Spain

Spain, a prominent EU member, offers a dynamic labor market characterized by progressive labor laws, a robust social security system, and a rich cultural heritage. In 2025, Spain continues to be an attractive destination for businesses aiming to expand in Europe. Understanding local employment laws, tax obligations, and payroll practices is crucial for compliance and operational success.
Contractor Management
EOR
Payroll
Contractor of Record
Currency
Euro (EUR)
Payroll Frequency
Monthly
Employer Taxes
29.9%

Overview

Population
~ 47 million
Language
Spanish
Capital
Madrid
Currency
Euro (EUR)
Country code
+34
Min wage
€ 1,184 / month
Working hours
8 hours per day
Weekdays
Monday to Friday
Work hours per week
40 hours

Payroll

Salaried Employees
Time-Based Employees
13th Salary

Not mandatory; subject to employer discretion

Avg employer tax

29.90%

Tax Breakdown

Personal Income Tax (PIT):

Up to €12,450
19%
€12,450 – €20,200
24%
€20,200 – €35,200
30%
€35,200 – €60,000
37%
€60,000 – €300,000
45%
Above €300,000
47%

Corporate Income Tax (CIT):

Standard Rate
25%
Reduced Rate
15% for newly created companies during their first two years of profitability

Social Security Contributions:

Employee Contributions
6.48% of gross salary
Employer Contributions
30.57% of gross salary

VAT

VAT
  • The standard VAT rate in Spain is 21%
Tax Calculation for Spain
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Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in Spain typically includes the following steps to ensure a smooth transition for new hires:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

Register the employee with the Spanish Tax Agency (Agencia Tributaria) and the Social Security system

Payroll Setup

Ensure accurate calculation and withholding of taxes and social security contributions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in Spain
When drafting an employment contract for employees in Spain, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • Paid by the employer for the first 3 days; thereafter, by Social Security at 60% of the employee's base salary
Maternity leave
  • 16 weeks; fully paid by Social Security
Paternity leave
  • 16 weeks; fully paid by Social Security

Parental Leave:

  • Up to 12 years; unpaid, with certain exceptions

Bereavement Leave:

  • 2 to 5 days, depending on the relationship

Annual Leave
  • Minimum of 30 calendar days per year

12 Public holidays in Spain

Note: Some holidays may be observed on different dates or may be extended, depending on regional regulations.

1st
New Year's Day
6th
Epiphany
17th
Maundy Thursday
18th
Good Friday
21st
Easter Monday
1st
Labor Day
15th
Assumption Day
12th
National Day of Spain
1st
All Saints' Day
6th
Constitution Day
8th
Immaculate Conception
25th
Christmas Day
  • 1 Jan: Friday, New Year's Day
  • 6 Jan: Wednesday, Epiphany
  • 2 Apr: Friday, Good Friday
  • 1 May: Saturday, Labor Day / May Day
  • 12 Oct: Tuesday, Hispanic Day
  • 6 Dec: Monday, Constitution Day Holiday
  • 8 Dec: Wednesday, Immaculate Conception
  • 25 Dec: Saturday Christmas Day

Termination Process

Notice Period

  • Employee-Initiated: 15 days
  • Employer-Initiated: 15 days to 3 months, depending on length of service

Severance Pay

Not mandatory; subject to employment agreements

Termination During Probation

Either party can terminate with 15 days' notice

Probation Period

  • Maximum Duration: 6 months
  • Extension: Permitted if agreed upon by both parties
  • Termination During Probation: Either party can terminate with 15 days' notice

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Grow Your Team in Spain
with RemotePass

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Spain.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

Free 7-day trial

No credit card required

Cancel anytime

Hiring In Spain | Payroll, Tax & Employment Guide

Spain's Beckham Law offers major tax advantages for foreign workers. Combine that with competitive labor costs and a skilled workforce, and Spain is a strategic choice for a European base.

RemotePass makes hiring in Spain simple. We handle compliance, contracts, and payroll so you can focus on growing your team.

Key Takeaways For Hiring in Switzerland

  • Employees receive 30 calendar days of paid annual leave per year, plus up to 14 public holidays depending on the region.
  • Monthly payroll is standard, and Spain commonly uses extra summer and Christmas payments, unless prorated.
  • Employer social contributions are high, averaging around 29.9%, while employees contribute about 6.35% to 6.40%.
  • Both parents receive sixteen weeks of paid parental leave funded by Social Security.

Quick Facts For Hiring In Spain

Continent
Europe
Capital
Madrid
Currency
Euro (EUR, €)
Language
Spanish (Castilian), plus regional co-official languages such as Catalan, Basque, Galician
Payroll Cycle
Monthly
Pay Date
27th of the month If the 27th falls on a weekend or public holiday, payment is made one banking day earlier.

Spain Employment Contract Overview

A clear written contract is essential when hiring in Spain. Here’s a quick overview of the core terms that typically shape employment agreements.

Contract Type
Fixed-term / Open-ended (Fixed-term contracts must have a legally justified reason, otherwise they may be treated as indefinite.)
Local Language Required?
Yes
Bilingual?
Yes
Probation Period
Technicians (titulados): up to six months
Other roles: up to two months
Companies with fewer than 25 employees (non-technicians): up to three months
Minimum Paid Time Off
30 calendar days of paid annual leave (approximately 22 working days in a five-day workweek)
Public Holidays
14 public holidays per year (eight national, plus regional and municipal holidays depending on location)
Notice Period
Minimum of 15 calendar days

What Do You Need To Include In A Spanish Employment Contract?

Every Spanish contract must outline the essential terms of employment so expectations are transparent and compliant with Spanish labor law.

Employee Information

  • Full name
  • ID number
  • Role / Job title
  • Start date
  • Contract duration
  • Working hours
  • Probation and notice conditions
  • Termination provisions
  • Compensation details

How Does Payroll and Taxation Work in Spain?

Spanish employment contracts must clearly outline key terms so both employer and employee start on the same page. Your contract should include the following essentials.

Payroll Setup

Salary currency

Euro (EUR, €)

Minimum Wage

As of January 1, 2025, the Statutory Minimum Wage (SMI) is €1,184 gross per month across 14 payments, totaling €16,576 gross per year.

€1,381.33 per month if prorated across 12 months, including extra payments.

Hours per Week

Up to 40 hours per week, with a routine limit of nine hours per day.

Payroll Frequency

Monthly

Weekdays

Monday through Friday

Mandatory Bonuses

Summer and Christmas payments (13th and 14th salary) are common unless the contract or collective agreement states otherwise.

Gross Salary Structure

Gross salary does not follow a standardized structure in Spain.

What Payroll Taxes Do Employers Pay in Spain?

Employer cost % (estimate):


Employer Cost %

Contributions Breakdown

Common Contingencies (healthcare, pension, etc.):

23.60%

Professional Contingencies (work accidents and occupational illness):

Fully paid by employer; rate depends on industry risk (1.5% to 7.5%)

Unemployment Insurance:

5.50% (indefinite contracts)

Training (Professional Development):

0.60%

FOGASA (Wage Guarantee Fund):

0.20%

What Payroll Taxes Do Employees Pay in Spain?

Individual Income Tax

Spain applies two separate tax categories for income:

  • General Income (Renta General): wages, self-employment income, pensions, rental income, royalties, and similar earnings.

  • Savings Income (Renta del Ahorro): interest, dividends, capital gains, annuities, life insurance payouts, etc.

Social Contributions


Common contingencies(healthcare, pension, etc.):

4.70%

Unemployment Insurance(varies by contract type):

1.55%

Training (Professional Development):

0.10%

FOGASA (Wage Guarantee Fund):

0.20%

General Income Tax Rates (2025)

General income is taxed under a national and regional progressive system, so effective rates vary by autonomous community.

State (National) Rates:

Income Bracket Tax Rate
Up to €12,450

19%

€12,451–€20,200

24%

€20,201–€35,200

30%

€60,001–€300,000

45%

These are combined with each region’s tax rates, which differ.

Savings Income Tax Rates (2025)

For savings-related income, the progressive rates are:

Income Bracket Tax Rate
Up to €6,000

19%

€6,000 – €50,000

21%

€50,000 – €200,000

23%

€200,000 – €300,000

27%

Over €300,000

30%

Hiring cost calculator 

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ES
*
Thank you! Your submission has been received!
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Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation

Mandatory Employee Benefits in Spain

The system also funds unemployment benefits and additional social safety nets.

Benefits Provider Mandatory? Notes
Health Insurance Government

Payroll Contributions

All employees who contribute to Social Security automatically access the public healthcare system (Sistema Nacional de Salud).

This includes primary care, specialist care, and hospital services with no point-of-service charges.

Private health insurance is optional and often offered by employers to provide faster access or broader coverage, particularly for expats.

Pension/Social Security Government

Payroll Contributions

Employers and employees must contribute to Spain’s Social Security system, which covers healthcare, pensions, unemployment, disability, and other social protections.

The system also funds unemployment benefits and additional social safety nets.

Leave And Holiday Entitlement In Spain

Annual leave

Employees receive a minimum of 30 calendar days of paid annual leave each year, which typically equals 22 working days in a standard five-day workweek.

At least one block of leave must be taken in two consecutive weeks.

Employees and employers must agree on leave dates. If they cannot reach an agreement, labor authorities may decide the schedule.

Public holidays

Employees are entitled to paid leave on up to 14 public holidays per year. These include a mix of:

  • Eight national holidays

  • Regional holidays

  • Local/municipal holidays

The exact list depends on the employee’s work location.

Sick Leave

Employees receive paid sick leave as follows:

  • Days one to three: Usually unpaid (some employers may choose to pay).

  • Days four to 20: Paid at 60% of the employee’s base salary (paid by employer or Social Security depending on timing).

  • Day 21 onward: Paid at 75% of base salary, funded by Social Security.

Sick leave can last up to 365 days, with a possible 180-day extension in certain medical cases.

Parental Leave (Maternity and Paternity Leave)

Each parent is entitled to 16 weeks of paid leave for childbirth, adoption, or foster care.

Six weeks must be taken immediately after birth.

The remaining 10 weeks are flexible and can be taken anytime within the child’s first year.

Leave may be extended to 18 weeks for multiple births or child disability.

Parental leave is 100% paid by Social Security.

Breastfeeding Leave: One hour per day (or two 30minute breaks) until the child reaches nine months.

Other Types of Leave

Employees are also entitled to:

  • Marriage Leave: 15 calendar days

  • Bereavement Leave: Two to four calendar days depending on circumstances such as travel

  • Moving Leave: One day

  • Public or Personal Duties: Paid time as required (e.g., jury duty, exams, union responsibilities)

  • Force Majeure Leave: Up to four days of paid “climate leave” for extreme weather or emergencies, with possible temporary reduced hours

Termination and Offboarding in Spain

Type Possible?
Termination for Cause (poor performance, misconduct, etc.) Yes
Termination without Cause Yes
Mutual Termination Agreement (MTA) Yes, but not recommended. In Spain, MTAs are treated as voluntary resignations and are therefore not advisable, as the employee forfeits the right to unemployment benefits.
Redundancy Not possible under the EOR setup

Employee Resignations

Employee
Resignations

 Termination with Cause

Termination
with Cause

Termination without Cause

Termination
without Cause

Mutual Termination Agreement

Mutual Termination
Agreement

 Fixed Term Contract

Fixed Term
Contract

Spain Employee Resignation

Notice

Form

Written notice through a signed letter which should state clearly:

  • The employee’s name and ID number.

  • The position they hold.

  • The date the letter was written.

  • The effective date of the resignation.

  • The employee's signature.

Notice period

  • During probation: No notice period needed

  • After probation: 15 days or any other contractually agreed notice period

Payment in lieu of notice or notice waiver

Payment in lieu of notice is not allowed because it affects the final payment process. All final dues must be settled before the employee’s last working day, so the last working date must be confirmed in advance.

End-of-Service Benefits

Severance/Gratuity

Severance is not applicable for resignation.

Other Benefits

  • Prorated Salary: Payment for all days worked up to the termination date.

  • Prorated Leave Pay: Compensation for any accrued but unused annual leave.

  • Prorated Bonuses/Commissions/Expenses: Payment of any outstanding contractual or discretionary amounts.

Termination Documentation

  • Written Notice: Formal communication of the resignation.

  • Final Settlement Statement (Finiquito): A detailed breakdown of all final payments.

  • Social Security and Employment Office Notifications: This includes deregistration with Social Security and issuance of the "Certificado de Empresa" as final proof of end of employment.

Employer Termination With Cause in Spain

Acceptable grounds

  • Disciplinary Dismissal: This is for serious and culpable misconduct by the employee. Grounds include, but are not limited to:

    • Repeated and unjustified absences or lack of punctuality.

    • Insubordination or disobedience.

    • Verbal or physical offenses.

    • Breach of contractual good faith or abuse of trust.

    • Voluntary and continuous decrease in work performance.

    • Habitual drunkenness or drug addiction affecting work.

  • Objective Dismissal: This is for reasons unrelated to the employee's misconduct, and is typically based on economic, technical, organizational, or production-related causes affecting the company's viability.

Notice

Form

Written dismissal letter.

Notice period

  • Disciplinary Dismissal: No notice period is required. The termination is effective on the date the dismissal letter is delivered to the employee.

  • Objective Dismissal: A 15-calendar-day notice period is mandatory. This notice must be given in writing specifying the reasons for termination.

Payment in lieu of notice or notice waiver

For objective dismissals, the employer may choose to pay the salary for the 15-day notice period instead of having the employee work it. Disciplinary dismissals take effect immediately.

End-of-Service Benefits

Severance

  • Disciplinary Dismissal: No severance is required if the dismissal is deemed fair. However, if the employee challenges the dismissal and it is ruled unfair, they are entitled to severance.

  • Objective Dismissal: The employee is entitled to statutory severance of 20 days' salary for each year of service, capped at 12 months' salary. This severance must be paid at the time the notice is given.

  • Unfair Dismissal: If any dismissal (disciplinary or objective) is challenged and found to be unfair, the employer must choose between paying severance of 33 days' salary for each year of service (capped at 24 months' salary) or reinstating the employee.

Other Benefits

  • Prorated Salary: Compensation for days worked until termination date.

  • Accrued but Unused Leave Pay: Payment for unused annual leave.

  • Pro-rated Bonuses/Commissions/Expenses: Any due and unpaid amounts, subject to contract terms.

Termination Documentation

  • Dismissal letter stating the cause.

  • Final Settlement Statement (Finiquito) detailing all final payments.

  • Social Security Notifications, including deregistration and issuance of the "Certificado de Empresa" for the employee to apply for unemployment benefits.

Employer Termination Without Cause in Spain

Notice

Form

Written dismissal letter.

Notice period

15 calendar days.

Payment in lieu of notice or notice waiver

An employer can choose to provide payment in lieu of notice instead of the 15-day working period. The payment is for the salary corresponding to the missing days of notice.

End-of-Service Benefits

Severance

Employees are entitled to severance calculated at 20 days' salary per year of service, with a maximum of 12 months' salary. This payment must be made on the date of dismissal.

Other Benefits

  • Prorated Salary: Compensation for days worked until termination date.

  • Accrued but Unused Leave Pay: Payment for unused annual leave.

  • Pro-rated Bonuses/Commissions/Expenses: Any due and unpaid amounts, subject to contract terms.

Termination Documentation

  • Dismissal letter stating the cause.

  • Final Settlement Statement (Finiquito) detailing all final payments.

  • Social Security Notifications, including deregistration and issuance of the "Certificado de Empresa" for the employee to apply for unemployment benefits.

Mutual Termination Agreements in Spain

In Spain, MTAs are treated as voluntary resignations and are therefore not advisable, as the employee forfeits the right to unemployment benefits.

Notice

Form

Written agreement.

Notice period

15 days.

Waiver of notice

An employer can choose to provide payment in lieu of notice instead of the 15-day working period.

End-of-Service Benefits

Severance

Severance is negotiable.

Other Benefits

  • Prorated Salary: Compensation for days worked until termination date.

  • Accrued but Unused Leave Pay: Payment for unused annual leave.

  • Pro-rated Bonuses/Commissions/Expenses: Any due and unpaid amounts, subject to contract terms.

  • Unemployment Benefits: A mutually agreed-upon termination generally does not grant the employee the right to unemployment benefits. The employee's formal paperwork will state the reason for exit as "mutual agreement," which disqualifies them. Mutual Termination Agreements are not recommended for Spain as they may affect the employee's unemployment benefits.

Termination Documentation

  • Dismissal letter

  • Finiquito: Final settlement statement (salary, leave, severance, deductions).

  • Certificado de Empresa: Required for unemployment benefits (SEPE).

  • Social Security deregistration (Sistema RED).

  • Return of company property checklist.

Offboarding Process for the End of Fixed-term Contracts in Spain

If the Fixed-Term Contract Ends Normally

Notice

  • According to Article 49.1(c), if the contract has a duration of more than one year, there is an obligation to give 15 days’ notice by the employer (to the worker) before the end of the contract.
  • If the fixed-term contract lasts one year or less, the employer has no legal obligation to give notice when it ends on its agreed date, unless a collective agreement or the contract requires otherwise.

End-of-Service Benefits

Severance/Gratuity

  • An employee is entitled to an indemnización when a fixed-term contract ends because the agreed period expires or the assigned service is completed. This applies to all fixed-term contracts except interinidad (substitution) contracts and training contracts (contratos formativos).
  • The indemnización is calculated at 12 days of salary per year worked, prorated for shorter periods. Employers usually calculate the daily rate by dividing the monthly salary by thirty, unless a collective agreement or internal policy specifies a different method. The daily salary can include regular salary components but excludes exceptional bonuses or one-off extras.
  • Employees do not receive indemnización if the contract ends because of a voluntary resignation (baja voluntaria) or a valid disciplinary dismissal (despido procedente). In those situations, the contract simply ends without severance because the entitlement only applies when a contract expires naturally, not when it ends for cause or by the employee’s choice.

Other Benefits

At the end of the contract, the employer must settle all accrued entitlements. This includes:

  • Salary up to the end date, for days worked but not yet paid.
  • Pro rata of extra pay(s) (pagas extraordinarias), if they are not already prorrateadas (spread over the year in the monthly pay).
  • Payment for any unused vacation days (días de vacaciones no disfrutadas).
  • Other owed payments (overtime, bonuses, indemnities under contract or collective agreement, etc.), as applicable.

If the Employer Terminates Early

Notice

Form

Written Notice

Notice period

15 days’ notice

Payment in lieu of notice or notice waiver

Possible, the employer can pay in lieu of notice.

End-of-Service Benefits

Severance/Gratuity

The termination of a fixed-term contract entitles the employee to a statutory End-of-Service Benefit (indemnización) of 12 days' salary per year of service.

Other Benefits

Prorated Salary: Compensation for days worked until termination date.

  • Accrued but Unused Leave Pay: Payment for unused annual leave.
  • Pro-rated Bonuses/Commissions/Expenses: Any due and unpaid amounts, subject to contract terms.

Final Payment Timing & Immigration and Visa Compliance in Spain

Final Payment Deadline

Final payments must be completed on or before the last working day to avoid penalties.

Penalty

  • 10% penalty interest applies to delayed wage payments.
  • Labor court action is available to employees, potentially adding legal costs and enforcement orders.

Visa and Immigration Compliance

For non-EU employees, termination of employment also means the termination of their work permit and/or residence visa.

Key Elements of an Employment Contract in Spain
When drafting an employment contract for employees in Spain, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Get expert help hiring in Spain with RemotePass

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Spain.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

FAQs About Hiring in Spain

Got Questions? Find Answers Here

What are the extra summer and Christmas payments?

These are the 13th and 14th salary payments, commonly included in Spanish employment contracts. They're typically paid in summer (June/July) and before Christmas (December). You can either pay them as lump sums or prorate them across the 12 monthly payments. If prorated, the monthly minimum wage becomes €1,381.33 instead of €1,184.

What's the Beckham Law and who qualifies?

The Beckham Law allows eligible foreign workers to pay a flat 24% tax rate (instead of progressive rates up to 47%) for up to six years. To qualify, the employee must be a new tax resident in Spain, relocate for work, and not have been a Spanish tax resident in the previous 10 years. This makes Spain significantly more attractive for international talent.

Why aren't mutual termination agreements recommended in Spain?

Because Spain treats MTAs as voluntary resignations, which disqualifies employees from unemployment benefits. If you want to part ways, it's usually better to structure it as an employer-initiated termination so the employee keeps their benefits.

How much annual leave do employees get?

30 calendar days per year (approximately 22 working days in a five day week). At least one block must be taken as two consecutive weeks. If you and the employee can't agree on dates, labor authorities may decide.

Do both parents get parental leave?

Yes. Each parent gets 16 weeks of paid leave (100% funded by Social Security). The first six weeks must be taken immediately after birth, and the remaining 10 weeks are flexible within the child's first year.

How is severance calculated when I terminate without cause?

20 days' salary per year of service, capped at 12 months' salary. This must be paid on the date of dismissal along with 15 days' notice (or payment in lieu).

When must I pay final wages after termination?

On or before the employee's last working day. Late payments incur a 10% penalty interest and can result in labor court action.

Let’s Chat

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Spain

Spain, a prominent EU member, offers a dynamic labor market characterized by progressive labor laws, a robust social security system, and a rich cultural heritage. In 2025, Spain continues to be an attractive destination for businesses aiming to expand in Europe. Understanding local employment laws, tax obligations, and payroll practices is crucial for compliance and operational success.
Contractor Management
EOR
Payroll
Contractor of Record
العملة
Euro (EUR)
تردد الرواتب
Monthly
ضرائب أصحاب العمل
29.9%

نظرة عامة

التركيبة السكانية
~ 47 million
اللغة
Spanish
العاصمة
Madrid
العملة
Euro (EUR)
رمز الاتصال الدولي
+34
الحد الأدنى للأجور
€ 1,184 / month
ساعات العمل
8 hours per day
أيام الأسبوع
Monday to Friday
ساعات العمل اسبوعيا
40 hours

الرواتب

الموظفون برواتب ثابتة
الموظفون بنظام الأجر الزمني
13th Salary

Not mandatory; subject to employer discretion

متوسط ​​ضريبة صاحب العمل

29.90%

تحصيل الضرائب

Personal Income Tax (PIT):

Up to €12,450
19%
€12,450 – €20,200
24%
€20,200 – €35,200
30%
€35,200 – €60,000
37%
€60,000 – €300,000
45%
Above €300,000
47%

Corporate Income Tax (CIT):

Standard Rate
25%
Reduced Rate
15% for newly created companies during their first two years of profitability

Social Security Contributions:

Employee Contributions
6.48% of gross salary
Employer Contributions
30.57% of gross salary

ضريبة القيمة المضافة

ضريبة القيمة المضافة
  • The standard VAT rate in Spain is 21%
حساب الضريبة في Spain
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تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي
كيف تعمل الخدمة

عملية الانضمام

تشمل عملية التوظيف في Spain عادة الخطوات التالية لضمان انتقال سلس للموظفين الجدد:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

Register the employee with the Spanish Tax Agency (Agencia Tributaria) and the Social Security system

Payroll Setup

Ensure accurate calculation and withholding of taxes and social security contributions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

العناصر الأساسية في عقد العمل في Spain
عند إعداد عقد عمل للموظفين في Spain يجب تضمين العناصر الأساسية التالية:

Personal Details

Name, contact information, and role of the employee.

سياسات إجازات الموظفين

الإجازات المرضية
  • Paid by the employer for the first 3 days; thereafter, by Social Security at 60% of the employee's base salary
إجازة الأمومة
  • 16 weeks; fully paid by Social Security
إجازة الأبوة
  • 16 weeks; fully paid by Social Security

Parental Leave:

  • Up to 12 years; unpaid, with certain exceptions

Bereavement Leave:

  • 2 to 5 days, depending on the relationship

الإجازة السنوية
  • Minimum of 30 calendar days per year

12 عطلات رسمية في Spain

Note: Some holidays may be observed on different dates or may be extended, depending on regional regulations.

1st
New Year's Day
6th
Epiphany
17th
Maundy Thursday
18th
Good Friday
21st
Easter Monday
1st
Labor Day
15th
Assumption Day
12th
National Day of Spain
1st
All Saints' Day
6th
Constitution Day
8th
Immaculate Conception
25th
Christmas Day
  • 1 Jan: Friday, New Year's Day
  • 6 Jan: Wednesday, Epiphany
  • 2 Apr: Friday, Good Friday
  • 1 May: Saturday, Labor Day / May Day
  • 12 Oct: Tuesday, Hispanic Day
  • 6 Dec: Monday, Constitution Day Holiday
  • 8 Dec: Wednesday, Immaculate Conception
  • 25 Dec: Saturday Christmas Day

عملية إنهاء العقود

Notice Period

  • Employee-Initiated: 15 days
  • Employer-Initiated: 15 days to 3 months, depending on length of service

Severance Pay

Not mandatory; subject to employment agreements

Termination During Probation

Either party can terminate with 15 days' notice

Probation Period

  • Maximum Duration: 6 months
  • Extension: Permitted if agreed upon by both parties
  • Termination During Probation: Either party can terminate with 15 days' notice

Personal Details

Name, contact information, and role of the employee.

نمو سوق العمل عن بُعد _  

تحديات التوظيف عن بُعد في  _

تبسيط التوظيف عن بُعد في _ مع ريموت باس

نمِّ فريقك في Spain
مع ريموت باس

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

يصبح بناء فريق عالمي وتوسيعه مهمة سهلة مع ريموت باس. منصتنا تبسّط تعقيدات التوظيف والرواتب والامتثال القانوني في أكثر من 150 دولة، بما في ذلك Spain.

مع ريموت باس، يمكنك ضم الموظفين الدوليين بسرعة، وإدارة الرواتب، وضمان الامتثال القانوني، وتقديم مزايا تنافسية — كل ذلك من مكان واحد. ركّز على تنمية أعمالك، ودع المهام الإدارية والقانونية علينا.

تجربة مجانية لمدة 7 أيام

لا حاجة لبطاقة ائتمان

يمكنك الإلغاء في أي وقت

Hiring In Spain | Payroll, Tax & Employment Guide

Spain's Beckham Law offers major tax advantages for foreign workers. Combine that with competitive labor costs and a skilled workforce, and Spain is a strategic choice for a European base.

RemotePass makes hiring in Spain simple. We handle compliance, contracts, and payroll so you can focus on growing your team.

Key Takeaways For Hiring in Switzerland

  • Employees receive 30 calendar days of paid annual leave per year, plus up to 14 public holidays depending on the region.
  • Monthly payroll is standard, and Spain commonly uses extra summer and Christmas payments, unless prorated.
  • Employer social contributions are high, averaging around 29.9%, while employees contribute about 6.35% to 6.40%.
  • Both parents receive sixteen weeks of paid parental leave funded by Social Security.

Quick Facts For Hiring In Spain

Continent
Europe
Capital
Madrid
Currency
Euro (EUR, €)
Language
Spanish (Castilian), plus regional co-official languages such as Catalan, Basque, Galician
Payroll Cycle
Monthly
Pay Date
27th of the month If the 27th falls on a weekend or public holiday, payment is made one banking day earlier.

Spain Employment Contract Overview

A clear written contract is essential when hiring in Spain. Here’s a quick overview of the core terms that typically shape employment agreements.

Contract Type
Fixed-term / Open-ended (Fixed-term contracts must have a legally justified reason, otherwise they may be treated as indefinite.)
Local Language Required?
Yes
Bilingual?
Yes
Probation Period
Technicians (titulados): up to six months
Other roles: up to two months
Companies with fewer than 25 employees (non-technicians): up to three months
Minimum Paid Time Off
30 calendar days of paid annual leave (approximately 22 working days in a five-day workweek)
Public Holidays
14 public holidays per year (eight national, plus regional and municipal holidays depending on location)
Notice Period
Minimum of 15 calendar days

What Do You Need To Include In A Spanish Employment Contract?

Every Spanish contract must outline the essential terms of employment so expectations are transparent and compliant with Spanish labor law.

Employee Information

  • Full name
  • ID number
  • Role / Job title
  • Start date
  • Contract duration
  • Working hours
  • Probation and notice conditions
  • Termination provisions
  • Compensation details

How Does Payroll and Taxation Work in Spain?

Spanish employment contracts must clearly outline key terms so both employer and employee start on the same page. Your contract should include the following essentials.

Payroll Setup

Salary currency

Euro (EUR, €)

Minimum Wage

As of January 1, 2025, the Statutory Minimum Wage (SMI) is €1,184 gross per month across 14 payments, totaling €16,576 gross per year.

€1,381.33 per month if prorated across 12 months, including extra payments.

Hours per Week

Up to 40 hours per week, with a routine limit of nine hours per day.

Payroll Frequency

Monthly

Weekdays

Monday through Friday

Mandatory Bonuses

Summer and Christmas payments (13th and 14th salary) are common unless the contract or collective agreement states otherwise.

Gross Salary Structure

Gross salary does not follow a standardized structure in Spain.

What Payroll Taxes Do Employers Pay in Spain?

Employer cost % (estimate):


Employer Cost %

Contributions Breakdown

Common Contingencies (healthcare, pension, etc.):

23.60%

Professional Contingencies (work accidents and occupational illness):

Fully paid by employer; rate depends on industry risk (1.5% to 7.5%)

Unemployment Insurance:

5.50% (indefinite contracts)

Training (Professional Development):

0.60%

FOGASA (Wage Guarantee Fund):

0.20%

What Payroll Taxes Do Employees Pay in Spain?

Individual Income Tax

Spain applies two separate tax categories for income:

  • General Income (Renta General): wages, self-employment income, pensions, rental income, royalties, and similar earnings.

  • Savings Income (Renta del Ahorro): interest, dividends, capital gains, annuities, life insurance payouts, etc.

Social Contributions


Common contingencies(healthcare, pension, etc.):

4.70%

Unemployment Insurance(varies by contract type):

1.55%

Training (Professional Development):

0.10%

FOGASA (Wage Guarantee Fund):

0.20%

General Income Tax Rates (2025)

General income is taxed under a national and regional progressive system, so effective rates vary by autonomous community.

State (National) Rates:

Income Bracket Tax Rate
Up to €12,450

19%

€12,451–€20,200

24%

€20,201–€35,200

30%

€60,001–€300,000

45%

These are combined with each region’s tax rates, which differ.

Savings Income Tax Rates (2025)

For savings-related income, the progressive rates are:

Income Bracket Tax Rate
Up to €6,000

19%

€6,000 – €50,000

21%

€50,000 – €200,000

23%

€200,000 – €300,000

27%

Over €300,000

30%

حاسبة تكلفة التوظيف

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تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي

Mandatory Employee Benefits in Spain

The system also funds unemployment benefits and additional social safety nets.

Benefits Provider Mandatory? Notes
Health Insurance Government

Payroll Contributions

All employees who contribute to Social Security automatically access the public healthcare system (Sistema Nacional de Salud).

This includes primary care, specialist care, and hospital services with no point-of-service charges.

Private health insurance is optional and often offered by employers to provide faster access or broader coverage, particularly for expats.

Pension/Social Security Government

Payroll Contributions

Employers and employees must contribute to Spain’s Social Security system, which covers healthcare, pensions, unemployment, disability, and other social protections.

The system also funds unemployment benefits and additional social safety nets.

Leave And Holiday Entitlement In Spain

Annual leave

Employees receive a minimum of 30 calendar days of paid annual leave each year, which typically equals 22 working days in a standard five-day workweek.

At least one block of leave must be taken in two consecutive weeks.

Employees and employers must agree on leave dates. If they cannot reach an agreement, labor authorities may decide the schedule.

Public holidays

Employees are entitled to paid leave on up to 14 public holidays per year. These include a mix of:

  • Eight national holidays

  • Regional holidays

  • Local/municipal holidays

The exact list depends on the employee’s work location.

Sick Leave

Employees receive paid sick leave as follows:

  • Days one to three: Usually unpaid (some employers may choose to pay).

  • Days four to 20: Paid at 60% of the employee’s base salary (paid by employer or Social Security depending on timing).

  • Day 21 onward: Paid at 75% of base salary, funded by Social Security.

Sick leave can last up to 365 days, with a possible 180-day extension in certain medical cases.

Parental Leave (Maternity and Paternity Leave)

Each parent is entitled to 16 weeks of paid leave for childbirth, adoption, or foster care.

Six weeks must be taken immediately after birth.

The remaining 10 weeks are flexible and can be taken anytime within the child’s first year.

Leave may be extended to 18 weeks for multiple births or child disability.

Parental leave is 100% paid by Social Security.

Breastfeeding Leave: One hour per day (or two 30minute breaks) until the child reaches nine months.

Other Types of Leave

Employees are also entitled to:

  • Marriage Leave: 15 calendar days

  • Bereavement Leave: Two to four calendar days depending on circumstances such as travel

  • Moving Leave: One day

  • Public or Personal Duties: Paid time as required (e.g., jury duty, exams, union responsibilities)

  • Force Majeure Leave: Up to four days of paid “climate leave” for extreme weather or emergencies, with possible temporary reduced hours

Termination and Offboarding in Spain

Type Possible?
Termination for Cause (poor performance, misconduct, etc.) Yes
Termination without Cause Yes
Mutual Termination Agreement (MTA) Yes, but not recommended. In Spain, MTAs are treated as voluntary resignations and are therefore not advisable, as the employee forfeits the right to unemployment benefits.
Redundancy Not possible under the EOR setup

Employee Resignations

Employee
Resignations

 Termination with Cause

Termination
with Cause

Termination without Cause

Termination
without Cause

Mutual Termination Agreement

Mutual Termination
Agreement

 Fixed Term Contract

Fixed Term
Contract

Spain Employee Resignation

Notice

Form

Written notice through a signed letter which should state clearly:

  • The employee’s name and ID number.

  • The position they hold.

  • The date the letter was written.

  • The effective date of the resignation.

  • The employee's signature.

Notice period

  • During probation: No notice period needed

  • After probation: 15 days or any other contractually agreed notice period

Payment in lieu of notice or notice waiver

Payment in lieu of notice is not allowed because it affects the final payment process. All final dues must be settled before the employee’s last working day, so the last working date must be confirmed in advance.

End-of-Service Benefits

Severance/Gratuity

Severance is not applicable for resignation.

Other Benefits

  • Prorated Salary: Payment for all days worked up to the termination date.

  • Prorated Leave Pay: Compensation for any accrued but unused annual leave.

  • Prorated Bonuses/Commissions/Expenses: Payment of any outstanding contractual or discretionary amounts.

Termination Documentation

  • Written Notice: Formal communication of the resignation.

  • Final Settlement Statement (Finiquito): A detailed breakdown of all final payments.

  • Social Security and Employment Office Notifications: This includes deregistration with Social Security and issuance of the "Certificado de Empresa" as final proof of end of employment.

Employer Termination With Cause in Spain

Acceptable grounds

  • Disciplinary Dismissal: This is for serious and culpable misconduct by the employee. Grounds include, but are not limited to:

    • Repeated and unjustified absences or lack of punctuality.

    • Insubordination or disobedience.

    • Verbal or physical offenses.

    • Breach of contractual good faith or abuse of trust.

    • Voluntary and continuous decrease in work performance.

    • Habitual drunkenness or drug addiction affecting work.

  • Objective Dismissal: This is for reasons unrelated to the employee's misconduct, and is typically based on economic, technical, organizational, or production-related causes affecting the company's viability.

Notice

Form

Written dismissal letter.

Notice period

  • Disciplinary Dismissal: No notice period is required. The termination is effective on the date the dismissal letter is delivered to the employee.

  • Objective Dismissal: A 15-calendar-day notice period is mandatory. This notice must be given in writing specifying the reasons for termination.

Payment in lieu of notice or notice waiver

For objective dismissals, the employer may choose to pay the salary for the 15-day notice period instead of having the employee work it. Disciplinary dismissals take effect immediately.

End-of-Service Benefits

Severance

  • Disciplinary Dismissal: No severance is required if the dismissal is deemed fair. However, if the employee challenges the dismissal and it is ruled unfair, they are entitled to severance.

  • Objective Dismissal: The employee is entitled to statutory severance of 20 days' salary for each year of service, capped at 12 months' salary. This severance must be paid at the time the notice is given.

  • Unfair Dismissal: If any dismissal (disciplinary or objective) is challenged and found to be unfair, the employer must choose between paying severance of 33 days' salary for each year of service (capped at 24 months' salary) or reinstating the employee.

Other Benefits

  • Prorated Salary: Compensation for days worked until termination date.

  • Accrued but Unused Leave Pay: Payment for unused annual leave.

  • Pro-rated Bonuses/Commissions/Expenses: Any due and unpaid amounts, subject to contract terms.

Termination Documentation

  • Dismissal letter stating the cause.

  • Final Settlement Statement (Finiquito) detailing all final payments.

  • Social Security Notifications, including deregistration and issuance of the "Certificado de Empresa" for the employee to apply for unemployment benefits.

Employer Termination Without Cause in Spain

Notice

Form

Written dismissal letter.

Notice period

15 calendar days.

Payment in lieu of notice or notice waiver

An employer can choose to provide payment in lieu of notice instead of the 15-day working period. The payment is for the salary corresponding to the missing days of notice.

End-of-Service Benefits

Severance

Employees are entitled to severance calculated at 20 days' salary per year of service, with a maximum of 12 months' salary. This payment must be made on the date of dismissal.

Other Benefits

  • Prorated Salary: Compensation for days worked until termination date.

  • Accrued but Unused Leave Pay: Payment for unused annual leave.

  • Pro-rated Bonuses/Commissions/Expenses: Any due and unpaid amounts, subject to contract terms.

Termination Documentation

  • Dismissal letter stating the cause.

  • Final Settlement Statement (Finiquito) detailing all final payments.

  • Social Security Notifications, including deregistration and issuance of the "Certificado de Empresa" for the employee to apply for unemployment benefits.

Mutual Termination Agreements in Spain

In Spain, MTAs are treated as voluntary resignations and are therefore not advisable, as the employee forfeits the right to unemployment benefits.

Notice

Form

Written agreement.

Notice period

15 days.

Waiver of notice

An employer can choose to provide payment in lieu of notice instead of the 15-day working period.

End-of-Service Benefits

Severance

Severance is negotiable.

Other Benefits

  • Prorated Salary: Compensation for days worked until termination date.

  • Accrued but Unused Leave Pay: Payment for unused annual leave.

  • Pro-rated Bonuses/Commissions/Expenses: Any due and unpaid amounts, subject to contract terms.

  • Unemployment Benefits: A mutually agreed-upon termination generally does not grant the employee the right to unemployment benefits. The employee's formal paperwork will state the reason for exit as "mutual agreement," which disqualifies them. Mutual Termination Agreements are not recommended for Spain as they may affect the employee's unemployment benefits.

Termination Documentation

  • Dismissal letter

  • Finiquito: Final settlement statement (salary, leave, severance, deductions).

  • Certificado de Empresa: Required for unemployment benefits (SEPE).

  • Social Security deregistration (Sistema RED).

  • Return of company property checklist.

Offboarding Process for the End of Fixed-term Contracts in Spain

If the Fixed-Term Contract Ends Normally

Notice

  • According to Article 49.1(c), if the contract has a duration of more than one year, there is an obligation to give 15 days’ notice by the employer (to the worker) before the end of the contract.
  • If the fixed-term contract lasts one year or less, the employer has no legal obligation to give notice when it ends on its agreed date, unless a collective agreement or the contract requires otherwise.

End-of-Service Benefits

Severance/Gratuity

  • An employee is entitled to an indemnización when a fixed-term contract ends because the agreed period expires or the assigned service is completed. This applies to all fixed-term contracts except interinidad (substitution) contracts and training contracts (contratos formativos).
  • The indemnización is calculated at 12 days of salary per year worked, prorated for shorter periods. Employers usually calculate the daily rate by dividing the monthly salary by thirty, unless a collective agreement or internal policy specifies a different method. The daily salary can include regular salary components but excludes exceptional bonuses or one-off extras.
  • Employees do not receive indemnización if the contract ends because of a voluntary resignation (baja voluntaria) or a valid disciplinary dismissal (despido procedente). In those situations, the contract simply ends without severance because the entitlement only applies when a contract expires naturally, not when it ends for cause or by the employee’s choice.

Other Benefits

At the end of the contract, the employer must settle all accrued entitlements. This includes:

  • Salary up to the end date, for days worked but not yet paid.
  • Pro rata of extra pay(s) (pagas extraordinarias), if they are not already prorrateadas (spread over the year in the monthly pay).
  • Payment for any unused vacation days (días de vacaciones no disfrutadas).
  • Other owed payments (overtime, bonuses, indemnities under contract or collective agreement, etc.), as applicable.

If the Employer Terminates Early

Notice

Form

Written Notice

Notice period

15 days’ notice

Payment in lieu of notice or notice waiver

Possible, the employer can pay in lieu of notice.

End-of-Service Benefits

Severance/Gratuity

The termination of a fixed-term contract entitles the employee to a statutory End-of-Service Benefit (indemnización) of 12 days' salary per year of service.

Other Benefits

Prorated Salary: Compensation for days worked until termination date.

  • Accrued but Unused Leave Pay: Payment for unused annual leave.
  • Pro-rated Bonuses/Commissions/Expenses: Any due and unpaid amounts, subject to contract terms.

Final Payment Timing & Immigration and Visa Compliance in Spain

Final Payment Deadline

Final payments must be completed on or before the last working day to avoid penalties.

Penalty

  • 10% penalty interest applies to delayed wage payments.
  • Labor court action is available to employees, potentially adding legal costs and enforcement orders.

Visa and Immigration Compliance

For non-EU employees, termination of employment also means the termination of their work permit and/or residence visa.

Key Elements of an Employment Contract in Spain
When drafting an employment contract for employees in Spain, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

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FAQs About Hiring in Spain

Got Questions? Find Answers Here

What are the extra summer and Christmas payments?

These are the 13th and 14th salary payments, commonly included in Spanish employment contracts. They're typically paid in summer (June/July) and before Christmas (December). You can either pay them as lump sums or prorate them across the 12 monthly payments. If prorated, the monthly minimum wage becomes €1,381.33 instead of €1,184.

What's the Beckham Law and who qualifies?

The Beckham Law allows eligible foreign workers to pay a flat 24% tax rate (instead of progressive rates up to 47%) for up to six years. To qualify, the employee must be a new tax resident in Spain, relocate for work, and not have been a Spanish tax resident in the previous 10 years. This makes Spain significantly more attractive for international talent.

Why aren't mutual termination agreements recommended in Spain?

Because Spain treats MTAs as voluntary resignations, which disqualifies employees from unemployment benefits. If you want to part ways, it's usually better to structure it as an employer-initiated termination so the employee keeps their benefits.

How much annual leave do employees get?

30 calendar days per year (approximately 22 working days in a five day week). At least one block must be taken as two consecutive weeks. If you and the employee can't agree on dates, labor authorities may decide.

Do both parents get parental leave?

Yes. Each parent gets 16 weeks of paid leave (100% funded by Social Security). The first six weeks must be taken immediately after birth, and the remaining 10 weeks are flexible within the child's first year.

How is severance calculated when I terminate without cause?

20 days' salary per year of service, capped at 12 months' salary. This must be paid on the date of dismissal along with 15 days' notice (or payment in lieu).

When must I pay final wages after termination?

On or before the employee's last working day. Late payments incur a 10% penalty interest and can result in labor court action.

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