The University of Deusto was founded in 1886 by the Society of Jesus. Its birth coincided with the cultural concerns and interests of both the Basque Country to have its own university and the Society of Jesus to establish higher studies in some part of the Spanish state. The city of Bilbao, a port and commercial city that was experiencing considerable industrial growth at the time, was chosen. Bilbao is the centre of a metropolitan area with more than one million inhabitants, a city traditionally open to Europe.
It is also an important port, commercial and financial centre in the Basque Country and Northern Spain. Since November 1997, it has been significantly transformed under a symbol, an emblematic building, the Guggenheim Museum Bilbao. The headquarters of the University of Deusto is located on the other side of the estuary, opposite the Guggenheim Museum. In 1916, the "Universidad Comercial de Deusto" received the first group of students who would be the first graduates in Economic Sciences in Spain, 25 years before this degree was officially recognised.
In 1963, the Instituto de Estudios Universitarios y Técnicos de Gipuzkoa was formed in San Sebastian, from the integration of three existing entities. This institute would later become part of the University of Deusto. The University is therefore located on two campuses, in the two coastal capitals of the Basque Country: Bilbao and San Sebastian.