SPAIN Law and Practice Contributed by: Daniel Jiménez García, SLJ Abogados
Sovereign Immunity Organic Law 16/2015 of 27 October 2015 governs the position, regulating among other immunities the immunity from jurisdiction of foreign states – and fol - lowing the United Nations Convention closely. Broad - ly, the Act frames both immunity from jurisdiction and immunity from execution restrictively, which makes Spain a receptive jurisdiction for litigation against states. Enforcement is therefore available only against assets used for commercial activity, and identifying such assets is generally the practical obstacle rather than the recognition itself. The Spanish courts are pro-enforcement. Recognition is granted in the large majority of cases, the Article V grounds are construed narrowly and the burden rests squarely on the party resisting enforcement. Courts will not use the exequatur process to review the mer - its. Public Policy 12.3 Approach of the Courts A Pro-Enforcement Jurisdiction Public policy ( orden público ) is read restrictively and, in the international context, as international public policy: the fundamental rights guaranteed by the Spanish Constitution and the essential principles of the Spanish legal and economic order, together with internationally recognised principles. Procedural public policy – the right to be heard, equal - ity of arms, a properly constituted tribunal – accounts for most successful objections. The Constitutional Court’s case law since Judgment 46/2020, rein - forced by the plenary judgments of 23 June 2026, has expressly warned against an expansive reading The exception to this generally straightforward picture concerns intra-EU investment treaty awards, where EU law and international law pull in opposite direc - tions. Following Achmea and Komstroy , the European Commission’s Decision (EU) 2025/1235 of 24 March 2025 held that payment by Spain of the ICSID award in Antin would constitute unlawful state aid and directed Spain to prevent payment, execution or implementa - tion. National courts within the EU have followed suit, of the public policy concept. Intra-EU Investment Awards
with the Amsterdam District Court treating payment under an assigned award as recoverable state aid in
its judgment of 5 March 2025. Enforcement Outside the EU
Outside the EU, the picture has moved decisively the other way over the past year. The Federal Court of Australia in Blasket Renewable Investments LLC v Kingdom of Spain [2025] FCA 1028 upheld enforce - ment of four awards totalling some EUR470 million. On 4 March 2026, the UK Supreme Court dismissed Spain’s immunity appeal in [2026] UKSC 9. In the United States, the Supreme Court declined Spain’s petition for certiorari, and on 1 July 2026 the District Court for the District of Columbia entered final judgment enforcing the ICSID award in the BayWa case; in early June 2026, seven federal judg - ments derived from renewables awards worth close to EUR700 million were registered. Practical Guidance It is advisable, once an award intended for enforce - ment in Spain has been rendered, to contact a Span - ish law firm as soon as possible to initiate recognition proceedings. Under Spanish law, judgments and arbi - tral awards may only be enforced within a maximum period of five years. 13. Miscellaneous 13.1 Class Action or Group Arbitration No Class Arbitration Spanish law does not provide for class or group arbi - tration. 13.2 Ethical Codes Counsel Counsel remain subject to the professional rules of the Bar to which they belong. For Spanish lawyers, this means the General Statute of Spanish Legal Prac - tice, the Code of Ethics of the Spanish Legal Profes - sion and the rules of their local Bar, notably ICAM in Madrid, which cover conflicts, professional secrecy and duties to the tribunal.
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