Law 1/2026 on Social Economy: tax incentives and public procurement for cooperatives

Key data

Cooperatives, labor societies and other social economy entities have had, since April 8, 2026, a completely renewed regulatory framework that opens concrete doors: preferential access to public contracts, new subsidies and direct benefits in social security contributions for their worker members. The Law 1/2026, of April 8, comprehensive law to promote social economy, published in the BOE on April 9, 2026, is the reference standard for the entire sector.

It is not a law of intentions: it introduces concrete obligations for public administrations and mechanisms for real access to economic resources and markets. If your entity operates under principles of general interest, this law affects you directly and can represent a significant competitive advantage in public procurement and financing.

What does this regulation establish?

Law 1/2026 creates a comprehensive regulatory framework that acts on several fronts simultaneously. These are the main pillars:

The law not only grants rights to entities: it imposes obligations on administrations. This means that municipalities, autonomous communities and state bodies must adapt their policies and procurement specifications to effectively accommodate social economy entities.

Economic and operational impact

The impact of this law translates into three concrete economic levers for affected entities:

1. Savings in social security contributions. Worker members of cooperatives and labor societies may benefit from reductions in their social security contributions. This directly reduces the labor cost of entities and improves their competitiveness against other corporate forms.

2. Access to new public markets. The obligation to include social clauses and market reserves in public procurement opens tenders that were previously of general access exclusively or with preference to these entities. For a cooperative or labor society competing in sectors such as services, cleaning, catering, social services or maintenance, this can mean a direct increase in public client portfolio.

3. Specific financing. New subsidy lines and specific financing programs allow access to resources that are not available to other companies. This is especially relevant for entities in growth or transformation phases.

On the operational side, entities must accredit their social economy status before administrations to access these benefits, which implies keeping their records and supporting documentation updated.

Who does it affect?

Law 1/2026 directly affects the following entities:

• Cooperatives of any kind (associated work, consumer, services, agricultural, etc.)
• Labor societies (SAL and SLL)
• Mutual societies of social protection
• Foundations operating under principles of general interest
• Associations of social economy

It also affects, indirectly but with concrete obligations:

• Public administrations (State, autonomous communities, municipalities): must adapt their economic and employment policies and their public procurement procedures
• Public procurement bodies: must incorporate social clauses and market reserves in their tenders
• Representative organizations of the social economy sector: obtain official recognition and institutional dialogue mechanisms

Practical example

A cooperative of associated workers dedicated to cleaning and maintenance services regularly competes in public tenders from municipalities and regional bodies. Before Law 1/2026, it participated on equal terms with any other company in the sector.

With the new law in force, the municipality that tenders a contract for cleaning municipal buildings will be obligated to incorporate social clauses in the specifications. This can translate into additional scoring for the cooperative due to its legal form, or even a specific lot reserve accessible only to social economy entities.

Additionally, the worker members of that cooperative may benefit from reductions in their social security contributions, reducing the total labor cost of the entity. And if the cooperative wants to finance the purchase of new machinery, it can access the new subsidy lines specific to social economy, rather than competing only with general financing instruments.

The result: real competitive advantage in public procurement, lower labor costs and access to differentiated financing.

What should companies do now?

1. Verify social economy status. Confirm that your entity is correctly registered in the corresponding registry (Cooperatives Registry, Mercantile Registry for labor societies, etc.) and that it meets the requirements to be recognized as a social economy entity under this law.
2. Identify new subsidy lines. Contact the regional and state administration to learn about specific financing programs that are activated under this law. Designate an internal person responsible for monitoring calls for proposals.
3. Review public tenders with social clauses. Monitor public procurement platforms (state, regional and local) to identify tenders with market reserves or social clauses that benefit your entity.
4. Analyze the impact on social security contributions. Consult with your labor advisory or management firm whether worker members of your entity can benefit from the reductions in social security contributions provided for in the law and what procedures are necessary.
5. Participate in institutional dialogue mechanisms. If your entity is part of a representative organization of the sector, verify that it is covered by the new official recognition system to be able to influence the regulatory development of the law.