{"id":14776,"date":"2025-11-28T14:56:31","date_gmt":"2025-11-28T14:56:31","guid":{"rendered":"https:\/\/vila.es\/?p=14776"},"modified":"2025-12-24T08:37:53","modified_gmt":"2025-12-24T08:37:53","slug":"the-new-definition-of-company-size-an-opportunity-for-thousands-of-smes","status":"publish","type":"post","link":"https:\/\/vila.es\/en\/corporate\/the-new-definition-of-company-size-an-opportunity-for-thousands-of-smes\/","title":{"rendered":"THE NEW DEFINITION OF COMPANY SIZE: AN OPPORTUNITY FOR THOUSANDS OF SMEs"},"content":{"rendered":"<p style=\"text-align: right;\"><strong><span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/vila.es\/societario\/la-nueva-definicion-del-tamano-empresarial-una-oportunidad-para-miles-de-pymes\/\">ES<\/a><\/span>|EN|<\/strong><strong><a href=\"https:\/\/vila.es\/ja\/eu%e8%a6%8f%e5%89%87\/%e4%bc%81%e6%a5%ad%e8%a6%8f%e6%a8%a1%e3%81%ae%e5%ae%9a%e7%be%a9%e3%82%92%e8%a6%8b%e7%9b%b4%e3%81%99%e6%96%b0%e6%b3%95%e6%a1%88\/\"><span style=\"color: #3366ff;\">\u65e5\u672c\u8a9e<\/span><\/a>|<a href=\"https:\/\/vila.es\/de\/gemeinschaftsrecht\/die-neue-definition-der-unternehmensgroesse-eine-chance-fuer-tausende-kmus\/\"><span style=\"color: #3366ff;\">DE<\/span><\/a><\/strong><\/p>\n<p>The Spanish Government has taken a key step to ease the administrative and bureaucratic burden borne by thousands of small and medium-sized enterprises in Spain. The Ministry of Economy has approved a draft bill that updates the criteria used to define company size for the purposes of financial reporting, auditing and accounting obligations. If approved by Parliament, this reform will have a direct impact on the daily operations of thousands of businesses.<\/p>\n<p>The measure aligns Spanish legislation with Delegated Directive (EU) 2023\/2775, which updates the European thresholds in line with cumulative inflation since 2013. The draft bill has a clear aim: to reduce burdens and simplify the corresponding procedures, which have multiplied in recent years and, in many cases, hindered business development and growth.<\/p>\n<p><strong><u>More companies will be able to use the simplified regime<\/u><\/strong><\/p>\n<p>The most significant change is the adjustment of the thresholds that determine whether a company is considered small, medium or large for accounting purposes. This will allow thousands of companies to be reclassified as small enterprises and therefore benefit from the simplified financial reporting regime.<\/p>\n<p>Until now, a company was considered small if it met the following criteria:<\/p>\n<ul>\n<li><strong>Turnover:<\/strong> up to \u20ac8 million<\/li>\n<li><strong>Assets<\/strong>: up to \u20ac4 million<\/li>\n<li><strong>Employees<\/strong>: up to 50 workers<\/li>\n<\/ul>\n<p>However, the draft bill nearly doubles these figures:<\/p>\n<ul>\n<li><strong>Turnover<\/strong>: up to \u20ac15 million (previously \u20ac8 million)<\/li>\n<li><strong>Assets<\/strong>: up to \u20ac7.5 million (previously \u20ac4 million)<\/li>\n<li><strong>Employees<\/strong>: the limit remains at 50 workers<\/li>\n<\/ul>\n<p>The consequence is clear: many companies currently classified as medium-sized will now be treated as small for accounting purposes, facing fewer reporting requirements.<\/p>\n<p>According to projections from the Ministry of Economy,\u00a098.5% of Spanish companies\u00a0could opt for simplified accounting models.<\/p>\n<p><strong><u>Updated thresholds for medium-sized companies<\/u><\/strong><\/p>\n<p>The preliminary draft bill also revises the criteria for defining a medium-sized enterprise. The new limits will be:<\/p>\n<ul>\n<li><strong>Assets<\/strong>: up to \u20ac25 million (previously \u20ac20 million)<\/li>\n<li><strong>Turnover<\/strong>: up to \u20ac50 million (previously \u20ac40 million)<\/li>\n<li><strong>Employees<\/strong>: still 250<\/li>\n<\/ul>\n<p>With this reform, the transition between company categories becomes more gradual. The intention is to ensure that business growth does not lead to an immediate and excessive increase in administrative obligations, a concern that business associations have identified as a barrier to development and expansion.<\/p>\n<p><strong><u>Fewer companies required to audit their accounts<\/u><\/strong><\/p>\n<p>One of the most notable updates is the revision of the thresholds that determine whether companies must undergo a statutory audit.<\/p>\n<p>These limits will increase by 25%, meaning that the obligation will only apply to companies exceeding at least two of the following criteria:<\/p>\n<ul>\n<li><strong>Assets<\/strong>: more than \u20ac3.565 million (previously \u20ac2.85 million)<\/li>\n<li><strong>Turnover<\/strong>: more than \u20ac7.125 million (previously \u20ac5.7 million)<\/li>\n<li><strong>Employees<\/strong>: more than 50 (unchanged)<\/li>\n<\/ul>\n<p>The Government estimates that around\u00a04,300 companies\u00a0will no longer be required to undergo an audit. This measure is expected to result in significant administrative and financial savings, particularly for medium-sized companies operating close to the previous thresholds.<\/p>\n<p><strong><u>A reform aimed at restoring business momentum<\/u><\/strong><\/p>\n<p>In recent years, small and micro-enterprises have faced a challenging economic environment marked by rising costs, increasing regulatory burdens and difficulties in scaling up.<br \/>\nAccording to Cepyme (Confederaci\u00f3n Espa\u00f1ola de la Peque\u00f1a y Mediana Empresa), since 2019 nearly\u00a022,700 micro-enterprises\u00a0have disappeared in Spain.<\/p>\n<p><strong><u>What are the practical effects of this reform?<\/u><\/strong><\/p>\n<p>If the draft bill is approved by Parliament, companies may experience changes such as:<\/p>\n<ul>\n<li>Simpler accounting models<\/li>\n<li>Fewer audit requirements<\/li>\n<li>Reduced administrative burdens in financial reporting<\/li>\n<li>A more gradual transition between company size categories<\/li>\n<\/ul>\n<p>However, it is important to note that these changes apply specifically to accounting and financial matters. Other regulatory areas, such as data protection, equality plans, cybersecurity or occupational risk prevention will not be affected by this reform.<\/p>\n<p><strong><u>Conclusions<\/u><\/strong><\/p>\n<p>The updated definition of company size represents an opportunity for thousands of businesses that have faced excessive administrative obligations to their real economic capacity.<\/p>\n<p>For many companies, this change may ease administrative pressure and provide greater room to reinforce their growth plans.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>Vil\u00e1 Abogados<\/p>\n<p>Kengo Matsuoka<\/p>\n<p>&nbsp;<\/p>\n<p>For more information, please contact with:<\/p>\n<p><a href=\"mailto:va@vila.es\"><span style=\"color: #0000ff;\">va@vila.es<\/span><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>November 28<sup>th<\/sup>, 2025<\/p>\n","protected":false},"excerpt":{"rendered":"<p>ES|EN|\u65e5\u672c\u8a9e|DE The Spanish Government has taken a key step to ease the administrative and bureaucratic burden borne by thousands of small and medium-sized enterprises in Spain. The Ministry of Economy has approved a draft bill that updates the criteria used to define company size for the purposes of financial reporting, auditing and accounting obligations. If  [&#8230;]<\/p>\n","protected":false},"author":4,"featured_media":5986,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[73,77],"tags":[],"class_list":["post-14776","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate","category-european-union"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>THE NEW DEFINITION OF COMPANY SIZE: AN OPPORTUNITY FOR THOUSANDS OF SMEs - Vil\u00e1 Abogados<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/vila.es\/en\/corporate\/the-new-definition-of-company-size-an-opportunity-for-thousands-of-smes\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"THE NEW DEFINITION OF COMPANY SIZE: AN OPPORTUNITY FOR THOUSANDS OF SMEs - Vil\u00e1 Abogados\" \/>\n<meta property=\"og:description\" content=\"ES|EN|\u65e5\u672c\u8a9e|DE The Spanish Government has taken a key step to ease the administrative and bureaucratic burden borne by thousands of small and medium-sized enterprises in Spain. 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