Last updated: 28 July 2026.
Quick answer. Under the Spanish Capital Companies Act (Royal Legislative Decree 1/2010, of 2 July), a company must have its annual accounts audited when, for two consecutive financial years, it meets at least two of these thresholds: total assets above EUR 2,850,000, net turnover above EUR 5,700,000, or an average workforce of more than 50 employees. Certain entities are audited regardless of size: listed companies and public-interest entities such as credit institutions and insurers. For corporate groups the thresholds are applied to the aggregate figures of all group companies, and newly incorporated companies are exempt in their first financial year.
The importance of auditing and compliance in Spain
In the business world, transparency and accuracy of financial information are essential to ensure the confidence of investors, customers and other stakeholders.
In Spain, the Capital Companies Act (Royal Legislative Decree 1/2010 of July 2, 2010) establishes the auditing obligations for companies. Below, we will analyze which companies are obliged to audit their accounts in accordance with this regulation and why it is crucial to have a specialized legal service to comply with these obligations effectively.
Which companies must audit their accounts?
Under the Spanish Companies Act, not all companies are required to have their accounts audited. This obligation falls mainly on companies that meet certain specific requirements, designed to ensure that larger and more relevant companies in the market are subjected to more rigorous scrutiny.
The companies that must be audited are those that, during two consecutive fiscal years, meet at least two of the following conditions:
- That the total asset items exceed 2,850,000 euros.
- The net turnover must be more than 5,700,000 euros.
- The average number of workers is greater than 50.
In addition to the general criteria, there are specific situations that require companies to be audited, regardless of their size:
- Listed companies: All companies whose securities are admitted to trading on a regulated market in any Member State of the European Union.
- Public interest entities: These include, among others, credit institutions, insurance companies and companies whose net turnover and average workforce exceed certain limits.
It is important to note that there are some exceptions and particularities in the application of these criteria:
- Groups of companies: When a company is part of a group, the aforementioned limits shall apply to the sum of the amounts of all the companies in the group.
- Newly created companies: They are not obliged to be audited in their first fiscal year, even if they meet the requirements.
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The audit of accounts is not only a legal requirement, but also offers multiple benefits for companies.
An external audit provides independent validation of the company’s financial information, which increases the confidence of investors, customers and any interested third party.
Auditors can identify areas for improvement in internal processes and risk control, contributing to more efficient and effective management.
Complying with audit obligations avoids penalties and legal repercussions, thus protecting reputation and business continuity.
Failure to comply with the obligation to audit accounts can have serious consequences for companies. These include significant fines, the impossibility of accessing sources of financing and the deterioration of image and confidence in the eyes of investors and clients.
At ILP Abogados we can advise you on the choice of the auditor, manage its appointment and its registration in the Commercial Registry. Our extensive experience and specialization in corporate law allow us to offer a comprehensive and personalized service, tailored to the specific needs of each company.
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Financial Peace of Mind: Auditing Accounts and Financial Statements
For advice applied to your case, see our Board Secretaryships practice area.
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Frequently asked questions
Under the Capital Companies Act (Royal Legislative Decree 1/2010), a company must be audited when, during two consecutive financial years, it meets at least two of the following: total assets exceeding EUR 2,850,000, net turnover exceeding EUR 5,700,000, or an average workforce of more than 50 employees.
Yes. Companies whose securities are admitted to trading on a regulated market in any EU Member State must always be audited. The same applies to public-interest entities, which include, among others, credit institutions, insurance companies and companies exceeding certain turnover and workforce limits.
When a company forms part of a group, the size thresholds are applied to the sum of the figures of all the companies in the group, not to each company in isolation. A company that is individually below the limits may therefore still fall within the audit obligation through its group.
No. Newly created companies are not obliged to have their accounts audited in their first financial year, even if they already meet the size thresholds, because the obligation requires the conditions to be met during two consecutive financial years.
Non-compliance can lead to significant fines and legal repercussions. It can also hinder access to sources of financing and damage the company’s image and the confidence of investors and clients, affecting business continuity.
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