Now it is the main building of the Bilbao campus, opposite to the Guggenheim Museum, in the district of Deusto, which gives its name to the university.

On 23 January 1932, the Spanish government dissolved the Society of Jesus by decree, and the university, owned by the Jesuits, was closed down.

Some lectures still continued at the "Academia Vizcaína de Cultura", and the "Universidad Comercial" (Faculty of Economics) could carry on work as normal until the beginning of the Spanish Civil War.

During the war, the University of Deusto became a military base, but after the fall of Bilbao in 1937 it was turned into a hospital, food supply centre, and concentration camp.

On 5 April 1962, an agreement was signed between the Spanish Government and the Holy See that provided Catholic or Church Universities with a legal basis.

In September of that year it was recognized by the State, including its Faculties of Law and Philosophy and Arts (Modern Philology division).