Paying a deposit (señal) or in advance: how to protect your money

Key rules

• Card chargeback: If you paid by card and the goods or work never arrive, contact your bank quickly, as claims are typically accepted within about 120 days.
• Señal: A señal does not let you back out unless the contract clearly says so.
• Late delivery: Late delivery lets you terminate and get a refund, not double your money back.
• Insolvency: If the seller goes into concurso, your advance usually ranks as an ordinary credit and may be only partly repaid.

Keep advances small and pay by card

The safest approach is a small first payment, made by card, with the rest tied to delivery or finished work. A large advance paid by transfer or cash is the riskiest option.

What a señal legally is

A señal is normally a part-payment and proof that the contract exists. It does not let you walk away. If either side breaches the contract, the other can demand that it be carried out or claim damages.

Arras penitenciales are different. They give both sides a right to withdraw. If you withdraw, you lose the sum. If the seller withdraws, the seller returns it doubled. This applies only if the contract states the right to withdraw clearly. Courts treat arras as a plain señal unless it is clear.

A plain advance (anticipo) is simply part of the price. You can get it back if the contract is not carried out.

Before you pay, check the paperwork. It should say whether the money is a señal, arras penitenciales or an advance. If it says nothing about withdrawing, assume you cannot back out.

How much to pay up front

• Made-to-measure furniture and kitchens: sellers often ask for a third to a half of the price when you order. The balance is paid on delivery or installation.
• Reforms and works: a smaller first payment on signing is usual. Further payments follow work completed, and a final share is held until handover.

Consumer organisations advise against large advances. Ask what the current norms are with a consumer organisation before you agree to more than a third.

If delivery is late

You can terminate the contract and demand a refund if the seller or contractor does not deliver or finish. You can also ask them to perform instead.

For distance and off-premises sales (online, by phone, or at your home) with no agreed date, the trader must deliver within 30 days of the contract. If that deadline passes, set an additional period in writing. If the trader still fails, you can terminate. The trader must then refund everything you paid within 14 days. You can also claim damages for losses you can prove.

A doubled refund is not a general remedy for late delivery. Double the amount can be claimed where a trader keeps your money after a withdrawal or termination and does not refund it in time. Sector rules, such as buying a home off plan or travel, add their own remedies.

If the business becomes insolvent

Your advance is usually an ordinary unsecured credit in the insolvency (concurso). Ordinary creditors are paid after secured creditors, the costs of running the insolvency and privileged claims such as wages and tax. Many get nothing, or only part after a reduction or a long wait.

Insolvency does not end a pending contract by itself. The administrator or you can ask the judge to terminate it, and delivery is not guaranteed. Buyers of homes off plan have separate guarantees: the bank or insurer must refund their advances.

If a business you paid closes, keep your contract, receipts and proof of payment. Send them to the insolvency administrator, and to your bank if you paid by card.

Which payment method protects you

• Card: the best protection. If the goods or work never arrive, contact your bank quickly with your evidence. A card chargeback is not guaranteed in every dispute. For distance purchases you can also cancel a charge that was fraudulent or improper, and the card issuer must refund it.
• Bank transfer: hard to reverse. Your bank can only ask the recipient's bank to return it, and that needs the recipient's consent. The exception is an unauthorised transfer or a bank error. Report an unauthorised payment to your bank without delay, and within 13 months.
• Cash: leaves no trace and offers no way to recover it unless you hold a receipt. Cash payments also have a legal limit.
• Wallets such as PayPal: these have their own buyer-protection policies. Read the conditions before you rely on them.

Always get a written receipt that shows the amount, what it is for and the date.

Choosing between options

How should you pay money ahead for furniture, a kitchen or works?

• Pay a small señal by card: You are ordering and need to reserve the order. Card payment gives you the best chance of recovering the money if nothing arrives.

• Pay a larger advance in stages: The order is made to measure. An advance of around a third to a half is common for furniture and kitchens, with the balance on delivery or installation. For reforms, pay in stages tied to work completed.

• Pay by bank transfer: The seller will not take a card. A transfer is hard to reverse, so keep the amount low and keep the receipt.

• Agree arras penitenciales: You want a right to withdraw. The contract must say so clearly. If you withdraw you lose the sum, and if the seller withdraws they return it doubled.

Pay by card whenever possible, keep the advance as small as you can, and tie further payments to delivery or finished work.

Timeline and deadlines

• If the trader misses the deadline, set an additional period for delivery: after the 30 days pass

• If the trader still fails, terminate the contract and demand a refund; the trader must refund everything paid: within 14 days of your termination

• If you paid by card and nothing arrives, contact your bank with your evidence: quickly, as claims are typically accepted within about 120 days

What to watch out for

• A señal may not let you back out: Many people think paying a señal lets them walk away by losing it. Usually it is only a part-payment proving the contract, and backing out can lead to claims for performance or damages. Before paying, check whether the contract clearly says either side may withdraw. If it does not, assume you are committed.

• Late delivery does not double your money back: A doubled refund is not a general remedy when a seller or contractor is late. You can terminate and get a refund, demand the work, or claim proven losses. Put a delivery date in writing. If it is missed, set an additional period, then terminate and ask for a refund.

• Your advance may be lost if the business goes insolvent: In concurso, a consumer's advance is usually an ordinary unsecured credit. You are paid late, often only in part, and delivery is not guaranteed. Keep advances small and tied to stages. Keep every receipt, so you can report what you are owed.

• Transfers and cash are hard to recover: A transfer is hard to reverse once executed, and cash leaves no trace without a receipt. Pay by card where you can, as your bank can help you claim the money back. Always get a receipt.

What if the business closes after you paid a deposit

Act fast: send a written demand, ask your bank for help and check whether the business has been declared insolvent. If it has, you have one month to report what you are owed.

What to do straight away

1. Gather your proof. Collect the quote, contract, receipts, bank or card records, emails, messages and the original ad.
2. Send a formal demand. Use burofax or certified email. Ask for delivery or a full refund by a fixed date, such as 10 days from the demand.
3. Call your bank. Ask for a card chargeback or a transfer recall. Do this early, because these options get harder as time passes.
4. Complain to the consumer office. Contact your town hall's consumer office (OMIC) or your regional consumer authority. If the business has a hoja de reclamaciones, ask for it and fill it in.
5. Report suspected fraud. If the business took money and vanished, or the story looks false, report it to the police or Guardia Civil.

Your rights if the seller simply does not deliver

If you are a consumer, you can cancel and get your money back when a seller fails to deliver. For online or off-premises sales with no agreed date, the seller must deliver within 30 days of the contract. If that passes, give the seller an extra period in writing. If it still fails, you can cancel, and the seller must refund everything within 14 days. You can also claim damages for proven losses.

Doubling the refund is not a general right. It applies mainly when a seller keeps your money after you cancelled and the refund deadline has passed. Buying a home off plan and booking travel have their own extra protections.

How to check the business status

• Registro Mercantil. A nota simple (a small fee) shows whether a company is active, dissolved or in liquidation, and who runs it.
• Registro Público Concursal. It lists insolvency proceedings, the court, the administrator and the notices.
• BORME. The official commercial gazette is free to search by company name or tax ID (CIF) on the state gazette website. It publishes dissolutions and insolvency declarations.

Search with the exact legal name or the CIF, and look for similar names. Entries can lag behind real events by days or weeks, so a clean result does not prove the business is fine. Self-employed people are not in the Registro Mercantil unless they registered there.

If the business is declared insolvent

If the business enters insolvency, you must report what you are owed to the administrator within one month of the declaration being published. Find the administrator's address or email in the declaration or the court notice, and check the exact date there.

Send a written claim with:

• your name and contact details;
• the amount, the date you paid and what it was for;
• proof, such as the contract, receipts and transfer records.

The administrator may write to creditors they know about, but do not wait for that letter. A late claim is often ranked last, which makes payment even less likely.

Be realistic about the outcome. A consumer's advance is normally an ordinary creditor claim. Ordinary creditors are paid after secured creditors, the costs of the insolvency and claims such as wages and tax, so many get little or nothing. Insolvency does not automatically cancel your contract, and delivery is not guaranteed.

If the business is still trading

If you get no answer to your demand, you can go further:

• Consumer arbitration. Use the Junta Arbitral de Consumo if the business has joined the scheme.
• Small claims. A juicio verbal covers claims up to 6,000 euros, and you need no lawyer up to 2,000 euros.
• Undisputed debts. A monitorio procedure is available for debts the seller does not deny.

Court limits and procedures change, so check the current rules with the court or your consumer office before you file.

Frequently asked questions

Can I get my money back if I change my mind after paying a señal?

Usually no, because a señal is a part-payment that proves the contract exists and does not give either side a right to withdraw. Only if the contract clearly says either side may withdraw (arras penitenciales) can you walk away, and then you lose the sum.

How much deposit is normal for a made-to-measure kitchen or furniture?

For made-to-measure furniture and kitchens, an advance of around a third to a half of the price is common when you order, with the balance on delivery or installation. For reforms, the first payment on signing is usually smaller, with later payments tied to work completed and a final share held until handover.

What happens to my advance if the seller enters concurso (insolvency)?

Your advance is normally treated as an ordinary unsecured credit, so you are paid after secured and privileged creditors and often get only part or nothing. The pending contract does not end automatically, and delivery of the goods is not guaranteed. Home buyers buying off plan have separate guarantees that make the bank or insurer refund the advance.

Can I get double my money back if the seller never delivers?

No, a doubled refund is not a general remedy for late delivery. You can terminate and demand a refund, demand performance, or claim proven damages.