Contrato de Arras in Spain: What It Is and How It Protects You

When you find the right property on the Costa Brava and agree on a price, the next step is almost always the same: signing the Contrato de Arras.

This is a preliminary purchase contract. The buyer pays a deposit, the seller takes the property off the market, and both parties lock in the terms of the deal before the notary appointment. Without it, the agreement remains verbal and impossible to enforce.

Most foreign buyers hear the word “Arras” and think it is simply a deposit. In practice it is a legally binding document with specific consequences for both sides, and the type of contract you sign matters considerably.

If you have not yet gone through the buying process in detail, start with our guide to buying property on the Costa Brava as a foreign buyer.

What Is a Contrato de Arras

A Contrato de Arras is a private agreement between buyer and seller, signed before the final deed of sale at the notary.

It sets out the following:

• the agreed purchase price
• the amount and conditions of the deposit
• the deadline for signing at the notary
• the type of contract and consequences of withdrawal for each party
• any additional conditions, such as dependency on mortgage approval

A Contrato de Arras is not legally required under Spanish law. In practice, however, it is used in the vast majority of property transactions, and its absence makes it considerably harder to protect either party’s interests in the event of a dispute.

Three Types of Contract: What Is the Difference

This is the most important thing to understand before signing.

There are three types of Arras in Spain, and each carries different legal consequences.

Arras Penitenciales — the most common type

This is the type used in the majority of residential property transactions in Spain.

The logic is straightforward: both parties have the right to walk away from the deal, but they pay for it.

If the buyer withdraws, they lose the deposit in full.

If the seller withdraws, they must return double the deposit amount to the buyer.

This creates a financial incentive for both sides to follow through, while still leaving an exit if circumstances change.

One important detail: for a contract to qualify as Arras Penitenciales, simply mentioning Article 1454 of the Spanish Civil Code is not enough. The Spanish Supreme Court has consistently held that the text of the contract must make it clear and unambiguous that the parties consciously chose this type and understand the consequences of withdrawal for each of them. Vague wording such as “as a deposit” or “on account of the price” without an explicit statement of the right to withdraw will be interpreted by courts as Arras Confirmatorias, which carry very different consequences.

Arras Confirmatorias — a commitment with no right of exit

This type means both parties are firmly committed to completing the transaction. The deposit is treated as an advance payment towards the final price.

There is no automatic right to withdraw. If one party pulls out, the other can go to court and demand the forced completion of the contract, effectively compelling the sale or purchase to go ahead.

For buyers this represents significant risk if circumstances change: for example, if the bank refuses the mortgage or problems with the property come to light after signing.

Arras Penales — a penalty mechanism

A hybrid type. The deposit acts as a pre-agreed penalty for breach of contract. There is no right of withdrawal: the party in breach pays the penalty, but the other party can still demand performance of the contract through the courts.

Less common in practice, more often seen in commercial transactions.

Deposit Amount: How Much Is Standard

There is no fixed legal requirement for the size of the deposit in Spain.

In practice, the market standard is 10% of the agreed purchase price. This is the norm in most transactions on the Costa Brava and across Spain.

In some cases the seller will accept a lower amount, particularly if the property has been on the market for a while. In others, where demand is high or the seller wants additional security, a higher deposit may be discussed.

The deposit always counts towards the final price at the notary signing.

What the Contract Should Include

A well-drafted Contrato de Arras should contain the following:

• full identification of buyer and seller
• exact description of the property including the cadastral reference number
• the agreed purchase price
• the deposit amount
• the type of contract, stated explicitly, with consequences for each party
• the deadline for signing at the notary
• conditions for return of the deposit if the deal falls through for reasons outside either party’s control
• who bears the costs of notary, registration and taxes

Two points deserve particular attention.

The mortgage clause. If the purchase depends on mortgage approval, this must be explicitly stated in the contract. Without this clause, if the bank refuses the loan, the buyer loses the deposit. With it, the deposit is returned. This is a standard protective clause that is frequently left out.

Where the deposit is held. Make sure the contract clearly states to whom the money is transferred, whether to the seller or the agency, and under what conditions it is returned. In practice there are situations where the deposit is paid to the agency, the deal falls apart, and recovering the money becomes complicated.

Common Mistakes Buyers Make

Signing the contract without a lawyer. The Contrato de Arras is a legally binding document. Its content directly determines what happens to your money if something goes wrong. Engaging an independent lawyer at this stage costs significantly less than losing a deposit.

Not specifying the type of contract. If the type of Arras is not clearly set out in the document with the consequences for each party, Spanish courts will default to Arras Confirmatorias. That means no right of exit and potential legal proceedings that can drag on for years.

Signing without checking the Nota Simple. The Arras contract locks in the terms of the deal but does not guarantee the property is legally clean. Check the Nota Simple before signing, not after. More detail in our article Nota Simple in Spain: What It Is and How to Read It.

Agreeing to an unrealistic timeline. If you are a foreign buyer without a NIE, without a Spanish bank account and without a bank transfer organised, two weeks to the notary may not be enough. Agree on realistic timelines from the start. As our Swiss family case study showed, even with good preparation the process takes time. Full story here.

What Happens After Signing the Arras

Once the Contrato de Arras is signed, the property is taken off the market. The seller cannot accept other offers.

During the agreed period, typically 30 to 90 days, the buyer completes all necessary preparations: obtains a NIE if not yet in place, opens a Spanish bank account, arranges the transfer of funds, and secures mortgage approval if required.

After that, both parties meet at the notary, sign the Escritura de Compraventa — the final deed of sale — and ownership is transferred.

The deposit paid under the Arras is deducted from the total amount due at signing.

If you are in the process of searching for a property or preparing for a transaction, contact our team directly. We are based in Lloret de Mar, work with international buyers at every stage, and support not just the property search but the full transaction process. You can also browse our current Costa Brava listings.