Crea y Crece electronic invoicing law: what companies need to know

Digital transformation in companies is advancing rapidly, and the year 2025 is proving to be crucial for adapting to the new challenges that arise.

Among the most notable is the electronic invoicing law, which is creating some uncertainty among businesses. Until now, the obligation to use electronic invoices only applied to public entities, but with Law 18/2022, it has been extended to companies and professionals as well.

In this article, we explain what you need to know and how to correctly adapt to electronic invoicing in 2025.

What is the “Crea y Crece” Law?

The new electronic invoicing law, also known as the Crea y Crece Law (“Create and Grow”), was introduced as part of the Recovery, Transformation, and Resilience Plan (Next Generation EU). It came into force in 2022 following the approval of Royal Decree-Law 18/2022, with the goal of promoting entrepreneurship and digitalization, thereby fostering the growth of the business fabric in Spain.

Currently, the law has already been approved, and many companies are progressing in their digitalization efforts, but the final regulatory development of the Crea y Crece Law is still pending.

The main objectives and measures that the electronic invoicing law will implement in Spain are:

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Among all the measures mentioned, the one that will have the greatest impact on business activity is electronic invoicing. 

Many companies wonder when this obligation will come into force and, to facilitate adaptation, the law itself establishes the deadlines for it:

• Companies with an annual turnover of more than 8 million euros: They will have 12 months from the publication of the regulatory development to implement electronic invoicing.
• Companies and self-employed professionals with a turnover equal to or less than 8 million euros: They will have 24 months from that same date to adapt.

There will be no exceptions for issuing physical invoices. From that moment on, everything will be digital. To comply with this obligation, it is essential to use an electronic invoicing program adapted to the regulations. 

Although most tools currently available are paid, the Government is working on a public solution to facilitate access for freelancers and small businesses.

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Objectives of the “Crea y Crece” Law

In the previous table, we have already listed the main objectives covered by the “Crea y Crece” Law, but it is essential to delve deeper into them to understand the purpose of this new measure. 

• Promote business creation: Being able to establish a Limited Liability Company for just 1 euro makes it easier to create new businesses by eliminating that economic entry barrier. It also helps prevent entrepreneurial talent from leaving Spain by offering more flexible and competitive requirements within the country.
• Reduce business delinquency: The obligation of electronic invoicing speeds up payments and makes the process much more transparent, thus reducing delinquency. It also helps minimize delays that usually affect SMEs the most.
• Remove obstacles to economic development: One of the goals of this law is to reduce the barriers when starting a business activity in Spain. To do this, it aims to cut administrative bureaucracy and modify certain laws to make entrepreneurship easier and more unified across the country.
• Improve access to financing: The objective is to reduce companies’ dependence on traditional bank financing, promoting alternatives such as crowdfunding, collective investment, or venture capital. These options, aligned with European regulations, are much more accessible and better adapted to the specific needs of each project.

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Is electronic invoicing mandatory for freelancers? 

With Law 18/2022 of September 28, the obligation to use electronic invoicing in commercial transactions is established, affecting both companies and professionals. This measure is part of the main new regulations regarding freelancer invoicing and seeks to improve control, traceability, and efficiency in invoicing processes. Although the regulatory development is still pending, electronic invoicing is expected to come into effect in the coming months, marking an important step toward the digitalization of the business landscape.

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How does it affect SMEs?

Today, it is still difficult to assess how this measure will affect small and medium-sized enterprises. Most will need to have an electronic invoicing tool to issue and receive invoices, as well as train their teams to use these solutions.

But the change goes beyond the simple obligation of electronic invoicing: both companies and professionals must generate an electronic invoice code for each document issued to ensure its validity and traceability within the system.

In this context, tech SMEs have a major advantage, as many already have their own invoicing solutions. However, for many others, it will require an additional effort involving investment in technology and training.

Solutions that can help SMEs in this transition

Among the solutions that can help SMEs, we find:

• Electronic invoicing software compliant with the new regulations.
• ERP system with invoicing module.
• Cloud-based tools.
• Digital training for teams.
• Specialized technological and digital consultancy.
• Grants and digitalization programs for SMEs.

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Advantages of electronic invoicing

Among the advantages offered by electronic invoicing are:

• Reduction of administrative costs and time.
• Greater control and traceability.
• Improved payment times.
• Boost to digitalization.
• Facilitates access to financing. 

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In summary, the main purpose of this law is to improve the business environment by promoting business creation and growth. Spain is a country moving toward digitalization, and this is another step toward achieving the digital transformation of businesses.

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