When international law firms discuss growth markets in Europe, the conversation has traditionally centred on London, Paris and Frankfurt. Yet some of the most interesting developments are now taking place further south, as legal markets evolve rapidly across Spain, Portugal and Italy. What makes this particularly interesting is that they are not growing for the same reasons.
While all three jurisdictions are attracting increased attention from international firms and investors, each is being shaped by a different set of economic and regulatory forces. Understanding those differences may be just as important as recognising the broader growth story itself.
In Italy, much of the focus remains on Milan. As we explored previously, the city has become an increasingly attractive destination for international law firms, private equity sponsors and investment funds. A combination of inbound investment, growing private capital activity and a strengthening financial services ecosystem has helped position Milan as one of Europe’s most dynamic legal markets. As The Lawyer recently noted, “in a market as tightly knit as Milan, rumours of international law firm launches circulate often and with apparent detail.”
The result has been significant competition for senior legal talent, particularly lawyers with international experience and established client relationships. As firms continue to expand, partner and team moves remain a defining feature of the market.
Spain presents a different picture: Madrid continues to benefit from its position as a major European business centre, but much of the legal activity is being driven by sectors such as infrastructure, energy, renewables and international investment. Spanish firms have become increasingly sophisticated global operators, while international firms continue to invest heavily in their local capabilities, with new player Gibson Dunn entering the Iberian legal market in 2026.
The city’s attractiveness is not solely based on transactional activity; it also reflects Spain’s role as a bridge between Europe and Latin America, creating opportunities that extend beyond the domestic market.
Portugal, meanwhile, may be experiencing the most interesting structural changes of all. Recent developments around multidisciplinary legal practices have encouraged increased investment from the Big Four and other professional services businesses; KPMG, as one example, in 2026 launched a legal arm in Portugal with a team of seven partners. The move follows the introduction of regulations permitting multidisciplinary partnerships in 2024, which was followed by last year’s merger between Deloitte Legal and Portuguese firm TELLES. While the long-term impact remains to be seen, these changes have the potential to reshape how legal services are delivered and how legal careers develop within the Portuguese market.
Taken together, these developments illustrate an important point. There is no single Southern European legal story: Milan’s growth is being driven by private capital and financial services. Madrid’s strength is closely tied to international investment, infrastructure and corporate activity. Lisbon’s evolution is increasingly linked to changes in professional services models and regulatory frameworks.
For law firms, this means expansion strategies that succeed in one market may not necessarily translate directly to another. Likewise, lawyers considering international moves need to understand not only which markets are growing, but why they are growing.
From a recruitment perspective, this is already influencing hiring activity, as firms look for different skillsets in different jurisdictions, while lawyers are becoming increasingly selective about the markets and platforms they choose to join.
What unites these markets is not uniformity but momentum – Southern Europe is no longer simply following wider European trends, but is increasingly generating them. As investment continues to flow into the region and legal markets become more sophisticated, Spain, Portugal and Italy are likely to play a growing role in shaping the future European legal landscape.
