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This article forms part of the CostaLuz Lawyers blog and is published for general informational and educational purposes only. It was prepared with the assistance of artificial intelligence tools and, before publication, was substantively reviewed and editorially approved by Maria de Castro, a Spanish-qualified lawyer registered with the Cádiz Bar Association under number 2745, founder of CostaLuz Lawyers and the person responsible for the editorial review of the published content.
This article does not constitute legal, tax, immigration, employment, estate-planning or investment advice and does not replace an individual assessment and the professional work of the appropriate CostaLuz Lawyers specialist. No action or omission should be based solely on this information.
Contrato de Arras (Deposit Contract)
Contrato de Arras (Deposit Contract) — A Contrato de Arras is a private contract between buyer and seller in a Spanish property transaction in which the buyer pays a deposit (typically 10% of the purchase price) to secure the property, with legally binding consequences if either party withdraws from the deal.
The arras contract is the most critical stage of the Spanish property purchase process between the initial agreement and the notarial deed. It locks in the price, sets the completion deadline, and creates financial penalties for withdrawal. Most foreign buyers encounter the arras penitenciales (penal deposit), which is the most common type, but Spanish law actually recognises three different kinds of arras, each with very different legal consequences.
Three Types of Arras
- Arras Penitenciales (Art. 1454 Civil Code): Either party can withdraw. If the buyer pulls out, they lose the deposit. If the seller pulls out, they must return double the deposit. This is the most common type in residential sales.
- Arras Confirmatorias: The deposit is simply a partial payment. If either party withdraws, the other can sue for breach of contract and claim damages — potentially the full sale price.
- Arras Penales: Similar to penitenciales but neither party can simply walk away — the penalty is payable AND the contract remains enforceable.
Key Facts About the Contrato de Arras
- Standard deposit: 10% of the agreed purchase price
- The contract must clearly state which type of arras applies — ambiguity defaults to confirmatorias
- Completion deadline is typically 30 to 60 days from signing
- ALWAYS have a lawyer review the arras contract before you sign — never sign at the estate agent’s office without legal advice
- The arras contract should include conditions precedent (e.g., clean Nota Simple, no planning issues)
- Tax implications: the deposit forms part of the declared purchase price for ITP purposes
- Verbal arras agreements are technically valid but extremely difficult to enforce — always insist on a written contract
Before you sign, also read
Related Legal Terms
- Escritura Pública (Public Deed)
- Nota Simple (Property Registry Extract)
- ITP (Impuesto de Transmisiones Patrimoniales)
- Comunidad de Propietarios (Community of Owners)
- Back to Legal Encyclopedia — A-Z Guide
Need Help with Contrato de Arras?
Our bilingual legal team assists expats across Spain with every aspect of contrato de arras. We handle the paperwork, liaise with Spanish authorities on your behalf, and make sure nothing falls through the cracks.
This entry is part of our Legal Encyclopedia for Expats in Spain. Browse the full A-Z guide for more terms.
Legal Notice: The content on this page is provided for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. No action should be taken based solely on this content without first seeking independent professional legal counsel. Each case requires individual assessment based on its specific circumstances. CostaLuz Lawyers accepts no liability for actions taken or not taken based on this content.
About to sign an arras contract in Spain?
The arras (deposit) contract is binding – once you sign and pay, pulling out usually means losing your deposit, and the contract fixes the penalties, deadlines and what happens if either side withdraws. Send us the contract before you sign and we will review the terms, the property’s charges and the nota simple so you know exactly what you are committing to.
What Happens If the Seller Pulls Out of an Arras Contract in Spain?
Under the most common type of deposit contract — arras penitenciales (Article 1454 of the Spanish Civil Code) — if the SELLER pulls out, they must return DOUBLE the deposit to the buyer; if the BUYER pulls out, they forfeit the deposit. The consequence depends on which of the three arras types you signed (penitenciales, confirmatorias, or penales), so the contract wording matters.
This is general information, not definitive legal advice. Speak with a qualified Spanish lawyer about your specific situation.
Arras Contract — Common Questions
What happens if the seller pulls out of an arras contract in Spain?
Under arras penitenciales (Art. 1454 Civil Code), if the seller withdraws they must pay the buyer DOUBLE the deposit. Under arras confirmatorias the buyer can instead sue for breach and damages; under arras penales the agreed penalty applies and the sale can still be enforced. This is general information, not definitive legal advice. Speak with a qualified Spanish lawyer about your specific situation.
What happens if the buyer pulls out of an arras contract?
Under arras penitenciales the buyer who withdraws forfeits (loses) the deposit already paid. Under the other two types the consequence can be a damages claim or an enforceable penalty instead. This is general information, not definitive legal advice. Speak with a qualified Spanish lawyer about your specific situation.
What are the three types of arras contract in Spain?
Arras penitenciales (either party may withdraw — buyer loses the deposit, seller returns double; Art. 1454 Civil Code); arras confirmatorias (the deposit is part-payment and a withdrawal is a breach giving rise to a damages claim); arras penales (a penalty applies AND the contract remains enforceable). This is general information, not definitive legal advice. Speak with a qualified Spanish lawyer about your specific situation.
How much is the arras deposit usually in Spain?
The arras deposit is typically around 10% of the agreed purchase price, paid when the private purchase contract is signed, with completion usually 30–60 days later. The exact figure and deadlines are set in the contract. This is general information, not definitive legal advice. Speak with a qualified Spanish lawyer about your specific situation.
New guide: buying property in Spain — a legal guide for French buyers →
For what happens when a deal breaks down after the deposit, see your position if the seller tries to pull out after you paid the deposit.
And if you are not sure whether the document you signed is really an arras contract, or just a reservation, see our comparison of reserva and arras contracts.
Before signing, it is worth verifying who the registered owner is.