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I want to add a spanish version of my website for example: domain.com/es
How do I do that in wordpress? I would like to rank for keywords in spanish because currently my website is in english and i have a couple of pages in spanish and they are indexed but are not being picked up. How could I make a functional spanish part of my website that can rank for keywords and not just a “translation”

Since you’re most concerned about SEO, the best way is to use a multilingual plugin like Polylang, TranslatePress, or WPML.
These plugins do a number of things that are best practices for multilingual sites – they create “hreflang” tags that indicate to search engines the different languages of your pages; they also support language toggles for the user, and change the HTML language attribute.
However, in my experience it can be a pain to use these plugins. Historically we’ve always used WPML but it can get very complex very quickly. I don’t have a lot of experience with the other plugins but maybe someone else does. There is a paid plugin called WeGlot that has a free plan that might work for you if you don’t have a lot of content. I have used that and it’s the simplest I’ve used.
Polylang.