An important document that all buyers must sign before purchasing real estate in Spain is the “prevention of money laundering document.”
All buyers in Spain must justify the source of the money they will use to purchase real estate and its traceability. The purpose of this law is to prevent money laundering from illegal activities12.
To be able to purchase a property, the buyer must sign the money laundering document. The information required to fill out this document depends on the customer's circumstances and may include:
- Personal information: name, surname, ID, current address, and other personal details.
- Professional status and information about the buyer's profession. For example, whether the buyer is a sole trader or an employee.
- Information about the purpose for which they are purchasing the property: as a main residence, to rent out, as an investment, etc.
- Buyers must identify the source of the income they will use to acquire the property, and whether this is their own money, someone else's and the bank or country of origin of the funds.
- The buyer must sign and date the document and must attach a further document validating the information provided, such as a photocopy of their identity card or passport.
- Bringing or sending 10,000 euros or the equivalent amount in foreign currency into or out of Spanish territory.
- Payments made in national territory for an amount equal to or greater than 100,000 euros or the equivalent amount in foreign currency.
- National Identity Document, foreign resident card, or passport.
- The last two payment slips or retirement pension slips.
- The most recent income tax statement.
- Income tax withheld (last 2-3 years).
- Other documents proving the source of the funds and the activity. For example, if a natural person receives an inheritance donation, takes out a mortgage or makes a divestment.
- Tax ID, deed of incorporation, bylaws or equivalent certification from the Commercial Registry, information identifying the company's representative and a statement from this person identifying the beneficial owner.
- Corporation Tax.
- Annual or quarterly VAT or equivalent tax return (less than 12 months old).
- Other documents proving the source of the funds and the activity. For example, if a company or self-employed person receives a capital increase, loan, or divestment.
- Social Security and Economic Activities Tax slips.
- Other documents that prove the source of funds and the activity. For example, if a self-employed person receives an inheritance, donation, mortgage or makes a divestment.
