The real estate sector has for decades been one of the main channels used for money laundering operations, both in Italy and abroad. In particular, Spain, a privileged destination for international real estate investments, is now at the center of increasingly stringent controls on purchases of luxury properties, villas, and coastal apartments.
Understanding when a legitimate investment may be considered “suspicious” is essential to avoid mistakes and protect one’s assets from transnational tax or criminal proceedings.
- When a real estate investment becomes “suspicious”
The risk of a charge for real estate money laundering arises when the authorities are unable to trace the origin of the funds used for the purchase.
For example, the purchase of a villa on the Costa del Sol or an apartment in Marbella financed with savings accumulated abroad may appear suspicious if the financial flows pass through offshore companies or foreign accounts not immediately traceable to the buyer.
Even if the transaction is perfectly lawful, the Spanish Tax Agency or the Italian Revenue Agency may open an investigation to:
international tax evasion,
self-laundering or laundering of illicit proceeds,
failure to declare foreign activities (Form RW).
The main difficulty lies in proving the lawful origin of the funds, especially when the investments derive from professional or entrepreneurial activities carried out in different countries.
- The regulatory framework in Spain and Italy
Spain
The Spanish Criminal Code punishes blanqueo de capitales with imprisonment from six months to six years and high monetary fines, proportional to the value of the assets.
For the conviction, it is necessary to demonstrate that the defendant knew the unlawful origin of the funds and that the real estate transaction was intended to conceal or disguise it.
Investigations are often coordinated by the Executive Service of the Commission for the Prevention of Money Laundering (SEPBLAC), which cooperates with banks, notaries, and real estate agencies to identify unusual transactions.
Italy
In Italy, articles 648-bis and 648-ter.1 of the Criminal Code respectively sanction money laundering and self-laundering, with penalties of up to twelve years of imprisonment.
Here too, the defense revolves around demonstrating the traceability of the money and the legitimate economic purpose of the investment.
- The evidence elements in the defense
The defensive strategy in proceedings for real estate money laundering is based on two fundamental pillars:
Reconstruction of the origin of the funds
Presentation of banking documentation proving the lawful origin of the funds;
Production of tax returns and company financial statements;
Evidence of income legally accumulated in Italy or in other countries.
Demonstration of the economic logic of the transaction
Evidence that the purchase serves legitimate investment, residence, or asset utilization purposes;
Absence of fictitious structures or artificial interpositions;
Consistency between the value of the property, the financial flows, and the income-generating capacity of the buyer.
An effective defense must therefore combine technical expertise in criminal and tax law with a thorough knowledge of the international real estate market.
- Coordinated defense between Spain and Italy
The authorities of Italy and Spain actively cooperate in the exchange of financial and tax information, thanks to EU Directive 2015/849 (IV Anti-Money Laundering Directive) and EU Regulation 2018/1672.
For this reason, a coordinated defense across both jurisdictions is essential, capable of:
handle requests for judicial assistance and international letters rogatory;
prevent cross-border seizures and confiscations;
protect the investor’s assets and reputation;
avoid the risk of extradition in case of ongoing criminal proceedings.
Purchasing a property in Spain or in Italy may represent a legitimate and strategic investment choice, but it is necessary to carefully plan every financial and documentary step.
A preventive legal consultation, accompanied by appropriate banking and tax documentation, is the key to demonstrating the transparency of the transaction and defending oneself against possible charges of money laundering.
A coordinated asset and criminal defense between the two countries makes it possible to protect the entrepreneur’s investment and economic future.
