Is It Possible to Buy an Apartment in Germany Using Tokens?
The search query “buy an apartment in Germany with tokens” is increasingly appearing among investors involved in crypto, Web3, and digital assets. With growing interest in real estate tokenization, a logical question arises:
Is it legally possible in Germany to purchase an apartment by paying with your own tokens?
Short answer: directly – no.
Long answer: below, including legal details, alternatives, and realistic structures.
Why Buying an Apartment in Germany with Tokens Is Not Possible Directly
1. Tokens Are Not a Legal Means of Payment in Germany
In Germany, real estate transactions may only be settled via cashless bank transfers, typically in euros.
Since April 2023, §16a of the German Anti-Money Laundering Act (GwG) has been in force, which:
Prohibits property payments using:
- Cash
- Cryptocurrencies
- Tokens
- Any “quasi-monetary” instruments
Obliges the notary to verify the receipt of funds on the seller’s bank account.
Even if the seller agrees to accept tokens, the notary will not register the ownership transfer in the land register (Grundbuch).
2. No Bank Transfer – No Completion by the Notary
Every real estate transaction in Germany must be notarized.
The notary:
- verifies the source of funds,
- requires proof of a SEPA bank transfer,
- may suspend the transaction and notify financial authorities.
The transfer of tokens, cryptocurrencies, or internal project tokens does not constitute payment under German law.
3. The German Land Register Is Not Linked to Blockchain
Ownership of an apartment in Germany:
- arises only after registration in the Grundbuch,
- cannot be represented by tokens or NFTs,
- is not transferred via smart contracts.
Blockchain technology may be used only as a supporting tool, not as legal proof of ownership.
Are There Alternatives or Workarounds?
Yes – but this is not a purchase of an apartment with tokens
Germany does have real estate tokenization projects, but the distinction is crucial.
What actually exists:
- tokenized bonds
- participation or equity tokens
- investment tokens linked to real estate assets
What this means in practice:
- you do not buy an apartment,
- you acquire a financial instrument,
- the property remains owned by a company (GmbH / SPV).
Examples:
- Brickblock (fractional investments)
- Fundament Group (tokenized bonds)
- RAAY Real Estate (BaFin-approved security tokens)
Can Tokens Be Used Indirectly?
Yes, indirect use is possible, but with limitations.
A compliant structure looks like this:
Your tokens:
- are sold or converted into euros,
- via a licensed platform or bank.
The euros:
- are transferred to the property seller,
- the notary confirms receipt of funds.
The transaction:
- is registered in the land register,
- is fully legal.
In this case, tokens are not a means of payment, but merely the source of funds.
Taxes When Buying Property Using Tokens as Capital Source
If tokens are used as a source of funds, taxation must be considered.
For individuals:
- Sale of tokens within 1 year → income tax
- Sale after 1 year → potentially tax-free
- Property transfer tax (Grunderwerbsteuer) is always paid in euros
For companies:
- Profits from tokens → corporate tax
- Exchange rate gains are treated as income
- Full tax reporting is mandatory
Why Is Germany So Strict?
The reasons are straightforward:
- prevention of money laundering
- protection of buyers and sellers
- stability of the real estate market
- control over the origin of capital
Germany is considered one of the most conservative EU jurisdictions regarding real estate payment regulations.
Conclusion: Can You Buy an Apartment in Germany with Tokens?
In short:
Not directly
Not through a notary
Not without a bank transfer
Investing via tokenized instruments is possible
Tokens can be used as a source of funds
A legal purchase is possible after conversion to euros
Expert Conclusion
The query “buy an apartment in Germany with tokens” reflects a clear trend, but German law is not yet structured for such transactions. Today, tokens function as investment instruments or capital sources, not as a replacement for money in real estate purchases.
If Germany ever allows such transactions, they will occur via banks, BaFin, and a digital land registry—not through informal or gray-market schemes.
