Statutory Audit in Spain: Which companies must comply with regulations and thresholds
Every year, many growing companies in Spain ask themselves whether they need to have their annual accounts audited. Ecovis experts explain when an audit is mandatory to avoid penalties, registration problems, or reputational risks.
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When an auditor needs to be involved
According to Article 257 of the Spanish Companies Act, companies must appoint a statutory auditor if they meet at least two of the following thresholds for two consecutive years at year-end:
- Total assets of EUR 2.85 million
- Net turnover of EUR 5.7 million
- An average of 50 employees
Failure to appoint an auditor on time may result in the Commercial Registry blocking the registration of statutory accounts.
Audits may also be mandatory if a company receives public subsidies or EU funds exceeding EU 600,000, or if a minority shareholder owning at least 5% of the share capital requests one within three months of the end of the financial year. Additionally, entities such as insurance companies, cooperatives and sports federations are subject to audit regardless of size.
If the criteria are met, the auditor must be appointed before the end of the financial year (for example, by 31 December for the 2025 financial year). This must be approved at a shareholders’ meeting, accepted by a registered auditor (ROAC) and submitted to the Commercial Registry. Missing this deadline can result in a compelled appointment and administrative complications.
“We combine local knowledge with global Ecovis expertise and guide you through the entire audit process.”
Laura Antón Escribano, Audit&Assurance Manager, ECOVIS Audit Madrid Grosclaude & Partners, Madrid, Spain
Deadlines, sanctions and chances in an audit
In practice, many companies realise they have exceeded the limits when preparing provisional accounts or tax filings, leaving little time to act. Failure to comply can result in fines ranging from EUR 1,200 to EUR 60,000, or up to EUR 300,000 for companies with turnover exceeding EUR 6 million. Non-compliance may also delay financing, mergers or public tenders.
However, a statutory audit offers many benefits beyond legal compliance. It enhances transparency, strengthens internal controls and builds trust with investors, lenders and public authorities.
