Real estate

The arras deposit contract in Spain: what you sign before buying

The arras are the deposit you pay to reserve a home in Spain, usually 5 to 10% of the price. Signing them without reading the fine print can cost you dearly.

August 11, 2026 · Riondato & Partners

The arras deposit contract in Spain: what you sign before buying

What the arras contract is

The arras contract is a private agreement between buyer and seller that sets the terms of the future sale and seals it with a payment, the señal (deposit). No notary is needed: you sign it between the parties, often at the estate agency, weeks before going to a notary for the escritura pública (public deed).

It does two jobs. It takes the property off the market for you while you arrange financing and paperwork, and it commits both sides to close within an agreed deadline. That money is not an extra: it comes off the final price when you sign the deed.

How much you pay, and when it comes off the price

There is no amount fixed by law. In practice the arras run between 5% and 15% of the sale price, and 10% is the most common figure. On a 250,000 euro flat, that is 25,000 euros you hand over at signing and subtract from the price on the day of the deed.

The figure is not neutral: it sets how much you lose, or recover doubled, if the deal falls through. Worth negotiating, rather than accepting the first number the other side proposes.

The three types of arras, and why the difference matters

The Spanish Código Civil (Civil Code) and case law distinguish three types. The label written into the contract completely changes what happens if someone walks away.

Arras confirmatorias

They confirm the contract exists and work as an advance on the price. They give no right to withdraw. If one party defaults, the other can demand that the sale go through, or terminate the contract and claim damages. This is the regime that best protects whoever genuinely wants to buy or sell.

Arras penales

They add a cláusula penal (agreed penalty): whoever defaults loses or returns a sum fixed in advance, but the complying party also keeps the right to force the sale through. The deposit works as a guarantee, not as an exit.

Arras penitenciales

These are the ones under article 1454 of the Código Civil. They let either party withdraw at a price: if you as buyer pull out, you lose the señal; if the seller pulls out, they return double. Here the deposit buys a right to change your mind.

The part almost nobody reads: in case of doubt, you cannot walk away

This is the costliest mistake. Many people assume that signing "some arras" gives them the right to leave and forfeit the money. By default it does not.

The Spanish Supreme Court (Tribunal Supremo, judgment 583/2018 of 17 October) treats article 1454 as an exceptional rule to be read narrowly: in case of doubt, the arras are deemed confirmatorias. For them to be penitenciales, the contract must state clearly and unambiguously that the parties may withdraw and with what consequences. Vague wording such as "as a deposit" or "on account of the price", or a mere reference to article 1454, is not enough.

In plain terms: if the contract does not spell it out, you have no exit right. You have an obligation to buy, and the seller can enforce it.

A false friend for Italian buyers

An Italian used to the caparra tends to read "arras" as its direct equivalent. It is not quite. In Italy the caparra confirmatoria (article 1385 of the Codice Civile) is the default regime, and the caparra penitenziale (article 1386), the one that buys a right to withdraw, must be agreed expressly. The underlying logic is similar: the deposit confirms the purchase, it does not make it optional. Anyone coming from Italy should read the type of arras with the same care they would give the type of caparra back home, without assuming that "putting down a deposit" means being free to leave.

What the contract should contain before you sign

A serious arras contract identifies the parties and the property (with its Land Registry details), the total price and the deposit amount, the type of arras, the deadline to sign the deed and the expiry date. It is worth adding who pays each cost and tax, and the condition in which the home is handed over (free of charges, up to date on IBI, the local property tax, and community fees).

On the deadline: there is no national statutory maximum (Catalonia does cap it at six months). The parties agree it, and one to three months is normal, enough time to close the mortgage.

Do not confuse the arras with the señal de reserva (or hoja de reserva) that agencies sometimes ask for to pull the property off the market. It is a different document, with different effects, and it does not always give you the protection you think.

Arras and financing: the clause that saves you

If you are buying with a mortgage, the biggest risk is signing the arras and then having the bank turn down the loan. Without protection, you would lose the señal over something outside your control.

The fix is a cláusula de financiación (a financing condition, a condición suspensiva): the contract is made conditional on your getting the mortgage. It should state the minimum amount you need, the deadline to obtain it and what happens if the bank refuses, which normally means getting the deposit back. For a foreign buyer, who often faces different lending terms, this clause is not a detail: it is the difference between risking 10% of the property or not.

Do the arras pay tax?

On their own, no, they do not trigger a separate tax on a resale between private individuals. There the tax is Impuesto de Transmisiones Patrimoniales (ITP, transfer tax), which arises when you sign the deed and is calculated on the Cadastre's valor de referencia (reference value) or on the price if higher. The arras are simply an advance on that price.

It is different for a new build sold by a developer, where the sale is subject to IVA (VAT): there the advance payment triggers VAT at the moment you pay it. Worth knowing before you sign, because it changes when and how much you pay.

If you have any doubts, Riondato & Partners is here to help

For over 45 years Riondato & Partners has guided Italian and Spanish clients through cross-border property deals, and we know where the traps in an arras contract hide. If you are about to buy a home in Spain and want to sign with confidence, get in touch and we will review the contract before you put your money on the table.