The Evolution of Insolvencies in Spain (2020-2024): Data, Causes and Trends
(Analysis updated to May 2024 with official sources)
Introduction: The Impact of the Post-Pandemic Crisis
In 2023, Spain recorded 5,293 insolvency proceedings, the highest figure since 2013 (source: Mercantile Registry). This data reflects a complex reality: while large companies benefit from European funds, SMEs and self-employed face a perfect storm of inflation, interest rates and the end of crisis protections.
This report, based on data from INE, CGPJ, Bank of Spain and Eurostat, reveals:
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Most affected sectors and autonomous communities.
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The key role of the 2022 insolvency reform.
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Why 67% of proceedings end in liquidation (not restructuring).
Chapter 1: Key Data (2020-2024)
1. Official Statistics
| Year | Total Proceedings | Change | Main Cause |
|---|---|---|---|
| 2020 | 3,801 | -15% (COVID shield) | Activity paralysis |
| 2021 | 4,217 | +11% | End of moratoriums |
| 2022 | 4,865 | +15% | Energy crisis |
| 2023 | 5,293 | +9% | Interest rates (Euribor 4%) |
| 2024* | 1,412 (Q1) | +18% annual | SME indebtedness |
(Source: Mercantile Registry, May 2024)
2. Highest-Risk Sectors
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Construction (28% of proceedings).
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Example: Grupo Ortiz, in pre-insolvency with €1.2B debt (2023).
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Retail (23%).
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12,000 stores closed in 2023 (CEOE data).
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Hospitality (19%).
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34% of bars with debts over €50k (Spanish Hospitality Association).
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Chapter 2: The 2022 Insolvency Reform (Law 16/2022)
Key Changes
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Voluntary pre-insolvency: Early crisis action reduces liquidations by 40% (CGPJ data).
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Worker priority: Labor debts become privileged claims.
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Streamlining: Maximum 6-month deadlines for plan approval.
Results
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Only 12% of companies used pre-insolvency in 2023 (Justice Ministry).
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Main criticism: Reform doesn’t address process costs (€15k-€50k for SMEs).
Chapter 3: The Enforcement Problem
1. The Spanish Paradox
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85% of proceedings are necessary (not fraudulent), but:
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67% end in liquidation (vs. 33% in EU).
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Only 8% successfully restructure debt (Bank of Spain Report).
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2. Reasons for Failure
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Lack of bridge financing: Banks reject 72% of applications (ASNEF).
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Court delays: Average 14 months to approve plans (CGPJ).
Chapter 4: Most Affected Autonomous Communities
| Region | Proceedings 2023 | Rate per 10k companies |
|---|---|---|
| Catalonia | 1,412 | 18.3 |
| Madrid | 1,205 | 15.1 |
| Valencia | 893 | 21.7 (highest) |
| Andalusia | 756 | 11.4 |
(Source: INE, April 2024)
Notable Case:
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Valencia: The ceramics sector (Castellón) accounts for 40% of its proceedings due to gas costs.
Chapter 5: 2024 Trends
1. New Risks
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End of tax shield: Gas aid for industries expires June 30, 2024.
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ICO moratoriums: 250,000 SMEs must repay €12B this year (AEB).
2. Opportunities
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NextGen Funds: 170 companies secured €4.3B for green restructurings (Industry Ministry).
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Micro-insolvencies: New procedure for debts <€5M (approved April 2024).
Conclusion: Lessons for Businesses
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Act before default: 89% of voluntary pre-insolvencies avoid bankruptcy.
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Demand bank transparency: 45% of SMEs don’t know how to renegotiate debt (Cirbe).
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Use alternatives: Insolvency mediation saves 60% in legal costs (General Council of Lawyers).
At risk? Survival tips:
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Early financial audit.
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Swift EU fund applications.
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Specialized advice.
Official Sources:
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Mercantile Registry (data 2020-2024).
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Bank of Spain (Financial Stability Report, March 2024).
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INE (Insolvency Statistics).
