Every week we walk buyers — many of them international — through a process that in Spain is highly standardised and offers solid guarantees. The key is knowing what you sign at each moment and what each signature commits you to. There are three stages: reservation, arras and deed.
The context: a large, liquid market
Start with one idea: the Spanish market is deep and plays by clear rules. In 2025 Spain registered more than 700,000 home sales, with foreign buyers setting an all-time record according to the Land Registrars: close to 97,300 transactions, 13.8% of the total. Spain's notary and registry system is among the most protective in Europe: nothing that follows depends on trust between the parties, but on verifiable public documents.
1. The reservation: stopping the clock
When you decide a house is yours, the first step is the reservation agreement: a holding deposit — in our case, usually 1% of the price — that takes the home off the market for an agreed period, normally 10-15 days. That time is used to prepare the arras and, if needed, start the financing application. It is the lowest-commitment stage: it fixes price, timing and the essential terms.
2. The arras: the firm commitment
The penitential arras contract is the heart of the deal. The buyer hands over 10% of the price and both parties are bound by a symmetrical penalty: whoever walks away, loses (the buyer, their deposit; the seller, double). Before signing arras is when due diligence happens: the Land Registry extract (title and charges), the community of owners' certificate (pending levies), the latest IBI receipt, the energy certificate and, in classic buildings, the building's ITE inspection status. At Lumier we hand over that complete documentation dossier from day one.
3. The deed: keys day
The sale is raised to a public deed before a notary — the buyer chooses which one — with payment of the remaining price, normally by banker's draft or OMF transfer. Keys are handed over in that same act. Two tasks remain: settling the ITP within 30 working days and registration at the Land Registry, which the gestoría processes within a few weeks. From that moment, ownership is public and enforceable against third parties.
The numbers to keep in mind
On the purchase price of a resale home in Madrid: 1% reservation → 10% arras (on account) → 89% at deed, plus 7-8% in costs and taxes, where the main item is the 6% ITP, one of the lowest rates in Spain. The full breakdown of taxes and costs is in our Madrid purchase tax guide. And if you are buying from abroad, the guide on buying as a non-resident covers the NIE and power of attorney.
Would you rather have us alongside for the whole process, from search to deed? That is how our property personal shopper works, and these are the Lumier homes available now.
This information is for guidance only and does not constitute legal or tax advice. Every transaction has its particulars: we always recommend engaging a specialised lawyer.
