The Government presents a draft bill to raise the thresholds for mandatory audits in Spain
The reform, published in June 2025, updates the criteria for company size. With the new thresholds, more than 4,000 SMEs would no longer be required to audit their accounts.
The Ministry of Economy published in June 2025 a draft bill proposing to increase by around 25% the thresholds that determine the obligation to audit annual accounts. The measure seeks to adapt the regulation to economic and inflationary developments, reducing the administrative burden on small and medium-sized enterprises.
If approved, the reform would allow more companies to file abridged accounts and be exempt from audits. According to official estimates, around 4,000 SMEs would no longer be subject to this requirement.
|
Parameter |
Current limit |
Proposed new |
|
Total assets |
€4,000,000 |
€7,500,000 |
|
Turnover |
€8,000,000 |
€15,000,000 |
|
Employees |
50 |
50 |
(Audit obligation: meeting two out of the three criteria for two consecutive years)
Sector reactions
- Auditing institutions such as the Institute of Chartered Accountants of Spain (ICJCE) and the General Council of Economists have warned that the measure could reduce financial transparency and weaken internal controls.
- The CNMC (National Commission for Markets and Competition), on the other hand, has endorsed the draft bill, although it has recommended better justification of the parameters and the establishment of a periodic review system for the thresholds.
Next steps
The draft bill is currently under public consultation and review. If approved, the new thresholds will come into force for financial years ending after its official publication in the Official State Gazette (BOE).
