Proof of funds and anti-money-laundering checks: what to expect
Expect to show your identity, explain where the money comes from, and pay by traceable bank transfer. Cash is capped by law.
Updated 2 min read
Key points
- In Spain cash payments are capped at €1,000 where a business is a party, or €10,000 for a private individual who is not tax resident in Spain.
- Banks and brokers ask for a source-of-funds explanation with documents.
- Pay from an account in the buyer's own name.
Why you will be asked
Banks and notaries must check who is paying and where the money comes from, and brokers commonly do the same. A yacht is a high-value asset, and the checks are routine for every buyer.
What buyers are usually asked for
- Identity. Passport or national ID, proof of address.
- Source of funds. A short explanation of how you came to hold the money, with documents: a property sale contract, company accounts, a dividend or salary record, an inheritance document, savings statements.
- Proof of funds. A bank statement or letter showing the money is in an account in your name.
- For a company: incorporation papers, the directors, and the people who ultimately own it.
The exact documents depend on the bank, the broker and the amount. Ask each party for its list.
Paying
- Pay by bank transfer from an account in the buyer's name. A payment from a third party raises questions that take days to answer.
- Keep the transfer receipts. They go into the file for the registration.
- A deposit held by a neutral party shows where the money sits. See The deposit: how escrow protects you.
The cash limit
Spanish law (Ley 7/2012, as amended in 2021) sets the limit at €1,000 where one party acts as a business or professional. A private individual who proves they are not tax resident in Spain can pay up to €10,000 in cash. The cap applies to the whole transaction, even if the sum is paid in instalments. A boat sale will not fit within these limits, so plan for transfers.
What slows things down
- Funds arriving from a country the bank flags for extra checks.
- A buyer who cannot explain the source of money.
- A company with a layered ownership.
- Payment split between several accounts.
Start early
Prepare the documents before you make an offer, and the closing will not wait for your bank. See Buying a yacht in Spain: the full process and timeline and Closing and handover: bill of sale, payment, documents, keys.
Related guides
General information, not legal, tax or financial advice. Rules change; check your own case with a professional or ask us.