Reservation deposits (señal) and when you lose them

Terms used

• Señal — The señal is a deposit paid to reserve a property while the contract is prepared.
• Fianza — The fianza is one month's rent, held as security for a residential lease.
• Arras — Arras are money paid when signing a purchase contract; what happens to them if someone backs out depends on the type.
• Arras penitenciales — Arras penitenciales let either side withdraw: the buyer loses the deposit, and the seller returns double.
• Arras confirmatorias — Arras confirmatorias are a part-payment confirming the contract, where neither side can withdraw freely.
• Arras penales — Arras penales are a deposit set as a penalty for breach, which the other party can claim.

Key rules

• Wording: The words on your receipt or contract decide whether a deposit is refundable, so get them in writing.
• Fianza: A residential landlord must require one month's rent as fianza, and any extra guarantee is capped at two months' rent.
• Señal: If a señal is described as arras penitenciales, you lose it by withdrawing.
• Non-refundable rates: A non-refundable short-stay rate gives no refund when you cancel.

The kind of payment decides what you get back

Not every deposit in Spain works the same way. A holiday-stay booking, a rental reservation (señal), a rental fianza and purchase arras follow different rules. Whether you get money back depends on the wording you sign and on which kind of payment it is. Before you pay, ask what the payment is called and get it in writing.

Short stays and hotels

Free cancellation is common, usually up to 24 hours to 14 days before arrival. The exact window depends on the host and the rate. Non-refundable rates are cheaper, but you get nothing back if you cancel. After the free window, penalties usually run from the first night's cost to 50% or 100% of the stay. Long stays often ask for a deposit as well. Read the cancellation policy before you book, because each host or platform sets its own terms.

Reserving a rental: the señal

A señal is money you pay to take a property off the market while the lease is prepared. No special rental rule governs it. The wording you sign decides everything.

• Plain reservation: it is usually returned if the deal fails for reasons outside your control, for example the landlord pulls out.
• Arras penitenciales: if the receipt uses this term, you lose the money if you withdraw. If the landlord withdraws, they must return double.

Ask for a written receipt that states the amount, the property, what the payment is for and when it is returned. Do not pay on a verbal promise.

The fianza

The fianza is separate from the señal. The landlord must require one month's rent as fianza on a residential lease. Any extra guarantee, such as a bank guarantee or additional deposit, is capped at two months' rent. The landlord must lodge the fianza with the regional deposit body. These bodies vary by region.

When you leave, the landlord must return the fianza within one month of you handing back the keys. After that, it earns statutory interest. If rent goes up on a renewal, the fianza can rise too.

Ask whether any señal you paid will count towards the fianza, and get the answer written on the receipt.

Agency fees

On a residential lease, the landlord pays the agency's fees, not you. This holds even if the agent acted for both sides. It does not cover commercial or seasonal leases. If an agency asks you for these fees on a normal home rental, push back.

Buying: arras

Arras are a payment made when you sign a purchase contract. There are three types:

• Arras confirmatorias: the payment confirms the contract. Neither side can walk away freely. A party that breaches can be forced to complete or be sued for damages.
• Arras penitenciales: either side can withdraw. If you withdraw, you lose the deposit. If the seller withdraws, they return double.
• Arras penales: the deposit is a penalty for breach, and the other party can claim it. A court may reduce it.

If the contract does not say which type applies, courts often treat the arras as penitenciales. Make the contract name the type. Have a lawyer read it before you sign.

Timeline and deadlines

• Expect a penalty if you cancel after the free window: after the free cancellation period ends

• Statutory interest starts on an unreturned fianza: after that month passes

What to watch out for

• Non-refundable rates give no refund: Cheaper non-refundable short-stay rates give nothing back, and after the free window penalties run from the first night to 50% or 100% of the stay. Check the free cancellation deadline before you book, and pick a flexible rate if your plans may change.

• A señal described as arras penitenciales is lost if you withdraw: If your rental señal is written as arras penitenciales, you lose it by withdrawing, and the recipient must return double if they withdraw. Get a written receipt that states the purpose and conditions, and ask for it to say plain reservation if you want it returned.

• Purchase arras can force you to complete or cost you the deposit: With arras confirmatorias neither side can withdraw freely and a breach can lead to forced completion or damages. With arras penales the deposit is a penalty the other party can claim. Ask which type of arras the contract uses before you sign, and have it written in.

Frequently asked questions

What happens to my señal if the landlord pulls out?

If the landlord pulls out, you get your señal back, and you may get double if it was written as arras penitenciales. A plain reservation is usually returned when the deal fails for reasons outside your control.

Who pays the estate agency fees on a rental?

The landlord pays the agency fees on a residential lease, and you cannot be made to pay them.

What happens if I do not say which type of arras a purchase contract uses?

If the contract does not say, courts often treat the arras as penitenciales, so you can withdraw but lose the deposit.

How long does a landlord have to return my fianza?

The landlord must return your fianza within one month of you returning the keys, after which it earns statutory interest. Rent increases on renewals can raise the fianza.