Best Project Finance Lawyers in Estepona

1. About Project Finance Law in Estepona, Spain

Estepona, located on Spain's Costa del Sol in the province of Malaga, often turns to project finance for large infrastructure, energy, and public-private partnership projects. In this context, a special purpose vehicle (SPV) is typically created to own and operate the project and secure funding from banks or investors. The financing agreements are governed by Spanish contract and corporate law, with specific rules for public sector involvement when the project interacts with local authorities.

In Spain, project finance and PPP type arrangements frequently rely on the public procurement and concession framework set out in Ley 9/2017, de 8 de noviembre, de Contratos del Sector Público (LCSP). This framework governs how public bodies select private partners for public works, services, and concessions, including transparency and competition requirements. SPVs in Estepona must generally comply with LCSP processes when public consent, permits, or infrastructure rights are involved.

Because project finance transactions are cross functional, counsel regularly coordinate with corporate, tax, and antitrust specialists. The structure often involves regulatory compliance in urban planning, environmental permitting, and grid or land access, all of which are relevant to Estepona projects. Data protection rules also apply where projects involve handling personal data of contractors, employees, or end users, requiring alignment with Spain and the European Union frameworks.

Spain maintains a mature PPP and project finance ecosystem, with public procurement rules shaping how private entities participate in infrastructure and services projects.

World Bank PPP Knowledge Platform

European authorities emphasize the use of SPVs, risk allocation, and clear dispute resolution mechanisms in project finance and PPP transactions.

European PPP Expertise Centre (EPEC)

Global best practices stress alignment of project finance with local regulatory, tax, and planning requirements to avoid delays and cost overruns.

OECD Tax Policy: Corporate tax considerations

2. Why You May Need a Lawyer

Public consultations and permits in Estepona often require careful legal navigation. A corporate lawyer can help you assess structure feasibility and compliance from the outset. Below are concrete, local scenarios where Project Finance counsel adds value.

• Concession negotiations with Estepona’s Ayuntamiento for a new marina or public promenade, including tender documents, risk allocation, and performance guarantees.
• Development of a solar or wind project that needs land use approvals, grid connection rights, and environmental permitting from regional authorities in Andalusia.
• Formation of an SPV under Spanish corporate law to hold the project assets, with shareholder, governance, and intercreditor arrangements tailored to lenders and sponsors.
• Cross-border lending involving lenders from the EU and elsewhere, requiring choice of governing law, dispute resolution, and cross-border security packages.
• Tax structuring for the project, including corporate tax planning and reliefs relevant to energy or infrastructure projects in Spain.
• Dispute avoidance and resolution planning, including contract drafting that anticipates potential delays or force majeure events in Estepona’s local context.

3. Local Laws Overview

The following laws and regulatory concepts are commonly involved in Estepona project finance transactions. They help define how projects are procured, financed, and operated within Spain and Andalusia.

Ley 9/2017, de 8 de noviembre, de Contratos del Sector Público (LCSP) governs procurement and concessions for public works and services, including PPP arrangements. It sets rules for bidding, award criteria, and contract performance. Understanding LCSP is essential when the project interfaces with public authorities in Estepona.

Reglamento General de Protección de Datos (RGPD) and LOPDGDD - the EU General Data Protection Regulation applies across Spain, with the Spanish Organic Law 3/2018 (LOPDGDD) implementing it domestically. Projects that process personal data must conduct data protection impact assessments and implement appropriate safeguards.

Impuesto sobre Sociedades (Corporate Income Tax) considerations for SPVs - Spanish corporate tax rules affect project finance SPVs and the after-tax economics of a project. The standard rate has been around 25 percent for many years, with regional incentives possible depending on sector and location.

For private lenders and sponsors, these rules influence risk allocation, cost of capital, and the timing of cash flows in Estepona financed projects.

World Bank PPP Knowledge Platform

European PPP Expertise Centre (EPEC)

OECD - Corporate tax rates

4. Frequently Asked Questions

What is project finance in Spain and how does it work?

Project finance uses a dedicated SPV to own project assets and services. Lenders seek repayment primarily from project cash flows, not sponsor balance sheets. This structure spreads risk among lenders and investors.

How do I start a project finance deal in Estepona?

Define project scope, identify potential lenders, and appoint local counsel. Prepare a term sheet, assemble a project documentation package, and assess permits and grid access needs early.

Do I need a local solicitor in Estepona, or can I hire a national firm?

Local knowledge matters for permits and municipal processes. A national firm with Estepona experience can also work, but you should verify local regulatory familiarity.

Should I use Spanish law or English law for loan documents?

Spanish law is common for local deals, but lenders may request English law for certain agreements, with Spanish law governing core obligations or intercreditor terms as needed.

What permits are typically required for a project in Estepona?

Urban planning approvals, environmental impact assessments, and grid or land-access permissions are common. Local ayuntamiento and regional authorities administer these permits.

How much can a project finance legal package cost in Estepona?

Costs vary by project size and complexity. A typical early engagement might range from tens to hundreds of thousands of euros before closing; due diligence increases with project scale.

How long does a project finance deal take to close in Estepona?

Smaller deals may close in 4-6 months, while large infrastructure financings can take 12-24 months, depending on permitting, due diligence, and syndication complexity.

What is an SPV and why is it used in Spain?

An SPV is a separate legal entity created to own assets and liabilities of the project. It isolates project risks and simplifies debt service and equity arrangements.

Do I need to consider environmental or planning risk in the contract?

Yes. Environmental impact assessments and planning approvals directly affect project viability and timing, making risk allocation critical in contract drafting.

Can cross-border lenders participate in a Spain-based project?

Yes, cross-border lenders often participate. You will need clear intercreditor, governing law, and dispute resolution provisions to manage cross-border risk.

Is there a difference between project finance and corporate financing in Spain?

Project finance relies on project cash flows and SPV debt, not sponsor assets. Corporate financing uses sponsor balance sheets, with different risk and liquidity implications.

What if disputes arise in a project finance deal?

Dispute resolution clauses typically include courts in Spain or arbitration. Choose an approach with a clear seat and governing law aligned to lenders and sponsors.

5. Additional Resources

• World Bank PPP Knowledge Platform - A global hub with guidance, case studies, and country profiles on PPPs and project finance, including Spain and EU contexts. https://www.worldbank.org/en/topic/publicprivatepartnerships
• European PPP Expertise Centre (EPEC) - Provides support, expertise, and best practices for PPPs across EU member states, including processes in Spain. https://www.eib.org/en/products/experts/epec/index.htm
• OECD Tax Policy and Corporate Tax Rates - International context on corporate tax considerations relevant to SPVs and project finance structures in Europe. https://www.oecd.org/tax/tax-policy/corporate-tax-rates-in-2023.htm

6. Next Steps

1. Define project goals and structure - Clarify whether the project will be a concession, build-operate-transfer, or stand-alone SPV project. Timeline: 1-2 weeks.
2. Identify the right legal counsel - Look for lawyers with Estepona experience in public procurement, SPV formation, and project finance. Timeline: 1-2 weeks.
3. Draft a preliminary term sheet - Outline major terms, including debt capacity, tenor, security, and covenants. Timeline: 2-4 weeks.
4. Assess permits and regulatory path - Inventory required urban planning, environmental, and grid approvals. Timeline: 4-8 weeks.
5. Form the SPV and finalize ownership - Decide on shareholding, governance, and sponsor allocations. Timeline: 2-6 weeks.
6. Engage lenders and insurers - Initiate due diligence, risk allocation discussions, and insurance program design. Timeline: 6-12 weeks.
7. Negotiate the financing package - Finalize term sheets, intercreditor agreements, and security packages. Timeline: 6-12 weeks.
8. Complete due diligence and closing checks - Legal, tax, environmental, and operational diligence completed. Timeline: 4-8 weeks.
9. Close and commence operations - Transfer funds, execute loan documents, and begin project construction or operation. Timeline: 1-4 weeks after closing.