Contrato de arras in Spain: the 2026 guide to securing your purchase

You have found an apartment or a house in Spain, the price is agreed and the seller suggests quickly signing a contrato de arras (a private purchase contract with a deposit). At this stage, the amount requested can be several thousand, or even tens of thousands of euros. Before paying it, one question is essential: what exactly are your rights if the sale does not go ahead?

The deposit contract sets the terms of the transaction before the deed is signed at the notary's. It usually states the price, the amount paid, the planned date of sale and each party's commitments. But not all deposit contracts have the same effects. Depending on the formula chosen, a buyer who changes their mind may lose the amount paid or face a claim to complete the sale. A mortgage refusal does not necessarily end the contract at no cost either.

Here is how to understand the contrato de arras, tell it apart from a simple reservation and check its clauses before signing. This guide is written especially for international buyers who need to coordinate financing, property checks and signing from abroad.

Key points. The contrato de arras is a private contract concluded before the notarial deed. The amount paid is negotiated between the parties; it is often around 10% of the price, with no single legal percentage. The arras penitenciales allow a party to withdraw on the agreed terms: the buyer loses the deposit, or the seller pays it back double. The arras confirmatorias and arras penales have other effects. Before paying anything, have the type of deposit, the financing conditions and the deadline for signing set out in writing.

What is a contrato de arras in Spain?

The contrato de arras, or deposit contract, is a written agreement between the buyer and the seller of a property. It usually comes once the price has been negotiated and before the escritura pública, the public deed of sale signed before a notary. It may be preceded by an offer or a reservation, but this step is not always required: the process depends on the file and on what the parties agree.

In the contract, the parties identify the property and set the main terms of the sale. The buyer pays a sum, called arras or señal depending on the document, which is normally deducted from the price if the sale goes through. The contract also sets out what happens if one of the parties fails to meet its commitments or wants to withdraw. So the amount paid is more than an advance: what happens to it depends on the clauses and the legal regime chosen.

Signing does not necessarily take place at a notary's office. A private contract can still genuinely bind the signatories. The notary's role in a property purchase in Spain comes mainly at the final deed; do not wait for that appointment to discover the conditions you accepted several weeks earlier.

People sometimes describe the contrato de arras as the equivalent of exchanging contracts in England and Wales, or of a purchase agreement in the US. The comparison helps place the step, but it has its limits. Do not assume that the protections and deadlines you know from home, such as a mortgage contingency or a deposit held in escrow, apply automatically in Spain. Read the Spanish contract to know who is bound, under what conditions and with what financial consequences.

Why sign a contrato de arras?

The main benefit is to turn an agreement in principle into written commitments. Before signing, each party may have their own understanding of the advertised price, the furniture included or the date the property will be available. The contract sets these points and prepares the final deed on a common basis.

For the buyer, this period is used to arrange financing and complete the necessary checks. It is also the time to agree how existing mortgages will be cancelled, how any occupants will leave and how missing documents will be provided. For the seller, the deposit shows the buyer's commitment. Both parties then know which conditions must be met before going to the notary.

This security is not automatic, however. A vague wording such as “the property is reserved until the sale” does not answer every question. What happens if the bank refuses to finance the purchase? If the nota simple reveals a charge? If one of the sellers cannot sign? If the sale is postponed? The answers written into the contract are what make the transaction predictable, much more than the deposit itself.

The three types of deposit contract and what they mean

People often talk about “the” deposit contract as if it always had the same effects. In practice, you need to distinguish between arras penitenciales, arras confirmatorias and arras penales. Their name and, above all, their clauses must be read together. The label used in a heading never replaces reading the commitments written in the body of the document.

Arras penitenciales: withdrawing at a known cost

The arras penitenciales are linked to the possibility, for each party, of backing out of the deal in exchange for the agreed financial consequence. Article 1454 of the Spanish Civil Code provides that the buyer can lose the deposit paid and the seller can pay it back double. This double repayment includes the sum originally received: if the buyer paid €20,000, a seller who withdraws must pay back €40,000 in total, not €20,000 plus €40,000.

Take an apartment at €250,000 with a €25,000 deposit. If the parties have clearly agreed on arras penitenciales and the buyer uses the right to withdraw, they lose the €25,000. If the seller uses this right, they pay back €50,000 in total. This example describes the general mechanism; the precise facts and the other clauses of the contract must always be examined.

It is risky to assume that a simple payment automatically gives you this right to withdraw. If you want arras penitenciales, ask for explicit wording on their nature and on the consequences of withdrawing. Ambiguous wording can create a dispute at the very moment you thought you had a clearly defined way out.

Arras confirmatorias: a commitment you must honour

With arras confirmatorias, the sum paid serves as an advance on the price and shows that the parties have agreed. On its own, it does not give the right to end the sale by giving it up. If one party fails to meet its obligations, the other can seek performance or termination of the contract and, depending on the situation, claim damages. So the outcome cannot be summed up as “the buyer loses 10%” or “the seller pays double”.

For the buyer, the practical point is simple: do not sign thinking you can always change your mind just by losing the deposit. Have the real consequences of the proposed wording explained, especially when the bank has not yet decided or checks on the property are still pending.

Arras penales: a penalty to read in detail

The arras penales aim to set a financial consequence in case of non-performance. Their exact effect depends on the clause: its amount, the breach it covers and how it fits with a claim for performance must be specified. It would be misleading to promise “penalty plus forced sale” in every case. Before signing, have someone check what the injured party could actually claim.

Be careful with properties in Catalonia. Catalan civil law has its own rules, in particular in articles 621-8 and 621-49 of Book Six of the Catalan Civil Code, on deposits and on certain purchases linked to financing. A transaction in Barcelona should therefore not be analysed by mechanically copying a template used in another region. A legal review adapted to the property's location is still needed.

Contrato de arras or reservation contract: what are the differences?

Before the arras contract, an agency or a seller may offer a reserva (contrato de reserva, or reservation contract): the buyer pays a sum to show interest and asks for the property to be taken off the market for an agreed period. The content of a reservation varies a lot. The name of the document is not enough to determine each party's rights: its clauses may already create significant obligations.

Suppose you pay €3,000 to reserve a property, then the parties agree on €20,000 when the arras contract is signed. The new document must state clearly whether the €3,000 is included in the €20,000, who it was paid to and how it will be counted at the final deed. Without this, a simple accounting question can turn into a major disagreement.

Do not assume either that a reservation is always “worthless” and that a deposit contract is always “more protective”. Protection comes from verifiable commitments: the seller's identity, the length of the reservation, what happens to the deposit if the offer is refused, refund conditions and the timetable for moving to the arras contract. Ask for a signed copy and proof of every payment.

How much should you pay, and who should receive the deposit?

There is no single percentage required for all contratos de arras. Around 10% of the sale price is often mentioned, but the amount is negotiated depending on the property and the file. It can be lower or higher. For a €300,000 purchase, 10% is already €30,000: before transferring that sum, you need to know exactly when it will be deducted from the price or possibly lost.

The contract should state the total amount agreed, earlier payments, the date and method of each payment, who receives it and the balance due at the deed. If an agency receives the funds, ask in what capacity it holds them, in which account, on whose behalf and how they will be passed on or refunded. Avoid any payment based only on verbal instructions. Keep the contract, receipts and bank records.

Being able to pay the deposit does not mean your purchase budget is complete. Taxes and transaction costs come on top of the property price. Depending on the type of property and its location, find out in particular about the ITP (transfer tax) that applies to a property purchase in Spain. If you are buying with a mortgage, also anticipate how much the bank will agree to lend and how long it will take to get a decision.

What should a contrato de arras contain?

A good contract allows someone who was not at the negotiations to understand exactly who is selling what, to whom, for how much, on what date and under what conditions. The following points must be adapted to the property, not copied without review from a generic template.

The identity of the parties. List the buyers, the selling owners and, where relevant, their representatives. When a property belongs to several people, check who must consent to the sale and who is authorised to sign. If someone acts under a power of attorney, have its scope checked.

The description of the property. Address, Land Registry details, cadastral reference (referencia catastral), advertised area and annexes must match the available documents. State whether a parking space, a storage room, a terrace or furniture is included. The role of the cadastre in Spain helps explain one of the sources used to identify the property; you should also compare the title deed and the Land Registry information.

The price and payments. Note the total price, the sum already paid, the deposit paid on signing, the balance, the recipients and the payment methods. If any items were specifically negotiated, describe them. A verbal promise about furniture left in the apartment will be hard to enforce if the contract only states an overall price.

The type of deposit and the consequences of a breach. The wording must make clear whether the sum is arras penitenciales, confirmatorias or penales, and what happens if one of the parties does not meet the conditions. Distinguish between a voluntary withdrawal, a financing failure covered by a clause and the discovery of a legal problem with the property.

The date of signing at the notary's. Set a realistic deadline, how the notary will be chosen, the documents to provide and how any extension will be recorded. A simple “as soon as possible” leaves too much room for differing interpretations.

The condition of the property and obligations before the sale. The contract can specify whether the home must be vacant, how mortgages will be cancelled, who provides proof of community fees and which regularisations must take place before the deed. The list of checks to carry out before buying property in Spain helps you go further with these checks.

Costs and special conditions. Identify the taxes and costs borne by each party and any condition linked to the mortgage, administrative documents or regularising the property. If a condition is meant to let you recover a sum, describe the event that triggers it, the deadline to prove it and the refund procedure. A general wording such as “subject to financing” may not be enough to avoid a dispute.

Finally, each signatory must receive a complete copy. Check that the annexes mentioned are actually attached and that the versions exchanged are identical. If you do not know the language of the contract well enough, have its content explained before signing, and have the key passages translated if needed.

How long does a contrato de arras last?

The period between the deposit and the notarial deed is normally set by the parties in the contract. There is no uniform 30, 60 or 90-day period that applies to all Spanish sales. Simple files can move quickly; a mortgage, an inheritance, cancelling an existing mortgage or an administrative regularisation take more time.

Start by drawing up a timetable working backwards. When can the bank give its decision? Do the owners have all the necessary documents? Do you need to get an NIE to buy in Spain or arrange a power of attorney? Will the property be vacant in time? The answers to these questions should determine the agreed date, not the other way round.

If a delay appears, warn the other party before the deadline and have any new agreement recorded in writing. An extension must state the new date and, if needed, what happens to the deposit during that period. Do not assume that a banking difficulty or a late notary appointment automatically extends the contract. Conversely, a delay does not necessarily mean the deposit is automatically lost: its cause, the wording of the contract and how the parties reacted must be examined.

How do you cancel a contrato de arras in Spain?

The answer depends first on the type of deposit and the reason why the sale does not go ahead. With arras penitenciales that are clearly agreed, the mechanism of article 1454 gives the right to withdraw on the financial terms explained above. With arras confirmatorias or a penalty clause, the consequences are not necessarily limited to the sum originally paid.

If the buyer simply changes their mind

Start by rereading how the deposit is classified and the notice procedure. If you have a right to withdraw, it has a known cost; if you do not, the seller can use the other remedies available under the contract and the applicable law. Before sending a notice of withdrawal, have the text and dates reviewed: a misreading can make the dispute harder to resolve.

If the seller no longer wants to sell

In the example of arras penitenciales, a seller who withdraws pays back double the deposit. If the contract falls under another regime, the buyer may have other options, depending on the clauses and circumstances. A seller who announces a better offer still cannot rewrite the signed contract on their own.

If the bank refuses the mortgage

A mortgage refusal alone does not guarantee you get the deposit back. If the purchase depends on a loan, have the contract describe the financing sought, the steps expected from the buyer, the deadlines and the documents that will prove a refusal. Check with a professional how these conditions fit with the law that applies in the property's region, especially in Catalonia. Our article on getting a mortgage at home or in Spain helps you prepare this question before you sign anything.

If a problem is found with the property

A mortgage, a debt, a planning irregularity or a mismatch between documents does not always lead to the same solution. Some situations can be put right before the sale; others require negotiation or call the project into question. What matters is identifying the problem, how serious it is, the seller's precise commitments and the deadlines set in the contract. Have the information confirmed in writing and do not conclude on your own that the purchase is automatically cancelled and that your money will be returned.

Practical tips to secure your arras contract

Check the nota simple and the owners

Ask for a nota simple issued recently by the Land Registry (Registro de la Propiedad) and compare it with the contract. It shows in particular the registered owner and the charges recorded. Check that the people signing have the power to sell the property. If the property was inherited or belongs to several people, additional documents may be needed before you commit.

The nota simple is a starting point and does not cover every risk. It replaces neither a review of the planning status, nor checks on the community of owners' documents, nor a careful visit of the home. Draw up a list of unanswered questions and set in the contract what must be clarified before the deed.

Have the contract reviewed by a Spanish property law professional

The review checks the balance of obligations, the exit options and the consistency between the contract and the property documents. It is particularly useful if you are buying from abroad, using a mortgage or if the property has an unusual situation. Read our guide on the role of the lawyer in a purchase in Spain and our interview with a lawyer based in Málaga for a practical insight into their work.

The right question before signing is not only “is the contract valid?” but “what exactly happens if my mortgage is refused, if this seller is late or if this property has a charge registered against it?”. A review tailored to your file is more useful than a general approval of a template.

Check debts, the community of owners and the administrative status

Ask for proof relating to community fees, IBI (local property tax), any mortgages and the administrative status of the property. Our article “Who pays IBI?” explains one of the items to check. Specify how sums owed before the sale will be paid and how proof of payment will be provided.

For a home that has had work done or is intended for a particular use, also have the relevant permits and restrictions checked. This check is decisive if your project depends on being able to renovate, let or move into the property quickly. The questions to ask vary depending on the municipality and the type of property.

Set a realistic deadline and keep proof

Do not let sales pressure alone dictate the date of the deed. Confirm deadlines with the bank, the sellers and the people preparing the file. Have price changes, new dates or commitments to carry out work recorded in writing. Finally, keep all signed versions, annexes and proof of transfer: they let you reconstruct the agreement if there is a dispute.

Getting support to buy in Spain

A purchase in Valencia, Barcelona, Málaga or Benalmádena does not always raise the same market and document questions. The same goes for a project in Mallorca or in Menorca. In every case, signing the arras contract must be part of a wider check of the property and the budget.

At Alveo Search, our English-speaking teams support you with the search, viewings and negotiations on site, then coordinate the steps needed to prepare the purchase. If you have found a home and need to sign quickly, discover our support for buying a property in Spain so your situation can be reviewed before you pay the deposit.

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