EWS helps you to hire an international workforce quickly and compliantly, without setting up a legal entity locally. If you’d like to get in touch about our employer of record solution in Spain, click here
Country Introduction – Spain
Capital – Madrid
Currency – Euro
GDP – 1.427 trillion USD (2021)
People/Nationality – Spanish
Language – Spanish
Major Religion – Christianity
Population – 47,507,330 (as of October 6, 2023)
Spain has a diverse and highly developed economy that is considered the 14th largest in the world by nominal GDP. It is a member of the European Union, the Eurozone, and the World Trade Organization, contributing significantly to global trade and commerce.
It is one of the world’s leading tourist destinations, renowned for its rich cultural heritage, beautiful beaches, and vibrant cities. Tourism plays a vital role in the Spanish economy, attracting millions of international visitors each year. Spain has a strong industrial base, including sectors like automotive, aerospace, pharmaceuticals, and renewable energy.
The country is a major automobile producer and exporter. It is a significant producer of agricultural products, including fruits, vegetables, olives, and wine. It is one of the largest wine producers in the world.
Living in Spain can be a vibrant and enriching experience. The country offers a high quality of life with a pleasant Mediterranean climate, a rich cultural heritage, and a relaxed lifestyle. Overall, Spain’s economy reflects a mix of traditional industries and modern sectors, making it a dynamic player in the global economic landscape.
Contract of Employment
In Spain, it is mandatory to provide a written employment contract to the employee, detailing the terms and conditions of employment. Types of Employment Contracts:
Temporary Contract: This type of contract is for a specific period or for a specific task. There are different subtypes of temporary contracts, each with its own regulations.
Permanent Contract: This is an open-ended contract without a specific termination date. Permanent contracts provide more job security to employees.
Training and Apprenticeship Contract: This type of contract is designed for employees between the ages of 16 and 25, providing training and work experience simultaneously.
Probation Period
The typical probation period for employees in Spain is three months. In the case of indefinite-term contracts, which are the most common type of employment contracts, the legal maximum probation period is six months. For non-qualified workers, the maximum probation period is two months.
Termination
In Spain, the termination period, also known as the notice period, can vary depending on the circumstances and the type of employment contract.
Indefinite-Term Contracts: For permanent contracts, the notice period typically ranges from 15 to 30 days. The specific duration often depends on what is stipulated in the employment contract or collective agreement. Employers are required to provide notice to terminate an indefinite-term contract unless there is a valid reason for immediate termination, such as serious misconduct by the employee.
Fixed-Term Contracts: The notice period for fixed-term contracts is usually equal to the remaining duration of the contract, with a minimum of 15 days. For example, if there are three months left on the fixed-term contract, the notice period would be three months.
Probationary Period: During the probation period, the notice period is typically shorter. It can range from 7 to 15 days, depending on the terms agreed upon in the employment contract.
Immediate Termination: In cases of serious misconduct by the employee, immediate termination without notice is possible. However, the employer must be able to prove the serious nature of the misconduct.
Working Hours
The standard working week in Spain is 40 hours.
Overtime
Overtime is usually calculated on a daily or weekly basis, depending on the specific situation. If an employee works beyond the standard 40 hours per week, those additional hours are considered overtime.
13th Month Pay
In Spain, there is no legal requirement for employers to pay a 13th-month salary, commonly referred to as a “Christmas bonus” or “extra month’s pay.” However, some employers in Spain may choose to provide their employees with a bonus or additional payment at the end of the year, especially as a gesture of goodwill or as part of the company’s policies.
Annual Leave
In Spain, employees are entitled to a minimum of 30 calendar days of paid vacation leave per year. This vacation time is usually divided into 22 working days (Monday to Friday) and 8 public holidays.
Sick leave
During the first 365 days of sick leave, employees are generally entitled to receive sick pay from their employer. The duration of sick leave can be extended if the employee is not yet fit to work after the initial period. Employees are typically entitled to receive a percentage of their salary as sick pay.
The specific percentage and duration of sick pay can vary based on the employment contract, collective bargaining agreements, and the employee’s years of service with the company.
Maternity and Paternity Leave
Pregnant employees in Spain are entitled to 16 weeks of maternity leave. This period includes the time before and after childbirth. After childbirth, mothers are required to take a minimum of 6 weeks of maternity leave. The remaining weeks can be taken either before or after childbirth, as chosen by the mother.
Fathers in Spain are entitled to paternity leave of 16 consecutive weeks, which can be taken uninterruptedly or divided into different periods within the first six months after the birth or adoption of the child. In the case of multiple births (e.g., twins or triplets) or adoptions of more than one child, the paternity leave period is extended by two weeks for each additional child beyond the first one.
VAT / GST
Here’s a breakdown of the VAT rates in Spain:
Standard VAT Rate: The standard VAT rate in Spain is 21%. This rate applies to most goods and services, including electronics, clothing, and non-essential items.
Reduced VAT Rate (10%): A reduced VAT rate of 10% is applied to specific items such as food, water, books (including e-books), pharmaceutical products, hotel accommodation, and passenger transport services.
Super Reduced VAT Rate (4%): The super reduced VAT rate of 4% is applied to essential items such as basic foodstuffs, certain medical products, and cultural events.
Income Tax
Progressive Income Tax Rates for 2021:
| Up to €12,450 | 19% |
| €12,451 – €20,200 | 24% |
| €20,201 – €35,200 | 30% |
| €35,201 – €60,000 | 37% |
| €60,001 – €300,000 | 45% |
| Over €300,000 | 47% |
Employer / Employee Contributions
Employer Contributions:
Social Security Contributions: Employers are responsible for paying social security contributions based on the gross salary of their employees. The social security contribution rate depends on the type of employment contract, with different rates for permanent contracts and temporary contracts. Employers also pay contributions for accidents at work and occupational diseases.
Unemployment Insurance: Employers contribute to the Unemployment Fund, which provides benefits to employees who lose their jobs. The contribution rates for unemployment insurance vary based on the type of contract and the duration of the contract.
Professional Training: Employers are required to contribute to the Professional Training Fund, which supports training and skill development for employees. The contribution rate varies based on the size of the company and the sector.
Employee Contributions:
Social Security Contributions: Employees also contribute to social security funds based on their gross salary. The employee’s social security contribution rate is deducted directly from their pay check.
Income Tax: In addition to social security contributions, employees are subject to income tax (IRPF) based on their taxable income. The income tax rates are progressive, with higher incomes taxed at higher rates.
Public Holidays
In Spain, public holidays, known as “fiestas” or “días festivos,” can vary by region because some regions have their own public holidays in addition to the national ones.
January 1 – New Year’s Day
January 6 – Epiphany
Good Friday – Date varies based on the Christian calendar.
May 1 – Labour Day
August 15 – Assumption of Mary
October 12 – Spanish National Day
November 1 – All Saints’ Day
December 6 – Constitution Day
December 8 – Immaculate Conception
December 25 – Christmas Day
Severance Pay
In Spain, severance pay varies based on the type of employment contract and the reason for termination:
Permanent Contracts:
Unjustified Dismissal: 33 days of salary per year of service (up to 24 months’ salary).
Justified Dismissal: 20 days of salary per year of service (up to 12 months’ salary).
Temporary Contracts:
Fixed-Term Contracts: 12 days of salary per year of service upon contract expiration.
Temporary Contracts Converted to Permanent: Severance pays follows permanent contract rules.
Collective Redundancies:
20 days of salary per year of service (up to 12 months’ salary) for affected employees in layoffs.
Severance pay regulations are subject to change, and specific circumstances may influence the calculation.
Work and Residence Permits (Expatriates)
For expatriates in Spain:
EU/EEA/Swiss Citizens:
No work permit needed. For stays over three months, registration is required.
Non-EU/EEA/Swiss Citizens:
– Work permit required for employment.
– Different residence permits available (work-related, entrepreneur, highly qualified professional).
– Complex application process involving document submission and approval.
– Temporary permits can be renewed and permanent residency may be possible after several years.
The $100K Visa Shock: Why Global Hiring Just Replaced the H-1B
How to Set Up Payroll For Hpc And Ai Teams
Contracting Machine Learning Talent Abroad
Everything on Hiring Foreign Phds In German Tech Labs
Cross-Border Ip Protection In R&D Teams
How To Classify Freelancers In Tech Innovation
How Eor Helps Tech Firms Legally Hire In Germany
Dual Contract Structure For International Researchers
Data Protection Obligations For Remote Tech Staff
Germany Research Visa Vs Skilled Worker Visa
Everything on Nis2 Directive Compliance For Eu Tech Workers
Global Mobility For Deep Tech Startups In Germany
Payroll For EU Embedded Systems Developers
Relocation Support For Semiconductor Experts on EU
The Absolute Way to Hire Ai Engineers In Germany
How to Manage Benefits For German Tech Hires
Germany’S Blue Card Process For Engineers
Everything on Germany R&D Employment Compliance
Remote Hiring Of Cybersecurity Analysts In Eu
Visa Pathways For Quantum Computing Researchers
Onboarding Robotics Specialists Across EU Borders
Workforce Planning In Ai-Driven Logistics And Infrastructure
Visa Processing For High-Tech Infrastructure Staff
Managing Global Mobility In Sustainable City Projects
Cross-Border Team Management In Saudi Data Centers
Hiring Skilled Labor For Green Hydrogen Facilities
Digital Twin Technology Hiring Trends In Saudi Construction
Employer Obligations In Public-Private Energy Initiatives
Navigating Local Labor Laws For Solar Energy Teams
Talent Acquisition In The Saudi Mining Sector
Eor Solutions For Ai Engineers In Mega Projects
Regulatory Challenges In Hiring For Giga Construction Projects
Contractor Compliance In Smart City Developments
Classification Of Engineering Consultants In Vision 2030 Projects
How To Manage Workforce For Neom-Based Tech Projects
Eor For Multinational Mining Firms Operating In Saudi Arabia
Employer Of Record For Wind Energy Projects In The Gulf
Relocation Logistics For International Clean Energy Experts
Hiring Strategies For Large-Scale Construction Projects In Ksa
How To Onboard Digital Infrastructure Experts In Saudi Arabia
Payroll Setup For Renewable Energy Workers In Ksa
Strategic Relocation To Riyadh Or Doha: A Guide for Global Employers
Work Visa Processing In Qatar And Saudi Arabia
Qatar Nationalization Policy And Foreign Firms
Cost Of Setting Up A Business In Qatar: A Guide for Global Employers
Saudi Labor Court And Dispute Handling for Global Employers
Cross-Border Payroll For Ksa And Qatar Teams
End Of Service Benefits Saudi Arabia: A Guide for Global Employers
How To Manage Expat Benefits In Qatar for Global Employers
Expanding Into New Markets: Vendor Risks You Should Flag
A Guide to Cross-Border Equity Vesting for Tech Startups
Employer Branding for Multinational Teams: What Works Now
What Global C-Level Leaders Miss About Digital Nomad Visas
Succession Planning for Distributed Teams: A Practical Guide
Relocation Budgeting For Global Tech Firms
Latam Hiring Strategy: What Global Companies Should Know
Risk Of Permanent Establishment Explained
Managing Intellectual Property In Remote Work
Benefits Benchmarking Globally for Global Companies
How to Benchmark Compensation Across 100+ Countries in 2025
Checklist: Preparing HRIS for Fast International Scalability
Biometric Data in Global Payroll: Legal Boundaries Explained
8 Regulatory Updates Impacting Global HR in 2025
What are Hidden Costs of In-House Payroll?
Why Companies are Thinking Differently About Relocation
Is Your Global Mobility Program Outgrowing Spreadsheets?
Remote Work Visas: A Growing Trend in Global Mobility
Hiring in Europe Post-Brexit: What You Need to Know
Tips for Managing Multi-Time Zone Teams Successfully
Relocation Packages: What Top Talent Expects in 2025
Banking and Payroll Challenges in Saudi Arabia Markets
The Legal Risks of Misclassifying Global Workers
Why Scalability Should Drive Your Global HR Strategy
How EWS Streamlines Global Mobility for Tech Talent
Lithuania – Employer of Record
Kosovo – Employer of Record
Finland – Employer of Record
Namibia – Employer of Record
Nepal – Employer of Record
Spain – Employer of Record
Latvia – Employer of Record
Ireland – Employer of Record
Cyprus – Employer of Record
Czech Republic – Employer of Record
Italy – Employer of Record
Indonesia – Employer of Record
South Africa – Employer of Record
Tunisia – Employer of Record
Bosnia – Employer of Record
Moldova – Employer of Record
Five Tips For Improving Employee Engagement
Netherlands – Employer of Record
Germany – Employer of Record
France – Employer of Record
Portugal – Employer of Record
Bulgaria – Employer of Record
Austria – Employer of Record
Hungary – Employer of Record
Slovenia – Employer of Record
INCLUSIVITY IN THE TEAM MAKES EVERYONE WIN
Thailand – Employer of Record
Sri Lanka – Employer of Record
The Significance of an Employer of Record
Greece – Employer of Record
Mexico – Employer of Record
4 Reasons to Outsource Your Payroll
Five Recruitment Trends 2023
Malaysia – Employer of Record
Skill-Based Hiring and Benefits
Malta – Employer of Record
How To Practice Inclusive Recruitment
Israel – Employer of Record
Macedonia – Employer of Record
Jordan – Employer of Record
Macau – Employer of Record
Peru – Employer of Record
The Importance of Employer Branding
Bahrain – Employer of Record
South Korea – Employer of Record
Recruiting during a recession
Philippines – Employer of Record
USA – Employer of Record
Japan – Employer of Record
How To Setup A Business in 2023
Norway – Employer of Record
Managing Overseas Projects In 2023
Reason Of Expanding Your Workforce Globally
Croatia – Employer of Record
Colombia – Employer of Record
5 Ways To Speed Up Your Hiring Process
Egypt – Employer of Record
3 Ways To Streamline An Interview Process
Russia – Employer of Record
Saudi Arabia – Employer of Record
Hong Kong – Employer of Record
An Effective Hybrid Work Model
Turkey – Employer of Record
UAE – Employer of Record
Pakistan – Employer of Record
7 Things to Consider Before Accepting a Job
Kazakhstan – Employer of Record
3 Reasons to Encourage Employees to Generate Employer Brand Content
Denmark – Employer of Record
Sweden – Employer of Record
Bangladesh – Employer of Record
Kuwait – Employer of Record
How To Hire In The Age Of Hybrid Working
Australia – Employer of Record
Oman – Employer of Record
Qatar – Employer of Record
Ukraine – Employer of Record
Diversity – A Vital Hiring Strategy
Owning Every Moment of Your Hiring Experience
Serbia – Employer of Record
Maldives – Employer of Record
India – Employer of Record
Argentina – Employer of Record
Uzbekistan – Employer of Record
Belarus – Employer of Record
Brazil – Employer of Record
Chile – Employer of Record
Armenia – Employer of Record
3 Steps To Company Formation In The UK & Abroad
Romania – Employer of Record
Canada – Employer of Record
Morocco – Employer of Record