Parastoo Legal Group
Drafting Commercial Contracts in Spain: A Guide for Middle Eastern Businesses
What Middle Eastern companies and entrepreneurs need to know about commercial contracts under Spanish law.
When Middle Eastern businesses establish operations in Spain — whether through a company, a distribution agreement, a joint venture, or a consultancy relationship — legally sound commercial contracts are essential. Spanish commercial law has specific requirements and customs that differ from common law jurisdictions and from the legal systems prevalent in the Gulf and Iran. Parastoo Legal Group drafts, reviews, and negotiates commercial contracts for all our corporate clients.
Types of Commercial Contracts We Draft
Our corporate team drafts: service agreements (contrato de prestación de servicios), distribution and agency agreements, shareholder and joint venture agreements, NDA and confidentiality agreements, employment contracts (contrato de trabajo), lease agreements for commercial premises, and franchise agreements. All contracts are provided fully bilingual in Spanish and English.
Key Differences from Middle Eastern Contract Law
Spanish contract law is based on the Civil Code and Commercial Code — civil law tradition. Unlike the UAE or Saudi Arabia, there are no special provisions for foreign ownership restrictions, but there are specific rules on commercial agency (Ley 12/1992), employment law (Estatuto de los Trabajadores), and consumer protection that must be reflected in any contract involving Spanish counterparties.
Language Requirements
In Spain, contracts between commercial parties can be in any language. However, contracts with Spanish employees, consumers, or public bodies must be in Spanish (or in the co-official language of the relevant region). We always provide fully bilingual versions so our clients understand every clause.
Governing Law and Jurisdiction
For international contracts involving Middle Eastern parties, the choice of governing law and dispute resolution mechanism is critical. We advise on when to specify Spanish law vs. English law, when arbitration (ICC, DIAC) is preferable to Spanish court litigation, and how to structure jurisdiction clauses to protect our clients' interests.
Review of Contracts Received from Spanish Counterparties
Many Middle Eastern clients come to us with contracts received from Spanish companies, landlords, or business partners that they need reviewed before signing. We provide fast, practical contract review with a specific focus on the risks most relevant to foreign clients operating in Spain.