Buyer structures

What needs attention with institutional buyers (funds)?

Institutional buyers — investment funds, private equity funds or REITs — are subject to a full KYB review. The agent must establish the fund itself, the fund manager, the competent regulator and the beneficial owners behind the fund. As a rule CDD suffices; for unregulated funds, EDD.

Fund purchases are increasingly relevant for luxury property and large projects. The review depends on the type of fund:

  • Regulated funds: EU-regulated funds (AIFM, UCITS) are as a rule lower risk, since they are already supervised — CDD usually suffices.
  • Unregulated funds: offshore funds, family offices or special-purpose vehicles call for EDD.
  • Documents: the fund prospectus, evidence of registration with the regulator (CNMV, BaFin, FCA), the statutes and the list of beneficial owners.
  • UBO: determined under the statutory definition; for regulated funds statutory or risk-based simplifications may apply.
  • Source of funds: funds deploy investor capital — the origin of the fund's assets must be capable of being evidenced, through audited financial statements for instance.
  • Sanctions screening: the fund and the manager are checked against the sanctions lists.

Legal basis: Ley 10/2010, Art. 4.2; Real Decreto 304/2014, Arts. 8–9; AIFM Directive

Practical tip: Fund purchases concentrate on hotels, fincas and apartment buildings. The due diligence is demanding — start early, some 4 to 6 weeks before the planned closing.

Related questions

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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