contracts
Agency Agreement in Spain: Template, Key Clauses and Local Law (2026)
A commercial agency agreement in Spain is tightly regulated, and much of that regulation protects the agent regardless of what the contract says. The rules are mandatory, so if you draft one without knowing them you can owe a goodwill indemnity you never planned for. This guide covers the law, the key clauses and a working skeleton. It is general information, not legal advice; confirm a live deal with a Spanish lawyer. ## What law governs agency agreements in Spain? Commercial agency is governed by Ley 12/1992, de 27 de mayo, sobre Contrato de Agencia, which implements the European Commercial Agents Directive (86/653/EEC). General contract rules in the Civil Code (Codigo Civil) and the Commercial Code fill the gaps. A commercial agent is an independent intermediary engaged on a continuing basis, for a fee, to promote and possibly conclude commercial deals in the name and for the account of a principal. The agent does not act on its own account; a party that buys and resells is a distributor, under a different regime. The decisive point for drafting: the core protections are mandatory (imperativas) in the agent's favour. You cannot sign them away in advance. ## The mandatory rules you must respect ### Goodwill indemnity (indemnizacion por clientela), Article 28 This is the clause that catches principals out. When the agency ends, the agent is generally entitled to a goodwill indemnity if the agent brought new customers to the principal or significantly expanded business with existing ones, and the principal still benefits from that after termination. The indemnity is capped at one year's remuneration, calculated on the average of the last five years (or the whole term if shorter). You cannot waive it before termination. ### Indemnity for damages (indemnizacion por danos y perjuicios), Article 29 Separately, if the principal ends an indefinite agreement, the agent may claim for investments made on the principal's instructions that cannot be amortised because the contract ended. ### Post-termination non-compete (pacto de limitacion de la competencia), Article 20 A clause that restrains the agent after the contract ends is valid only if it is in writing, limited to the geographic zone or group of customers and the goods or services the agent handled, and lasts no more than two years after termination. ### Notice, Article 25 An indefinite agreement requires notice of one month for each year of the contract, up to a maximum of six months. Immediate termination is possible only for breach or insolvency. ### Commission, Articles 11 to 17 The agent is entitled to commission on deals concluded through its efforts during the agreement, and in defined cases on business concluded shortly after it ends. Define the rate, basis and timing precisely. ## Key clauses in a Spanish agency agreement - Appointment and scope: products or services, territory, and whether exclusive, sole or non-exclusive.
- Agent's duties: act in the principal's interest, follow reasonable instructions, report on the market and orders, and act in good faith.
- Principal's duties: provide documentation and samples, give needed information, warn of expected falls in volume, and pay commission on time.
- Commission: rate, accrual, statements, payment dates, treatment of returns and bad debts, and a right to verify the figures.
- Minimum targets: optional; state clearly whether a shortfall is a breach or just a trigger for review.
- Term and termination: fixed or indefinite, notice (one month per year, max six), and breach-based termination.
- Goodwill indemnity: you cannot exclude it; you can document how it will be calculated to limit disputes.
- Non-compete: maximum two years, in writing, scope-limited.
- Confidentiality and data protection: protect customer and pricing data; address the GDPR and the Spanish Data Protection Act (LOPDGDD) where personal data is processed.
- Governing law and forum: Spanish law and a chosen court or arbitration. An agent operating in Spain or the EU may keep the mandatory protections even if another law is chosen. ## A simple drafting skeleton 1. Parties and date
- Definitions (products, territory, customers, net sales)
- Appointment and exclusivity
- Term and renewal
- Agent's obligations
- Principal's obligations
- Commission: rate, accrual, statements, payment, verification
- Minimum performance (if any)
- Confidentiality and data protection
- Intellectual property and use of brand
- Termination and notice (one month per year, max six)
- Goodwill indemnity on termination
- Post-termination non-compete (max two years, defined scope)
- Liability and indemnities
- Governing law (Spanish) and dispute resolution
- Signatures Draft the commission, termination, indemnity and non-compete clauses with the most care, because together they decide the cost of ending the relationship. ## Where this differs by jurisdiction EU agency regimes share a spine: commission, notice, a goodwill indemnity and a capped non-compete. Spain caps the goodwill indemnity at one year's average pay over the last five years, the same ceiling as Germany, while France sets no cap and courts there often award about two years of commission. The non-compete ceiling is two years in Spain, the same as France and the Netherlands, but only six months in Belgium. Do not reuse a Spanish template for another country without checking the local implementing statute. ## Keeping a cross-border agency portfolio under control If you run agents in several countries, the hard part is not one contract. It is tracking which indemnity cap applies where, when each notice period runs, and which renewal is due. That work (drafting from a tuned template, flagging risky clauses, tracking renewals, keeping versions straight) is what an AI contract workspace can hold in one place. Adira is built for this, with per-clause risk review, plain-English clause editing and a live activity timeline; it is India-first today with other jurisdictions on its roadmap, so verify local depth before relying on it for Spanish law. More at Adira. The law above stands on its own. ## Bottom line A Spanish agency agreement is valid only if it respects the mandatory Ley 12/1992 rules on the goodwill indemnity, notice and the two-year non-compete cap. Draft the commercial terms freely, honour the protections you cannot waive, pick Spanish law and forum, and get Spanish advice before signing a real deal.
Frequently asked questions
- What law governs commercial agency agreements in Spain?
- Ley 12/1992, de 27 de mayo, sobre Contrato de Agencia, which implements the EU Commercial Agents Directive 86/653/EEC. General contract rules sit in the Civil Code and the Commercial Code. The core agent protections are mandatory and cannot be waived in advance.
- How is the goodwill indemnity calculated for a Spanish agent?
- Under Article 28, where the agent brought in or expanded customers that still benefit the principal, a goodwill indemnity is generally due. It is capped at one year's remuneration, calculated on the average of the last five years, or the whole term if shorter.
- How long can a post-termination non-compete last for a Spanish agent?
- At most two years after termination (Article 20), and only if it is in writing and limited to the geographic zone or customers and the goods or services the agent handled.
- Is this guide legal advice?
- No. It is general information about Spanish agency law, which is mandatory in parts and fact-specific. Confirm the detail with a qualified Spanish lawyer before signing.
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