Buying real estate for crypto: Russia vs Dubai

After we've had several all-cash crypto deals in a month in Dubai, let's tell you how it works. Some coins have risen in value 10-50-100 times over the past year, multiplying the digital capitals of their owners by multiples.

But as long as a person has a physical body, he needs somewhere to live, and when the numbers in your account have magically multiplied by ten, you want to live not just anywhere, but in an aesthetically beautiful house. That's why thousands of crypto-moguls are now plucking a piece of their capital and turning it from virtual numbers into real apartments with a sea view or family villas with a large pool. We call this grounding. Bitcoin can't be touched, but the apartment bought with it can.

The main difference why in Russia transactions for crypto are a farce, while in Dubai they take place every day: in the Emirates any person or even a company can pay instead of you to buy your apartment, in Russia they can't. When in Russia a client buys an apartment in a new building from a developer, an escrow account and a letter of credit are opened. Both accounts are strictly in the name of the buyer and only you can deposit money there.

We've had cases, for example, where a dad bought a condo for his daughter and wanted to pay for it from his own account. It doesn't work. First you have to transfer the money to her, and then she pays for the apartment. It's good for the state - everything is transparent. It's safe for the client. But there is a digital bank trail and at any moment you can be asked: bro, where did you get 70 million and did you pay taxes on it? Some people are embarrassed by such prospects.

In Dubai, on the other hand, there are no taxes on income, profits or dividends, so cash flow within the country is treated more easily. Your new apartment can be paid to the developer instead of you, for example, any Dubai company.

How the transaction for crypto in Dubai goes: we choose an apartment or villa and book it. The developer prepares the contract and issues an invoice for payment - invoice. And then at the stage of payment our crypto partner is connected.

In Dubai, we work with trusted guys who we know personally from Moscow. They have offices in Dubai, London and Russia. Offices are necessary for shy clients who are worried about what if something goes wrong, but usually in this case we act as a guarantor of the deal. Almost all developers now have some kind of recommended agents, but we have tried one deal with them and don't want to do it again - usually they are spoiled and lazy Indians.

The client transfers the payment from his cryptocurrency wallet to the partner's wallet, and the partner immediately sends the payment from his bank account to the developer and discounts the payment. That's it. The deal is done. The apartment is yours. The service of the agent on payment costs 2-5% and depends on the amount and frequency of payments. During one transaction we had a client's bitcoin increased by 5%, covering all the costs of the transaction.

Prices now in Dubai for adequate properties start from $250-300k, you can buy a villa from $2-2.5m. But you do not have to have all this money at the time of purchase, because Dubai - the city of peyment-plans or in our way interest-free installments. The developer gives the opportunity to pay for the purchase of 2-3-4 years - payments once a month or once a quarter. The first payment is usually 15-25% of the cost of the object, rarely when 50% - depends on the popularity of the project. To, for example, to buy a townhouse with a swimming pool for 1.5 million dollars need to have on the account of $300k - 23 million rubles.

If you buy real estate from $300k you can get a Dubai residency visa, which will allow you to open personal bank accounts, rent your real estate tax-free, get a local license, well, and stay in the country any time. Ah, yes, you can pass through a special corridor at the airport upon arrival without passport control.
Who has made money on crypto and wants to get a little grounding in Dubai, write to Oleg Torbosov in Telegram. We work with love and without commission.