Key Points of the New Royal Decree of 12/07/2023 About the Creation of a Central Registry of Real Estate Titles

General Presentation and Objectives

This new law was approved in a precise legal context because it complements the European directive 2018/843 of the European Parliament and of the Council, on the prevention of the use of the financial system for the purpose of money laundering or terrorist financing. Consequently, it develops the third and fourth provisions of the law of 10/2010 of the 28^th of April, regarding these matters. The general objective is to protect the integrity of the financial system and other sectors of economic activity, through the collection and publication of actual ownership.

What Does it Concern?

The law consists of a single central registry of Spanish territory, managed by the Ministry of Justice, more precisely the General Directorate of Legal Security and Public Faith (Dirección General de Seguridad Jurídica y Fe Pública).

When Will it Enter into Force?

It will come into force on the 19^th of September 2023.

Interested Parties

The interested parties are as follows:

- Spanish legal entities, and entities or structures without a legal standing that have their seat of management or their main activity in Spain, or those that are managed by individuals or legal entities residing or established in Spain.

- Entities or structures without legal standing such as trust-type entities.

- Entities or structures without legal standing but analogous to trusts which are not being managed or administered from Spain or another State of the European Union and are not registered by another State, and which intend to establish business relations, carry out occasional operations or acquire real estate in Spain which they must declare by electronic means to the Central Registry of Real Estate Titles (el Registro Central de Titularidades Reales) before commencing the aforementioned activities.

Data Retention Periods and Information to be Provided

This registry will be electronic, and the data is kept and updated for the entire life of the entity, and for up to ten years after its termination.

The information to be filled in is in Article 4 of the regulation and is provided. In addition, all personal data is guaranteed to be protected.

Access

Those who can access the Central Registry of Real Estate Titles for free and without restriction are as follows:

The authorities responsible for the prevention, detection, investigation and prosecution of terrorist-financing offences, money laundering and its predicate offenses, both national and from other Member States of the European Union,
The Public Prosecutors Office,
The European Public Prosecutors Office,
The bodies of Judicial Power in the criminal field,
The Security forces and Corps,
The National Intelligence Centre,
The Intelligence Centre against Terrorism and Organised Crime,
The Commission for the Prevention of Money Laundering and Monetary Offenses and its supporting bodies,
The National Securities Marketing Commission,
The Asset Recovery and Management Office,
The State Tax Administration Agency,
The Protectorate of Foundations,
The General Intervention of the State Administration,
The Labour and Social Security Inspectorate and the Court of Auditors,
Notaries and registrars and their centralized protection bodies, in the exercise of their functions, subject to prior accreditation.

Furthermore, persons or organisations that can demonstrate a legitimate interest in their knowledge may be given access to information relating to the real estate of the entities and other data.

On a European Level

The Ministry of Justice guarantees interconnection with the Central European platform and guarantees the protection of personal data.

Non-Compliance and Sanctions

The second additional provision of the General Provisions provides that in the event of non-compliance with the obligation to identify and inform the Central Registry, due to the lack of identification in the title deed sheet or lack of records of said title deed sheet due to omission in the deposit of annual accounts, this will determine whether the registry will be closed to them. (Article 378 of the commercial registry regulations).