Buyer structures

What applies to a purchase through a foundation?

Foundations are recognised in Spain and in many EU states. Where a foundation buys, the agent must examine the constitutive instrument, the founder, the board and the beneficiaries. The beneficial owner is usually the founder or the beneficiaries. The structure will generally establish an elevated risk and with it EDD — the actual obligation follows from the risk assessment in the individual case.

Foundations — Liechtenstein foundations, German charitable foundations or Swiss family foundations, for instance — are entities with legal personality of their own. For KYC that means:

  • Identification: the constitutive deed, a registry extract (in Liechtenstein the foundation register) and the statutes.
  • UBO: not always clear-cut. Candidates are the founder (where they retain substantial control rights), the board (where it decides free of instruction) or the beneficiaries (where they carry the economic interest).
  • EDD: foundations count as complex structures and will generally establish an elevated risk; whether EDD is actually owed is decided by the risk assessment in the individual case.
  • Source of funds: the foundation's assets must be checked for lawful origin — including the founder's own background and the foundation's history.
  • Documentation: constitutive deed, sworn translation, apostille, registry extract and a declaration on the beneficial owner.

Legal basis: Ley 10/2010, Art. 4.2 (UBO concept), Arts. 11–16 (EDD); Real Decreto 304/2014, Arts. 8–9

Practical tip: Purchases through a foundation turn up occasionally among German high-net-worth individuals. Establishing the UBO is often complex — where the structure is unclear, bring in a lawyer specialising in foundation law.

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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