What is buyer verification?
Buyer verification is the due-diligence process applied to the purchasing side of a property transaction: confirming the buyer's identity, their tax identification and residency status, who is actually behind a corporate purchaser, how the purchase is funded, and whether the buyer or their funds trigger any sanctions, PEP or adverse-media concern.
Written by Andréas Hobbelin · Last updated
What is checked on the buyer side
Buyer verification goes further than identity because the money moves from this side of the transaction:
- Identity and nationality, verified against an authentic document.
- NIE or Spanish tax identification (or NIF in Portugal) where required for the purchase.
- Residency status, which affects both tax treatment and risk profile.
- Corporate structure and ultimate beneficial owners where the buyer is a company, trust or fund.
- Funding route — own funds, mortgage, sale of another asset, gift, inheritance, corporate distribution.
- Source of funds evidence proportional to risk, and source of wealth for higher-risk cases.
- PEP, sanctions and adverse-media screening on the buyer and the beneficial owners.
Non-resident and international buyers
A large share of buyers on the Costa del Sol, in the Balearics and in the Algarve are non-resident. That is not in itself suspicious, but it does mean documents originate in multiple jurisdictions and languages, and remote verification is the norm rather than the exception. Consistency of method matters more than volume of paperwork.
Reservation payments and timing
Reservation deposits are frequently taken before verification is complete. Where the buyer is later found to be unacceptable, this creates a commercial and compliance problem simultaneously. Completing at least identification, screening and initial risk classification before funds are accepted removes most of that exposure.
Frequently asked questions
Does the estate agent have to verify the buyer if a lawyer is involved?
Yes. Both are obliged subjects with independent obligations. A lawyer's file does not discharge the agent's own duty.
What if the buyer purchases through a company?
You must identify the company and the natural persons who ultimately own or control it, and verify that ownership through registry or equivalent evidence.
Sources and further reading
Put this into practice
PropComply structures KYC/CDD once per client and shares it securely with the parties in the transaction — each keeping their own independent decision.
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