Updated EU and Local Thresholds for Public Procurement (2026)
Following revisions at EU level, the Department of Contracts has published Circular 2 of 2026 to announce reduced revised financial thresholds for public procurement, utilities procurement and concession contracts, in force from 1 January 2026 and applicable through 2027.
The new, VAT‑exclusive thresholds have to be implemented by means of a legal notice which is yet to be enacted.
By way of summary, the revised thresholds (excluding VAT) include:
- €140,000 for public supplies and services (previously €143,000);
- €432,000 for utilities supplies and services (previously €443,000); and
- €5,404,000 for works contracts and concessions (previously €5,538,000).
Where estimated values meet or exceed the EU thresholds, contracting authorities must publish a contract notice in the Official Journal of the European Union.
Annex I to the circular sets out local thresholds, departmental responsibilities, and the required e‑procurement templates, including use of the “Above Threshold” template where estimated values equal or exceed the applicable threshold.
The Operations Directorate and Sectoral Procurement Directorate will continue to administer procedures across defined value bands, including €140,000 for general procurement and €432,000 for utilities procurement.
For a more detailed breakdown of the revised EU thresholds, readers may consult Annex II which provides a side‑by‑side comparison to the previously applicable thresholds which were implemented in 2025.
For background on the previous revisions implemented in end 2024, see our January 2025 update.
The full text of Contracts Circular No. 2 of 2026 is available here.
