How is payment made when buying a house in Spain? The payment process for real estate in Spain differs fundamentally from the procedure in Belgium and the Netherlands and standardly involves three phases: the reservation, the advance payment (10%) at the time of the compromise, and the final payment via bank cheque at the time of the notarial deed. Because the Spanish notary - unlike the Belgian or Dutch notary - does not manage a third-party account for the purchase price, the bank cheque (cheque bancario) is the only means of payment that provides immediate payment security at the transfer of title.
Below is a detailed analysis of each step in the buying process, including legal concerns.
Step 1: The reservation contract and the deposit
Once you reach a price agreement, the property will be taken off the market through a reservation contract. This is a short agreement that blocks the property from other potential buyers for a set period of time.
How much is the reservation fee?
The reservation amount usually varies between €1,500 and €6,000, or can be used as a rule of thumb on 1% of the purchase price be budgeted.
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Objective: The seller guarantees that the property will not be offered to third parties.
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Risk: Never pay this amount directly to the seller, but preferably to the broker or your lawyer in a third-party account.
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Example: For a €150,000 flat in Alicante, you immediately pay €1,500 to "freeze" the deal.
Expert Insight: Never sign a reservation contract without first note simple (property register extract) have checked.
Read more about the reservation contract and the reservation fee.
Step 2: The compromise (Contrato de Arras) and the 10% rule
The reservation is followed by the legal investigation phase (due diligence). In it, your lawyer checks the urban planning legality, outstanding debts and ownership structure. If everything is legally conclusive, then the signing of the private purchase agreement, often the Contrato de Arras named.
Read more about why it is best not to sign the compromise immediately.
The 10% down payment
Upon signing this contract, you will pay a deposit which will bring the total amount paid to 10% of the purchase price brings. The previously paid reservation amount will be deducted from this.
Calculation example:
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Purchase price: €150,000
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Total advance payment (10%): €15,000
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Booking already paid for: - € 1.500
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Payable on compromise: €13,500
Legal consequence: The Contrato de Arras Penitenciales is binding. As a buyer, do you abandon the purchase without a valid reason? Then you will lose your down payment. Does the seller abandon the sale? Then he must refund you double the down payment amount (Article 1454 Spanish Civil Code).
Step 3: The notarial deed (Escritura) and the bank cheque
The final step is to sign the notarial deed (Escritura de Compraventa) at the Spanish notary. This is where the key transfer and payment of the residual balance takes place.
Why a bank cheque in Spain?
Unlike the Benelux, the Spanish notary functions not as a financial intermediary. The notary does not receive the purchase price in a trust account. Therefore, the certified bank cheque (cheque conformado) the industry standard for payments between individuals.
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Certainty: The cheque is physically handed over at the time of signing. Without a cheque, no signature and no keys.
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Alternative: An urgent bank transfer (OMF transfer) through the Spanish central bank is possible, but more complex and requires strict coordination on the day. Ordinary SEPA transfers are refused by sellers because they are not immediately visible and irreversible.
Note: Bank charges. Spanish banks often charge significant commissions for issuing a bank cheque (sometimes up to 0.5% of the amount).
Read more about the notary's duties in Spain.
Overview: Additional costs on purchase
In addition to the purchase price, you should take into account the 'Cost of Buyer' (Gastos de Compraventa). These will be not paid via bank cheque to the seller, but paid separately via bank transfers.
| Type of cost | Description |
| Transfer tax (ITP) | Varies by region (e.g. 10% in Comunidad Valenciana) for existing construction. |
| VAT (IVA) + Stamp duty | 10% VAT + approx. 1.5% AJD for new construction. |
| Notary & Register | Legal fees for deed and entry in property register. |
| Honours Lawyer | For legal guidance and due diligence. |
The total cost on top of the purchase price is usually between 12% and 14%.
Read more about additional costs.
Frequently asked questions about payments in Spain (FAQ)
Can I just transfer the purchase price to the notary like in Belgium?
No. The Spanish notary does not have a third-party account for receiving the purchase price. You pay directly to the seller. The notary only oversees the exchange of the cheque and the correct registration of the transaction.
What happens to my down payment if the bank refuses my mortgage?
By default, you will lose your advance (10%) if you fail to secure financing, unless there is an explicit suspensive condition for funding is included in the Contrato de Arras. In Spain, however, this is unusual and sellers rarely accept it. So make sure your finances are settled before you sign.
About the author: Glenn Janssens is a lawyer specialising in Spanish real estate transactions and tax regulations. Since 2017, he has been helping Belgian and Dutch individuals and entrepreneurs to safely purchase and structure real estate in Spain. He guides files from A to Z: from due diligence, ownership and tax control to estate planning and optimisation for residents and non-residents. Thanks to his years of experience, hundreds of handled files and focus on transparent communication, Glenn makes complex Spanish legislation understandable and practically applicable for every property buyer.
