Spain’s Strategic Role in Connecting International Legal Firms in Europe, Latin America and Asia

“Spain’s strategic location, its ties with Latin America and its membership of the European Union have made this country an attractive destination for international law firms.”

Over the past 60 years, an increasing number of international legal firms have chosen Spain as a destination for their operations.

On initial consideration, it seems plausible that these law firms may view Spain as a convergence point for international law firms and as a connector to the South American legal market due to its geographical position and historical relations with Europe and Latin America.

Since the 1960s and 1970s, law firms have taken the risk of entering the international market, assuming the implications of investment, market studies, and time. This has resulted in significant success for firms that have positioned themselves as leaders in foreign markets by following a similar trajectory. This dynamic works in various ways. For example, they often start their expansion in their country of origin. Once a company has decided to operate internationally, it will typically establish contact with local law firms or lawyers (through lateral hiring) in the destination country and form associations. This approach allows them to connect with the target market and eventually open their own operations center.

Another of the key ways in which law firms access internationalisation is by accompanying clients. This allows the law firm to start where the client goes, as the basis of the movement is the transfer of clients to other countries. Furthermore, companies may consider forming an international law firm in collaboration with other entities.

A journey throughout the international legal firms

From the United Kingdom to Spain

The move to Spain as a legal market destination was initially led by British and North American law firms that expanded their European presence with offices in Spain. These arrivals have served as a convergence point for other global law firms that view the Spanish market as a growth opportunity and a gateway to other countries.  As previously stated, numerous successful cases of international law firms have occurred in Spain as a European destination. Baker McKenzie, the first foreign law firm to arrive in Spain, set a precedent in 1965, paving the way for an international vision among the rest of the legal firms. It was in 1980 with the arrival of Clifford Chance that the Anglo-Saxon legal market began to consider Spain as an attractive destination. It is not a coincidence that four of the ‘Magic Circle’ law firms (Allen & Overy, Linklaters, Freshfields Bruckhaus Deringer and Clifford Chance) have chosen to expand their operations in Spain. The first of these, Clifford Chance, opened an office in Spain in 1980, while the others followed suit in 1991, 2000 and 2010.

Foreign law firms landing in Spain

The trajectory of British law firms has paved the way for the emergence of today’s international law firms. Conversely, countries such as Germany with Rödl & Partner in 1997, Portugal with Raposo Bernardo in 2000, France with DS Avocats in 2001 or the Swiss law firm Meyerlustenberger Lachenal Froriep Ltd in 2003, have identified Spain as a strategic location for international expansion. Spain has also been at the forefront of the process of internationalisation towards Latin America, with a strong presence in the global market that has developed over the past decades. 

Spain to Latin America

Spain occupies a strategic position in the global market due to its geographical position as a Mediterranean country, bordering North Africa and belonging to the European Union. Spain has historically enjoyed close cultural, economic, linguistic, political and social ties with Latin America.

The journey of Spanish law firms began with Garrigues in 2010 when they opened their first office in Brazil. However, this was subsequently closed. After the disassociation with Affinitas, they opened their own offices in Peru, Colombia, Mexico and Chile. It was not long after this that Cuatrecasas opened offices in Colombia, Peru, Mexico and Chile. In 1990, Uría Menéndez opened its first North American office in New York, but after three decades, it has ceased operations there. Following this period, Uría Menéndez expanded into the Latin American market through strategic alliances and mergers with leading law firms in Chile, Colombia and Peru. As a result, the firm’s current name is PPU – Philippi Prietocarrizosa Ferrero DU & Uria.  It is common for these law firms to establish themselves as leading legal firms in the markets they have accessed.

Latin America to Spain

The result of relations between Spain and Latin America has generated a number of bilateral agreements in the areas of trade, investment, international cooperation and growth. This approach ensures that economic interests, shared values and cultural affinities, as well as the development of projects that promote a strategic vision of the continent, are all taken into account. Furthermore, the skills and expertise of Spanish professionals can also be considered a valuable asset, particularly for Latin American law firms seeking to expand their teams with Spanish talent.

The first Latin American law firm to establish a permanent presence in Spain was Estudio Olazábal Abogados in 1998 from Uruguay. Since then, the trend towards the internationalisation of law firms has increased significantly. Among other legal firms that have arrived in the Iberian country are Creel, García – Cuellar, Aiza y Enríquez (from Mexico in 2023), Bullard Falla Ezcurra (from Peru in 2022), and Chevez Ruiz Zamarripa (from Mexico in 2018).

In response to the question about the competition between Latin law firms and Spanish law firms, it is important to note that the primary motivation for these law firms to set up in Spain is not direct competition, but rather a point of connection between foreign clients or investors. In an interview with Cinco Días, Iker Arriola, the partner in Madrid’s office of Creel, García – Cuellar, Aiza y Enríquez, stated that ‘the firm’s objective is not to compete with established firms in the market, but rather to “serve as a conduit for Mexican investors seeking business opportunities in Europe” and as a “link for European clients and the major legal firms on the continent”’.

Asia to Spain

The robust economic ties between Asia and Spain, characterised by substantial investment and trade flows, present a significant demand for legal services from legal firms with expertise in the laws of both regions, with the ability to tailor services to specific client needs. It is worth noting the merger between Dentons and Da Cheng, which resulted in Dentons becoming China’s largest Western law firm and Da Cheng becoming the largest China-based law firm. However, after eight years of partnership, the firms ended their association due to intensifying regulations, leading to Dentons’ exit from the Chinese market.

In 2015, Yingke Law Firm established a “legal bridge” by providing counsel to Chinese companies on their international expansion and the entry of foreign companies into the Chinese market. Subsequently, Spain welcomed the arrival of Asian legal firms such as King & Wood (in 2018), JunHe LLP (in 2019), Zhong Lun Law Firm (in 2020), and today, one of the largest legal firms in China, Grandall Law Firm, has announced the opening of an office in Barcelona in 2024. This is the second office in Spain for the firm.

Spain’s membership of the European Union provides Grandall with access to a large and substantial market, offering mutual benefits through the contributions of Asian legal firms. These include their experience in transnational operations and their ability to connect Spanish companies with Asian partners.

In summary, Spain’s strategic location, its ties with Latin America and its membership of the European Union have made this country an attractive destination for international law firms. Spain serves as a gateway for European law firms entering the Latin America market, and vice versa. Furthermore, the expansion of relations between Spain and Asia is attracting Asian law firms to establish a presence and expand their operations in Europe.

This convergence of international legal expertise creates a dynamic environment in the legal trade that benefits foreign companies and Spain as a connector of international jurisdictions.