Note
Deposit when buying property in Spain
Quick answer
The deposit may be a reservation fee, arras or an advance on the price. What it is called matters less than what the paper says: what it counts for, who holds it and when it returns. Pay by bank transfer, keep proof, and for off-plan homes check that advance payments are secured.
Applies toBuyers asked to pay a sum before the deed and who want to keep the money safe.
On this page: 8 sections
§ 1One word, several meanings
“Deposit” is used for the reservation fee, for arras and for an advance on the price. What matters is the paper that goes with it. Money paid before the deed is at risk until the deed is signed, and the contract that governs it is described in an overview of contracts before completion.
§ 2What the deposit counts for
If the paper is a reservation, the money is a fee to hold the home and may or may not count toward the price. If it is arras, it is a payment on account, and its effect depends on the type, as explained in how arras work. If it is an advance under a private contract, it counts toward the price and may be tied to conditions. Ask the paper to say which of these it is.
§ 3Who holds the money
The holder matters. If the seller holds it, you rely on their willingness to return it. If an agent holds it, you rely on the agent. A notary, a lawyer’s client account or an escrow provider is safer. Ask your lawyer to propose a solution, and to record it in the contract. The notary prefers bank transfer or nominative cheque for the main payment, and the same logic applies to deposits.
§ 4How to pay
Pay by bank transfer to an account in the name of the holder, with a reference that names the property and the purpose. Check the account holder before you send. Keep the transfer receipt and the paper. Avoid cash, and avoid paying into a personal account of an agent or of someone whose link to the seller you cannot confirm. Fraud often starts with a change of account details, and the page on scams explains the pattern.
§ 5New-build protection
For homes bought on plan, the law requires advance payments to be secured and held in a separate account. The developer should give you proof of the guarantee. Before paying, verify the developer’s registration, the ownership of the land and the building licence. If the developer cannot show them, do not pay.
§ 6Getting the money back
The paper should say when the deposit returns: if the checks fail, if finance is refused, if the seller does not deliver the documents, if the seller withdraws. If it says nothing, ask for a clause. Without one, you may need a legal claim to recover the money. The next page, the rules on pulling out, explains what happens when a buyer withdraws.
§ 7Keep a record
Record in an email every payment, its purpose and the holder. If a dispute arises, a clear trail is your strongest evidence.
§ 8More on this topic
How the reservation contract works explains the short paper that takes a home off the market and how the private purchase contract works explains the contract signed before the deed.
FAQRelated questions
How much should the deposit be?
There is no single rule. The amount is negotiated and varies with the type of paper and the market. A smaller sum limits what you can lose. Whatever the amount, make sure the paper says what it is for and when it returns.
Who should hold it?
Ideally someone neutral: a notary, a lawyer’s client account or an escrow arrangement. If it goes to the seller or the agent, the risk is greater. Whoever holds it, pay by transfer and keep the proof.
Is it protected on a new-build?
Off-plan, the developer must back your advances with security and use a dedicated account. Obtain proof of both before paying anything, and let your lawyer examine it.
Sources
- Consejo General del Notariado: Me voy a comprar una casa: ¿es obligatorio firmar el contrato de arras? (official source, opens in a new window), Arras: purpose, types and consequencesLast checked 17 October 2026
- Boletín Oficial del Estado: Ley 38/1999 de Ordenación de la Edificación (official source, opens in a new window), Articles 17 and 19; disposiciones adicionales primera y segundaLast checked 17 October 2026
- Colegio de Registradores de España: Cómo comprar una vivienda en España (edición revisada, February 2020) (official source, opens in a new window), The five steps, nota simple, taxes and costsLast checked 17 October 2026
- Consejo General del Notariado: Houses and real estate properties (official source, opens in a new window), Steps, documents and the notary's roleLast checked 17 October 2026
Legal note. How the process works in general. It is not legal advice, and it never replaces an independent Spanish lawyer acting for you.