Buying property in Spain is an exciting step — but it also involves legal risks that many international buyers underestimate.
One of the most common questions we receive is:
“If I pay a deposit, can I lose it?”
The short answer is:
Yes — but it depends on the type of contract you signed.
And this is where things often go wrong.
What type of deposit did you sign?
In Spain, most property purchases involve an “arras contract” (deposit agreement).
There are different types, but the most common is:
Arras penitenciales
This type of contract allows both parties to withdraw — but with consequences:
- If you (the buyer) withdraw → ❌ you lose the deposit
- If the seller withdraws → ✅ they must return double the deposit
This is perfectly legal under Spanish law.
When do buyers lose their deposit?
You may lose your deposit if:
- You decide not to proceed with the purchase
- You cannot obtain financing (unless specifically protected in the contract)
- You change your mind
- You miss agreed deadlines
Many buyers assume they can “walk away” — but legally, that can be very costly.
Critical mistake we often see
Many buyers:
❌ Sign deposit contracts without legal advice
❌ Assume all deposits are refundable
❌ Don’t understand the clauses
This is where problems begin
How to protect yourself before paying a deposit
Before signing or paying anything, you should:
✔ Have the contract reviewed by a lawyer
✔ Check for financing clauses
✔ Confirm legal status of the property
✔ Understand deadlines and penalties
A small legal review can save you thousands of euros
What if you have already paid the deposit?
If you have already signed:
Don’t panic — but don’t wait either
Your options will depend on:
- The exact wording of the contract
- Whether the seller has complied
- Whether there are legal defects
In some cases, the deposit can still be recovered.
Speak to a lawyer before making a decision
Every situation is different.
If you are unsure whether you could lose your deposit — or want to protect your position — it is essential to act early.
Book a consultation and receive clear, practical legal advice tailored to your case.
Book a consultation with a lawyer here (60 minutes-124 €)
