If you are a non-resident commercial agent whose agreement was terminated by a Spanish company, you may be entitled to foreign commercial agent compensation. From goodwill indemnity to damages for insufficient notice, Spanish law offers protection to agents operating abroad. Learn your options and discover how Lawants can assist you in defending your rights
Can a Foreign Commercial Agent Claim Compensation When a Spanish Company Terminates the Contract?
Have you worked as a commercial agent for a Spanish company and the agency agreement was suddenly terminated without compensation or prior notice? If so, you may be entitled to claim compensation for customer base (goodwill) and damages for lack of notice, even if you reside outside of Spain.
In this article, we explain when a foreign commercial agent can claim compensation under Spanish agency law, what rights you have if a Spanish company ends the agreement unilaterally, and how Lawants can assist you in protecting your interests.
What Is an International Agency Agreement?
An international agency agreement is a contract under which a company (in this case, based in Spain) appoints a commercial agent located in another country to promote or sell its products or services abroad, in exchange for commission.
In Spain, this relationship is governed by Law 12/1992 on Agency Contracts, which may also apply to non-resident agents, particularly when:
- The Spanish company operates from Spain
- The contract explicitly submits to Spanish law
What Rights Does a Foreign Agent Have?
Even if you are based outside Spain, if your contract is subject to Spanish law, you may claim goodwill compensation (“indemnización por clientela”) when:
- The Spanish company terminates the contract without just cause
- The company fails to respect the legal notice period
- The company continues to benefit from the customers brought in by the agent
These rights are also protected under EU Directive 86/653/EEC on self-employed commercial agents, which harmonizes rules across the European Union.
What Is Goodwill Compensation?
Goodwill compensation is a financial payment to the agent for the value generated during the business relationship, such as acquiring new clients or increasing turnover.
To claim it, three conditions must be met:
- The agent brought in new clients or significantly increased sales
- The company continues to derive substantial benefits from these clients
- The payment is equitable, considering the specific circumstances
The compensation may not exceed the average annual commission received by the agent over the past five years, or the full contract duration if shorter.
What If the Company Gave No Prior Notice?
Under Spanish agency law, the company must provide a minimum notice of one month per year of contract duration, up to a maximum of six months.
If the company terminates the contract without proper notice, the agent may claim additional compensation for lack of notice, to cover the financial loss caused by the abrupt termination.
What Can a Foreign Commercial Agent Claim?
If a Spanish company has terminated your agency contract without valid reason, you may be entitled to claim:
- Goodwill compensation
- Damages for insufficient notice
- Unpaid commissions
- Other contractual or economic damages
- Legal fees and interest, in court proceedings
What Steps Should You Take?
- Gather all documentation: the agency contract, emails, sales reports, commission statements, client lists, etc.
- Seek legal advice from a firm specialised in agency contracts under Spanish law.
- Act promptly: the deadline to claim goodwill compensation is one year from the termination date.
How Can Lawants Help You?
At Lawants, we are experienced in international agency disputes and regularly represent foreign commercial agents in claims against Spanish companies.
We can help you:
- Analyse your legal position under Spanish law
- Send formal legal notices and negotiate out-of-court settlements
- File civil claims in Spanish courts
- Claim full compensation for your commercial contribution
- Handle everything from Spain, in your own language
Has a Spanish Company Terminated Your Agency Agreement Without Compensation?
You may be entitled to goodwill compensation and damages for lack of notice, even if you’re based abroad.
Contact us now, explain your situation, and we’ll clearly advise you — without obligation — on your legal options.
