The Ministry of Finance published on 22 October 2026 the Average Payment Period (Periodo Medio de Pago – PMP) indicators for local entities corresponding to August 2026, as required by Article 9 of Law 3/2004 on Late Payment Measures (transposed from Directive 2011/7/EU). The PMP measures the average calendar days between the receipt of a valid invoice and the payment order, calculated on a monthly rolling basis for each entity. The August 2026 data shows a sector-wide average PMP of 28.4 days, a slight improvement from 29.1 days in July 2026 and well below the statutory maximum of 30 days for commercial transactions. The publication includes disaggregated data by autonomous community, entity size (population brackets), and entity type (municipalities, provincial councils, island councils, and municipal associations). Entities exceeding the 30-day threshold are flagged for monitoring and may face reputational and financial consequences under the Late Payment Law, including mandatory publication of their PMP on their website and potential exclusion from certain public procurement procedures.
Key Takeaways
- Continued Compliance Improvement: The sector has maintained an average PMP below 30 days for 14 consecutive months, reflecting the impact of the 2023-2025 Local Treasury Modernization Plan which promoted electronic invoicing and automated payment workflows.
- Outliers Require Attention: 23 municipalities (mostly under 5,000 inhabitants) recorded a PMP above 45 days in August; the Ministry has initiated a supervisory dialogue with their regional audit offices to implement corrective action plans.
- Data Availability for Stakeholders: The PMP dataset is downloadable in CSV and JSON formats from the SGCIEF portal, enabling suppliers, credit rating agencies, and citizens to assess the payment reliability of individual local entities.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement