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
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
Talent pool strengths
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.