Real estate investment is no longer limited to just dollars today, as bitcoins and other cryptoassets are increasingly being used. This topic is extremely relevant for Ukrainian investors who aim to diversify their capital and are looking for safe ways to transfer funds abroad, avoiding account freezes and tax issues.
To ensure a full investment cycle in the market, there are specialized platforms:
• Binaryx
Marketplace for fractional (equity) real estate investments that connects investors, developers, and management companies.
• Xpaid
A fintech holding that helps Ukrainians safely convert crypto into euros, dollars, or pounds in any volume, for later use in investments.
Capital legalization - the role of Xpaid in cross-border payments
Ukrainian investors who have sold assets (for example, an apartment in Ukraine) and received a large sum of money face limits and restrictions when trying to withdraw funds for investment abroad.
Those who try to bypass the system (e.g., through acquaintances at a bank or transporting cash in 10,000 euro increments by relatives) risk having their funds frozen by the bank months or years later. Today, cryptocurrency is the most adequate and legal way to move capital.
Step-by-step transit plan
1. Source of Funds
The client must have official documents confirming the origin of the hryvnia or fiat – this could be a sole proprietor's tax return, a real estate sale agreement, etc. Xpaid does not create these documents, it only structures them.
2. Crypto Conversion
Since crypto is not yet regulated in Ukraine, it is best to buy it with cash. This can be done through popular exchange offices.
3. Official Exchange (Xpaid)
Xpaid, holding licenses in Lithuania and Poland, legally exchanges crypto for euros or other currencies by signing a relevant contract and invoice with the client.
4. Compliance and Safety
Xpaid conducts a full customer (KYC) and wallet check to ensure it is not “dirty” crypto withdrawn from gambling or mixers, for example. Due to European rules Travel Rule, the company cannot accept anonymous payments exceeding $1000.
5. Deposit of Funds
Received euros are sent to an account in a payment system that is “friendly” to crypto payments and Ukrainian passports, to avoid blocking.
The entire process of preparing, verifying, and opening accounts usually takes up to 7 business days, and the exchange itself is carried out within one day. The service operates entirely online, allowing even Ukrainians who are not leaving the country to invest.
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Investment opportunities and returns
After legalizing funds, investors can use them for various purposes: investing in American stocks, contributing to the share capital of European companies, or purchasing real estate.
Binaryx offers fractional real estate investments starting from $500.
| Region / Investment Type | Yield (Annual) | Specifications |
| Asia (Indonesia) | 10% – 13% (Rent) | Highest return through long-term rentals. Indonesia is an emerging market. |
| Montenegro, Turkey | 8% (Guaranteed Income) | Mid-yield segment. |
| Poland | 6% – 8% | High security, growing economy. |
| Old Europe (Spain, Britain, France) | 3% – 6% | Ultra-high security, slower growth rate. |
| Real estate under construction | 15%–40% | Higher profitability, construction period – from one to two years. |
The main category of clients (around 80% users) are people who have previously invested in stocks/bonds/crypto, or IT specialists and entrepreneurs.
Tax nuances and asset tokenization
Tokenization and the Structure of DAO LLCs
Binaryx utilizes a DAO LLC (smart contract-governed limited liability company) legal structure registered in the USA. The token issued by this smart contract grants ownership rights in the organization, ensuring a transparent chain of ownership on the blockchain.
Advantages of tokenization:
Transparency and traceability
The life cycle of an object is digitized.
High liquidity
The token can be transferred to another person in digital format without lawyers or notaries. Selling the token on the secondary market can take from a few minutes to a few hours.
Depreciation
An investor can use real estate depreciation to reduce their overall income tax.
KPMG and Deloitte forecasts suggest that by 2034, the tokenized assets (RWA) market could represent 10% of the entire real estate market, or approximately $5 trillion.
Income and transit taxes
Legal tax matters are individual, depending on the client's tax residency (Ukraine, Spain, etc.).
• Crypto Profit Tax
If an investor made money on crypto (for example, invested $$50k and withdrew $100k), tax on the difference ($50k) must be paid in accordance with the tax laws of their country of tax residency.
Transit tax
If crypto (specifically stablecoins) is used exclusively as a means of transferring funds (bought for $50k and sold for $50k), no tax is paid, as there was no additional income. This works on the condition that the initial funds in Ukraine have already been taxed.
Xpaid does not transmit customer transaction data to the Ukrainian tax authorities. Exchange of information (e.g., through the Lithuanian regulator, where the company is registered) can only occur upon a special request from the Ukrainian tax authorities.
Key Risks and Advice for Investors
The biggest mistake investors make is trying to play by the old, “familiar” rules, looking for cheap and informal ways to withdraw capital.
1. Avoid excessively high returns
Promises of 10-20% per month are usually a scam, and you can lose money on them.
2. Do not neglect documentation
Attempting to deposit large sums into a European bank through acquaintances without complete documentation (source of funds + transit confirmation) can lead to funds being frozen for years.
3. Vet your partners
It's worth approaching the issue internationally right away. Even if an exchange allows you to withdraw crypto to a bank account, banks often block such transactions, as many European states equate crypto operations with drug trafficking and other dangerous activities.
Therefore, it is worth the investor first investing time in studying the topic. Now, while regulation in the crypto sphere is still “light” and there is an opportunity to use this mechanism, investors have six months to take maximum advantage of this opportunity.
It's like a journey across a great river. Crypto is a sturdy, but not always obvious, bridge. If you build (or use) it according to all the engineering rules (meaning compliance and legislation), you will safely transport your capital across. If you try to swim across on an inflatable mattress (using informal schemes), there's a high risk of drowning in legal troubles.
