1.1 Advantages

In the past years Spain has emerged as a competitive arbitration hub. The latest advancements and sophistication in its arbitration rules, institutions, and private practitioners have positioned Spain, and especially Madrid, as a highly competitive and arbitration-friendly jurisdiction with particular emphasis on disputes involving the Ibero-American region. While offering very similar services, legal and arbitration costs in Spain are still relatively inexpensive when compared with other leading arbitral jurisdictions, especially those of a common law tradition.

1.2 Disadvantages and common pitfalls

Contracts entered into with the Spanish public sector to be performed in Spain are still subject to local administrative courts (jurisdicción contencioso administrativa) as a dispute resolution mechanism and the use of arbitration has not permeated into the Spanish public sector. The Spanish judiciary system is still slow, and proceedings are lengthy due to a backlog and the slow implementation of digitalisation mechanisms. When assisting tribunals in arbitral proceedings, some Spanish courts are still unfamiliar with international arbitration proceedings and its idiosyncrasies.

1.3 Distinctive features

Spain’s Arbitration Law is modern, detailed, and aligned with the UNCITRAL Model Law, which ensures a solid legal arbitration framework with a supportive enforcement regime, and cost-effective services. Due to its legal, linguistic, and cultural ties with Latin America, Spain is a strategic arbitration hub for arbitration involving the Ibero-American region.

2.1 Legal framework

The Spanish Arbitration Law 60/2003 of December 2003 (SAL) is the key legislation that governs national and international arbitrations seated in Spain. It contains nine Titles, covering the following topics:

• General provisions.
• The Arbitration Agreement.
• Arbitrators.
• Arbitrator jurisdiction.
• Conducting arbitral proceedings.
• Making of award and termination of proceedings.
• Setting aside and review of award.
• Enforcement of awards.
• Exequatur of foreign awards.

Certain SAL provisions refer to the Spanish Civil Procedure Code (CPC), which can also be applied in certain instances.

2.2 What qualifies under domestic law as “international arbitration”? Is there a specific statute?

Pursuant to Article 3.1 of the SAL, an arbitration is international if it meets any of the following criteria:

• the parties are domiciled in different countries at the time of signing the arbitration agreement;
• the seat of the arbitration, the place where a significant part of the obligations is performed, or the location with the closest connection to the dispute is outside the state where the parties are domiciled; or
• the legal relationship from which the dispute arises involves international trade interests.

The SAL does not provide a definition of “international trade interests”; nor has this concept been covered by Spanish case law to this date. Under Article 3(2) of the SAL, when a party has no domicile, that of its habitual residence shall be used and, if it has more than one, it shall be that most closely related to the arbitration agreement.

2.3 Ratification of the New York Convention

Spain signed the New York Convention (NYC) on 29 April 1977 and acceded to it on 12 May 1977, without any reservations.

2.4 Ratification of the ICSID Convention

Spain ratified the International Centre for Settlement of Investment Disputes (ICSID) Convention on 18 August 1994 and it entered into force on 17 September 1994.

2.5 Other treaties relating to arbitration

To date Spain has signed almost 60 bilateral investment treaties, most of which resort to the UNCITRAL or the ICSID Rules as their dispute resolution mechanism. Spain has also ratified the European Convention on International Commercial Arbitration, which entered into force on 5 March 1975 and the Geneva Convention of 1961 on International Commercial Arbitration, which entered into force in Spain on 10 August 1975. Spain also ratified the UNCITRAL Model Law in 2003, without any reservations.

2.6 Choice of forum for intra-EU dispute settlement

Spain signed the European Union Agreement for the Termination of Bilateral Investment Treaties on 5 May 2020. In accordance with the Agreement, investors from the signatory states are no longer permitted to initiate new arbitral proceedings against EU Member States for disputes that arose on or after 6 March 2018. Furthermore, any parties who initiated proceedings prior to this date are required to withdraw their claims and pursue negotiations or seek protection through local jurisdiction. This restriction does not apply to intra-EU commercial arbitration cases as long as there is mutual agreement between the parties to arbitrate and the selected arbitration framework complies with EU law.

2.7 Is the municipal law governing arbitration based on UNCITRAL Model Law?

Yes.

2.8 Recent amendments or reforms in arbitration laws

The SAL was amended in 2011 with the aim of making arbitration more efficient, accessible, and aligned with current judicial needs; in particular aiming for a reduction of local courts’ caseloads.

3.1 Presence of local arbitration institutions

In 2020, the three traditional main arbitral institutions, the Corte de Arbitraje de Madrid (CAM), the Corte Española de Arbitraje (CEA), and the Corte Civil y Mercantil de Arbitraje (CIMA) merged with the Ilustre Colegio de Abogados de Madrid (ICAM) to create a unique arbitration court based in Madrid, the Madrid International Arbitration Court (CIAM) with the aim of becoming Spain’s main arbitration court for national and international cases. In 2024, CIAM merged with the Centro Iberoamericano de Arbitraje (CIAR), further consolidating Madrid’s position as a key international arbitration hub, particularly for Ibero-American disputes (CIAM-CIAR).

3.2 Does the London Court of International Arbitration (LCIA) have a local office?

No.

3.3 Does the Permanent Court of Arbitration (PCA) have a local office?

No.

3.4 Does the ICC International Court of Arbitration have a local office?

No, it has a national committee located in Barcelona.

3.5 Does the International Centre for Dispute Resolution (ICDR) have a local office?

No.

3.6 Agreement entered into with local offices of international arbitration institutions

The Arbitration and Mediation Centre (CAM Santiago) of the Santiago Chamber of Commerce (CCS) and the Madrid International Arbitration Center – Ibero-American Arbitration Center (CIAM-CIAR) have reached an agreement for CAM Santiago to integrate its international arbitration activities into CIAM-CIAR. The agreement will be signed on 2 April 2025, within the framework of the 3rd Arbitration Meeting organised by CAM Santiago in Santiago, Chile. With this, CIAM-CIAR consolidates its true Ibero-American nature and reinforces the commitment of the Spanish and Latin American chambers of commerce to promoting a benchmark in international arbitration.

4.1 Requirements as to content and form

The SAL requires that the arbitration agreement be in writing and express in a clear manner the party’s intention to submit their disputes to arbitration (Articles 9.1 and 9.3 SAL). The arbitration agreement can take the form of a clause included in a contract or of an independent agreement (Article 9.2 SAL).

4.2 Validity of arbitration agreements

Under Spanish law, an arbitration agreement is considered valid if it complies with the requirements established by the governing law applicable to the agreement, the law chosen by the parties, or Spanish law (Article 9.6 SAL). As a private agreement, an arbitration agreement is subject to Spanish contract law requirements, which mainly concern issues of consent, capacity, object, and cause (Articles 246, 1261, 1271 of the Spanish Civil Code (CC)).

4.3 Special formalities

Under the SAL, an arbitration agreement can be carried out by a signed document or by means of communication such as letters, telegrams, faxes or other means that provide a record of the agreement (Article 9.3 SAL). It can also be executed and will be valid if one party acknowledges its existence in a written exchange (such as a claim and defence) and the other party does not contest it (Article 9.5 SAL). An arbitration agreement can also be incorporated in a contract by reference to another document containing it, provided the latter complies with the requirements as to its content and form (Article 9.4 SAL).

4.4 Governing law

Unless otherwise stated, a party’s choice of law shall mean that the substantive law chosen will apply to the arbitration with exclusion of any conflict of laws rules (Article 34.2 SAL). In cases where the parties have failed to make a choice of law, the SAL instructs the arbitrators to apply the law they consider appropriate, having in mind the contract and the applicable trade usages (Article 34.3 SAL). An arbitration seated in Spain will only be decided on equity if the parties have expressly stated so (Article 34.1 SAL).

5.1 Applicable restrictions

Under Spanish law, matters regarded by law to involve free choice can be subject to arbitration (Article 2.1 SAL). Matters that involve imperative public interest issues, such as capacity, family or criminal matters are not deemed to be subject to arbitration. While arbitration on Spanish labour matters exists, it is regulated by Spanish labour laws and the SAL is expressly excluded from its application (Article 1.4 SAL).

The Spanish legal system is supportive in recognising arbitration agreements whenever they comply with the requirements of the applicable laws. The Spanish court’s role is generally limited to supporting, not interfering with the arbitration process (Decision on appeal by the Constitutional Court Number 921-2022 of 2 December 2024).

6.1 Stay of proceedings

The SAL impedes local courts from entertaining disputes that are subject to an arbitration clause provided the legitimate party submits a jurisdictional objection within 10 days from the time that the process begins (Article 11.1 SAL). Filing such an objection does not suspend the arbitral proceeding but temporarily suspends the local court proceedings, although the Spanish court may adopt precautionary measures to prevent the irreparable harm of a legitimate party upon its request (Article 64 CPC). An enforcement proceeding is not suspended by a party’s request to set aside the underlying award, but in certain circumstances a court can suspend the enforcement upon a party’s request provided it provides security for the award’s full amount and any damages that may be caused from the delay in the enforcement (Article 45 SAL).

6.2 Anti-suit injunctions

Anti-suit injunctions face challenges in Spain due to Court of Justice of the European Union (CJEU) decisions restricting their application between EU member states on the basis of the principle of mutual trust and the Brussels I Regulation (Turner v. Grovit (C-152/02); West Tankers (C-185/07)). In the Gazprom (C-536/13) decision, the CJEU clarified that anti-suit injunctions issued as arbitral awards are not covered by the Regulation since arbitration is excluded from its scope. This allows national courts to recognise or deny such awards without violating EU law. Spain does not have specific regulation on this matter; nor has it issued any relevant decisions.

7.1 Restrictions on the parties’ freedom to choose arbitrators

The SAL provides that individuals in full possession of their civil rights can be arbitrators, unless prevented by the legislation to which they may be subject in the practice of their profession (Article 13 SAL). Under the SAL, nationality shall not be an obstacle to serve as an arbitrator, unless the parties have agreed otherwise (Article 13 SAL).

7.2 Requirement of arbitrator independence and impartiality

Under the SAL, arbitrators are required to be independent and impartial throughout the entire arbitration and they are expressly prohibited from having any personal, professional, or commercial relationships with the parties (Article 17.1 SAL). An arbitrator must also not have previously acted as a mediator in the same dispute, unless the parties agree otherwise (Article 17.4 SAL).

7.3 Mandatory rules applicable to the appointment process

While the SAL gives parties the freedom to choose the number of arbitrators, it does require that there must be an odd number of arbitrators (Article 12 SAL). In the absence of agreement as to the number of arbitrators, the SAL mandates that a sole arbitrator be appointed (Article 12 SAL). In arbitrations to be decided in law by a sole arbitrator, the SAL requires that he or she must be a qualified legal professional (Article 15.1 SAL). In cases of three-panel arbitrations, at least one of them must be a qualified legal professional (Article 15.1 SAL).

7.4 Appointment mechanism in the absence of party agreement or applicable institutional rules

Under the SAL, Spanish courts have the power to intervene in the appointment of the arbitrator(s) in the absence of the party’s agreement or institutional rules or whenever it is not possible to appoint them in accordance with the party’s agreed procedure (Article 15 SAL). The SAL provides different appointment mechanisms depending on the number of arbitrators:

• In arbitrations with a single arbitrator, the SAL mandates that he or she will be appointed by the competent court upon any of the parties’ request (Article 15.2(a) SAL).
• In arbitrations with three arbitrators, the SAL provides that each party will appoint one arbitrator, and the two party-appointed arbitrators will appoint the president. If a party fails to appoint his or her arbitrator within the time provided, or if the two party-appointed arbitrators cannot agree on the president, such appointment shall be made by the Spanish competent court (Article 15.2(b) SAL). In multi-party arbitrations, all arbitrators will be appointed by the competent court (Article 15.2(c) SAL).

The competent court’s decision on the appointment(s) cannot be subject to an appeal or review process.

7.5 Mandatory rules applicable to the replacement process

The SAL does not contain mandatory rules for the process of replacing an arbitrator other than requiring that the replacement be appointed in accordance with the same rules that governed the appointment of the replaced arbitrator (Article 20.1 SAL).

7.6 Mandatory disclosure obligations

The SAL requires that persons proposed to act as arbitrators disclose any circumstances likely to give rise to justifiable doubts as to their impartiality or independence, and this obligation must continue throughout the entire arbitration (Article 17.2 SAL). The SAL allows any party to request clarification of the arbitrators’ relationships with the other parties at any state of the arbitration (Article 17.2 SAL).

7.7 Grounds for challenge

Under the SAL, an arbitrator may be challenged only where circumstances give rise to justifiable doubts as to his or her impartiality or independence, or if he or she does not possess the qualifications agreed to by the parties. After being appointed, an arbitrator may only be challenged by the party who nominated it for circumstances that arise thereafter (Article 17.3 SAL).

7.8 Mandatory rules governing the challenge of arbitrators

The SAL allows the parties to agree on the procedure for the challenge of arbitrators (Article 18.1 SAL). In the absence of an agreement, the SAL provides that the party challenging an arbitrator must state the reasons for it within 15 days of becoming aware of the arbitrator’s acceptance or of any circumstances which may give rise to justifiable doubts as to the arbitrator’s impartiality or independence. Unless the challenged arbitrator withdraws voluntarily or the other party accepts the challenge, the remaining arbitrators shall decide on the challenge (Article 18.2 SAL).

7.9 Removal

Under the SAL, an arbitrator may be removed voluntarily or upon the parties’ agreement if they become unable to fulfil their duties de jure (by law) or de facto (in reality) (Article 19.1 SAL). If there is disagreement about the arbitrator’s removal and the parties have not established a procedure to resolve such disagreement, the removal will be decided by the other arbitrators or by the competent local court should they not reach a decision (Article 19.1(b) SAL).

7.10 Liability and immunity of arbitrators

The SAL provides that arbitrators and arbitral institutions are subject to liability for damages caused by bad faith conduct, negligence or malice (Article 21.1 SAL). Arbitral institutions can also be subject to liability for the arbitrations they administer irrespective of the indemnity claim they may file against the arbitrators, if the case may be (Article 21.2 SAL). The SAL further requires arbitrators (or arbitral institutions on their behalf) to obtain liability insurance or provide equivalent security in accordance with applicable insurance regulations. However, this requirement does not apply to public entities or arbitral institutions integrated into or dependent on the public administration (Article 21.2 SAL).

Article 8 of the SAL and Articles 722 to 724 of the CPC outline the Spanish courts’ authority to provide assistance and supervision in arbitral proceedings, namely in the adoption of interim measures, the taking of evidence, the appointment or challenge of arbitrators, and the recognition and enforcement or the setting aside of arbitral awards.

8.1 Interim measures

8.1.1 Overview of interim measures

Article 722 of the CPC regulates Spanish courts’ authority to issue interim measures in arbitrations seated in Spain prior to or during the arbitral proceeding. The requesting party is required to prove to the competent court the existence of a valid arbitration agreement or an arbitral proceeding to which it is party. If the arbitration is institutional, the SAL requires the requesting party to make the request in accordance with the institutional rules. Subject to the applicable international conventions and treaties, Spanish courts have authority to issue interim measures in foreign arbitral proceedings, provided the legal requirements are met. The competent court for adopting interim measures will be the court located in the jurisdiction where the award is to be executed or where it is considered to have effect (Article 8.3 SAL and Article 724 CPC).

8.1.2 Relevance of availability of emergency arbitrator mechanism

Spanish law does not explicitly recognise the emergency arbitrator. However, Spanish arbitral institutions’ rules such as the CIAM-CIAR (section X) envisage this mechanism.

8.2 Taking of evidence

Spanish courts have authority to assist arbitrators or the parties in the taking of evidence (Article 33 SAL). The competent court will be the court of first instance of the place of arbitration or the place where the assistance is to be provided, and the evidence will be practised under its sole direction (Article 8.2 SAL).

8.3 Appointment or challenge of arbitrators

Spanish courts have authority to assist in the process of appointment or challenge of arbitrators whenever there are no institutional rules, the parties have failed to agree on an appointment process, or the parties’ appointment process fails (Article 15 SAL). The competent court is the Civil and Criminal Chamber of the High Court of Justice of the region (Comunidad Autónoma) where the arbitration takes place (Article 8.1 SAL). In the absence of such determination, it shall be the respondent’s domicile or his or her habitual residence (Article 8.1 SAL).

8.4 Other available assistance

In addition to the above, Spanish courts have authority in the process of recognition, enforcement and setting aside of arbitral awards (see below, Section 13.3).

9.1 Domestic scope of sovereign immunity from jurisdiction

Organic Law 16/2015 of 27 October 2015 (Law 16/2015) regulates the privileges and immunities of: foreign states and their assets; Heads of State and Government and Ministers of Foreign Affairs of foreign countries; warships and state vessels and aircraft; visiting armed forces; international organisations based in Spain, and international conferences held in Spain before Spanish courts. Sovereign immunity may be waived through the state’s express or tacit consent (Articles 5 and 6 of Law 16/2015), and it is also subject to certain exceptions, generally related to circumstances in which the state acts in a commercial manner (iure gestionis) rather than as an empire (Articles 9–15 Law 16/2015). A foreign state cannot claim jurisdictional immunity in Spain in commercial arbitration disputes to which it has consented (Article 16 Law 16/2015).

9.2 Immunity from execution

Law 16/2015 regulates the immunity of foreign state assets from enforcement or coercive actions by Spanish courts. Immunity from execution can also be waived explicitly or tacitly (Article 18 Law 16/2015) and it is also subject to exceptions, generally related to assets of a commercial nature (Article 17.2 Law 16/2015). A state’s assets of a public nature are protected from execution, unless the foreign state expressly consents to their enforcement (Article 20 Law 16/2015).

An arbitration seated in Spain shall be deemed to have commenced when the respondent receives the request to arbitrate (Article 27 SAL). The parties have freedom to agree on the language(s) of the arbitration (Article 28.1 SAL). If no agreement is made, and determination is not possible, the proceedings will be conducted in one of the official languages of the location where the arbitration takes place (Article 28 SAL). Unless agreed by the parties, the arbitrators will decide whether to hold hearings or to rely solely on written submissions (Article 30.1 SAL). If the claimant fails to submit their claim within the designated timeframe, the arbitrators may terminate the proceedings unless the respondent expresses a desire to proceed (Article 31(a) SAL). However, if the respondent does not reply in time, the arbitration will continue (Article 31(b) SAL). If a party fails to attend a hearing, the arbitrators may still continue the proceedings based on the available evidence (Article 31(c) SAL).

Unless otherwise agreed by the parties, all individuals involved in the arbitration process, including the parties, arbitrators, experts, secretaries, and interpreters, are prohibited from disclosing information related to the arbitration (Article 24.2 SAL).

12.1 Requirements as to content and form

The SAL requires that an award be in writing and signed by the arbitrators (Article 37.3 SAL). In cases with multiple arbitrators, a majority signature or the president’s signature should suffice, provided that the reasons for any missing signatures are stated (Article 37.3 SAL). The award must always be reasoned, except in cases where the award is issued by agreement (Article 37.4 SAL). It must also include its date and the place of the arbitration, as well as a decision on the costs of the arbitration (Articles 37.5 and 37.6 SAL).

12.2 Time limit

Subject to the party’s agreement, arbitrators must issue the award within six months from the date of submission of the statement of defence (Article 37.2 SAL). This period can be extended by up to two months with a reasoned decision by the arbitrators (Article 37.2 SAL). The expiration of this does not affect the validity of the arbitration agreement or the award itself, although the arbitrators may incur liability (Article 37.2 SAL).

12.3 Remedies

The SAL does not impose limitations to the remedies that may be awarded in an arbitration. Remedies include compensation, restitution, declaratory relief, annulment, specific performance, and interim measures. Under Spanish law, compensation for damages can include direct damages and loss of profits (Article 1106 CC) where consequential damages can apply in cases of malice (Article 1107 CC).

13.1 Interpretation and correction of awards

The SAL allows a party to request: (a) a correction of calculation, typographical, transcription or mistakes of similar nature; (b) a clarification of points or sections of the award; (c) an additional award on issues that were requested but not resolved; (d) a rectification on excesses of competence in the award in cases where the award made a decision on issues not subject to the arbitration (Article 39.1 SAL). The request must be made within 10 days from the notification of the award. Arbitrators must decide on issues (a) and (b) within 10 days from their request and on issues (c) and (d) within 20 days, but these timings can be extended to one month and two months, respectively, in the case of international arbitrations (Article 39.1 SAL).

13.2 Challenge of an award

Spanish law grounds for the challenging of an arbitral award are in line with the NYC:

• the arbitration agreement does not exist or is invalid;
• a party was not properly notified of the appointment of an arbitrator or of the proceedings;
• the arbitrators decided on issues that were not submitted to them;
• the appointment of arbitrators or the arbitration process did not comply with the parties’ agreement or with the law;
• the arbitrators ruled on matters that are not subject to arbitration; or
• the award is contrary to public policy (Article 41.1 SAL).

The SAL adds that grounds (b), (e), and (f) can be assessed by ex officio by the court or by the request of a Public Prosecutor (Article 41.2). The challenge of an award must be filed within two months from the award’s notification (Article 41.4 SAL).

13.3 Recognition and enforcement proceedings

Spanish law provides that the enforcement of arbitral awards is subject to the enforcement proceedings established by the CPC (Article 44 SAL). Under the CPC, a party seeking enforcement must submit a formal enforcement request before a competent court, which lies in the location where the award was issued (Article 545.2 CPC). The request cannot be made until 20 days from the date in which the award is deemed to be final and the enforcement action will expire five years thereafter (Articles 518 and 548 CPC). The request must comply with certain formal and substantive requirements regulated at Articles 549 et seq. CPC.

13.4 Cost of enforcement

Article 44 of the SAL provides that the enforcement of arbitral awards is subject to the enforcement proceedings established under the CPC. The CPC generally recognises the “loser pays” rule as set out in Article 394, although arbitration costs are normally allocated on a case-by-case basis upon the arbitral tribunal’s determination.

13.5 Enforcement of orders of emergency arbitrators

Spanish law does not expressly recognise the enforcement of the decisions issued by emergency arbitrators. Thus, enforcement will depend on the form and nature of such decision, which can follow the procedure for the enforcement of an award or that provided for the enforcement of interim measures (Articles 738 et seq., CAC).

14.1 Process for enforcing New York Convention awards

Article 46.2 of the SAL provides that, absent other more favourable applicable international conventions, the recognition and enforcement of foreign awards will be regulated by the provisions of the NYC and the CPC regarding enforcement of foreign judicial decisions. Spanish law defines as foreign award those issued outside the Spanish territory (Article 46.1 SAL) and does not make a distinction between NYC and non-NYC awards, which is in line with Spain’s lack of reservation to the NYC. The process for enforcing foreign arbitral awards is twofold:

• Exequatur process, where the requesting party makes an application for the recognition of the foreign award as an enforceable title similar to that of a national judicial decision or local award. The application must be filed with the Civil and Criminal Chamber of the High Court of Justice of the region (Comunidad Autónoma) where the party against whom the award is enforced is domiciled (Article 8.6 SAL) and must contain an original copy of the award and the arbitration agreement along with certified Spanish translations, as per Article IV of the NYC and Articles 549 and 550 of the CPC.
• Potential adversarial phase, where the opposing party is summoned to appear and may make challenges to the recognition of the award, which are those provided under Article V NYC and reproduced under Article 41 SAL. The summoned party’s failure to appear will not interrupt the proceeding.

Should the competent court find none of the grounds for resisting the enforcement claimed are met, it will issue a decision approving the enforcement of the award, which shall be submitted before the court of first instance of the place where the award was rendered in accordance with Article 8.4 of the SAL and 545.2 of the CPC.

14.2 Grounds for resisting enforcement of New York Convention awards

Spanish rules for the resistance of the enforcement of NYC awards follow the provisions under Article V of the Convention, which are reproduced in Article 41 of the SAL.

14.3 Enforcing non-Convention awards

Spain has not made any reservations to the NYC, so the NYC applies to the recognition and enforcement of all foreign arbitral awards, irrespective of whether the state in which the award was made is a party to the NYC. 

As a general overview, the Spanish Legal Profession’s Code of Ethics (Código Deontológico de la Abogacía Española) sets out the professional and ethical rules for attorneys admitted in Spain. Other ethical rules are regulated under each of the different institutional arbitration rules, or the IBA Rules on Conflicts of Interest which are generally followed by arbitrations seated in Spain.

15.1 Applicable to counsel

The most relevant ethical rules for counsel under the Spanish Legal Profession’s Code of Ethics are those pertaining to independence and impartiality as set out in Article 2, confidentiality in Article 5, incompatibility in Article 6, and the relationship with clients, which includes the conflict of interest rules outlined in Article 12.

15.2 Applicable to arbitrators

Arbitrators admitted in Spain are bound by the Spanish legal profession’s Code of Ethics. In addition, an arbitrator acting in an arbitration seated in Spain is subject to the ethical rules provided by the SAL and the administering institutional arbitration, which contain specific rules regarding impartiality and independence (Article 17.1 SAL; Article 13 CIAM-CIAR Rules); duty of disclosure (Article 17.2 SAL; Article 13.2 CIAM-CIAR Rules); and confidentiality (Article 50 CIAM-CIAR Rules).

16.1 Applicable regulatory requirements

Third-party funding (TPF) currently lacks a specific legislative framework in Spain. However, certain Spanish arbitral institutions such as the CIAM-CIAR have integrated TPF considerations into their rules, mainly to regulate disclosure requirements to avoid conflicts of interest. TPF is also recognised in some Spanish soft law instruments, such as the Code of Good Arbitration Practices of the Spanish Arbitration Club.

16.2 Overview of the third-party funding market

TPF is a relatively recent phenomenon in Spain but has gained traction in the past years. Experts predict increased use of TPF in Spain, driven by its success in facilitating access to justice and the potential for European harmonisation through directives like the Draft Report on Responsible Private Funding of Litigation (2020).

17.1 Types of specialist arbitration

Spanish geographic and meteorological conditions have made it a highly attractive forum for projects in the renewable (photovoltaic) sector thus leading to a large number of energy, construction and infrastructure arbitration disputes. From the investment arbitration perspective, the Spanish renewable regulatory scheme has brought a large number of investment claims against the Spanish Government in the past 15 years, thus contributing to a sophistication of the Spanish legal market and public sector in this field. Investment rises in the past years, especially through Spain’s capital, Madrid, have increased the number of business operations and corporate transactions in the region, thus leading to a large number of corporate and post M&A arbitration disputes.

17.2 Key legal principles

The legal principles are dependent on the governing law of the contract at issue in the given arbitration.

17.3 Types of claim and defences typically brought in that area

Typical claims in construction and infrastructure arbitrations involve defects in energy infrastructures; breaches or delays in energy procurement and construction disputes; or delay or cost overruns in infrastructure projects. Energy arbitrations generally involve breach of long-term contracts (for example, Power Purchase Agreements); failure to deliver or pay for energy resources (oil, gas, electricity); disputes over pricing adjustments and force majeure clauses; and take-or-pay and supply obligations disputes. In corporate and M&A arbitration, claims often involve breaches of shareholders or joint venture agreements; breach of fiduciary duties; claims for fraud or misrepresentation; and/or claims pertaining post-merger integration or exit valuation. Substantively, investment arbitration claims often involve usual claims for expropriation, fair and equitable treatment and/or full security and protection. Final del formulario

17.4 Issues and strategic considerations to take note of

Strategic consideration on specialist arbitration will depend on the contract at issue.

Spain has faced extensive investment arbitration proceedings over its reforms in the renewable sector, with more than 50 cases challenging its regulatory changes under the Energy Charter Treaty (ECT). Notable cases have been heard such as Green Power v. Spain (SCC Arbitration No. 2016/135); here the arbitral tribunal upheld Spain’s intra-EU objection, marked a turning point in intra-EU investment arbitration cases, which have been reflected by the recent EJC decisions of Achmea (C-248/17) and Komstroy (C-741/19). The evolving landscape of intra-EU arbitration under the ECT underscores growing constraints in arbitration within the EU, with Spain at the forefront of shaping this complex jurisprudence. In all, this framework has strongly stimulated and fostered Spain’s advancement and sophistication in the arbitration sphere.