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Spain – Changes to National Classification of Economic Activities (CNAE)
Spain has implemented significant changes to its National Classification of Economic Activities through Royal Decree 10/2025, effective as of 15th of January 2025.
These modifications affect all legal entities operating in Spain, introducing new CNAE (Clasificación Nacional de Actividades Económicas) codes and restructuring existing ones.
Understanding CNAE
CNAE is Spain’s adaptation of the European Union’s Nomenclature of Economic Activities in the European Community (NACE) classification system. These codes serve as essential identifiers assigned to legal entities at incorporation, reflecting their scope of activities and playing a crucial role in business operations, including:
- Statistical reporting
- Employment classifications
- Tax administration
- Social security contributions
Key Changes and Requirements
Under the new regulation, all legal entities must:
- Review their existing CNAE codes for potential changes
- Identify cases where current codes have been split into multiple new classifications
- Select and report the most appropriate new classifications where applicable
Important Deadlines
The Royal Decree establishes two key reporting periods for entities:
- Social Security Updates: between the 1st of March – 30th of June 2025
- Other Authorities: Before the 1st of January of 2027
Required Actions
1. Initial Review Phase:
- Assess current CNAE codes
- Identify any changes affecting your entity
- Determine if manual filing is necessary
2. Filing Requirements:
- Use Sistema RED for Social Security updates
- Note that automatic updates will occur for single-correspondence codes
- Manual filing is required only for split codes
- Entity’s digital certificate is mandatory for all filings
3. Future Compliance:
- Monitor announcements from Companies Registry and Tax Agency
- Prepare for additional reporting requirements as authorities release specific procedures
The Risks of Non-Compliance
While the law doesn’t specify direct penalties, non-compliance may result in:
- Administrative fines for incorrect database information
- Disruptions to payroll processing
- Loss of eligibility for government tenders and subsidies
How Mercator® by Citco Can Help
Our team can assist with:
- Analyzing your current CNAE codes
- Determining if changes are necessary
- Providing guidance on filing requirements
- Ongoing compliance support
For assistance with reviewing your CNAE codes and understanding your obligations under these new requirements, please contact mercator@citco.com
