What has happened: the bill has lapsed
The text was entitled “Bill amending company size criteria for financial reporting purposes”. Royal Decree 806/2026 of 5 October, dissolving the Congress of Deputies and the Senate and calling elections, was published in Spain’s Official State Gazette (BOE) on 6 October 2026. Since that date, the official Congress record, consulted on 8 October 2026, states that the bill is “Concluded – (Lapsed)”. This was its progress:
- Submission: 08/11/2025, by the Government.
- Admission: 18/11/2025.
- Publication: Official Gazette of the Spanish Parliament (BOCG), Congress of Deputies, Series A, no. 75-1, of 21/11/2025.
- Passage: with full legislative powers delegated to the Committee on Economy, Trade and Digital Transformation. It remained at the amendment stage, with successive extensions of the deadline from December 2025.
- Outcome: there was never a rapporteurs’ report, a committee report, referral to the Senate or publication in the BOE. Lapsed since 06/10/2026.
The practical consequence is simple: the bill was not passed and changes nothing. For the thresholds to change, a new legislative initiative will be needed in the new parliamentary term, and there is currently no foreseeable date. If what you need to know is whether your company is required to be audited, see our guide to mandatory statutory audits in 2026, which sets out the thresholds in force and the special cases.
Thresholds in force compared with what the bill proposed
The bill amended two articles of the Spanish Companies Act (LSC): 257.1, which allows an abridged balance sheet and statement of changes in equity to be prepared, and 263.2, which governs the audit exemption. Both kept the rule of meeting two of the three criteria for two consecutive financial years. The table compares the thresholds still in force with those proposed by the lapsed text, for information purposes.
| Provision | Item | In force | Proposed by the lapsed bill (BOCG A-75-1) |
|---|---|---|---|
| Art. 263.2 LSC | Audit exemption | €2,850,000 total assets · €5,700,000 turnover · 50 employees | €3,565,000 · €7,125,000 · 50 |
| Art. 257.1 LSC | Abridged balance sheet and statement of changes in equity | €4,000,000 · €8,000,000 · 50 | €7,500,000 · €15,000,000 · 50 |
| Art. 258 LSC | Abridged profit and loss account | €11,400,000 · €22,800,000 · 250 | No change |
| Art. 3.9 LAC | Small entity | As per current wording* | €7,500,000 · €15,000,000 · 50 |
| Art. 3.10 LAC | Medium-sized entity | As per current wording* | €25,000,000 · €50,000,000 · 250 |
| Art. 2.1 RD 1515/2007 | Scope of the PGC for SMEs (PGC PYMES) | As per current wording* | €7,500,000 · €15,000,000 · 50 |
* For the definitions of small and medium-sized entity in the Spanish Audit Act (LAC) and the scope of the PGC PYMES, see the current wording in the BOE; here we only compare them with the values proposed by the bill.
Had the text been passed as it stood, many companies that currently present a full balance sheet could have switched to the abridged format and the PGC PYMES, and others that are currently audited because of their size would have become exempt. The explanatory memorandum made clear that raising the audit thresholds, by around 25%, did not transpose the Delegated Directive: it was a national simplification decision. None of this applies, because the bill was not passed.
What remains in force
- The thresholds for audits and abridged accounts. Those in arts. 257.1, 258 and 263.2 LSC shown in the “In force” column remain.
- Cases that do not depend on size. Public grants or aid of more than €600,000 and public sector contracts of more than €600,000 that exceed 50% of turnover trigger a mandatory audit (Additional Provisions 2 and 3 of the Regulation implementing the Spanish Audit Act, RLAC). We explain this in the article on mandatory audits due to grants or public contracts.
- Audits at the request of minority shareholders. Shareholders holding at least 5% of the share capital may ask the registrar to appoint an auditor (art. 265.2 LSC).
- The large company and micro-enterprise thresholds. Final Provision 5 of the bill referred them to the Bill on corporate sustainability reporting (121/000038), which has also lapsed with the dissolution of Parliament. We cover this in our article on the Omnibus I Directive and the companies required to report on sustainability.
For many SMEs in the province of Alicante, it is worth remembering that, even if the thresholds had been raised, a company receiving regional aid or EU funds above €600,000 would still be required to be audited.
What it means for the 2026 year-end
The 2026 financial year is governed by the current thresholds in art. 263.2 LSC. A company will be exempt on grounds of size only if, at the 2025 and 2026 year-ends, it meets at least two of these criteria: total assets of up to €2,850,000, net turnover of up to €5,700,000 and an average of up to 50 employees. If it is required to be audited, the general meeting must appoint the auditor before the end of the financial year (art. 264.1 LSC), that is, before 31 December 2026 if the financial year coincides with the calendar year.
The doubts raised by Final Provision 7 of the bill about the first financial year in which the new thresholds would apply no longer have any practical effect, because that provision never came into force.
What to expect
The reform of the size criteria can only be taken up again through a new legislative initiative in the new parliamentary term. It is not possible to anticipate whether one will be submitted, with what content or when, and a new initiative would not necessarily reproduce the figures of the lapsed bill. We will update this article when there is official news.
What does remain pending is Spain’s obligation towards the European Union, which we analyse below.
Spain’s delay and the Court of Justice of the EU
Delegated Directive (EU) 2023/2775 adjusted the size criteria of Accounting Directive 2013/34/EU for inflation. Member States had to transpose it by 24 December 2024. On 30 January 2026, the European Commission announced that it was referring Spain and Malta to the Court of Justice of the European Union for failing to notify their transposition. Bill 121/000075 was presented as a partial transposition of that directive; with its lapse, transposition remains pending.
What you can do now
- Calculate your 2025 figures and your 2026 forecast against the current thresholds in art. 263.2 LSC.
- Check whether you receive grants or public contracts that require you to be audited regardless of size.
- If you are required to be audited in 2026, make sure the general meeting appoints the auditor before the year-end.
- If you had planned to switch to abridged formats or stop being audited on the strength of the reform, review that planning with your adviser: under current legislation it may not be possible.
- Consider whether a voluntary audit would be in your interest even if you are exempt, for example because banks or shareholders require it.
Frequently asked questions
Have the new audit thresholds been approved?
No. Bill 121/000075 lapsed on 6 October 2026 with the dissolution of Parliament without having been passed. The thresholds of €2,850,000 in total assets, €5,700,000 in turnover and 50 employees remain in force.
Do I have to be audited for the 2026 financial year?
Under the legislation in force as at 8 October 2026, yes, unless at the 2025 and 2026 year-ends you meet at least two of these criteria: total assets of up to €2,850,000, turnover of up to €5,700,000 and up to 50 employees. You must also be audited if a special case applies, such as grants or public contracts of more than €600,000.
When will the thresholds be raised?
There is no date. Any change will require a new legislative initiative in the new parliamentary term, and neither its content nor its timetable can be anticipated.
Can I stop being audited if I already have an auditor appointed for three years?
It depends on the case. The LSC prohibits the general meeting from removing the auditor before the end of the initial period except for just cause (art. 264.3). The fact that the company is no longer required to be audited is not, in itself, a case provided for in that article. Before taking a decision, it is advisable to review the audit contract and the situation with the auditor and with your legal adviser.
What is Delegated Directive 2023/2775?
A European Commission act that raises the size thresholds (micro, small, medium-sized and large undertakings) in the Accounting Directive to offset inflation since 2013. Each Member State must incorporate it into its legislation; Spain has not yet done so.
Official sources
- Royal Decree 806/2026 of 5 October, dissolving the Congress of Deputies and the Senate and calling elections (BOE-A-2026-20742, BOE of 06/10/2026)
- Congress of Deputies: record of Bill 121/000075
- BOCG, Congress, Series A, no. 75-1, of 21/11/2025 (text of the bill)
- Spanish Companies Act, consolidated text (BOE): arts. 257, 258, 263, 264 and 265
- Royal Decree 2/2021, Regulation implementing the LAC (BOE): Additional Provisions 2 and 3
- Delegated Directive (EU) 2023/2775 (BOE record)
- European Commission: decision of 30/01/2026 to refer Spain to the CJEU (IP/26/214)
We can help you work out your position against the thresholds in force. If your company is required to be audited or wishes to continue with a voluntary audit, see our audit of annual accounts service. If you need to prepare your accounts, see our preparation of annual accounts service. We serve companies throughout the province from our head office, as we explain in auditors in Alicante. Write to us and we will review your case.
Article prepared by Controlaudit’s technical team. Updated on 8 October 2026. This content is for information purposes only and is not a substitute for professional advice on your specific case.