2024 promises to be another year full of uncertainties for companies from a legal standpoint. In addition to the economic and geopolitical changes in Spain, there will be a reactivation of legislative activity, which was paralysed for part of 2023 due to the general elections.
These are the main challenges facing businesses in 2024.
More M&A transactions
Gradual growth is expected in the mergers and acquisitions sector, because both domestic companies and international private equity funds have the appetite and capacity to invest. Inflation is taking a breather and the Spanish transactional market reflects solidity and dynamism and the capacity to attract foreign investment and generate growth opportunities.
We will see major corporate restructuring operations, especially in the energy and digital infrastructure technology sectors, which will be the drivers of the economy. New legislative initiatives at European level for the reform of the electricity market, the renewable energy, gas and hydrogen regimes will give rise to new investment opportunities.
Real estate transactions and IPOs to grow
Commercial will be a particularly active area in 2024. Real estate transactions and the upturn in the IPO market will stand out in this area. In no other European country is there currently a waiting list of companies thinking of going public like the one that is forming in Spain. Some of the companies facing this challenge in 2024 are Puig, Cirsa, Volotea, OK Mobility…
New tax obligations for large corporate groups
In 2024, large corporate groups will face numerous tax challenges, adapting to new tax obligations such as international minimum taxation or country-by-country reporting.
Major changes in labour law
At the company level, there is concern about the possible reduction of the normal working week to 37.5 hours per week without any reduction in wages.
Other high-impact reforms will be those affecting trade union representation in management bodies, the increase in the maximum ceiling for social security contribution bases, new work permits and the structure of collective bargaining. Labour law is set to undergo major changes in 2024 and companies will require expert legal advice in this area.
More regulation in almost all areas
In general, the increase in the regulatory burden in Spain and Europe will continue in new and not so new areas such as data protection, ESG, technology, compliance, cyber risks, health, intellectual property, digital business, renewable energies and tourism. European regulation on AI is expected this year. In addition, new developments such as the Digital Services Act or the new sustainability reporting will start to be implemented this year.
In 2024, legal changes for companies will accelerate. Both at EU level and in Spain, where decree laws will proliferate.
Businesses will need legal advice to comply with changing regulations
In short, this is going to be a year of many changes in the regulations affecting companies in all areas of law. Especially the new developments and uncertainty in tax and labour law are already creating concern and doubts among entrepreneurs.
In an ever-changing regulatory environment, companies will need increasingly sophisticated legal services. That is why at Confianz we give our clients the ability to anticipate change with flexible, tailor-made solutions that are appropriate to their business and sector.
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