If you are buying property in Spain, the contrato de arras is one of the most important documents you will sign. It is the private contract between buyer and seller that locks in the deal, sets the purchase price, and commits both parties through a deposit — typically 10% of the agreed price.
Yet many foreign buyers sign this contract without fully understanding what it means, what their rights are, or what happens if something goes wrong. On the Costa Blanca, Costa del Sol, Costa Cálida, and Costa Almería, the contrato de arras is standard practice — and getting it right is essential.
This guide explains everything you need to know.
The contrato de arras is a private purchase agreement (contrato privado de compraventa) in which the buyer and seller agree to the terms of a property sale and the buyer pays a deposit to secure the transaction. It is regulated by Article 1454 of the Spanish Civil Code.
Think of it as the Spanish equivalent of exchanging contracts — though it works differently from the UK, Dutch, or Belgian system. It is a legally binding commitment, but with specific rules about what happens if either party withdraws.
The arras contract is typically signed 1 to 2 weeks after the reservation deposit, once initial legal checks have been carried out. The period between signing the arras and the notary completion is usually 30 to 90 days.
Spanish law recognises three distinct types of arras contract. Understanding the differences is critical because they have very different legal consequences.
This is the most widely used type in residential property transactions on the Costa Blanca, Costa del Sol, and across Spain. It is governed by Article 1454 of the Spanish Civil Code.
How it works:
The arras penitenciales essentially gives both parties a right of withdrawal — at a cost. It is a balanced arrangement that protects both sides while allowing flexibility.
With arras confirmatorias, the deposit serves as confirmation of the contract and a part-payment of the purchase price. There is no automatic right of withdrawal.
How it works:
This type is more binding and less commonly used in standard residential transactions. It is more typical in commercial property deals.
Arras penales combine elements of both types above. The deposit acts as a pre-agreed penalty for breach, but neither party can simply walk away by forfeiting the deposit.
How it works:
This type offers the strongest protection but is the least flexible. It is not common in standard residential property purchases.
| Feature | Penitenciales | Confirmatorias | Penales |
|---|---|---|---|
| Right to withdraw | Yes (with penalty) | No | No |
| Buyer pulls out | Loses deposit | Court action possible | Penalty applies + court action possible |
| Seller pulls out | Returns double deposit | Court action possible | Penalty applies + court action possible |
| How common | Very common | Less common | Rare in residential |
| Best for | Standard residential purchases | When both parties are fully committed | High-value or complex transactions |
Key takeaway: In almost all residential property purchases on the Costa Blanca, Costa del Sol, Costa Cálida, and Costa Almería, the arras penitenciales is the standard type used. Always confirm which type is being used before signing.
The standard deposit is 10% of the agreed purchase price. This is not a legal requirement — the percentage is negotiable — but 10% is the established custom across Spain.
| Purchase Price | Typical 10% Deposit |
|---|---|
| €150,000 | €15,000 |
| €200,000 | €20,000 |
| €300,000 | €30,000 |
| €500,000 | €50,000 |
If you already paid a reservation deposit (€3,000 – €6,000), this is normally deducted from the 10%. So if the purchase price is €200,000 and you paid €5,000 as a reservation, you would pay an additional €15,000 at the arras stage to reach the full €20,000 (10%).
A properly drafted contrato de arras should include all of the following:
The contrato de arras specifies a completion date — the date by which the notary signing must take place. This is typically:
If the completion date passes without either party taking action to complete or withdraw, the contract remains in force. The party wishing to enforce it can demand completion; the party in breach may face the consequences set out in the arras type.
Extensions can be agreed in writing by both parties if needed — for example, if a mortgage approval is delayed.
With arras penitenciales (the standard type), if you as the buyer decide not to proceed, you lose your 10% deposit. On a €200,000 property, that means losing €20,000.
This is why it is critical to do your homework before signing the arras — and to include protective clauses if there are known risks (such as a mortgage condition).
Yes. If you are buying with a mortgage, your lawyer should include a clause stating that the contract is conditional on obtaining mortgage approval. If the mortgage is declined, you would get your deposit back (minus any agreed costs).
Not all sellers will accept this clause, and the wording must be precise. This is exactly why you need an experienced property lawyer — they know how to negotiate and draft these conditions.
With arras penitenciales, if the seller withdraws from the sale, they must return double the deposit. On a €200,000 property with a €20,000 deposit, the seller would have to pay you €40,000 (your €20,000 back plus €20,000 penalty).
This can happen when:
The "double return" rule acts as a strong deterrent against sellers backing out and is one of the key protections the arras contract provides to buyers.
The contrato de arras is not a standard form — it is drafted specifically for each transaction. The details matter enormously, and getting them wrong can cost you thousands of euros.
| Feature | Reservation Deposit | Contrato de Arras |
|---|---|---|
| Typical amount | €3,000 – €6,000 | 10% of purchase price |
| Purpose | Takes property off the market temporarily | Legally binding purchase commitment |
| Legal weight | Limited — often refundable in part | Strong — governed by Spanish Civil Code |
| When paid | Immediately after offer accepted | 1-2 weeks later, after initial legal checks |
| Paid to | Estate agent or seller | Seller (often held by lawyer) |
The reservation deposit is a holding measure; the contrato de arras is the real commitment. Never confuse the two, and never sign an arras contract without legal advice.
Yes. It is a legally binding contract under Spanish civil law. The consequences of breaching it depend on the type of arras used.
Yes. The 10% is customary but not legally mandated. In some cases, a lower percentage (5-7%) is agreed, particularly for higher-value properties. Equally, some sellers may request more than 10%.
The deposit is deducted from the final purchase price. If the property costs €200,000 and you paid €20,000 as arras, you pay the remaining €180,000 at the notary.
No. It is a private contract, typically signed at the estate agent's office, the lawyer's office, or even remotely. The notary signing comes later, at completion.
Yes. You can grant a power of attorney to your lawyer, who can sign on your behalf. This is common for buyers who are not in Spain at the time.
At Mediter Real Estate, we work closely with experienced property lawyers across the Costa Blanca, Costa del Sol, Costa Cálida, and Costa Almería to ensure every contract is properly reviewed and every deposit is protected.
We will never rush you into signing anything. Our priority is making sure you understand every step and feel confident in your purchase.
Contact Mediter Real Estate today to discuss your property search and get connected with a trusted legal advisor.
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