Buying Property in Marbella: Anti-Money Laundering Checks Buyers Should Know

Buying property in Marbella is an important decision, especially for international buyers looking for a second home, main residence or luxury property investment on the Costa del Sol. Beyond choosing the right villa or apartment, agreeing a price and signing before a notary, buyers must also understand the checks that form part of a property purchase in Spain.

One of the most important areas is anti-money laundering compliance, often referred to as AML.

In a conversation between Mariano Beristain, Managing Partner of Diana Morales Properties | Knight Frank, and Miguel Manzanares, CEO and Founder of Manzanares Abogados, they discuss how anti-money laundering legislation applies to real estate transactions in Spain and why it matters for buyers, sellers and professionals involved in the process.

As Miguel explains, Spain has developed a strict and preventive system. The aim is not to correct problems at the end of a transaction, but to identify risk before money moves through the purchase process.

Why anti-money laundering checks matter in Marbella

Marbella and the wider Costa del Sol attract buyers from many different countries. Some buy in their own name. Others use companies, family structures or international holding vehicles. Many transactions involve high-value homes and cross-border funds.

This international profile is one of the strengths of the Marbella property market. It is also one of the reasons why anti-money laundering checks are taken seriously.

In the interview, Miguel explains that buying property, especially in the high-end segment, became an area of concern for legislators because real estate can be used as a route for money laundering. This led Spain to place responsibility on several professionals involved in property transactions.

Unlike some countries, where banks may carry most of the responsibility, Spain involves four key parties:

• banks;
• notaries;
• lawyers;
• real estate agencies.

All of them may have to check, verify and assess the information provided by the client.

Why estate agencies ask for documentation

Many buyers are surprised when an estate agency asks for personal or financial documents. They may expect this request from their lawyer or bank, but not from the real estate agent.

However, as Miguel makes clear in the conversation, estate agencies are also obliged entities under Spanish anti-money laundering rules. This means they have their own responsibility. They cannot simply rely on another professional’s opinion.

For example, even if a lawyer confirms that a client’s file appears to be in order, the estate agency must still make its own assessment. The same applies to banks. One bank may accept a client’s file, while another may not feel comfortable receiving the funds.

This is an important point for buyers to understand. When an agency asks for documentation, it is not adding an unnecessary obstacle. It is complying with a legal duty.

A preventive system from the start

Spain’s anti-money laundering system is designed to act early. This is especially relevant in a luxury property purchase in Marbella, where significant amounts can be paid before completion.

A buyer may first sign a reservation agreement. Later, they may sign a private purchase contract and pay 10%, 30% or even 40% of the purchase price, depending on the agreement.

For this reason, checks cannot wait until the notary appointment. They must start before the transaction moves formally forward and before money is transferred.

Miguel explains that some developers will not even accept a reservation payment of €6,000 or €10,000 unless the buyer has already complied with anti-money laundering requirements. The process starts early because prevention is the purpose of the law.

The three main documents buyers should expect to provide

The interview sets out three basic pillars of anti-money laundering due diligence in a property purchase.

1. Proof of identity

The first step is simple. The buyer must prove who they are. This usually means providing a valid passport or national identity document.

2. Proof of address

The second step is to confirm where the buyer lives. This may be done through a utility bill, phone bill or another document showing the same address given by the client.

3. Proof of funds

This is the most important and often the most complex part of the process.

It is not enough to say that the funds are clean or that the money is in a bank account. Buyers need to explain where the funds come from.

This may include:

• income from employment;
• business income;
• sale of a property;
• sale of shares or other assets;
• dividends;
• inheritance;
• savings built up over time;
• bank financing.

As Miguel explains, this part is more open to interpretation. One professional may be satisfied with the documents, while another may ask for more information. The key question is whether the source of funds makes sense when compared with the buyer’s profile and the property price.

For example, if someone is buying a €2 million property, the professionals involved need to understand where the money is sitting, how long it has been there and how it was generated.

Buying property through a company

Many international buyers ask whether they should buy property in Marbella through a company.

In the interview, Miguel explains that the answer depends on how the property will be used. If the buyer plans to use the property personally, buying through a company is often not advisable.

A company has its own legal entity. If the company owns the property and allows shareholders or directors to use it for free, the Spanish tax authorities may consider that the company should have charged a market rent. That deemed rental income could have tax implications for the company.

This is why buying in a company name should not be seen as a simple solution. It may make sense in some cases, especially where the property is linked to rental activity or business use. But for private use, it can create extra cost, administrative and tax issues.

From an anti-money laundering point of view, a company purchase also requires more transparency.

The Ultimate Beneficial Owner

When a company buys a property, the professionals involved must identify the ultimate beneficial owner, often called the UBO.

This means identifying the person behind the company. If there is another company behind that company, the review continues until the private individual who ultimately owns or controls the structure is identified.

Miguel explains that in Spain, professionals must go to the end of the ownership chain. It is not enough to say that the money comes from a company. The key question is: who is behind that company?

This is particularly important when structures involve several jurisdictions. If the structure is complex and does not provide clear information about the beneficial owner, the transaction may be stopped.

Politically Exposed Persons

A politically exposed person, often known as a PEP, is someone who holds or has held a prominent public role.

This does not mean that a politically exposed person cannot buy property in Spain. It means that the review will usually be more detailed.

Miguel explains that, in these cases, professionals must go deeper into the analysis. It may be necessary to review the origin of the buyer’s wealth over a longer period. If the buyer’s current income does not explain the funds in the bank account, more background may be needed.

The purpose is preventive. The system aims to avoid cases where public office, corruption or unexplained wealth could be linked to a property purchase.

How High-Net-Worth buyers usually react

High-net-worth buyers often value privacy. Some may feel uncomfortable when asked for personal and financial documents.

Miguel’s advice is to prepare clients from the start. Buyers need to understand that if they want to buy a property in Spain, they must comply with Spanish rules. Without the required information, the transaction cannot move forward.

This message should be handled with care and discretion. Buyers should not feel that they are being questioned unnecessarily. They should understand that this is a regulated process that applies to everyone involved in the purchase.

For estate agencies and lawyers, the best approach is to explain the requirements early, clearly and in a straightforward way.

Data privacy and confidentiality

The documentation requested during anti-money laundering checks can be sensitive. Buyers may ask who will see it, where it will be stored and how it will be protected.

In the interview, Miguel explains that this information is handled with strict confidentiality. Lawyers must comply with data protection rules and keep the documents securely. The information should not be disclosed unless required by a public authority or court.

He also explains that this documentation must be retained for 10 years. In practice, some law firms may keep files for longer, especially where they continue to act for clients over many years.

For buyers, the key point is that these documents are not requested casually. They are part of a formal compliance process.

Red flags in a luxury property transaction

Most property purchases in Marbella progress smoothly when buyers provide clear and complete information from the beginning.

Problems usually arise when the information is incomplete, unclear or provided gradually.

Miguel identifies several warning signs in the interview.

One is excessive urgency. If a buyer is under strong pressure to complete immediately and does not want to wait for proper checks, this can raise concern.

Another red flag is a complex structure involving several jurisdictions, especially when it is difficult to identify the ultimate beneficial owner.

A third example is when a buyer has no clear income or professional activity but holds a large sum of money in a bank account. If the explanation depends on an inherited or sold asset in a jurisdiction where formalities are less strict further questions are likely.

Another common issue is partial disclosure. Some buyers provide only part of the information and wait to see how the bank or lawyer reacts. Miguel explains that this approach can be counterproductive. Banks and other professionals may become suspicious if new information keeps appearing after the client has said the file was complete.

The better approach is to provide a full, clear and organised explanation from the beginning.

How buyers can prepare before buying property in Marbella

Preparation is the best way to avoid delays.

Before making an offer or paying a reservation, buyers should speak with an experienced lawyer in Spain. They should also prepare the documents that may be required by the lawyer, bank, notary and estate agency.

A buyer should be clear about:

• who will buy the property;
• whether the purchase will be in a personal name or company name;
• where the funds are coming from;
• which bank account will be used;
• what documents prove the source of funds;
• whether any enhanced checks may apply.

This is especially important for non-resident buyers, company purchases and buyers using funds from outside Spain.

A complete file helps everyone involved. It gives the buyer more certainty, helps the estate agency comply with its obligations and allows the transaction to move forward with fewer delays.

Anti-money laundering checks protect the transaction

Anti-money laundering checks should not be seen as a barrier to buying property in Marbella. They are part of a secure and responsible purchase process.

For buyers, they help avoid delays. For sellers, they reduce the risk of a transaction failing late in the process. For professionals, they are a legal obligation.

In an international luxury market such as Marbella, transparency is essential. Buyers come from many countries, structures can be complex and transactions often involve large sums. This makes preparation and clear documentation especially important.

With the right advice, buying property in Marbella remains a clear and secure process. The key is to prepare early, explain the source of funds properly and work with experienced professionals from the start.

This article is for general information only and does not constitute legal advice. Buyers should seek advice from a qualified lawyer in Spain before proceeding with a property transaction.

Pia Arrieta, 18 May 2026 - News