We set up your appraisal company and secure its approval by the Bank of Spain under Royal Decree 775/1997: public limited company (S.A.), €300,000 in capital, exclusive corporate purpose of valuation, a team of 10 professionals, civil liability insurance and independence. Approval is mandatory: without it, your appraisals have no effect for mortgages, real estate collective investment schemes, insurance or pension funds.
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Six building blocks for setting up an appraisal company and getting it approved, from incorporation and the technical team to independence, insurance and entry in the Bank of Spain register.
We prepare and file the approval application, which is mandatory for your valuations to have effect for mortgages, real estate collective investment schemes, insurance and pension funds.
We incorporate the public limited company (S.A.) with the minimum capital of €300,000 in registered shares and a corporate purpose limited in the bylaws to the valuation of assets, businesses or estates.
We structure the minimum team of ten professionals (three of them tied professionals with experience) and the internal control and quality mechanisms that approval requires.
We help you take out a civil liability policy exclusive to appraisal work, with the minimum cover of €600,000, which rises with the value appraised up to the legal maximum.
We design the internal code of conduct, the fit and proper framework for directors and the incompatibility rules to ensure that valuations are independent.
We implement procedures in line with Order ECO/805/2003: valuation methods, report content, validity period and controls, depending on the purpose of each appraisal.
Companies that want to set up an appraisal firm, valuation consultancies that need official validity, or credit institutions that want their own appraisal service: Bank of Spain approval is the way in.
"Anyone who wants to create an appraisal company from scratch needs to incorporate the public limited company, assemble the technical team and obtain Bank of Spain approval before issuing reports with official validity."
"A firm that already values properties but has no approval cannot issue appraisals that are valid for regulated purposes; approval opens up the mortgage and financial market to it."
"A credit institution can have its own in-house appraisal service approved to value the collateral for its exposures, subject to the independence and control requirements set by the Bank of Spain."
"Real estate collective investment schemes and pension funds need their properties valued by an approved appraisal company; having your own or working with one is key."
Issuing appraisals without approval, failing to meet the team or insurance requirements, or neglecting independence are the mistakes that most often hold back (and expose) an appraisal company.
Approval is mandatory: without it, valuations have no effect for mortgages, real estate IICs, insurers’ provisions or pension funds.
Minimum share capital of €300,000, fully paid up, plus a prior deposit of 10% (€30,000) with the Bank of Spain when you start the procedure.
Minimum team: at least ten professionals, of whom three must be tied professionals with experience in appraisal work.
Civil liability insurance exclusive to appraisal work: €600,000 plus 0.5 per thousand of the value appraised in the previous year, up to a maximum of €2,400,000.
Independence and incompatibilities: the company cannot carry out valuations for its own group, shareholders with more than 10% or directors; an internal code of conduct is mandatory.
Timeline and revocation: the Bank of Spain decides within 2 months (the application is deemed rejected if there is no decision in time), and revocation of approval is decided by the Council of Ministers.
Bank of Spain approval is what gives your appraisals official validity. Before incorporating anything, it is wise to settle the capital, team, insurance and independence and control mechanisms.
It is a public limited company approved by the Bank of Spain whose exclusive corporate purpose is the valuation of assets, businesses or estates. It is entered in the Official Register of Appraisal Companies and supervised by the Bank of Spain.
Its regime is set out in Royal Decree 775/1997 and in Law 2/1981 on the Mortgage Market.
It is mandatory for valuations to have effect for: the mortgage collateral of loans in the cover pool of mortgage securities, coverage of insurers’ technical provisions, the assets of real estate collective investment schemes and the real estate assets of pension funds.
Approval is granted by the Bank of Spain. The deadline for a decision is 2 months from receipt of the application or from the date the documentation is complete; if that period ends without a decision, the application is deemed rejected (negative administrative silence).
A minimum share capital of €300,000, fully paid up and in registered shares. In addition, when you start the procedure you must lodge a deposit of 10% of that capital (€30,000) with the Bank of Spain, in cash or government debt. It is returned whether the application is approved or denied.
A minimum of ten professionals, of whom at least three must be tied professionals with experience in appraisal work. Appraisals are signed by qualified technical professionals (architects, engineers) depending on the type of asset.
Yes, it is mandatory. A policy exclusive to appraisal work, with cover of no less than €600,000 plus 0.5 per thousand of the value of the assets appraised in the previous year, up to a maximum of €2,400,000.
To preserve independence, the company cannot carry out valuations for persons in its own group, for shareholders with more than 10% of the capital or voting rights, or for its directors or senior managers (or their relatives up to the second degree). It must have an internal code of conduct.
Order ECO/805/2003, which sets the valuation methods (cost, comparison, income capitalization and residual), the minimum content of the report, its validity period and the verification and quality control procedures.
An appraisal company values assets for third parties. A credit institution can have its own in-house appraisal service approved to value the collateral for its own exposures, with its own approval documentation.
Yes, but with strong independence safeguards: an internal code of conduct, limits on the concentration of revenue from a single credit institution, and mechanisms to avoid conflicts of interest in valuations.
A qualified technical professional (architect, technical architect, engineer or technical engineer, depending on the asset), who signs the report on behalf of the approved appraisal company.
Under Order ECO/805/2003, the appraisal report expires 6 months after its issue date for the purposes set out in the regulations.
Not for regulated purposes. Only valuations by an approved company or service have effect as mortgage collateral for the cover pool of mortgage securities and in the other cases in Article 1 of Royal Decree 775/1997.
Its reports are no longer valid for regulated purposes. Revocation of approval is decided by the Council of Ministers, without prejudice to any applicable penalties.
Not all valuations are equivalent, and they are not all carried out by the same type of provider. This comparison shows what has official effect and what does not.
Compared with the other options, the approved appraisal company is the only one that values for third parties with full official validity. These are its features.
Before incorporating anything, we decide whether you need an appraisal company or an in-house service within a credit institution, and we size the capital, team and insurance to your business.
| Option | What it does | Bank of Spain approval? | For which valuations |
|---|---|---|---|
| Appraisal company | Values assets for third parties | Yes, approved and registered | All regulated purposes in Article 1 |
| Credit institution appraisal service | Internal bank service for its own exposures | Yes, approved in-house service | Collateral of the institution itself |
| Technical professional (architect, engineer) | Signs the report as the technical expert | Not approved individually | Acts on behalf of a company |
| Non-regulated appraisal | Indicative or market valuation | No | Uses not subject to a regulated purpose |
Indicative table for information purposes. The regime for appraisal companies and services derives from Law 2/1981, Royal Decree 775/1997 and Order ECO/805/2003; requirements, amounts and timelines may vary and should be checked case by case with legal advice. This page is for information only and does not constitute advice.
Approval is not just filing an application: it means incorporating the company, assembling the team, securing independence and insurance, and obtaining approval before registering and operating. The order matters.
Public limited company with €300,000 in capital, registered shares and a corporate purpose limited to valuation. This is the foundation on which approval is built.
A team of ten professionals (three tied), technical resources and quality control mechanisms. Without that structure, there is no approval.
Entry in the Bank of Spain’s Official Register of Appraisal Companies is the condition for your reports to have effect.
Is your business lending or mortgage intermediation? See our pages on the mortgage credit intermediary, the financial credit establishment or real estate IIC authorization.
Getting an appraisal company approved is an ordered sequence (incorporation and team, insurance and control, deposit, application and approval + registration) with the Bank of Spain. This is the path.
1) Incorporation + teamPublic limited company with €300,000 in capital, the exclusive purpose of valuation and a team of ten professionals (three tied professionals with experience).
2) Insurance + controlA civil liability policy exclusive to appraisal work and internal control and quality mechanisms, together with the internal code of conduct and independence.
3) DepositLodging the prior deposit of 10% of the capital (€30,000) in cash or government debt, a requirement for starting the approval procedure.
4) Approval + registrationThe application is filed with the Bank of Spain, which decides within 2 months (deemed rejected if there is no decision in time). After approval comes registration with the Commercial Registry and the Official Register of Appraisal Companies, and only then can operations begin.
Quick decisionAppraisal company: values for third parties with full validity, approved and registered.
Credit institution appraisal service: values the collateral for its own exposures.
Technical professional: signs the report on behalf of a company; cannot be approved alone.
Public limited company formed by simultaneous incorporation, €300,000 in registered shares.
Exclusive corporate purpose of valuation.
At least ten professionals, three of whom must be tied.
Experience in appraisal work.
Knowledge of the market, compliance with valuation standards and quality control.
Documented mechanisms.
€600,000 plus 0.5 per thousand of the value appraised, up to €2,400,000.
Policy exclusive to appraisal work.
Internal code of conduct and incompatibilities.
No valuations for the group, shareholders >10% or directors.
Anticipate them before filing the application to avoid requests for information and rejection.
If you are going to set up or run an appraisal company, these terms appear in the approval application, in client relationships and in Bank of Spain supervision.
Public limited company approved by the Bank of Spain with the exclusive purpose of valuing assets, businesses or estates, entered in its Official Register.
Bank of Spain authorization, mandatory for valuations to have effect for mortgages, real estate IICs, insurance and pension funds.
Public register kept by the Bank of Spain in which approved companies are entered. Registration is a requirement for their reports to be valid.
Experienced professional who is part of the company. At least three of the minimum ten professionals must have this status.
Rules that set the valuation methods, report content, validity period and verification procedures for regulated financial purposes.
A document the company must adopt to promote the independence of appraisal work and avoid conflicts of interest, particularly with regard to credit institutions.
Cases in which the company cannot carry out valuations (its group, shareholders with more than 10%, directors and relatives), to preserve the objectivity of the appraisal.
A bank’s in-house service, also approved, that values the collateral for its own exposures, subject to independence requirements with respect to its commercial departments.
Royal Decree on the legal regime for the approval of appraisal services and companies. It is the core regulation for the requirements and the procedure.
A practical guide to setting up your appraisal company and getting it approved: what capital and team you need, how the liability insurance works, what independence and control mechanisms the Bank of Spain requires, and how the approval and registration procedure works.
Tell us whether you want to set up an appraisal company or an in-house appraisal service, and we will tell you the capital, team, insurance and steps you need to obtain Bank of Spain approval.
Appraisal companies are public limited companies whose exclusive purpose is the valuation of assets, businesses or estates, approved and supervised by the Bank of Spain. Their regime is set out in Law 2/1981 on the Mortgage Market (Art. 3), implemented by Royal Decree 775/1997, and their valuations are governed by Order ECO/805/2003.
Approval is mandatory for valuations to have effect as mortgage collateral for loans in the cover pool of mortgage securities, as coverage of insurers’ technical provisions, and for the assets of real estate collective investment schemes and pension funds. The company is entered in the Bank of Spain’s Official Register of Appraisal Companies.
The requirements are: the form of a public limited company, minimum capital of €300,000 in registered shares, an exclusive corporate purpose of valuation, a team of at least ten professionals (three of them tied), internal control and quality mechanisms, civil liability insurance exclusive to appraisal work, and a board of directors that meets the required fit and proper standards.
Before starting the procedure, you must lodge a deposit of 10% of the capital (€30,000) with the Bank of Spain. Approval is decided within 2 months and, if there is no decision, the application is deemed rejected. After approval, the company is entered in the Commercial Registry and in the Official Register. Revocation of approval is decided by the Council of Ministers.
To preserve independence, the company adopts an internal code of conduct and complies with the incompatibility rules (no valuations for its group, shareholders with more than 10% or directors). Appraisals are carried out in line with the methods, content and timelines of Order ECO/805/2003.
Key legislation, linked to the official text:
Legislation and links reviewed in .