In the USA the title company wants dollars: coins are converted by a processor before closing, the sale is a taxable disposal, and sanctions screening can stop the file. What the buyer and a later foreign seller should expect.
In brief
As of November 2026, buying a house or apartment in the USA with crypto almost always means converting the coins into US dollars before the money reaches escrow. A processor sells the coins and the title or escrow company receives a wire, so the crypto step is a taxable disposal for the buyer. Foreign buyers face no general federal ban, but a later sale by a foreign seller triggers FIRPTA withholding of 15 percent of the gross price. Title companies and banks screen for sanctions, so the file can stop on the identity of the buyer. This article is general information, not legal or tax advice.
What "buying with crypto" means in the USA
Most readers who ask this hold coins on an exchange and want a flat in Miami, New York or Austin. In the USA the closing is run by a title or escrow company, and most closings are funded in US dollars. That is why the realistic picture is a conversion: the coins become dollars, the dollars go to escrow, and the deed is recorded in the normal way.
Some title companies work with processors that convert coins at closing, and vendor pages describe the route. In August 2026 a press release announced a partnership between a crypto escrow vendor and First American Title to help buyers with digital assets convert them into dollars. That is a vendor statement, not a regulatory fact, and we found no fee schedule. For the general picture of crypto deals, read buying property with cryptocurrency: how it works, countries, risks.
What is confirmed and what is not
Reported by law-firm alerts, tax-advisory blogs and vendor pages, not read on an official page:
- The IRS treats crypto as property (Notice 2014-21), so most disposals are taxable events.
- Form 1099-DA is issued by brokers for digital-asset sales and first applies to 2025 activity. Cost basis is often shown as blank or unknown, so you still report the gain yourself.
- A rule on non-financed residential transfers to entities and trusts was set to take effect on 1 December 2025 and was moved to 1 March 2026. Individual buyers are outside the rule as described.
- A civil penalty of about USD 4.68 million was imposed by OFAC in November 2025 on an individual who dealt in real estate blocked under a Russia sanctions designation.
Not confirmed: whether the real-estate reporting rule took effect on 1 March 2026, was delayed again or changed; whether paying property directly in coins is treated differently from selling for dollars first; and which US states, if any, restrict foreign buyers of land. One guide says several states added such limits in 2025 and 2026, and it names none.
How the deal runs, step by step
1. Choose an agent and a real estate attorney who have closed a crypto-funded deal. Ask for the title company's written position on crypto before you make an offer. 2. Write the offer in US dollars. The contract price is in dollars, not in coins. 3. Build the source-of-funds file and the tax picture before closing (see the sections below). 4. Open an account with an established processor or exchange and verify your identity early. Do not wait for the closing week. 5. Convert the coins to dollars on a date agreed with the title company, and wire the dollars to escrow from an account in your name. 6. Close, record the deed and keep every statement. The sale of the coins is reported on your tax return.
Tax: the crypto sale, FIRPTA and the state
The sale of coins to fund the purchase is a disposal. It produces a gain or loss measured against your cost, so keep exchange records. Long-term holdings are taxed at 0, 15 or 20 percent depending on income, according to tax-software and advisory blogs, which is a general rule for US taxpayers and not advice for your situation. If you are not a US tax resident, the position depends on your country of residence, and the documents in source of funds and taxes when buying property abroad with crypto apply.
On a later sale by a foreign seller, FIRPTA requires the buyer to withhold 15 percent of the gross sales price by default, not of the gain. A 10 percent band for a purchaser's residence between USD 300,000 and USD 1,000,000 is described by some guides, and sources differ on whether it is current. It is withholding, not the final tax, and a withholding certificate can reduce it. Plan the exit before you buy.
What it costs: a worked example
An illustrative example, not a quote. A property priced at USD 500,000. Assumptions: you convert coins at an assumed spread and fee of 1 percent, which is our assumption because no sourced range was found; the title, recording and lawyer fees are left out.
- Conversion cost at the assumed 1 percent: USD 5,000.
- Price moves while you complete: if the coins you hold fall by 10 percent between signing and payment and the price is fixed in dollars, you are short USD 50,000.
- A later sale by you as a foreign seller at USD 600,000: FIRPTA withholding of 15 percent of the gross price is USD 90,000, held back at closing and credited against your actual tax when you file.
The simplest protection against price moves is to convert the full amount into dollars before you sign and to hold it in the account that will pay.
Banks, title companies and the source of funds
US banks and title companies ask for identification, proof of the account the money comes from and the source of the funds. For crypto this means exchange statements, wallet history and a clear line from the original fiat to the sale of the coins. The rule on non-financed transfers to entities and trusts, if it applies to your case, adds a report filed by the closing professional; buying in your own name falls outside it as described.
Read proving crypto income to banks and notaries: a documents checklist and prepare the file before the offer. For unusual US properties and what they cost, see the USA: most expensive, smallest and unusual properties.
Passports from sanctions-affected countries
We found no 2026 rule that bars Russian nationals from buying US real estate, and no bank-level rule specific to Russian citizens. What exists is OFAC's general prohibition on dealing in the property of designated persons, and title insurers, brokers and attorneys all have obligations to screen. A buyer from a sanctions-affected country should expect longer checks, more documents and the possibility of a refusal, and financing is hard for a foreign buyer in any case. Nothing here advises avoiding any check. For the first weeks after arrival, read the first 30 days in the USA.
Red flags
- A seller or a platform that offers a discount for coins or insists on coins only.
- A "closing" arranged outside a licensed title or escrow company.
- A request to send coins to a wallet address before a signed contract and an escrow instruction exist.
- A processor you cannot find a licence or an address for.
- A promise that nobody will ask about the source of funds.
FAQ
Can I pay for a house in the USA directly in bitcoin? The practical route is conversion: a processor sells the coins and the title or escrow company receives dollars by wire. Some companies work with such processors, but you should get the title company's written position first.
Is the sale of my coins taxed? Yes, in general. The IRS treats crypto as property, so selling coins to fund a purchase is a disposal that produces a gain or loss against your cost. Keep your records and ask a tax adviser.
Can a foreigner buy property in the USA? There is no general federal ban on foreign buyers, but financing is hard and one guide says several states added limits on land in 2025 and 2026. Check the state before you buy.
What is FIRPTA? When a foreign seller sells US real estate later, the buyer withholds 15 percent of the gross sales price by default. It is withholding, not the final tax, and a certificate can reduce it.
Can my passport stop the deal? Title companies, banks and brokers screen for sanctions. We found no rule aimed at Russian buyers as such, but you should expect more checks and prepare the documents in advance.