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International corporate law
Business Setup and Support in Spain Confirmation of the origin of funds in Spain

Yaroslav Shevel

Lawyer

E-mail

shevel@prikhodko.com.ua

Phone numbers

An expert in corporate and international corporate law. He has many years of experience in establishing and reorganizing companies, supporting M&A transactions, as well as providing legal support for opening and running a business in the EU, Asia, and North America.

Confirmation of the origin of funds in Spain

Proof of origin of funds in Spain is required to open bank accounts, purchase real estate, invest, obtain a residence permit and perform other financial transactions.

The requirement to prove the source of funds is based on EU legislation and Spanish regulations on combating money laundering and terrorist financing.

The main laws governing proof of origin of funds in Spain are:

Law 10/2010 on the Prevention of Money Laundering and the Financing of Terrorism –Anti-Money Laundering Law.
Royal Decree 304/2014 – A resolution defining mechanisms for customer due diligence by financial institutions.
Directive (EU) 2015/849 – The EU’s Fourth Anti-Money Laundering Directive.

In general, all banks, notaries, financial institutions, and tax authorities have the right to require confirmation of the source of funds to avoid the risk of illegal financial transactions.

Confirmation of the source of finances is required in cases such as:

Opening a bank account in Spanish banks.
Purchasing real estate (especially when purchasing for more than 100,000 euros).
Investing in a business or obtaining a “golden visa”.
Obtaining a loan or mortgage in Spanish banks.
Large cash transactions (deposits of over 10,000 euros).
Making international financial transfers.

To confirm the legality of the origin of funds, the following documents can be provided:

Tax return (Declaración de la Renta) – confirms the person’s income for previous years.
Certificate of income from work (Certificado de ingrosso) – confirms official salary and source of income.
Bank statements (Extractos bancarios) – confirm the receipt and movement of funds in the account.
Property purchase and sale contracts (Escritura de compraventa) – confirm the proceeds from the sale of assets.
Inheritance documents (Certificado de herencia) – in case of receiving money as an inheritance.
Contracts to receive dividends or investment income.

Spanish banks and financial institutions strictly adhere to KYC (Know Your Customer) policies and AML (Anti-Money Laundering) requirements, which impose an obligation on financial institutions to monitor the movement of funds and their origin.

It will also be useful: TAX CONSULTATION IN SPAIN

The main stages of the verification include:

Preliminary check (Due Diligence Inicial).

When opening an account, the client provides a passport, NIE number (Número de Identificación de Extranjero) and documents confirming financial status.

The bank then analyzes the sources of income and checks the client’s compliance with the risk profile.

Transaction Monitoring (Monitoreo de Transacciones).

Banks are required to monitor large financial transactions and unusual transactions.

However, cases of suspicious transactions can be referred to SEPBLAC (Servicio Ejecutivo de la Comisión de Prevención del Blanqueo de Capitales e Infacciones Monetarias), which is the Spanish financial regulator.

Tax control (Supervisión Fiscal).

The Agencia Tributaria may request additional documents regarding financial flows, as declaring large amounts of money is necessary to avoid fines or investigations.

Customer risk profiles (Risk Classification).

Individuals who receive funds from offshore accounts or work in high-risk industries are subject to additional verification. Also, businessmen, investors and individuals who make large financial transactions must have a clear income history.

If the bank detects a discrepancy or potentially suspicious activity, the account may be temporarily frozen and the client is required to provide additional information.

In the absence of confirmation of the legality of funds, the following consequences are possible:

Blocking a bank account or refusing to carry out a transaction.
Financial sanctions and fines from tax authorities.
Investigation into suspected money laundering.
Refusal to provide credit or obtain a mortgage.

Therefore, proof of origin is a mandatory procedure for financial transactions in Spain.

Compliance with Spanish and EU legislation, providing the necessary documents and cooperating with financial institutions allows you to avoid problems with banks and tax authorities.

Calculate the cost of services

1 question

Do you need confirmation of funds in Spain?

Yes

2 question

Are you planning to place funds in Spain?

Yes

3 question

Do you need help confirming your funds in Spain?

Yes

4 question

Do you need advice on placing funds in Spain?

Yes

Can a non-resident register a company in Spain?

Yes. A foreigner may be a founder and administrator of a Spanish SL. Identification documents must be prepared, the required Spanish tax or personal identification numbers obtained, and notarial, corporate and banking checks completed.

Can an SL be opened remotely?

In many cases, the main part of the procedure can be completed through a representative acting under a notarised power of attorney. However, the procedure for obtaining an NIE, executing the power of attorney, bank identification and signing documents depends on citizenship, structure and the requirements of the particular institutions.

Is an NIE mandatory?

A foreign individual who participates in notarial incorporation, becomes a shareholder or administrator of the company usually requires an NIE. For foreign legal entities, a Spanish tax identification number is obtained and a separate package of corporate documents is prepared.

What is the current minimum share capital for an LLC (SL)?

The “Crea y Crece” law allows a company (SL) to be registered with share capital from €1. However, the company will be required to allocate 20% of its annual profit to the legal reserve until the combined amount of share capital and reserve reaches €3,000.

Can every startup pay 15% for four years?

No. The extended regime for empresas emergentes requires ENISA certification and compliance with requirements concerning innovation, scalability, age, turnover, structure and presence in Spain. Without such certification, the general rules for newly established companies apply.

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