Business Litigation in Spain: A Guide for Foreign Investors

Foreign investors in Spain may face commercial disputes that require litigation or alternative dispute resolution. Whether you’re involved in shareholder conflicts, contract breaches, or insolvency cases, understanding the Spanish legal framework is key.

This article explains the common causes of business litigation in Spain and what foreign investors need to know.

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⚖️ Common Causes of Business Litigation

• Breach of commercial contracts

• Shareholder disputes and corporate governance issues

• Insolvency and bankruptcy proceedings

• Intellectual property disputes

• Employment-related claims

• Disagreements with suppliers or customers

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🏛️ Courts and Procedures

Business litigation typically occurs in:

• Juzgados de lo Mercantil (Commercial Courts): Specialized courts for commercial and insolvency cases

• Civil Courts: For contract disputes and other business-related claims

• Arbitration: Often used in commercial contracts for faster resolution

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🧑‍⚖️ What Foreign Investors Should Know

• Spanish courts require legal representation by abogados and procuradores

• Litigation is document-heavy and written in Spanish

• Courts respect international contracts and arbitration clauses if properly drafted

• Shareholders have statutory rights to bring derivative actions

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⏳ Timeline and Costs

Business litigation can take several months to years, depending on complexity.

Costs include lawyer and court fees, which vary by claim value.

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🤝 How Borderless Lawyers Can Help

We support foreign investors with:

• Contract review and dispute assessment

• Representation in commercial and insolvency courts

• Arbitration and mediation support

• Shareholder dispute resolution

• Enforcing judgments and settlements