on the basis of capital gains, which is calculated at a rate of 10% plus surtax if the person has temporary or permanent residence in Croatia.
When a legal entity is the cryptocurrency holder, the sale of cryptocurrencies or their conversion into fiat currency has its own accounting story, which depends on the purpose for which the cryptocurrency was originally acquired.


Stone villa for sale – Brač

When talking about buying real estate and paying with cryptocurrencies, it is important to note that, according to the existing legal provisions, payment alone cannot be made directly in cryptocurrencies. It is necessary to change cryptocurrencies into Croatian kuna and make payments in this form. At the very moment of exchanging cryptocurrency into fiat currency, income tax is levied if the owner is a natural person. If the owner is a legal entity, the earnings are included in the profit and loss account.

In any case, it is recommended to consult a tax advisor before any transaction related to cryptocurrencies and real estate so that the owner of the cryptocurrency, i.e., the buyer of the real estate, is aware of all tax aspects.

In the case of international clients, it is important to emphasize that they need to check the tax aspect of these transactions in the country of their tax residence.

We hope that this blog will answer some of the tax questions that crypto investors often ask themselves before the final decision to buy real estate in Croatia.

For all additional information and advice, do not hesitate to contact us, and our agents will connect you with experienced experts in this field who will gladly guide you throughout the purchase process.