In 2025, self-employed individuals and businesses in Spain will face a new administrative challenge: the update to the National Classification of Economic Activities (CNAE). This reform, published in the Official State Gazette (BOE) on 15th January, is the first in 16 years and will have significant implications for businesses, both operationally and in terms of regulatory compliance.
Below, we analyse the key changes and obligations that this update brings.
What is the CNAE and why is it being updated?
The CNAE is a system used to classify economic activities in Spain. Its main function is to organise the activities of businesses and self-employed individuals for various purposes, including the collection of statistics, the calculation of Social Security contributions, and the pricing of workplace accidents.
The last update to the CNAE took place in 2009, and since then, new economic activities have emerged while others have become more prominent. The new version, CNAE 2025, aims to modernise the system, align it with international standards, and enable more accurate and comparable data collection, both nationally and globally.
Obligations Introduced by CNAE 2025
The new CNAE introduces several obligations directly affecting self-employed individuals and businesses operating in Spain. It is essential that businesses and self-employed individuals update their CNAE code to comply with the new regulation before 30th June 2025. This process will be mandatory for both those already registered and those registering after the decree’s publication.
In detail, both self-employed individuals and businesses must:
- Update their economic activity code in line with CNAE 2025: While the name of the activity may not change, the CNAE code assigned may have been modified. It is crucial to check whether this change affects your business.
- Maintain the old code (CNAE 2009) during the transition period: This is necessary until the Social Security system is fully adapted to the new framework. Ensure that the old code remains valid until this process is complete.
Consequences of failing to update
Failure to update can have serious consequences for businesses. In the case of a workplace accident, an incorrect CNAE code could cause issues with the pricing of accidents and, in some cases, even legal implications. Furthermore, incorrect updates can affect other administrative processes, such as Social Security contributions.
For this very reason, it is crucial that businesses update their CNAE code on time to avoid issues that could jeopardise their financial stability.
How should businesses act in response to CNAE 2025?
The update to CNAE 2025 represents a significant regulatory change, and businesses must act decisively to ensure compliance with the new regulations. Below, we detail the key actions businesses should follow:
- Review the new CNAE 2025 classification: Businesses should verify if their CNAE code has changed. Even if the activity name does not change, the code may have been adjusted, so it is important to check.
- Update the CNAE code in the relevant records: Once the new code is identified, it must be updated in the relevant records, such as with the Social Security and other administrative bodies.
- Maintain the previous code during the transition period: During the transition period, which will last until Social Security has fully adapted its system to the new structure, businesses must continue using the old CNAE 2009 code. This step is mandatory to avoid compatibility issues in the system.
- Complete the update by 30th June 2025: The deadline for completing the update is 30th June 2025. Businesses must act promptly to avoid the risk of penalties or administrative issues. It is essential not to leave the update until the last minute.
- Consult with expert advisers: Updating to CNAE 2025 may be a complex and technical process for some businesses. Therefore, it is advisable to seek the help of tax advisors or consultants with expertise in business management. Experts in the field can guide you through the necessary procedures and help prevent mistakes that could lead to problems in the future.
- Monitor changes in economic activities: Businesses should keep up to date with any changes or additions to the classification of economic activities that may arise in the coming months. The CNAE update is a dynamic process, and businesses should be ready to adapt quickly to new modifications.
- Train and inform internal staff: Businesses should inform their team, particularly those managing administrative, fiscal, and labour aspects, to ensure the entire process is carried out efficiently.
Therefore, the CNAE 2025 update is not just another administrative task, but an important step in adapting the Spanish economic and business system to the current reality. While this update will bring an additional administrative burden for many businesses, it also offers the opportunity to modernise the system and ensure more accurate data collection.
At LEIALTA, we understand that these changes may create uncertainty. Our team is ready to help you manage this process effectively and ensure that your business complies with all requirements.
