In respect to Google and other search engines they will determine the language based on the content. So other than having unique URLs for the different content normal site structure considerations come into play. I would also be inclined to use a subfolder and Google's webmaster guidelines for multi lingual sites show no preference.
Heres the relevant bit:
Google uses the content of the page to determine its language, but the URL itself provides human users with useful clues about the page’s content. For example, the following .ca URLs use fr
as a subdomain or subdirectory to clearly indicate French content: http://example.ca/fr/vélo-de-montagne.html http://fr.example.ca/vélo-de-montagne.html
Signaling the language in the URL may also help you to discover issues with multilingual content on your site.
Hope this helps.