Arbitration in Spain: A Dispute Resolution Option for International Contracts

When international contracts face disputes, arbitration in Spain offers a private, efficient, and enforceable alternative to court litigation.

Foreign businesses and individuals often choose arbitration to avoid lengthy court battles and maintain confidentiality.

This guide explains the arbitration process in Spain, its benefits, legal framework, and when it’s the right choice.

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⚖️ What Is Arbitration?

Arbitration is a private dispute resolution process where parties agree to submit their dispute to one or more impartial arbitrators instead of courts.

The arbitrator’s decision (award) is binding and enforceable in Spain and many other countries.

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🏛️ Legal Framework for Arbitration in Spain

• Regulated by the Spanish Arbitration Act (Ley de Arbitraje)

• Spain is a signatory to the New York Convention 1958, ensuring international enforceability

• Arbitration clauses are generally enforced by Spanish courts

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🔍 When Is Arbitration Used?

• Commercial contracts with arbitration clauses

• International sales or distribution agreements

• Joint ventures and shareholder disputes

• Construction contracts

• Intellectual property and licensing disputes

• Investment treaty claims

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⚙️ Arbitration Process Overview

1. Arbitration Agreement: Parties agree in contract or separately

2. Appointment of Arbitrators: Usually one or three neutral arbitrators

3. Preliminary Meeting: To set rules, timelines, and issues

4. Evidence and Hearings: Written submissions and sometimes oral hearings

5. Award: Final decision, generally issued within 6–12 months

6. Enforcement: Can be enforced by Spanish courts or internationally

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✅ Advantages of Arbitration

• Confidentiality: Unlike court cases, arbitration is private

• Speed: Faster resolution than courts

• Expertise: Arbitrators with specialized knowledge

• Flexibility: Parties can agree on procedures

• Enforceability: Awards are recognized worldwide

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⚠️ Considerations and Limitations

• Costs can be higher than court litigation initially

• Limited right of appeal on the merits

• Arbitration clauses must be carefully drafted

• Some public law or family disputes can’t be arbitrated

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👨‍⚖️ How Borderless Lawyers Can Help

We assist clients in drafting arbitration clauses, selecting arbitrators, and managing arbitration proceedings in Spain, including:

• Representing you in Spanish and international arbitration

• Coordinating with arbitration institutions (ICC, Madrid Court)

• Enforcing arbitration awards

• Advising on arbitration vs. litigation strategy