A quarter arrive embracing the Spanish greeting (7)
I believe the answer is:
welcome
'greeting' is the definition.
(welcome is a kind of greeting)
'a quarter arrive embracing the spanish' is the wordplay.
'a quarter' becomes 'w'.
'arrive' becomes 'come' (coming is a kind of arriving**).
'embracing' means one lot of letters goes inside another.
'the spanish' becomes 'el'.
'w'+'come'='wcome'
'wcome' placed around 'el' is 'WELCOME'.
(Other definitions for welcome that I've seen before include "Friendly greeting" , "Greetings" , "Greet warmly" , "What's kept in hillsides" , "Receive a guest warmly" .)