Europe · EUR

Hire in Spain

Kingdom of Spain — 47.5 million population, $30,110 GDP per capita. Everything you need to know about employment law, tax, compliance and hiring in Spain.

Capital

Madrid

Currency

Euro (EUR)

Languages

Spanish, Catalan, Basque, Galician

Time zones

UTC+1 (CET) / UTC+2 (CEST)

Hiring overview

Typical time to hire
2-4 weeks for contractor, 4-6 weeks for full-time
Entity requirement
Spanish SL (Sociedad Limitada) or SA. Registration at Registro Mercantil.
EOR available
Yes — from $399/employee/month through a Corpshore entity
Contractor of record
Yes — from $39/worker/month

Employment law

Standard workweek
40 hours
Maximum weekly hours
40 hours
Minimum annual leave
22 working days (30 calendar days)
Public holidays
14 per year
Maternity leave
16 weeks, fully paid
Paternity leave
16 weeks, fully paid (equal since 2021)
Notice period
15 days (statutory); collective agreements may specify up to 1-3 months
Severance
20 days per year (objective dismissal, up to 12 months) or 33 days per year (unfair dismissal, up to 24 months)
Probation
2 months (6 months for degree-holders; varies by collective agreement)
Overtime rules
Maximum 80 overtime hours per year. No mandatory premium by statute; typically 25-75% per agreement.

Tax overview

Income tax range
19% to 47% (state + regional, varies by autonomous community)
Corporate tax
25%
Social contributions
Employer: ~30%. Employee: ~6.5%.
VAT / GST
21% (standard); 10% reduced; 4% super-reduced
Tax year
Calendar year (Jan-Dec)
Treaty network
Over 90 tax treaties

Compliance landscape

Worker classification
Estatuto de los Trabajadores defines employment broadly. The 'Riders Law' (2021) created a presumption of employment for platform delivery workers. RETA regime for genuine self-employed (autonomos).
Data protection
GDPR + LOPDGDD (Ley Organica 3/2018). AEPD enforces. Active in enforcement, including significant fines against tech companies.
Right to work
EU nationals: free movement. Non-EU: work permit required. Digital nomad visa introduced in 2023.
Non-compete
Enforceable if compensated, limited to 2 years (degree-holders) or 6 months (others), and protects a genuine interest.
Collective bargaining
Strong sector-level system. Collective agreements (convenios colectivos) are binding and published in the BOE. The 2022 labour reform restored sector agreements' primacy over company-level ones.

Payment rails

Bank transfer (SEPA)
Stripe Connect
Wise

SEPA is standard. Bizum (bank-to-bank mobile payments) is widely used in Spain. Monthly payroll plus two extra payments (pagas extras) in June and December.

Key considerations for hiring

  • Two extra monthly payments (pagas extras) are standard: 14 monthly payments per year
  • 2022 labour reform made indefinite contracts the default, limiting temporary contracts
  • Digital nomad visa (2023) makes Spain attractive for remote international workers
  • Barcelona and Madrid are major European tech hubs with lower costs than London or Paris

Business and cultural context: Spain

Business culture

Relationship-oriented with later working hours than northern Europe. Lunch break is significant (2-3pm). Personal trust precedes business deals. Regional identity (Catalan, Basque, Galician) matters in local business.

Key industries

Tourism
Automotive
Renewable energy
Agriculture
Technology
Financial services

Talent pool strengths

Software engineering
Renewable energy engineering
Tourism management
Design
Multilingual customer support

Historical context

Spain's 2022 labour reform was the most significant since the 1980 Estatuto de los Trabajadores, driven by the EU's pandemic recovery fund conditionality. It slashed temporary employment from ~25% to ~15% by making indefinite contracts the default and restricting fixed-term use.

Ready to hire in Spain?

Use our EOR service from $399/month and we handle employment law, payroll, tax and compliance in Spain for you.

Hire in Spain — employment law, tax, compliance | Corpshore Work