To take part in a court auction of a property in Spain, registering on the official Auction Portal (Portal de Subastas del BOE) is not enough. You have to lodge a deposit first. It is how the court makes sure that anyone bidding is serious.
How much it is
5% of the auction value of the asset, which is the figure shown in the notice. It is not 5% of what you plan to offer or of the debt being claimed. If a flat has an auction value of €180,000, the deposit is €9,000, whatever you bid.
The only party that does not deposit is the enforcing creditor, that is, the creditor who asked for the auction.
How to lodge it
From the Auction Portal itself, with a digital certificate or Cl@ve. The portal connects to the Spanish Tax Agency, which holds the amount in the bank account you indicate. The money must be available in that account, and the account must be with a bank that works with the system. Cash is not accepted, and you cannot turn up at the court with a cheque.
Leave yourself time. If you leave it to the last hour and the bank returns an error, you are out.
When you get it back
The auction runs for twenty calendar days. When it closes, everyone who did not make the best bid gets the deposit back. The refund is automatic and goes to the same account.
There is one exception, and you choose it: the reserved bid (reserva de postura). When bidding you can tick that you maintain your offer in case the winner does not pay. In that case your deposit stays held until the winner completes payment. In exchange, if they fail, the property is awarded to you for what you offered. Only tick that box if you can really wait with that money tied up.
If you win the auction
Your deposit stays as part of the price. From the moment the court approves the award you have forty days to pay the rest. There are no extensions: sort out the financing before bidding, not after.
One thing to watch: making the best bid does not always mean the award is approved straight away. If your offer is below 70% of the auction value, the debtor has ten days to bring someone who improves it, and below 50% the court decides in view of the circumstances. Meanwhile, your deposit stays held.
"The deposit is not the risk in an auction. The risk is winning it without having looked at the charges and the occupancy first."
When you lose it
If you win and do not pay the rest on time, the auction fails (quiebra de la subasta) and you lose the deposit. That money goes towards paying the creditor and the auction costs, and the property passes to the next bidder with a reserved bid or goes back to auction.
That is why the order matters. First the property is studied and the numbers are closed. Then you deposit. What to check beforehand is in due diligence before an auction and in how to read the charges.
Summary of deadlines
| Moment | What happens to the deposit |
|---|---|
| Before bidding | 5% of the auction value is held |
| Close of the auction (20 calendar days) | Refunded to anyone who did not win and did not reserve their bid |
| Approval of the award | The winner's deposit is applied to the price |
| 40 days later | If the rest is not paid, it is lost |
For the whole process, from registering on the portal to taking possession, see how to buy a home at a court auction.
Frequently asked questions
How much do I have to deposit to bid at a Spanish court auction?
5% of the auction value of the asset shown in the notice, regardless of the amount you are going to offer.
When is the deposit refunded if I do not win?
When the auction closes, automatically and to the same account, unless you ticked the reserved bid option.
What is a reserved bid?
Maintaining your offer in case the winner does not pay. Your deposit stays held until payment is completed and, if the winner fails, the award is approved in your favour.
How long do I have to pay the rest?
Forty days from approval of the award, in the case of real estate.
Can I lose the deposit?
Yes, if you win the auction and do not pay the rest of the price on time.