Reading a Spanish contract before you sign it

Terms used

• Permanencia — The permanencia is a minimum period you agree to stay in a contract, usually in return for a discount or subsidy.
• Renovación tácita — The renovación tácita is an automatic renewal: the contract continues for a new term unless you cancel before the deadline.
• Penalización — The penalización is a payment the contract asks for if you break it or leave early.
• Desistimiento — The desistimiento is your act of withdrawing from a contract, sometimes free of charge and sometimes with a fee.
• Cláusula abusiva — A cláusula abusiva is an unfair, non-negotiated term in a consumer contract that is void.
• Burofax — A burofax is a formal delivery service that proves what you sent and when it arrived.
• Minuta — The minuta is the notary's draft of the deed you will sign.
• OMIC — The OMIC is the town hall's consumer information office, where you can complain about a trader.

Key rules

• Language: No general rule gives you a right to a contract in English, and the Spanish text is normally the one that counts unless the contract says otherwise.
• Mortgage draft: For a home mortgage, the bank must give you the draft contract and the standard information sheets at least 10 days before you sign at the notary.
• Telecoms minimum stay: A minimum-commitment period on a phone or similar telecoms deal cannot exceed 12 months.
• Unfair terms: A disproportionate penalty or one-sided term in a consumer contract can be void as abusive.
• Cancelling renewal: Send notice in writing by a means that leaves proof, before the contract's deadline.

The clauses that cost you money

Read four things before you sign anything: the minimum-commitment clause, the automatic renewal, any penalty for leaving, and any term that looks one-sided. They decide what it costs you to get out.

Permanencia: a minimum stay

A cláusula de permanencia means you get a benefit, such as a subsidised phone, a discount or free installation, and agree to stay for a fixed period. If you leave early, you pay compensation. It is common in telecoms, gyms and insurance.

For phone and similar telecoms deals, the minimum stay cannot be longer than 12 months. You must also be offered an alternative contract with no minimum stay. The exit charge should be proportionate to the benefit you received and should shrink over time. It is normally worked out from the discount or subsidy you actually got, for the months left, not from all the remaining fees.

Renovación tácita: automatic renewal

A renovación tácita clause extends the contract for a new term unless you cancel before a deadline. The deadline is in the contract and is often 15 to 30 days before renewal. Insurance and telecoms can follow their own sector rules, so check yours.

• Put the renewal date and the notice deadline in your calendar on the day you sign.
• Cancel in writing, by a means that leaves proof: burofax, registered email or the company's online cancellation function. Keep the proof.
• For online contracts, the company must let you cancel as easily as you signed up, and give you an online way to do it.
• A notice period that is unreasonably early, or an exit that is much harder than renewal, can be an abusive clause.

Penalización and desistimiento fees

A cláusula de penalización makes you pay if you break the contract or end it early. A desistimiento fee is a charge for withdrawing. Check that the amount is clearly stated, reflects the real loss or the benefit you received, and is not a flat sum whatever the timing. A penalty that is disproportionately high is abusive.

If you signed at a distance (online or by phone) or away from the trader's premises, you can generally withdraw within 14 days at no cost. There are exceptions, so check the contract type.

Cláusulas abusivas

A cláusula abusiva is a standard term you did not negotiate that creates a significant imbalance against you as a consumer. It is void and treated as if it were not in the contract, while the rest usually stands. You can raise this at any time and claim back what you paid under it. Complain first to the company, then to your town hall's consumer office (OMIC) or an arbitration board, or go to court.

This protects consumers, not businesses.

Language: what you can and cannot ask for

No general rule gives you a right to a contract in English, and the Spanish text is normally the one that counts unless the contract says otherwise. Some firms that serve foreigners will issue an English version if you ask. Treat it as a courtesy: it has no legal force of its own unless the contract says it does.

Standard terms must be clear, simple and legible. If a term is unclear, it is read in your favour, and terms that fail these tests do not bind you. The law does not oblige a company to offer a language you understand, so use a translator or a trusted adviser before signing. In regions with their own language, such as Catalonia, you may also have rights to the co-official language, not to English.

If you need a contract for court or an authority, you need a Spanish text or a sworn translation (traductor jurado).

Your right to see and review the text

There is no general right to a draft before signing, but you can always ask, and you should, in writing. Some contracts do give you one:

• Notary deeds: you can ask the notary for the minuta and read it before the signing day.
• Home mortgage: the bank must give you the draft contract and the standard information sheets at least 10 days before you sign at the notary.
• Banks and insurers: they must give you pre-contract information documents before you commit.
• Jobs: fixed-term contracts and some other types must be in writing, and you must be told the essential terms in writing.

Never sign if you have not seen the full text. The template below gives you Spanish wording to ask for a copy and time to review. The glossary below explains each clause in more detail.

Timeline and deadlines

Deadlines and lead times

• Ask for the draft contract and read the permanencia, renewal and penalty clauses: before the signing day

• For a phone or similar telecoms deal, check that any minimum-commitment period is no longer than 12 months: before you sign

• If you leave a minimum-commitment period early, expect a penalty that shrinks as time passes: during the commitment period

Documents you need

Documents to get or produce

• The draft contract from the other party, in Spanish, so you can read it before the signing day. Nothing obliges them to send it, but you can ask.

• The notary's draft deed (minuta), which the notary must make available to you if you ask, so you can review it before the signing day.

• For a home mortgage loan, the draft contract plus the two standard information sheets (the FEIN and the FiAE) that the bank must give you.

• The pre-contract information documents that banks and insurers must give you before you commit.

• For a job, a written contract if it is fixed-term or one of the other types that must be in writing, and written notice of the essential terms within the legal period.

• A sworn translation (traductor jurado) of any contract you need to file in court or with an authority, unless you have the Spanish text.

• An English version of the contract, only if the other party agrees to issue one. It is a courtesy, with no independent legal force, so keep the Spanish text as your reference.

Checklist before signing anything in Spanish

• Ask the other party in writing for a draft of the contract before the signing day.

• Ask the notary for the minuta (the draft deed) and read it before you go to sign.

• Bring a valid ID to the notary: your passport and NIE (foreigner's identity number), or your residence card (TIE).

• For a property purchase, gather the supporting papers the notary asks for, such as the title deed, land registry note, IBI receipt, community of owners' certificate, energy certificate, and proof of payment of funds.

• Get an apostille or legalisation and a sworn translation for any foreign document the notary needs.

• Initial every page of a private contract such as a lease. It is not a legal requirement, but it shows you saw each page and stops pages being swapped.

• Ask for a signed copy of the contract as soon as it is signed, and keep it. For a lease, make sure each party holds a signed original.

• After a notary signing, ask the notary for your copy of the deed, because the original stays in the notary's records.

What to watch out for

Clauses that can cost you

• Minimum-commitment clause (permanencia): A permanencia clause ties you to a service for a fixed period in return for a subsidised phone, a discount or free installation, and charges you if you leave early. It is common in telecoms, gyms and insurance. Check the length (telecoms limits it to 12 months), ask for the alternative contract without permanence, and make sure the exit charge is based on the benefit you received, reduced as time passes, not the full remaining fees.

• Automatic renewal (renovación tácita): The contract extends for a new term unless you give notice before a deadline, and missing it can lock you in for another period. Note the notice date, often 15 to 30 days before renewal, and cancel in writing by a means that leaves proof. For online contracts, cancelling must be as easy as signing up.

• Penalty or withdrawal fee (penalización, desistimiento): A clause can charge you a sum if you break the contract or withdraw. A flat amount that ignores timing, or one far above the real loss, can be abusive and void. Check that the amount is stated clearly, is proportionate to the real loss or benefit received, and is not a flat sum. Ask the trader to justify it in writing.

• Abusive clause (cláusula abusiva): A term you did not negotiate that creates a significant imbalance against you is void and treated as not in the contract. The rest of the contract usually stays in force. Complain to the trader, your town hall's consumer office (OMIC) or a consumer arbitration board, or go to court. You can claim back what you paid under the clause, and the point can be raised at any time.

• Signing without seeing the full text: No general right gives you a draft before signing, so a trader can hand you the contract on the day. Unclear terms are read in your favour, but you may still have to prove your case. Ask for the draft in writing in advance and do not sign until you have read the clauses above.

Spanish wording to ask for a copy and time to review

Copy and adapt these sentences. They are polite and formal, so they work for a landlord, a bank, an employer or a notary. Send them by email or message so you have a written record.

Ask for the draft before you sign

Estimado/a Sr./Sra. [apellido]:

Les agradecería que me enviaran un borrador del contrato antes de la firma.

Ask for time to review

Quisiera disponer de un plazo de unos días para revisar el documento con detenimiento antes de firmar.

Ask for a copy to review

Solicito una copia del contrato para su revisión.

Ask for a signed copy afterwards

Le ruego me facilite una copia firmada del contrato una vez formalizado.

Ask a notary for the draft deed

A notary's draft deed is called the "minuta". Use one of these:

Quisiera solicitar la minuta de la escritura con antelación suficiente.

Para poder firmar con garantías, necesitaría recibir la minuta con antelación.

Closing

Quedo a la espera de su respuesta. Muchas gracias.

Un cordial saludo, [su nombre y teléfono]

Put it together

A short message can combine the lines above:

Estimado/a Sr./Sra. [apellido]:

Les agradecería que me enviaran un borrador del contrato antes de la firma. Quisiera disponer de un plazo de unos días para revisar el documento con detenimiento antes de firmar.

Quedo a la espera de su respuesta. Muchas gracias.

Un cordial saludo, [su nombre y teléfono]

Good to know before you send it

• Outside a few cases, there is no general right to receive a draft. You are asking politely, and the other side may agree or not.
• For a home mortgage, the bank must give you the draft contract and the standard information sheets at least 10 days before you sign at the notary. If the bank has not done this, you can quote this rule in your message.
• Always keep a signed copy of whatever you sign.

Glossary of Spanish contract clauses and what they cost you

Look up the clause name you see in your contract. Each entry says what the clause means, what it can cost you and what to do.

Cláusula de permanencia

Meaning: You get a benefit, such as a subsidised phone, a discount or free installation. In return, you agree to stay for a fixed period. It is common in phone and internet contracts, gyms and insurance.

What it costs you: If you leave early, you pay compensation. In telecoms, the commitment can last up to 12 months, and you must also be offered a version of the contract without it. The penalty must be proportionate to the benefit you received and must shrink over time.

What to do: Before signing, find the length of the commitment and the exact exit amount. Check these figures in your contract, because limits vary by sector. If the exit charge equals all the remaining fees, challenge it.

Renovación tácita

What it costs you: If you miss the deadline, you pay for another full term. Notice periods are often 15 to 30 days before renewal, but the contract sets the exact deadline. Insurance and telecoms have their own rules, so the deadline can differ by sector.

What to do:

• A notice deadline that is unreasonably early, or a cancellation process much harder than signing up, can be an unfair clause.

Cláusula de penalización and desistimiento fee

Meaning: A cláusula de penalización requires a payment if you break the contract or end it early.

What it costs you: Typical amounts are a share of the remaining fees or the value of the subsidy you received. A fee must reflect the real loss or the benefit you received. A penalty that is disproportionately high is unfair and void.

What to do:

• Be wary of a flat sum that stays the same however late you leave.
• For contracts signed at a distance (online or by phone) or away from the company's premises, you can generally withdraw within 14 days at no cost. There are some exceptions, so check the withdrawal terms.
• Courts judge each clause on its own facts, so amounts that look similar can get different outcomes.

Cláusula abusiva

Meaning: An unfair term in a consumer contract. It was not individually negotiated, and it creates a significant imbalance between the two sides, to your disadvantage. It applies to consumers, not businesses.

What it costs you: In theory, nothing. Such a clause is void and treated as if it were not in the contract. The rest of the contract normally stays in force. You can ask for back any money you paid under the clause. A court can raise the problem itself, and you can challenge the clause at any time.

What to do:

1. Complain in writing to the company.
2. If that fails too, bring a court claim.

Consumer bodies can also bring group actions against a clause used in many contracts. The clauses above (permanencia, renovación tácita and penalties) become abusive when they are disproportionate or make leaving unreasonably hard.

Quick answers about signing in Spanish

Can I ask for my contract in English?

No, you have no general right to a contract in English, but you can ask the trader to agree to an English version. Many tourism, property and expat-focused businesses do this.

Is an English translation of my contract legally binding?

Usually no, because the contract itself decides which language governs, and that is normally Spanish. A translation given for convenience has no legal force of its own. If you get a bilingual contract, look for the clause that says which version prevails.

Does the notary have to check that I understand the deed?

Yes, a notary must be satisfied that you understand the deed, and reads it aloud and explains what it means for you. If you do not speak Spanish, an interpreter you arrange swears to translate faithfully, and the deed records it.