When commercial relationships break down, resolving the conflict effectively—and legally—is essential. Whether it’s a breach of contract, unpaid invoices, or partnership fallout, business disputes in Spain can be handled through multiple legal avenues.
This guide outlines the dispute resolution options available to businesses in Spain and how foreign companies can protect their interests.
🧾 Common Types of Business Disputes
Spanish commercial law covers a wide range of conflicts, including:
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Breach of contract
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Non-payment or delayed payments
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Shareholder or partnership disputes
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Franchise and agency conflicts
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Intellectual property infringement
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Unfair competition or breach of confidentiality
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Disputes with Spanish suppliers, clients, or distributors
🛠️ Step 1: Attempt Negotiation or Mediation
Under Spanish civil procedure rules, courts encourage amicable settlement before litigation.
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Negotiation: Private discussions between parties or their lawyers
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Mediation: A neutral third party helps parties reach a voluntary agreement (regulated by Law 5/2012)
💡 Mediation clauses in contracts are enforceable, and outcomes can be notarized to be legally binding.
🧑⚖️ Step 2: File a Lawsuit in Spanish Civil Court
If out-of-court resolution fails, the dispute may go to the Juzgado de lo Mercantil (Commercial Court) or Juzgado de Primera Instancia depending on the nature of the case.
Key litigation steps:
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Demand letter (burofax)
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Filing of the claim (demanda)
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Preliminary hearing
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Main hearing (juicio oral)
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Judgment & enforcement
📌 All documents must be in Spanish or officially translated.
🧭 Which Court Has Jurisdiction?
Jurisdiction is based on:
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Location of the defendant or business operations
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Clauses in the commercial contract
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Nature of the dispute (e.g., IP, labor, consumer)
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International treaties for foreign litigants
💼 For international business, including a jurisdiction clause in your contracts is crucial.
⏳ How Long Does Litigation Take?
On average:
| Type of Dispute | Timeline |
|---|---|
| Uncontested claim (monitorio) | 3–6 months |
| Standard commercial lawsuit | 12–18 months |
| Appeals | Additional 6–12 months |
Spain does not allow contingency fees in most civil cases, and court costs may be awarded to the winner.
🛡️ Arbitration in Spain
Arbitration offers a private, faster, and enforceable alternative to court litigation.
Common arbitral institutions in Spain:
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Madrid International Arbitration Centre (CIAM)
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Corte Española de Arbitraje
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ICC Spain
Arbitration clauses must be included in the contract. Awards are enforceable under the New York Convention.
🌍 Foreign Companies: How to Resolve Disputes in Spain
If your business is based outside Spain:
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Hire a Spanish abogado to represent you
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Ensure your contracts include Spanish jurisdiction or arbitration clauses
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Use officially translated evidence
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Consider enforcing foreign judgments via international treaties (Brussels I bis or bilateral treaties)
🧠 Tips to Avoid Legal Disputes in Spain
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Use clear commercial contracts
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Define governing law and dispute resolution
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Include penalty and default clauses
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Maintain documentation and emails
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Act quickly with legal warnings (burofaxes)
👨⚖️ Borderless Lawyers: Resolve Disputes with Confidence
Our firm supports international businesses with:
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Contract enforcement and debt collection
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Commercial litigation and arbitration
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Urgent injunctions and interim measures
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Recognition of foreign judgments
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Mediation and out-of-court settlements