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If you have decided to buy a home in Spain, it is important that you learn about the Prevention of Money Laundering procedure. Don’t be intimidated by the name, it’s just a formality (although essential for buying your home). Since the Law on Prevention of Money Laundering was passed in 2010, anyone who wants to buy a home in Spain must justify the origin of the money that will be used to do so, as well as its traceability. The purpose of this law is to control money laundering that comes from illegal activities.
At Sonneil, we want to help you with any questions you may have:
What do I have to do?
To carry out this procedure, you will have to sign the money laundering document that we will supply at Sonneil if you make the purchase through us. If you choose another real estate agency, it will be them or the developer who will supply the document. The data required are:
For individuals
- Name, surname(s), ID, current residence and other personal and identifying data.
- Financial status and data referring to your profession, such as whether you are self-employed or employed.
- Purpose for which the property is acquired: as a primary residence, investment, for renting, etc.
- Specify the source of income that the buyer is using to purchase the property. Clarify whether the financing is your own or someone else’s and indicate the bank and/or country from which the money comes.
- The document must be signed with the corresponding date and accompanied by a document that validates the data provided, such as a photocopy of the ID card or passport.
For legal entities
- CIF (tax ID number for companies).
- Location of the company.
- Identification data of the company representative.
- CNAE (Code that classifies economic activities).
- Purpose for which the property is acquired.
- Source of income that the buyer is using to purchase the property.
- The document must be signed with the corresponding date and accompanied by a document that validates the data provided.
Do I have to provide any documents?
Yes, it is essential that you do so to support your claims in the money laundering document. These are the documents we need:
Identification document
- For individuals: National ID, Residence Permit, Passport…
- For legal entities: CIF, deed of incorporation, articles of association or equivalent certification from the Mercantile Register and Statement issued by the representative of the Company identifying the real owner.
Document to accredit the economic or professional activity. This document will vary depending on the client’s activity, and may include:
- Individuals: last two payslips or pension payments, last income tax return, personal income tax withholding (less than 12 months old).
- Legal entities: business tax, annual or quarterly declaration of VAT or equivalent taxes (less than 12 months old).
- Self-employed: Social Security payments and Economic Activities Tax receipts.
- Other documents that justify the origin of the funds and the economic activity. For example, when an individual receives an inheritance, donation, mortgage loan or makes a disinvestment, or if a legal entity receives a capital increase, loan,divestment …
When do I have to sign it?
You will have to sign the money laundering document when you make the offer on the property. That is, before the deed of sale is signed before a notary public.
What happens once it has been signed?
All professionals involved in the sale (developers, consultants, real estate agents…) are required to check the origin of the funds and notify the Tax Agency. Thus, once the document is signed, Sonneil (or the agency involved) will carry out the appropriate checks through compliance programs and Know Your Customer forms, designed to verify the client’s identity in a formal and real way. In addition, at Sonneil we work with a platform that specialises in the study and processing of your personal data, ensuring its protection and confidentiality.
It may seem complicated, but the professionals at Sonneil will guide you through the process to avoid any headaches. If you want to find out more about the formalities involved in buying a property, visit this section of our blog.
Congratulations! You have taken another step towards starting your new life near the sea.
