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The European Commission has presented an ambitious proposal for a Public Procurement Regulation that would replace the current EU directives with a single legal framework directly applicable across all Member States. The initiative aims to simplify and harmonise public procurement rules, reduce administrative burdens, strengthen digitalisation, promote more sustainable and innovative procurement practices, and enhance the security and resilience of European supply chains. In addition, it introduces a European preference policy, allowing contracting authorities, in certain procedures, to favour operators, subcontractors and products originating within the European Union.

Among the most significant changes are the creation of a single concept of “public buyers”, the limitation of full subcontracting, the replacement of the European Single Procurement Document (ESPD) with a common electronic verification system, and the reduction of award procedures to just four categories. The proposal also strengthens the role of quality criteria over price, introduces greater flexibility in contract performance through new payment and contract modification mechanisms, updates the concessions regime, and enhances transparency through an interoperable European public procurement data network. Once adopted, the regulation will be directly applicable throughout the EU, without requiring transposition into national legislation.

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On 5 October 2026, Order HAC/1028/2026 of 2 October, regulating the public electronic invoicing solution (hereinafter, the Order), was published in the Official State Gazette (BOE), in accordance with the provisions of Royal Decree 238/2026 of 25 March, implementing the mandatory electronic invoicing system between businesses and professionals (hereinafter, the Regulation).

Its publication is not merely a technical development. The Regulation made the entry into force of the electronic invoicing obligation conditional upon the approval of the Order. With its entry into force, the countdown officially begins, establishing the deadlines that determine when electronic invoicing will become mandatory between businesses and professionals in Spain.

The Timeline Now in Effect

The Order enters into force on the day following its publication, meaning that the calculation of the relevant deadlines began on 6 October 2026. From that date, the regulatory framework governing electronic invoicing establishes two different implementation deadlines depending on the annual turnover of each business or professional.

• Businesses and professionals with an annual turnover exceeding €8 million: the obligation will become enforceable one year later, from 6 October 2027.

• All other businesses and professionals: the obligation will become enforceable two years later, from 6 October 2028.

What Does This Mean for Businesses?

Until now, the mandatory electronic invoicing timetable was subject to a pending regulatory development. With the publication of the Order, that condition has now been fulfilled, and the implementation dates are confirmed: 6 October 2027 for businesses and professionals with annual turnover exceeding €8 million, and 6 October 2028 for all other businesses and professionals.

Accordingly, businesses should now incorporate these dates into their technological and organisational planning processes. This applies whether they choose to use the public electronic invoicing solution managed by the Spanish Tax Agency (AEAT) or a private electronic invoicing exchange platform.

However, the above timetable reflects the regulatory position as of today and should be considered without prejudice to any future amendments that may be introduced. As seen with the Verifactu system, further changes could still occur in the coming months as a result of ongoing legislative and regulatory developments in this area.

Case Law Developments

Supreme Court Judgment of 23 June 2026 (Appeal No. 2521/2025)

The Supreme Court analysed a case in which an employee working at a dog-grooming salon challenged the disciplinary dismissal letter served on 17 July 2019. Simultaneously with the dismissal, the company acknowledged its unfairness and paid €1,708.20 as compensation. The employee sought a declaration that the dismissal was null and void due to a breach of her right to effective judicial protection under the guarantee of indemnity principle.

The Supreme Court confirmed the ruling of the High Court of Justice of Andalusia, Seville Division, declaring the dismissal null and void and ordering the employer to pay €6,250 in compensation for moral damages. The Court considered that the employee's disagreement with the employer's proposal to work on Saturdays, together with the close temporal link between that disagreement and the dismissal, constituted sufficient evidence of retaliation and therefore shifted the burden of proof to the employer.

Supreme Court Judgment of 1 July 2026 (Appeal No. 5468/2024)

The Supreme Court examined whether the standby duty of an ambulance driver operating under a vehicle-location system should be considered effective working time and therefore remunerated as overtime.

The Court held that, although the employee could remain at home, the obligation to stay near the ambulance and be ready to respond immediately to emergency calls significantly restricted his personal freedom. Consequently, the standby period qualified as effective working time and the company was ordered to pay the corresponding overtime compensation.

Supreme Court Judgment of 1 July 2026 (Appeal No. 131/2025)

In this case, the Supreme Court assessed the decision of the RACC Group to reduce the percentage of remote work enjoyed by employees with recognised disabilities from 100% to 75%.

The Court concluded that modifications affecting remote working arrangements are governed by Law 10/2021 on Remote Work, which requires individual written agreement with each affected employee. Accordingly, the modification was declared null only with regard to employees who had not individually consented to the change.

Supreme Court Judgment of 7 July 2026 (Appeal No. 197/2025)

The Supreme Court ruled on a challenge concerning changes introduced by Roche Diagnostics, S.L. to its commercial incentive programme.

The Court confirmed that the objectives affected by the amendments were individual rather than collective in nature. Therefore, the company was only required to carry out an information and consultation process with employee representatives and was not obliged to initiate a collective negotiation procedure. The Court further held that the amended incentive scheme did not constitute a substantial collective modification of working conditions.

Supreme Court Judgment of 9 September 2026 (Appeal No. 249/2025)

The Supreme Court analysed the consequences of an employer's failure to initiate the negotiation process required by Article 34.8 of the Workers' Statute following an employee's request for an adjustment of working hours to facilitate work-life balance.

The Court reiterated that this negotiation process is mandatory and not a mere formality. Where an employer fails to comply with this obligation, the employee's request should generally be granted unless it is clearly unreasonable or disproportionate. In this particular case, the Court upheld the employee's claim and confirmed the award of €7,501 in damages for the violation of his right to reconcile family and working life.

Legislative Developments

Royal Decree 723/2026 of 9 September, implementing Directive (EU) 2019/1152 on Transparent and Predictable Working Conditions

The purpose of this Royal Decree is to further develop Article 8.5 of the Workers' Statute regarding information on the essential elements of employment contracts and the principal conditions governing employment relationships, with a view to ensuring transparency and predictability in working conditions.

These obligations apply to employment relationships lasting more than four weeks.

The Royal Decree entered into force on 5 October 2026.

The main developments are as follows:

1. Information obligations and minimum content

Employers must provide employees in writing with information concerning the essential elements of the employment relationship and its principal conditions. This information must include, among other matters:

• The identity of the contracting parties.

• The start date of employment and, where applicable, the duration of the contract.

• The workplace and working arrangements.

• The duties to be performed.

• The applicable professional category or grade.

• The amount and components of remuneration, including the method for calculating variable pay.

• Working time arrangements, overtime, holidays and shift patterns.

• The duration of any probationary period.

• Training rights.

• The use of algorithmic or automated decision-making systems, where applicable, including their criteria and operating rules.

• The applicable equality plan, anti-harassment protocols and LGTBI equality measures, where available.

• The procedure for terminating employment.

• The applicable collective bargaining agreement.

• The social security management system and pension arrangements.

2. Information by reference to legislation or collective agreements

Certain information may be provided through references to applicable legal provisions or collective agreements, provided that such references are sufficiently clear and precise.

3. Work performed abroad

Employees assigned to work abroad must receive additional information regarding destination countries, duration of the assignment, payment currency, allowances, travel expenses and, where applicable, information required under EU posting-of-workers rules.

4. Information regarding changes

Any modification to the information previously provided must be communicated to the employee in writing. This requirement does not replace the statutory procedures governing modifications of working conditions.

5. Methods and deadlines for providing information

Information may be supplied in paper or electronic format, provided that it remains accessible, printable and storable, and that the employer retains proof of transmission or receipt. The information must generally be provided before the employment relationship begins.

6. Standard information template

The Ministry of Labour, through the Public Employment Service (SEPE), will publish a standard information model. Until such publication, employers must provide the required information using an appropriate written format.

7. Existing employment relationships

These obligations also apply to ongoing employment relationships. At the employee's request, employers must provide the relevant information within 30 working days, provided it has not already been supplied.

Other Developments

Royal Decree 416/2026 of 27 May, regulating flexible retirement and other aspects of combining retirement pensions with work

This regulation entered into force on 28 August 2026 and introduces a new framework for flexible retirement.

Its main features include:

• Flexible retirement may now be combined not only with part-time employment but also with self-employment activities, subject to certain conditions.

• When combined with self-employment, pensioners may receive 25% of their retirement pension.

• For part-time employment, working time must be between 33% and 80% of that of a comparable full-time employee.

• Additional incentives are granted where the compatibility between retirement and employment begins at least six months after retirement.

• Common rules are introduced for active, partial and flexible retirement schemes.

• The regime governing financial incentives for delayed retirement is also amended.

Royal Decree 731/2026 establishes the regulatory framework for Strategic Investment Projects, a new mechanism designed to promote business initiatives and public-private partnerships that contribute to the strengthening of Spain’s technological, scientific, and productive capabilities. Projects demonstrating a significant public, social, environmental, or economic interest may qualify for this designation, while certain corporate transactions, such as share acquisitions, capital increases, and capital reductions, are expressly excluded.

The regulation sets out an evaluation procedure based on criteria including job creation, innovation, green transition, digitalisation, and the territorial impact of investments. Obtaining this status will enable projects to benefit from measures aimed at streamlining administrative procedures, improving coordination between public authorities, and facilitating access to strategic infrastructure, thereby supporting the implementation of projects capable of generating economic growth and enhancing competitiveness.

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Spanish legislation limits cash payments to €1,000 where a businessperson or professional is involved in the transaction and the payer has their tax residence in Spain. This limit is increased to €10,000 when the payer is a non-resident individual acting as an end consumer and can properly prove their tax residence abroad. In addition, both the Spanish Tax Agency and the courts have confirmed that it is not permissible to split a single transaction into several smaller payments in order to circumvent these limits.

This alert examines the main interpretative criteria adopted by the tax authorities and case law, as well as the practical implications for economic operators. In particular, it highlights the importance of retaining supporting documentation for transactions, especially where the higher limit for non-residents applies, since non-compliance may result in penalties of up to 25% of the amount paid in cash. It also notes that the European Union will introduce a general €10,000 limit on cash payments from July 2027, without prejudice to Spain maintaining stricter restrictions.

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The approval of the European Union's 21st sanctions package against Russia strengthens restrictions on more than 3,000 individuals and entities, affecting strategic sectors such as finance, energy, technology, transport and defence. These measures not only limit the activity of the sanctioned parties, but can also have a direct impact on third-party companies and contracts, including Spanish companies with no direct connection to Russia.

Against this backdrop, it is essential to review and adapt current and under-negotiation contracts to ensure an appropriate allocation of risk. Aspects such as force majeure, indemnity, contract termination, regulatory compliance and change-of-control clauses are of particular relevance in protecting the parties against possible subsequent sanctions and ensuring an effective response to any breaches or operational blockages.

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