The arras contract in Spain: what it is and how it works

The contrato de arras is the private contract between buyer and seller that fixes the sale before the deed is signed at the notary. You pay a deposit on signing, the seller commits to sell, and the contract sets the price, the completion date and what happens if either side does not complete. This guide covers what it is, how it differs from the reserva, the deposit, the three kinds of arras and what each says about withdrawing, and what to check before you sign.

What the arras contract is

In Spain the sale happens in two stages. The arras contract comes first. It is a private agreement, not signed at the notary, and it binds both sides to the sale on the terms it sets out. The second stage is the escritura, the public deed signed before the notary, where the balance is paid and ownership transfers. I cover that stage in the Spanish buying process.

An arras contract normally records:

• the parties and the property
• the price and how it will be paid
• the deposit and who holds it
• the date by which the deed must be signed
• what happens if the buyer or the seller does not complete

That last line is the one that matters most, and it depends on which kind of arras you sign.

Reserva first, then arras

Many purchases start with a reserva, a small holding deposit of usually €3,000 to €6,000 that takes the property off the market while your lawyer runs the checks on title, debts, licences and the community of owners. It is a short agreement with a short life. The arras comes after those checks, when both sides are ready to commit properly.

The reserva says you are serious. The arras says you are both committed, in writing, with money on the line.

The deposit

The usual deposit on an arras contract is 10% of the price, paid when the contract is signed. It counts toward the price, so at the notary you pay the balance. The contract says who holds the deposit until completion, whether that is the seller or a third party such as a lawyer, and that is worth reading.

The three kinds of arras

Spanish law recognises three kinds, and the name tells you what the deposit does if one side does not complete.

Arras confirmatorias. The deposit confirms the sale and counts as a first payment. Neither side has a right to withdraw. If one side fails to complete, the other can apply to the court to enforce the sale or to claim compensation.

Arras penales. The deposit works as a fixed penalty. If one side fails to complete, the penalty is paid. There is still no right to withdraw.

Arras penitenciales. Either side may withdraw. The contract sets out what each side pays if it does so, and those amounts differ from one contract to another. This is the kind that article 1454 of the Spanish Civil Code describes. The article sets a default for this kind only, and only where the contract says nothing different: a buyer who walks away loses the deposit, and a seller who walks away returns it together with the same amount again.

Only one kind of arras lets either side withdraw

A right to withdraw exists only under arras penitenciales, the kind article 1454 describes. The Spanish Supreme Court has held that a deposit contract is not treated as arras penitenciales unless the contract says so clearly and expressly (judgment 583/2018 of 17 October 2018). Where it does not say so, both sides are bound to complete.

So the kind of arras you sign decides two things: whether either side can withdraw at all, and what it costs if they do. A contract that mentions “arras” without saying which kind is a contract for your lawyer to read before you pay anything.

What to check before you sign

• Which kind it is, in words. The contract should say penitenciales, penales or confirmatorias, and your lawyer should explain what that means for you.
• What it says about withdrawing. The amounts, the deadlines and who the money goes to.
• The completion date. That it gives your bank, your currency transfer and your travel time to be ready.
• Who holds the deposit. The seller or a third party, and on what terms.
• That the checks are done. Title, debts, licences and community charges are your lawyer’s work before the arras, not after it.
• Who is signing. That the person selling is the registered owner, and that every owner signs.

The UK government’s guidance on buying property in Spain puts the same point in fewer words: do not sign any papers or hand over any money until you have taken independent legal advice.

How I handle it

My approach is the same on every purchase. An independent lawyer drafts or reviews the arras contract before you sign it. I explain each clause in plain English, so you know which kind of arras it is and what it means for you before you pay the deposit. That is part of the buying service, and if you would like to talk it through first, book a call.

General guidance, dated 13 September 2026, not legal advice. Always instruct an independent Spanish abogado before you sign.

Common questions