Companies in Valencia must follow Law 3/2026 instead of Decree-Law 14/2025

The Bilateral Commission for Cooperation between the General State Administration and the Generalitat Valenciana has reached an agreement regarding the jurisdictional discrepancies previously raised concerning Decree-Law 14/2025, of December 26, 2025. According to the Resolution of July 17, 2026 (BOE-A-2026-17936), the parties have decided to suspend the current legal dispute and defer any further jurisdictional issues to future negotiations regarding the newly enacted Law 3/2026.

What changes

The most significant change is the legal vacuum created by the repeal of the previous regulatory framework. The agreement reached by the Commission establishes that the jurisdictional controversies previously centered on specific articles of Decree-Law 14/2025—specifically articles 23, 25, 26, 42, 45, 83, and the second transitional provision—are now moot. This is due to the fact that Decree-Law 14/2025 has been expressly repealed by the single repealing provision 1.c) of the new Law 3/2026, of June 29, of the Generalitat (art. I).

Consequently, the legal battle between the Spanish State and the Valencian regional government regarding the competence to regulate "hyper-regulation," the streamlining of administrative procedures, and the guarantee of market unity is effectively paused. Instead of litigating over a defunct decree, the administration will now focus on the material contents of Law 3/2026. The agreement also mandates the communication of this resolution to the Constitutional Court in accordance with article 33.2 of Organic Law 2/1979 (art. II), ensuring that the legal process follows the correct institutional channels.

Context

To understand this resolution, one must look at the tension between regional and state powers in Spain. The Generalitat Valenciana had issued Decree-Law 14/2025 to implement urgent measures aimed at reducing administrative burdens and streamlining procedures. However, the central government raised jurisdictional objections, arguing that certain aspects of this decree encroached upon state competencies, particularly regarding the unity of the market and the regulation of administrative procedures that affect the entire national territory.

This conflict created a period of legal instability for businesses operating within the Valencian Community. While the State and the Generalitat were debating which authority had the right to set these rules, companies were left in a state of uncertainty regarding which administrative standards to follow. The enactment of Law 3/2026 by the Generalitat has changed the landscape. By replacing the controversial Decree-Law with a formal Law, the regional government has provided a new regulatory base, which the State has agreed to evaluate through negotiation rather than immediate litigation. This move aims to provide more stability to the business environment, which is essential for those looking to establish a Startup Legal & Tax Barcelona 2026: Founder's Guide or similar ventures in the wider Mediterranean corridor.

Who is affected and how

SMEs (Small and Medium Enterprises)
SMEs operating in the Valencian Community are directly impacted by the shift in the regulatory framework. Previously, these companies faced the risk of complying with procedures under Decree-Law 14/2025 that might later be declared unconstitutional. With the repeal of the decree via the single repealing provision 1.c) of Law 3/2026, SMEs must immediately update their internal compliance protocols to align with the requirements of Law 3/2026. This ensures that their administrative filings and interactions with Valencian authorities remain valid and legally sound.

Self-employed professionals (Autónomos)
For individual entrepreneurs and freelancers, the resolution provides much-needed clarity. The "hyper-regulation" measures intended to simplify procedures were the core of the dispute. While the specific rules are now found in Law 3/2026, the goal of the administration remains the same: streamlining. Self-employed individuals should review any pending administrative applications that were based on the old decree to ensure they are transitioned to the new legal standard without delay.

Non-residents and Foreign Investors
Investors looking at the Valencian region must take note of this institutional stability. The fact that the State and the Generalitat have reached an agreement to negotiate rather than fight in the Constitutional Court is a positive signal for the rule of law. For those managing international portfolios or setting up operations, understanding the local administrative landscape is as crucial as understanding the ley Beckham or other tax incentives. The resolution ensures that the rules of the game in Valencia are being redefined through legislative consensus rather than judicial combat.

What to do and when

The transition from Decree-Law 14/2025 to Law 3/2026 is not merely a theoretical change; it is an immediate legal reality. Based on the Resolution of July 17, 2026 (BOE-A-2026-17936), the following actions are recommended:

• Immediate Audit of Compliance: Companies must identify any ongoing administrative procedures or pending licenses that were initiated under the framework of Decree-Law 14/2025.
• Update Internal Manuals: Legal and administrative departments should replace all references to Decree-Law 14/2025 with Law 3/2026 in their internal compliance manuals and standard operating procedures.
• Monitor New Regulations: Since the jurisdictional issues have been "remitted to future negotiations" (art. I), businesses should stay alert to any new secondary regulations or amendments that may arise from the implementation of Law 3/2026.
• Verify Administrative Filings: Ensure that all upcoming submissions to the Generalitat Valenciana strictly adhere to the new requirements of Law 3/2026 to avoid potential nullity of the acts.

Given the complexity of regional versus state competencies, we recommend that companies assess their specific situation with the relevant department at BMC to ensure full compliance with the new Valencian regulatory framework.