ICC arbitration resolves a commercial dispute under the International Chamber of Commerce Rules: the claimant pays a US$5,000 filing fee, both parties share the advance on costs, and the arbitrators issue a final award enforceable in the 172 New York Convention states.
For a €6 million claim with three arbitrators, ICC costs are about €300,000; cases average 27 months.
Below: how ICC arbitration works under the new 2026 Rules, what the Spanish Arbitration Act (Ley 60/2003) and the New York Convention mean for a Spanish company, what a €2–10 million dispute costs on the ICC scale and in full, with lawyers and experts, how long it takes, when third-party funding makes sense, how damages are calculated and how the dispute shows up in the accounts.
The legal work — the clause, the claim, representation in the arbitration — is done by lawyers.
This article covers the financial side: the budget, the damages calculation, the cash model and the accounting.
How ICC arbitration works
The ICC is the International Chamber of Commerce in Paris.
Its International Court of Arbitration does not decide disputes itself: it administers the case, confirms the arbitrators, fixes the costs and scrutinises the draft award.
The dispute is decided by one or three arbitrators nominated by the parties or appointed by the ICC Court.
Arbitration is only available if the contract contains an arbitration clause or the parties agree to arbitrate once the dispute has arisen.
New ICC Rules have been in force since 1 June 2026 and apply to cases filed from that date.
Terms of Reference are no longer mandatory; the case management conference (CMC) remains mandatory and must be held within 30 days of the tribunal receiving the file; a party may apply for early determination of manifestly unmeritorious claims (Article 30); and the President of the ICC Court fixes the time limit for the final award in line with the procedural timetable (Article 34).
A case runs like this: the claimant files a Request for Arbitration and pays the filing fee; the respondent answers within 30 days; the ICC Court confirms the arbitrators; the tribunal holds the CMC and sets the timetable; the parties exchange submissions, documents, witness statements and expert reports; then come the hearing, the draft award, the ICC Court’s scrutiny and the award itself.
ICC is a familiar choice for Spanish companies.
According to ICC statistics for 2025, Spanish parties appeared a record 141 times — third worldwide by party nationality; Madrid was the sixth most chosen city as seat (26 cases), Spanish law was chosen in 43 new cases, and Spanish was the second language of awards after English (46 awards).
The Spanish framework: Ley 60/2003 and the New York Convention
If the seat is Madrid, Barcelona or another Spanish city, the proceedings follow the ICC Rules within the framework of the Spanish Arbitration Act, Ley 60/2003.
If the seat is abroad but the debtor is a Spanish company or its assets are in Spain, the 1958 New York Convention applies.
- The clause. The arbitration agreement must be in writing, which includes electronic communications (Article 9 of Ley 60/2003). If one party goes to court anyway, the other raises a declinatoria within the first 10 days of the time to answer (Article 11.1). Interim measures can be sought from the courts before and during the arbitration (Article 11.3) and from the arbitrators themselves (Article 23).
- Time limit and costs. By default the Act gives arbitrators 6 months from the statement of defence plus a 2-month extension (Article 37.2), but only “unless the parties agree otherwise” — and choosing the ICC Rules is such an agreement. The arbitrators decide on costs, including legal fees, in the award (Article 37.6). Arbitrators and the institution are bound by confidentiality (Article 24.2).
- Annulment. An award made in Spain is final and binding (res judicata, Article 43). Only the Civil and Criminal Chamber of the High Court of Justice (TSJ) of the region where the seat is located can set it aside (Article 8.5), and only on six grounds: no valid arbitration agreement, a party was not properly notified or could not present its case, the arbitrators ruled on matters not submitted to them, the appointment or procedure breached the agreement or the Act, the dispute was not arbitrable, or the award is contrary to public policy (Article 41.1). The action must be brought within 2 months (Article 41.4). It does not stop enforcement: enforcement is suspended only against security covering the award and the damage caused by the delay (Article 45.1).
- Foreign awards. An award made outside Spain is recognised under the New York Convention (Article 46); recognition is granted by the TSJ of the place where the party resisting it is domiciled, and enforcement by the court of first instance (Article 8.6). 172 states apply the Convention; Spain acceded on 12 May 1977 without reservations, so it recognises awards from any country, not only from contracting states.
For financial planning this means that money does not arrive the day the award is issued.
If the debtor brings an annulment action or resists recognition, a court stage is added to the arbitration, and the cash flow model has to allow for it.
ICC arbitration costs: the scale and the calculator
ICC costs have two parts: the ICC administrative expenses and the arbitrators’ fees.
Both are calculated on a scale based on the amount in dispute, progressively, tranche by tranche, like a tax. New US dollar scales apply to cases filed on or after 1 June 2026.
The scale sets arbitrators’ fees as a range — a minimum and a maximum; with three arbitrators the total fee normally does not exceed three times the fee of a sole arbitrator.
The ICC Court may depart from the scale in exceptional circumstances (Article 41(2)).
The ICC costs calculator uses the average fee and gives an estimate only: the Court regularly fixes fees above or below the average.
On filing, the claimant pays a non-refundable US$5,000 filing fee; the Secretary General then fixes the advance on costs for the whole case, payable in equal shares (Article 40).
If the respondent does not pay its share, the claimant is invited to pay it. The advance does not cover the parties’ lawyers or experts.
The ICC Court fixes the actual costs at the end of the case, and any balance of the advance is refunded.
ICC costs on the 2026 scale for €2, €5 and €10 million disputes, at the ECB reference rate of 6 November 2026, US$1.1165 per euro, rounded to the nearest €100:
| Amount in dispute | ICC administrative expenses | Sole arbitrator’s fee (average) | Total, sole arbitrator | Total, three arbitrators |
|---|---|---|---|---|
| €2 million | €27,700 | €56,300 | €84,000 (4.2%) | €196,700 (9.8%) |
| €5 million | €39,800 | €80,900 | €120,800 (2.4%) | €282,600 (5.7%) |
| €10 million | €52,300 | €103,100 | €155,400 (1.6%) | €361,500 (3.6%) |
Calculated on the 2026 ICC scale with the average fee, as in the ICC calculator; arbitrators’ expenses (travel, venue) are not included. Two conclusions.
First, ICC costs fall as a share of the claim as the amount grows, so three arbitrators are an expensive choice for a €2 million dispute and a normal one at €10 million.
Second, the costs are in dollars while the company’s budget is in euros: the exchange rate moves the costs just as it moves the claim.
The full budget: lawyers, experts, hearing
The ICC scale is the smaller part of the bill.
Under the ICC Rules, the costs of the arbitration include not only the arbitrators’ fees and ICC expenses but also tribunal-appointed experts and the parties’ reasonable legal and other costs (Article 41(1)).
The final award allocates these costs between the parties (Article 41(4)), and the tribunal may consider how expeditiously and cost-effectively each party conducted the arbitration (Article 41(5)).
Recovery of costs by the winner is not guaranteed and is rarely complete.
An illustrative example. A Spanish supplier claims €6 million from a foreign buyer that terminated a long-term contract; three arbitrators, seat in Madrid.
Lawyers’ and experts’ rates depend on the firm and the complexity of the case, so the figures below are assumptions of the example, not market statistics.
| Claimant’s cost item | Amount | Basis |
|---|---|---|
| Half of the ICC advance (three arbitrators) | €150,300 | 2026 ICC scale; full advance €300,700 |
| Lawyers for the whole case | €900,000 | assumption |
| Quantum expert: report, reply report, cross-examination | €250,000 | assumption |
| Hearing, translation, transcripts, arbitrators’ expenses | €80,000 | assumption |
| Total | €1,380,300 | 23% of the claim |
In this example ICC accounts for 11% of the claimant’s costs, lawyers and the expert for 83%.
The spending stretches over two years or more, peaking around the main submissions and the hearing.
For a company with €20–50 million in revenue this is a material outflow, and it belongs in the cash plan from day one so the dispute does not create a cash gap.
How long ICC arbitration takes
In cases that ended with a final award in 2025, the average duration was 27 months and the median 23 months, including suspensions agreed by the parties.
ICC registered 881 new cases in 2025, and in 41% of them the amount in dispute did not exceed US$4 million.
- Expedited Procedure (EPP). Applies automatically if the amount in dispute does not exceed US$4 million and the arbitration agreement was concluded on or after 1 June 2026; for agreements from 2021 to May 2026 the threshold is US$3 million, for 2017–2020 US$2 million. A sole arbitrator, an award within 6 months of the CMC and an arbitrator’s fee on a separate scale 20% below the standard one. Parties may opt out in the clause or opt in for larger amounts.
- Highly Expedited Arbitration (HEAP). New in the 2026 Rules, opt-in only and for any amount: a sole arbitrator, the claim filed with its evidence up front, and an award within 3 months of the CMC.
- Emergency arbitrator. For urgent relief before the tribunal is constituted — for example, an order not to move assets — a party can apply to an emergency arbitrator; the fee is US$50,000, of which US$37,500 is the arbitrator’s fee and expenses.
For a €2–10 million dispute with three arbitrators, plan on 2–2.5 years to the award and a few more months to the money if the debtor will not pay voluntarily.
Time has a price too: money locked in a dispute costs the company its cost of capital.
Third-party funding
In third-party funding, a fund that is not a party pays the claimant’s costs and, if the claim succeeds, takes a share of the proceeds.
If the claim fails, the company owes the funder nothing. For a Spanish company it is a way to keep €1–1.5 million in the business and move the cost risk off the balance sheet.
The 2026 ICC Rules require each party to disclose promptly any non-party that funds its claims or defences and has an economic interest in the outcome (Article 12(6)), so that arbitrators can check for conflicts.
ICC accepts payment from a third party only if its relationship with the claimant is explained.
In its resolution of 13 September 2022, the European Parliament recommended that the Commission regulate litigation funding, including arbitration: an agreement leaving the claimant 60% of the award or less should, as a rule, have no legal effect.
This is a recommendation, not law; Spain has no specific statute on third-party funding.
Back to the example. The funder pays the claimant’s full budget of €1,380,300 and takes on the risk of the respondent’s costs.
In return it takes the greater of twice its outlay or 25% of the proceeds, capped at 40%. These terms are illustrative; in practice they are negotiated case by case.
| Outcome | Company receives with funding | Company receives without funding |
|---|---|---|
| Full win: €6 million plus 70% of costs | €4,205,600 (funder €2,760,700, 40%) | €5,585,900 |
| Partial win: €3.6 million plus 30% of costs | €2,408,500 (funder €1,605,600) | €2,633,800 |
| Loss, respondent recovers 70% of its costs | €0 | −€2,346,600 |
Funding is expensive when you win and a lifeline when you lose.
The decision is an investment decision: it rests on the outcome probabilities assessed by counsel and on what else the company could do with the money.
If the same €1.4 million earns more in the business than the funder takes on a probability-weighted basis, funding pays. Compare the NPV of both options.
There are middle routes too: the funder covers only part of the costs, or the company sells part of the future award to the funder for cash now.
Calculating damages: quantum, DCF and lost profits
The amount claimed is a calculation, and the tribunal tests it as rigorously as liability.
Under Spanish law, compensation covers both the actual loss and lost profits (Article 1106 of the Civil Code); a debtor acting in good faith is liable for losses that were foreseeable when the contract was made, and for all losses in case of wilful misconduct (Article 1107); for late payment of money, damages are the agreed or statutory interest (Article 1108).
If the contract is governed by another law, the rules differ, but the logic of the calculation is the same.
Damages are calculated by a financial quantum expert. Each side usually has its own, and the tribunal may appoint one too.
The expert builds a “but-for” scenario — what would have happened without the breach — and compares it with what actually happened.
Lost profits are most often valued with a DCF: the lost cash flows of future years are discounted to the valuation date.
In the example, the buyer terminated a five-year contract. The supplier’s lost cash flows are €1.4, 1.5, 1.6, 1.7 and 1.8 million by year, €8 million in total. Their present value depends on the discount rate:
| Discount rate | Lost profits, DCF |
|---|---|
| 9% | €6,156,600 |
| 12% | €5,686,400 |
| 15% | €5,270,500 |
At 12%, lost profits are about €5.7 million; add late-payment interest and the claim comes to roughly €6 million.
The gap between 9% and 15% is almost €900,000 — more than the ICC costs.
That is why a quantum dispute is often about the discount rate, the revenue forecast and the period rather than the breach itself.
The other side’s expert will argue that the forecast is inflated, that the business was losing customers anyway and that the risk is higher.
A robust calculation rests on the company’s historical data, a clear financial model and accepted business valuation methods: the rate is supported by market evidence, the forecast by past performance, and the assumptions are disclosed.
Three more questions the expert settles before filing: the valuation date (the date of breach or the date of the award), how to avoid counting the same loss twice (for example, lost profits and the fall in the value of the business) and what the company did to mitigate its loss — whether it found another buyer.
Provisions and disclosure in the accounts
A multi-million dispute changes both parties’ accounts, and through them loan covenants, the company’s valuation in a sale and the buyer’s due diligence.
Under the Spanish General Accounting Plan (PGC, valuation rule 15), the respondent recognises a provision when an obligation is probable and its amount or timing is uncertain; it is measured at the best estimate at the reporting date, discounted if due in more than a year.
Other contingencies are disclosed in the notes (memoria).
A reimbursement from a third party, such as an insurer, is shown as a separate asset only if there is no doubt it will be received.
For the claimant, the expected award is not income until its receipt is virtually certain: under IFRS (IAS 37) it is a contingent asset, disclosed but not recognised.
In practice, counsel assesses the probability and range of outcomes, and the finance team turns that into a provision, disclosures and budget scenarios.
The claimant’s costs of the dispute are an expense of the period, even if it expects to recover them.
A tax adviser should check how the provision and any recovery are treated for tax.
If the company is sold mid-dispute, the dispute is priced in through a price adjustment, an escrow or a specific seller indemnity, which is checked in due diligence.
What to check before filing and common mistakes
- The clause. Does it exist, which disputes does it cover, which rules, seat, number of arbitrators and language? A three-arbitrator clause for a €2 million dispute is worth discussing with counsel when the contract is signed.
- Amount versus cost. If the budget approaches 20–30% of the claim, weigh it against the likely outcome and a settlement.
- The respondent’s solvency. A €6 million award against a company with no assets is paper. Where the assets are, in which country, and whether it applies the New York Convention — check before filing, not after.
- Currency. The ICC advance is fixed in dollars, the claim may be in euros; the exchange rate moves both.
- Quantum without a model. A mistake is a round number in the claim and an expert hired a month before the report is due. Build the calculation from the start: strategy, budget and settlement all depend on it.
- Documents. Management reports, contracts, correspondence, forecasts — the expert can only rely on what can be shown. Clean management reporting before the dispute helps.
- Provision and disclosure. Remember the provision or disclosure in the annual accounts, and tell the bank about the dispute if the loan agreement requires it.
Frequently asked questions
What is ICC arbitration?
It is the resolution of a commercial dispute by arbitrators under the Rules of the International Chamber of Commerce. The ICC Court administers the case and confirms the arbitrators, while the arbitrators decide the dispute. The award is final and is recognised in the 172 New York Convention states.
How much does ICC arbitration cost?
ICC costs depend on the amount in dispute and the number of arbitrators. On the 2026 scale, a €5 million dispute costs about €120,800 with a sole arbitrator and €282,600 with three. The parties’ lawyers and experts are paid separately and usually cost several times more.
How does the ICC costs calculator work?
On the ICC website you enter the amount in dispute in dollars, the filing date (before or after 1 June 2026), the procedure and the number of arbitrators. It shows the administrative expenses and the average arbitrators’ fees. It is an estimate: the ICC Court may fix fees above or below the average, and it does not cover lawyers or experts.
How long does ICC arbitration take?
Cases that ended with an award in 2025 took 27 months on average, with a median of 23 months. The Expedited Procedure delivers an award within 6 months of the CMC, and the new Highly Expedited Arbitration within 3 months.
What is an ICC arbitration clause?
It is a contract clause providing that disputes are decided by arbitrators under the ICC Rules rather than by the courts. It states the seat, the number of arbitrators and the language. In Spain the clause must be in writing, which includes electronic communications.
How is an ICC award enforced in Spain?
An award made in Spain is enforced by the court of first instance; it can only be challenged by an annulment action within 2 months. A foreign award is first recognised by the regional High Court of Justice (TSJ) under the New York Convention and then enforced.
Can an ICC arbitration be funded by a third party?
Yes. The funder pays the costs and takes a share of the proceeds if the claim succeeds, and nothing if it fails. Under the 2026 ICC Rules, the funder must be disclosed promptly to the Secretariat, the tribunal and the other parties.
Key points about ICC arbitration
- New ICC Rules and new cost scales have applied since 1 June 2026; the Expedited Procedure threshold is US$4 million.
- ICC costs for a €2–10 million dispute range from €84,000 to €361,500, but lawyers and experts usually cost several times more: in our example the claimant’s full budget is 23% of the claim.
- Cases average 27 months; after the award come a possible annulment action before the TSJ or recognition under the New York Convention.
- Third-party funding removes the downside but can take up to 40% of a win; decide on scenarios and NPV.
- The damages figure stands on its calculation: the DCF discount rate moves the result by hundreds of thousands of euros.
- A dispute reaches the accounts: a provision for the respondent, disclosure for the claimant, a price adjustment if the company is sold.
Sources
- 2026 ICC Rules of Arbitration and Schedule of Fees — iccwbo.org; overview of the changes — ICC, 22.05.2026.
- Costs and advances — ICC, Costs and Payment; ICC costs calculator.
- ICC Dispute Resolution 2025 Statistics — iccwbo.org.
- Ley 60/2003 de Arbitraje — BOE; Civil Code, Articles 1106–1108 — BOE; General Accounting Plan, valuation rule 15 — BOE.
- New York Convention 1958, status — UNCITRAL.
- European Parliament resolution of 13.09.2022 on responsible private funding of litigation — EUR-Lex.
- Euro exchange rate — ECB, 06.11.2026.
