The cryptocurrency (CC) market has blown up as of late and people are flocking to the Riviera Maya, Mexico feeling now is the time to cash out on some of their dividends. Just like any upward trend; volatility is always a concern. Recently I have seen such savvy investors getting out of the currency market in search for passive income investment opportunities such as income producing properties (rental properties) in one of the hottest real estate markets in the world.
Cryptocurrencies have been around for years however the now trending currency is considered as an alternative to flat governmental currencies and becoming recognized on a global level. With some companies such as the Saatal Group (the fastest growing private real estate development company in the Riviera Maya) invested interest in cryptocurrency they have the ability to accept payment from clients pursuing diversification in their investment portfolio. We make the process of using your cryptocurrency towards acquiring an investment property, vacation home, or retirement home a safe and seamless process.
“Bitcoin is exciting because it shows how cheap it can be. Bitcoin is better than currency in that you don’t have to be physically in the same place and, of course, for large transactions, currency can get pretty inconvenient.”
A new movement has encouraged companies such as Saatal Group to take on cryptocurrencies as a legitimate form of payment. Lamborghini, Wordpress, Subway, Expedia, Tesla, PayPal and Microsoft are all accepting currencies such as Bitcoin, Ethereum and Litecoin. Business moguls such as Bill Gates, Richard Branson, Peter Thiel and Max Keiser all support this new revolution in the finance industry.
Being that bitcoin among other block chains are an international currency it sways well for the market in the Riviera Maya that is predominantly made up of investors from around the world. The Riviera Maya real estate market is a cash market with little to no financing options available hence why having the ability to use your CC account as a form of payment has many advantages:
1) Swift and inexpensive transactions
Traditionally moving money between international banks is a nightmare. You have to deal with intermediary clearing banks which could potentially hold funds for weeks at a time, pay hefty transfer fees, receive poor currency exchange rates and in other instances money disappearing in the proverbial “cloud” taking months to recover. By using cryptocurrencies like bitcoin you can skip the bureaucratic banking nonsense, avoid freezes and expect a seamless and swift acquisition. Financial intermediaries have no way to interfere in cryptocurrency transactions nor does any governmental body hence the transactional fees are kept low.
2) Tax Benefits
For years one of the benefits of investing in Mexico real estate has been its tax advantages but this has now changed. The Mexican government recently implemented IVA (a 16% sales tax) on real estate purchases. By purchasing your investment property through Bitcoin, Litecoin or Ethereum sales tax is not added to the purchase, by removing the third party entity there is no way to track crypto transactions, saving you a bundle on taxes.
Unless you choose to publicize your transaction your personal identity will remain autonomous. Addresses and transactions are not tied to the identity of the user however there is a grey area here; cryptocurrencies are still working on complete anonymity as software and technology becomes more advanced so to avoid having egg on my face from those of you who are more seasoned with CC´s we will say “pseudo-autonomous”. There are certain ways to further insure your anonymity, feel free to leave a comment below if you have any questions.