Hire and pay employees in
Spain, hassle-free

With Deel, your business can easily hire employees in Spain. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in Spain is 4 days with Deel.

Currency

Euro (EUR)

Capital

Madrid

Official Language

Spanish

Payroll Cycle

Monthly

Onboard, pay and manage employees in Spain with Deel.

Usually, to hire in Spain, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

Deel lets you hire employees in Spain quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.

Download the Guide

All the necessary benefits for Spain
built right in

Deel allows you to provide localized benefits for employees in Spain within minutes. All in one manageable online dashboard.

  • Work From Home Allowance
  • Private Healthcare - Unisure (optional)
  • Private Healthcare - Alan
  • Private Healthcare - Allianz (optional)
  • Flexible Renumeration (Meal allowance and flexible spending allowance) (optional)
  • Global Life Insurance - Allianz
  • Flexible Retribution (Pension Insurance) through Cobee

Our quickstart guide to hiring in Spain

Navigate the tabs below to learn everything you need to know about hiring an employee in Spain

Minimum Wage Requirements

The Minimum Wage is €1,262.28  per month as set out in the Deel collective bargaining agreement (CBA).

Individual Income Tax

The individual income tax ranges from 19% to 45%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.

Income per year in EUR Tax Rate (%)
0 to 12,450 19%
12,451 to 20,200 24%
20,201 to 35,200 30%
35,201 to 60,000 37%
60,000 and up 45%

Payroll Cost

The employer cost is generally estimated at 31.98% of the employee salary. 

Monthly Costs

  • Common Contingencies - 24.18%* 
  • Unemployment - 5.50%*
  • Social Fund for the Guarantee of Salaries - 0.20%*
  • Temporary Diseases and Incapacity, Death and Survival - 1.50%*
  • Professional Education - 0.60%*
  • WFH Office Allowance - 50.00 EUR
  • Mandatory Disability Fund Contribution - EUR 41
  • 13th salary - 1/12 of 1 month's salary
  • 14th salary - 1/12 of 1 month's salary

*Up to a maximum salary for the contribution of EUR 4,720.50

Annual Costs

PRL Training - EUR 11

Medical Exam - EUR 80.00 (bi-annual)

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day, 40 hours per week (1800 hours per year). The standard workweek is from Monday to Friday.

Unless there is an agreement in place, employees can work no more than 9 hours per day. Employees can work a maximum of 80 hours a year in overtime.

Overtime payment is mandatory and may be included in the salary. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 80 hours of overtime.

Maternity Leave

Maternity and Paternity leave in Spain is combined under Permiso de Nacimiento. Each parent can take up to 16 weeks off for Maternity / Paternity Leave. It is compulsory for both parents to take off the first 6 weeks after the birth of the child. 
The INSS (Instituto Nacional de la Seguridad Social) pays for the parental leave at 100% of the employees regular salary up to the maximum social security base of 4495.50€ per month, if the employee has applied for the benefit and been accepted. In order to be eligible employees must have contributed to Social Security for at least 6 months during the last 7 years.

Rules about breastfeeding hours:
Employees who are breastfeeding a child under the age of nine months shall be entitled to one hour of absence from work at a time of their choice, which may be divided into two periods, one at the beginning and the other at the end of the workday. This leave may be taken by either the mother or the father if both are working.
Employees may replace this right by a half-hour reduction of their working day for the same purpose, or alternatively, at the employee's discretion, by a paid leave of 15 calendar days following maternity leave.

Parental Leave

Maternity and Paternity leave in Spain is combined under Permiso de Nacimiento. Each parent can take up to 16 weeks off for Maternity / Paternity Leave. It is compulsory for both parents to take off the first 6 weeks after the birth of the child.  The INSS (Instituto Nacional de la Seguridad Social) pays for the parental leave at 100% of the employee salary up to to 4,720.50 per month, if the employee has applied for the benefit and been accepted. In order to be eligible employees must have contributed to Social Security for at least 6 months during the last 7 years.

Sick Leave

Employees are entitled to paid sick leave for up to 365 days if they have contributed to Social Security for 180 days in the last 5 years. Employees have the option to extend sick leave an additional 180 days. If the employee has not contributed to Social Security for 180 days in the last 5 years, the employee may be on medical leave without being paid.

The first 3 days are unpaid and considered as a qualifying period. This leave is paid at different rates and by different payers depending upon length:

Period Pay Payer
0 - 3 days 0% N/A
4 - 15 days 60% of salary Employer
16-20 days 60% of salary Social Security
21 - 30 days 75% of salary Social Security
30- 365 days 100% of salary 75% Social Security / 25% Employer

Termination Requirements

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in Spain can be complex. There is no at-will termination in Spain for employers outside the probation period and termination must be done for just cause.

Compliant terminations include:

  • Voluntarily by the employee
  • By mutual agreement
  • Unilaterally by the employer based on:
    • probation period
    • objective grounds
    • disciplinary dismissal
    • performance due to unsuitability for the job
  • By the expiration of the contract

Notice Period

The minimum notice period is 15 days, though it may be longer in certain circumstances. During the probation period or for disciplinary terminations there is no notice period.

Severance for Employees

 

  • Non-voluntary dismissal by an employer for non-disciplinary reasons: 20 days of salary per year of service. (proportional if less than <1 year)

Paid Time Off

Both full-time and part-time employees are entitled to 23 days of paid time off (PTO) a year. PTO accrues monthly 1.92 days per month. Employees are eligible for annual leave after 1 month of work.

Workers, with prior notice and justification, may be absent from work, with the right to remuneration, for any of the reasons and for the following time:
a) Fifteen calendar/natural days in case of marriage.
b) According to article 37.3.b of the Workers' Statute, «Two days for the birth of a child and for the death, accident or serious illness, hospitalization or surgical intervention without hospitalization that requires home rest, of relatives up to the second degree of consanguinity or affinity. When for this reason the worker needs to travel for this purpose, the term shall be four days».
c) Four days in cases of death of a spouse, parents or children, including possible displacements during this time.
d) One day for transfer of habitual residence (moving)

Public Holidays

Public Holidays vary by region (municipality) in Spain. Each municipality is allowed to have 14 bank holidays per year. These include:

  • 10 bank holidays set by the Spanish government
  • 2 regional holidays set by the local government
  • 2 municipal holidays set by the town hall

The national public holidays in Spain are:

  • New Year's Day
  • Epiphany of the Lord
  • Good Friday
  • Labor Day
  • Assumption of our Lady
  • Fiesta de la Hispanidad
  • November 1: All Saint's Day
  • Spanish Constitution Day
  • Immaculate Conception
  • Christmas Day

Regional holidays vary. you can find additional information about regional holidays here.

Onboarding

Onboarding takes 3 business days. 

Employment Contract Details

Contracts must be in Spanish and can be bilingual. They must be in writing and signed by both parties.

Contracts must include:

  • Name and surname
  • Number DNI / NIE
  • Address
  • Job category
  • Salary
  • Holidays a year
  • Contract start date
  • Type and duration of the contract
  • Contract hours
  • The collective agreement of the company

Probation Period

Probation periods are not mandatory. There is no minimum probation period and the maximum probation period is 180 days.

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Hiring in Spain, hassle-free

With Deel, your business can easily hire employees in Spain with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Spain and 150+ countries.

Group (8)

Starting at 599 USD

Management fee

Group (9)

31.98%

Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in Spain?

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