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Employment guide

Hire and pay employees
in Spain

Employment law, payroll compliance, taxes, benefits, and hiring requirements for Spain — curated and reviewed by Remote&.

Capital
Madrid
Currency
€ Euro (EUR)
Working Hours
40 hours per week
Min. salary
€17,094
01 — Country basics

Spain at a glance

Capital
Madrid
Language
Spanish (Castilian); regional co-official languages include Catalan, Basque, and Galician
Currency
€ Euro (EUR)
Working Hours
40 hours per week
Public Holidays
14 days per year
Minimum Salary
€17,094
Tax Year
Jan 1 – Dec 31
Worker misclassification risk
Misclassifying an employee as a contractor in Spain carries fines of €3,126–€10,000+ per worker, retroactive social security contributions, back payment of entitlements, and in extreme cases, potential criminal liability. Spain introduced a digital nomad visa allowing remote professionals to live and work in the country for up to 5 years.
02 — Tax obligations

Taxes in Spain

Employer Contributions

Total employer social security: ~32.5% of gross salary

Contribution TypeRate
Common contingencies (pension, health, maternity, disability)23.60%
Unemployment — permanent contracts5.50%
Unemployment — temporary contracts6.70%
FOGASA (Wage Guarantee Fund)0.20%
Training fund0.60%
Intergenerational Equity Mechanism (MEI)0.67%
Occupational accident/illness insurance (by CNAE sector)0.90% – 8.50%
Solidarity quota (above max contribution base)0.92% / 1% / 1.17%
Employer contributions

Total employer social security: ~32.5% of gross salary

Contribution TypeRate
Common contingencies (pension, health, maternity, disability)23.60%
Unemployment — permanent contracts5.50%
Unemployment — temporary contracts6.70%
FOGASA (Wage Guarantee Fund)0.20%
Training fund0.60%
Intergenerational Equity Mechanism (MEI)0.67%
Occupational accident/illness insurance (by CNAE sector)0.90% – 8.50%
Solidarity quota (above max contribution base)0.92% / 1% / 1.17%
Employee contributions

Total employee social security: ~6.48% + income tax (IRPF)

Contribution TypeRate
Common contingencies4.7%
Unemployment — permanent1.55%
Unemployment — temporary1.6%
Training0.10%
MEI0.13%
Income tax brackets
Gross IncomeTax Rate
€0 – €12,45019%
€12,451 – €20,20024%
€20,201 – €35,20030%
€35,201 – €60,00037%
€60,001 – €300,00045%
Over €300,00047%
04 — What employees receive

Benefits in Spain

Statutory
  • Universal healthcare: Social security system covers sickness, disability, maternity, unemployment, and retirement
  • Paid annual leave: 30 calendar days (22 working days) minimum
  • Parental leave: 16 weeks maternity leave + 16 weeks paternity leave, both fully paid by Social Security
Common additional
  • Private health insurance
  • Meal vouchers or canteen subsidy
  • Transport allowance
  • Additional pension or savings schemes
  • Flexible working and remote work equipment
  • Professional development budget
05 — Time away from work

Leave entitlements

Leave typeEntitlement
Paid Annual Leave30 calendar days (22 working days) + up to 14 public holidays
Sick LeaveFrom day 4: 60% of base salary until day 20; 75% from day 21 onward
Maternity Leave16 weeks (extendable for multiple births), fully paid by Social Security
Paternity Leave16 weeks, fully paid by Social Security
06 — Contracts & rights

Employment conditions

Written Contracts

All employment contracts must be in writing and include job role, salary, working hours, benefits, and termination conditions. The applicable collective bargaining agreement (CBA) must also be applied.

Health and Safety

Employers must conduct mandatory risk assessments, provide safety training, and arrange health surveillance where the role requires.

Employee Rights & Protections

Spanish workers are entitled to: trade union membership and strike rights, whistleblower protection, equal treatment and anti-discrimination, safe and healthy working conditions, GDPR data protection, unfair dismissal protection, and pay transparency.

07 — Payroll cadence

Payments

Payment frequency
At least monthly. Employees are legally entitled to **14 payments per year** — 12 monthly salaries plus two bonus payments (commonly in July and December, though CBAs may vary this).
Payday
Usually the last working day of the month.
08 — Off-boarding

End of employment in Spain

Termination requires valid cause or mutual agreement and must be provided in writing. A 15-day notice period is typical. Final payments must include outstanding salary, unused holiday, and applicable severance.

Unfair dismissal: Compensation of 33 days' pay per year of service (capped at 24 months), or reinstatement at the employee's option.

Null dismissal (discriminatory or rights-violating): Immediate reinstatement with full back pay.

09 — Common questions

Frequently asked questions

Three compliant options exist: (1) establish a Spanish SL for direct employment — best for long-term, multi-hire presence; (2) register an existing EU entity as a Spanish employer — faster for companies already operating in Europe; (3) engage genuine independent contractors (autónomos) — only for truly autonomous, multi-client work. Standard EOR is not legally viable in Spain.

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