Contracts are legally binding in Spain — but that doesn’t mean everyone plays by the rules. If you’re a foreign individual or business facing a breach of contract in Spain, you have strong legal tools to enforce your rights and claim compensation.
Here’s a step-by-step breakdown of what counts as a breach, what remedies are available, and how foreigners can pursue justice through Spanish courts.
⚖️ What Is Considered a Breach of Contract in Spain?
A breach of contract (incumplimiento de contrato) occurs when:
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One party fails to perform an obligation
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Performance is defective or delayed
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Terms are violated or misrepresented
Common breach cases:
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Supplier fails to deliver goods
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Developer misses construction deadlines
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Tenant violates lease terms
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Employer breaks contractual employment terms
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Business partner fails to pay or underdelivers
💡 Breach may be partial or total, depending on whether the core obligation was affected.
📜 Applicable Law for Contract Disputes
Spain’s contract law is governed by the Spanish Civil Code (Código Civil), unless a specific commercial or sectoral law applies.
✅ Contracts with international elements may also fall under:
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EU Rome I Regulation (choice of law)
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UN Convention on Contracts for the International Sale of Goods (CISG)
📌 Your contract should specify the applicable law and jurisdiction. If it doesn’t, Spanish law may apply by default if the contract was performed in Spain.
🧾 Step-by-Step Legal Action for Breach of Contract
1. Review the Contract
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Check jurisdiction clause
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Identify breach clause and penalties
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Confirm formalities (signatures, delivery method)
2. Attempt an Amicable Resolution
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Send a burofax or formal demand letter
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Allow the breaching party to cure the default
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Propose mediation or renegotiation
3. File a Lawsuit (Demanda Judicial)
If no resolution is reached:
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File a civil complaint in the appropriate Juzgado de Primera Instancia
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Include contract, evidence of breach, and financial claims
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Defendant has 20 days to respond
⚠️ A Spanish lawyer (abogado) is required for most cases.
🧑⚖️ Legal Remedies for Breach of Contract in Spain
You can request one or more of the following:
| Remedy | Description |
|---|---|
| Specific performance | Force the breaching party to fulfill the obligation |
| Termination (resolución) | Cancel the contract and restore prior position |
| Compensation for damages | Claim direct and indirect losses caused by breach |
| Penalty clause enforcement | Enforce pre-agreed fines for non-compliance |
| Interest on delayed payments | Apply legal or contractual late interest rates |
💡 Proof of damage is essential for financial claims.
🏛️ How Long Do You Have to File?
In most breach of contract cases:
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General deadline (statute of limitations): 5 years
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Commercial contracts (non-consumer): often 3 years
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Deadlines can vary based on the type of contract and whether it’s ongoing or completed
🌍 Can Foreigners File a Breach of Contract Claim in Spain?
Yes. Foreign individuals and companies have full standing before Spanish civil courts. You will need:
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NIE number (identification for foreigners)
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Sworn translations of foreign documents
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A Spanish lawyer and, for litigation, a procurador (court officer)
You can also use a power of attorney to avoid traveling to Spain.
💰 Legal Costs and Risk of Losing
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Lawyer fees: Based on complexity and claim size
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Court fees: Often waived for individuals
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Loser may pay costs if claim is clearly unjustified
📌 Pre-litigation advice is crucial to avoid costly proceedings.
🤝 How Borderless Lawyers Can Help
We represent foreign clients in breach of contract cases involving:
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Business-to-business (B2B) disputes
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Real estate and construction contracts
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Investment and shareholder agreements
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Employment and service contracts
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Tenancy and leasing issues
Our team handles everything from negotiation to enforcement, including court litigation, arbitration, or settlement.