Source of funds
Source of funds forms part of the risk-based assessment and the ongoing monitoring of the business relationship. How far it must be made plausible and backed by documentation depends on the risk of the individual case. Where risk is elevated, additional evidence may be required.
The question "on every purchase?" therefore has two different answers depending on what is meant. The assessment of source of funds belongs to every transaction — it is part of the duty to record the purpose and nature of the business relationship, and that includes the intended payment and financing route. The extent of the evidence, by contrast, is graduated and follows the risk of the individual case.
There is no fixed purchase price above which checks become "serious". The overall risk assessment draws on the buyer's country of origin, the payment route, the complexity of the buyer structure, and any PEP status, among other factors. An unremarkable purchase at a high price may be satisfied with light documentation, while a considerably cheaper property can call for enhanced evidence where risk indicators are present.
Nor is the check a box ticked once; it is an ongoing evaluation throughout the business relationship. If the payment route or the circumstances change, the assessment may need updating.
Legal basis: Ley 10/2010, Art. 6; Real Decreto 304/2014
Practical tip: The most common organisational mistake is not a badly run check, but one run at the wrong moment. An agent who raises source of funds shortly before the notary appointment is left with documents that cannot be obtained at short notice — particularly where they have to come from abroad. The question belongs at the start of the process.
AI-assisted tools were used in preparing these FAQs; the content was subsequently reviewed and approved by the Doxario editorial team. They reflect the general state of the law as at the review date shown and do not constitute individual legal or tax advice. To assess your own case — particularly where complex structures are involved (offshore companies, trusts, foundations, communities of heirs) or where the new EU rules leave room for doubt — we recommend consulting a lawyer specialising in Spanish anti-money-laundering law and, on tax questions, a tax adviser. Doxario is a deal management and compliance platform for estate agents in Spain, operated by Blue Pepper S.L.; we therefore have an economic interest in the solutions described in these FAQs. Doxario accepts no liability for decisions taken solely on the basis of these FAQs.
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