LAW 1/2026, ON THE PROMOTION OF THE SOCIAL ECONOMY

On 10 April 2026, Law 1/2026 on the promotion of the social economy entered into force in Spain.

The social economy is referred to those businesses activities carried out in the private sector by entities that pursue either the collective interest of their members or the general economic and/or social interest.

1.- COOPERATIVES

– Strengthens digitalisation (corporate website, electronic communications and remote participation), as well as members’ rights to information and participation, and introduces equality measures (equality committees and equality plans in certain cases).

– Updates the functioning of the General Assembly and the Board of Directors, and provides greater flexibility in certain aspects of the financial regime.

– Expands the grounds for disqualification of false cooperatives and adjusts the tax regime, introducing new categories of specially protected cooperatives.

2.- SOCIAL INSERTION COMPANIES

– Redefines the concept of vulnerability, reviews requirements and classification, and introduces a transition-to-ordinary-employment contract (from 6 months to 3 years). These entities are recognised as services of general economic interest.

– Expands the scope of the sector, incorporates the concept of social enterprise, and strengthens public instruments such as the national register and promotion policies.

3.- OTHER AMENDMENTS

– Introduces changes in public procurement (minimum 15% reservation), minimum income schemes, hiring incentives and occupational risk prevention.