EU Thresholds in Procurement Law 2026

EU thresholds determine the contract values above which EU-wide tendering obligations apply. Current amounts, calculation rules and national differences.

Definition: EU thresholds in procurement law are the contract values (net, excluding VAT) reset every two years by the European Commission, at or above which public contracting authorities are obliged to run their procurement projects under the stricter rules of EU procurement law – in particular with EU-wide publication in the Supplement to the Official Journal of the EU (TED).

Last updated: January 2026 · Legal basis: Directives 2014/24/EU, 2014/25/EU, 2014/23/EU; Delegated Regulation (EU) 2023/2495 (EU thresholds 2024–2025)

What are EU thresholds in EU procurement law?

EU thresholds in public procurement are monetary limits above which the EU-harmonised procurement rules become mandatory. Where the estimated contract value (excluding VAT) equals or exceeds the applicable threshold, the rules of the above-threshold regime apply – including EU-wide publication via TED (Tenders Electronic Daily), binding minimum time limits and full legal protection. Below the thresholds, the national below-threshold rules apply. The Commission reviews and where necessary adjusts the thresholds every two years.

The thresholds therefore mark the dividing line between national and European procurement law and are the central instrument for the scope of EU procurement rules. Below the thresholds, contracts are awarded under the relevant national rules (in Austria the BVergG 2018 for the below-threshold regime; in Germany the UVgO and VOB/A). Above the thresholds, the stricter requirements of the EU procurement directives apply: EU-wide publication on TED, minimum time limits for tendering and participation, full documentation obligations and stricter legal protection mechanisms.

Purpose and significance

EU thresholds guarantee equal access for all EU companies to public tenders above a certain economic significance. They are the central instrument by which EU procurement law enforces the four single-market freedoms in public procurement: free movement of goods, services, establishment and capital. Below the thresholds, regulatory competence lies primarily with the Member States, which must nevertheless continue to respect the EU principles of transparency, non-discrimination and equal treatment.

Correctly classifying a contract is legally binding for contracting authorities: an incorrect estimate that wrongly disapplies EU procurement law can result in the ineffectiveness of the contract concluded and trigger review proceedings.

Current EU thresholds from 2024

The current thresholds apply from 1 January 2024 to 31 December 2025. All amounts are net of VAT. The legal basis is Commission Delegated Regulation (EU) 2023/2495.

Type of contract	Contracting authority	Threshold
Supply and service contracts	Central federal authorities	EUR 143,000
Supply and service contracts	Other public contracting authorities	EUR 221,000
Works contracts	All public contracting authorities	EUR 5,538,000
Supply and service contracts	Utilities (sectoral) contracting entities	EUR 443,000
Works contracts	Utilities (sectoral) contracting entities	EUR 5,538,000
Concessions	All contracting authorities	EUR 5,538,000
Social and other specific services	Public contracting authorities	EUR 750,000
Social and other specific services	Utilities contracting entities	EUR 1,000,000

Status: 1 January 2024

Legal basis

The thresholds are anchored in three EU directives that together cover the whole of public procurement.

Directive 2014/24/EU (classic sector, Art. 4): thresholds for public supply, service and works contracts
Directive 2014/25/EU (utilities, Art. 15): thresholds for entities in water, energy, transport and postal services
Directive 2014/23/EU (concessions, Art. 8): threshold for works and service concessions

Adjustments are made every two years by delegated regulations of the European Commission, aligned with the WTO Agreement on Government Procurement (GPA). Procurements above the thresholds must be published on TED (Tenders Electronic Daily), the official EU tenders portal.

Estimating the contract value

The estimate of the contract value must be made before the procedure is launched and cover all foreseeable elements of the contract. The relevant value is the total value (excluding VAT) estimated by the contracting authority before launch of the procedure, including all options and renewals. Correct estimation is critical because artificial splitting of contracts to fall below the thresholds is unlawful and void (anti-circumvention rule).

The following principles apply:

The relevant point in time is launch of the procurement procedure (dispatch of the notice or start of the planning phase)
Contracts may not be artificially split to circumvent the thresholds
For framework agreements, the total value of all individual contracts foreseen over the term is decisive
Options and renewals must be included in the estimate
For lot-by-lot awards, the total value of all lots is in principle decisive; if that total value exceeds the thresholds, the entire project must be tendered EU-wide

National implementation

Austria (BVergG 2018)

In Austria the Federal Procurement Act 2018 (BVergG 2018) adopts the EU thresholds directly without national adjustment. It distinguishes between the below-threshold regime (§§ 41 et seq. BVergG 2018) and the above-threshold regime (§§ 86 et seq. BVergG 2018), which is subject to the full EU procedural requirements – including the obligation to publish on TED and to use electronic tendering.

Below the thresholds, simplified procedures are permitted provided the national value limits are respected. A particular Austrian feature is the direct award, which is permitted without a formal procedure up to certain national value limits – these national limits must be distinguished from the EU thresholds.

Below the thresholds, the BVergG 2018 sets, among other things:

Direct award: up to EUR 100,000 net (supplies/services and works)
Direct award with prior publication: up to EUR 1,000,000

Germany (GWB / VgV / UVgO / VOB)

In Germany, the threshold for EU procurement law is set at the same amounts, but is implemented through a multi-layered framework. The above-threshold regime is governed by the Act against Restraints of Competition (GWB) together with the Procurement Ordinance (VgV) and VOB/A Section 2 for works. The below-threshold regime follows the Sub-Threshold Procurement Ordinance (UVgO) for supplies and services and VOB/A Section 1 for works.

The German Länder also have their own Land procurement laws that may impose additional requirements at regional level. Below the thresholds the following applies:

Negotiated procedure without competition: up to EUR 10,000 (supplies/services, UVgO)
Sub-threshold restricted procedure: varying limits depending on the Land

Significance and legal consequences

Crossing a threshold triggers a full cascade of procurement-law obligations whose non-observance may lead to the ineffectiveness of the contract concluded. Contracting authorities must therefore always estimate carefully and document the basis on which the contract value was calculated. Errors in threshold calculation are among the most frequent causes of review proceedings and EU infringement procedures.

Practical tips

For contracting authorities: Carry out the value estimate carefully and transparently and document the calculation basis in the procurement file. In borderline cases, a conservative estimate that triggers the above-threshold regime is recommended – the legal consequences of an under-estimate (contract ineffectiveness, review proceedings) far outweigh the additional effort of a full public tender.

For bidders: Check on every public tender whether the contract value has been correctly estimated. An obviously incorrect undervaluation can be challenged through review proceedings. Above the thresholds, electronic tendering via a procurement platform is mandatory.

Related terms

FAQ

What is the threshold for works contracts in 2024? The threshold for public works contracts has stood at exactly EUR 5,538,000 (net) since 1 January 2024. From that amount on, EU-wide publication on TED is mandatory.

What happens above the threshold? Public contracting authorities must tender the contract EU-wide, observe binding minimum time limits and admit bidders from all Member States on equal terms. The award follows the rules of the relevant EU directive.

What happens if a contract is just below the threshold? The contracting authority must apply national procurement law. Deliberate splitting to come in below the threshold is unlawful and can render the contract void.

How often are the thresholds adjusted? Every two years, on 1 January of an even-numbered year. Adjustments are made by Commission delegated regulation on the basis of the WTO-GPA negotiations. The current amounts apply from 1 January 2024 to 31 December 2025.

Are the thresholds expressed gross or net? Always net, i.e. excluding VAT.

Are the thresholds the same in Austria and Germany? Yes, the EU thresholds apply uniformly across the Union. Differences exist only at national value limits below the EU thresholds.

What happens if the threshold is incorrectly estimated? If a contract is mistakenly awarded below the threshold although the total value is above, the contract can be declared ineffective. Bidders can launch review proceedings; damages claims are possible.

Do the thresholds apply to municipalities as well? Yes. The EU thresholds apply to all public contracting authorities – federal, state, municipal and bodies governed by public law – regardless of their level of government.

Last updated: January 2026

All information without guarantee. For legally binding advice, please consult a law firm specialising in procurement law.