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Spain is one of the leading hiring destinations in Southern Europe, known for its exceptionally diverse workforce alongside competitive employment costs. Its strong social protection system, access to both EU and Latin American talent networks, and expanding tech sector make it an ideal choice for companies looking to grow their teams in a reliable market.
Spain offers great potential for companies that hire globally, but employing talent there means understanding the country’s highly regulated employment system.
Spanish labour laws prioritise workers’ protection, with very strict provisions around contract types, working time, holidays, and termination processes. Employers must also navigate social security obligations and collective agreements that often shape the employment relationship.
Want to learn more about salaries, employment costs, and legal rules for hiring in Spain? Get our full hiring guide now!
Employment contracts in Spain define all the terms and conditions of employment. They can be either written or verbal, though certain types must always be provided in written form.
Notice periods: From 15 to 30 days, depending on the termination reason.
Termination of employment: Mutual agreement, expiration of contract, misconduct, poor performance, and others.
Want to explore all the details about employment contracts in Spain? Get our full template now!
Employers in Spain are typically required to provide health, pension, unemployment, and disability benefits, as well as paid time off. Many of them also offer extra perks to stay competitive in the job market. Understanding both of them is essential to attracting and retaining talent.
Leave policies: Paid leave, sick leave, maternity/paternity leave.
Curious about all the employment benefits available in Spain?
Spain has a comprehensive tax and social contribution system that employers must comply with. Employers must withhold personal income tax from employees’ salaries and make mandatory contributions to social security schemes. Additional rules may apply to royalties, dividends, and VAT for business operations.
Personal income tax rate: From 19% to 47%.
VAT: 21%
Tax allowances: Personal allowance, family allowances, disability allowance, home purchase, and others.
Additional tax reliefs: R&D&I deductions, film production deductions, employment creation, and others.
Want to explore more details about tax allowances and similar tax regulations in Spain?
Employees in Spain must receive 12 monthly salaries per year, in accordance with the terms outlined in their employment contracts. Employers must comply with the national minimum wage, withhold income tax, and deduct social security contributions from the employee’s gross salary.
Timely salary payments and accurate payslips are mandatory to remain compliant with Spanish labour laws.
Salary payment deadline: The last working day of the month
Taxes and contributions payment deadline: Contributions are paid monthly in arrears, and taxes are paid quarterly.
Payroll declarations deadline: Social security contributions must be submitted before the 20th of each month, and the taxes must be presented the next month after the quarter ends.
Payroll currency: Euro
Need a more detailed overview of payroll, salaries, and contributions requirements in Spain?
Spanish labour laws are mainly defined by the Workers’ Statute (Estatuto de los Trabajadores), and they cover employment aspects such as working hours, paid leave, minimum wage, and termination rights. In addition, many industries are regulated by collective agreements, which establish more specific and favourable conditions.
Employers must be familiar with both general frameworks and sector-specific obligations to stay compliant.
Total employment cost:
Minimum wage: €1,381 per month
Probation period: From 2 to 6 months
Need a more detailed overview of the Spanish regulations about employment types, employer obligations, and work conditions?
Foreign citizens who want to reside and work in Spain must obtain an appropriate work visa or residence permit, depending on their nationality, job role, and length of stay. The type of permit, documentation, processing time, and fees vary based on whether the applicant is from an EU/EEA country or a non-EU country.
Types of permits: EU Blue card, Highly qualified worker visa.
Process length: Two to three months
Process cost: €2000
Need more information about how to obtain visas and work permits in Spain? Get our full country handbook now, or click here to find out more!
Partnering with an EOR in Spain enables you to hire employees locally without the need to establish a legal entity. The EOR becomes the legal employer and takes over responsibilities such as:
PEO services in Spain offer HR and administrative assistance while you retain full legal responsibility as an employer. These services are a great fit for companies with existing legal entities in Spain that need help managing operations, such as:
Native Teams provides payroll calculators that are adapted to the local labour laws of Spain. Using our calculator, you can easily estimate net and gross salaries, as well as contributions, taxes, and other mandatory deductions in Spain.
Note: The information provided above is for general guidance only and should not be considered a substitute for legal advice. We strongly recommend consulting with qualified professionals who specialise in local labour laws before making any hiring decisions. While the data was accurate at the time of writing, labour regulations are subject to change, and it is your responsibility to stay informed about the latest developments.
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When hiring a freelancer or a gig worker in Spain, the employment relationship must remain independent. Freelancers are registered as self-employed individuals and are responsible for their own taxes and contributions.
If a freelancer works under similar conditions as a full-time employee, such as fixed working hours, ongoing tasks, or close supervision, it could be considered misclassification and can lead to penalties for the employer.
