New rules for public contracts, insurance, pensions and taxes

Automatic summary, not yet reviewed

1. The royal decree-lawroyal decree-law A rule with the force of law that the Government passes because it is urgent. It applies from its publication, but the Congreso must validate it within 30 days or it lapses. regulates how public works, supply and service contracts are awarded in sectors such as water, energy, transport and postal services, when contracted by non-administrative public entities or companies with special or exclusive rights. Thresholds apply: €428,000 for supplies and services, €5,350,000 for works and €1,000,000 for certain social services.
2. Covered entities are contracting entities that are not public administrations, public companies, and private entities holding special or exclusive rights. Public administrations remain governed by Law 9/2017.
3. Contracting must respect non-discrimination, transparency and free competition, and must include social and environmental criteria. Contracts or lots can also be reserved for special employment centers and integration companies, with at least 30% of workers with disabilities or at risk of social exclusion.
4. Electronic contracting is mandatory: communications and notifications must be made electronically, and each entity must have a contractor profile online, freely and freely accessible.
5. Subcontracting is regulated without the old 60% limit, and main contractors must pay their subcontractors within legal deadlines. For certain large contracts, the contracting entity must verify those payments.
6. On insurance, the mediation law is replaced: insurance distributors must register in an administrative register and give customers detailed pre-contract information, including the nature of their remuneration, before signing a contract.
7. The law on pension plans and funds is amended to strengthen their governance system: risk management, internal audit and, where applicable, actuarial functions, plus clear and free information for members and beneficiaries.
8. On taxes, VAT is adapted to the new EU rules on call-off stock agreements and chain transactions, and friendly procedures are regulated to resolve tax disputes with other member states.

Who it affects

• Contracting entities in the water, energy, transport and postal sectors that are not public administrations: They must tender and execute their contracts under the new electronic, social and publicity rules.
• Companies, especially SMEs, special employment centers and integration companies: They have more opportunities to take part and can benefit from reserved contracts.
• Insurance distributors: agents, brokers, bancassurance operators and insurance companies: They must register in the administrative register and meet new customer information duties.
• Insurance customers and pension plan members: They receive more information before contracting and greater protection in insurance and pension plans.
• Businesses and professionals trading goods between EU member states: They must keep new record books and meet requirements for intra-EU exemptions.

Words worth knowing

Real decreto-ley (royal decree-law)

A rule with the force of law that the Government can approve urgently, without prior parliamentary approval, in situations of extraordinary and urgent need.

Entidad contratante (contracting entity)

A public body or company that buys works, goods or services and runs tenders.

Perfil de contratante (contractor profile)

A website where a public entity publishes its tenders, specifications and contract awards.

Derechos especiales o exclusivos (special or exclusive rights)

Permissions granted by a public administration to a company so it is the only one, or one of few, allowed to carry out an activity, such as a public service.

Acuerdo de ventas de bienes en consigna (call-off stock agreement)

An agreement under which a business ships goods to a warehouse in another EU country for a customer to buy later.

royal decree-law

A rule with the force of law that the Government passes because it is urgent. It applies from its publication, but the Congreso must validate it within 30 days or it lapses.

decree-law

A rule with the force of law that the Government passes because it is urgent. It applies from its publication, but the Congreso must validate it within 30 days or it lapses.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries