As of March 2024, the estimated population of Spain is 47,519,628 people.
The currency in Spain is the Euro (EUR). The currency symbol is €.
Spain's law regulates whether contracts can be concluded for a definite period or whether they must be indefinite in term. In the absence of any formal agreement, the default form of employment is indefinite. Employees in Spain acquire permanent status when they are hired under 2 or more temporary contracts for longer than 24 months within a 30-month period. This status is acquired whether the work is continuous or with interruption and whether it is in the same or a different position with a given company or group of companies. The acquisition of permanent status also applies regardless of whether the employees are hired directly or assigned through a temporary employment agency and whether they are hired under the same or different temporary contract arrangements. A permanent contract is concluded with no limits on the provision of services and is considered to exist once any trial or probationary period has expired. Severance pay for improper dismissal of indefinite contracts is 33 days of salary for each year worked up to a maximum of 24 months of salary.
Employment contracts may be concluded orally or in writing. Employment relationships will be presumed to exist between any party who provides a service to an organization and the counterpart who receives the service in exchange for a fee. When the employment relationship lasts more than four weeks, the employer must inform the worker in writing, and under the terms and deadlines established by law, of the essential contract terms and conditions for the performance of the work (provided that such elements and conditions do not appear in the employment contract formalized in writing). Essential employment conditions include the following: Working hours Schedule Shift work regime Remuneration system Work and performance system. The employer must also notify the employee of any modifications to the above working conditions.
Spain's law provides that employees lent by temporary agencies to third-party user companies should have the same essential employment conditions as if they had been directly contracted by the company for which they work. Additionally, these employees should also enjoy the same protections in relation to pregnancy and discrimination. The law also stipulates that temporary agency employees are entitled to use the transportation, nursery, and other services of the company for which they work. Finally, Spain's law establishes the temporary employee's right to be informed of job vacancies at the company for which they are working. Temporary employees may be hired only for the following reasons: When the employee is hired to carry out a specific work or service When market circumstances, accumulation of tasks, or excess orders so require When replacing employees who have the right to return to their jobs
A probationary period may be arranged in writing, subject to duration limits established in collective agreements. In the absence of duration limits set in a collective agreement, the probationary period's duration may not exceed 6 months for qualified technicians and two months for other employees. In companies with fewer than 25 employees, the probationary period may not exceed 3 months for employees who are not qualified technicians. In the case of temporary contracts of a fixed duration concluded for a period not exceeding 6 months, the probationary period may not exceed one month unless otherwise provided in a collective agreement. Training contracts may not include a probationary period. The agreement that establishes a probationary period will be null and void if the employee has already previously held the same position in the company under any type of contract.
Spain's regulations on work hours state that employees must: Not work more than 40 hours a week (based on an annual average) Not work more than nine hours a day Be given at least 12 hours of rest before starting work the next day. Remote Work Spain defines remote work as work conducted by an employee outside the workplace for at least 30% of the work day, occurring over a minimum period of 3 months. The employee and employer must meet certain conditions for remote work to take place.
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In Spain, employees are entitled to a period of paid annual leave that cannot be substituted by financial compensation and must be agreed to in the employee's collective agreement or individual contract. In no case can the duration of paid annual leave be less than 30 calendar days (equivalent to 22 business days of leave). The leave period will typically be set by mutual agreement between the employer and the employee in accordance with the provisions (where appropriate) of any collective agreements on annual vacation planning.
In Spain, the maximum duration of sick leave is 12 months (365 days). However, it can be extended another six months (180 days) if a cure is foreseen in this latter period. The law distinguishes between common illnesses and occupational illnesses. The latter refers to a chronic ailment that occurs as a result of work or occupational activity. A public medical practitioner must examine employees who suffer from a temporary incapacity to work. The practitioner fills out a medical report and submits it to the INSS (National Social Security Institute) where it will then be transmitted to the employer. During the first three days of illness, the worker is usually compensated by the employer, although the law does not mandate that the employer pay the employee during this time. From day four to day 20, the employee receives 60% of their regular wage, and after day 20, they receive 75% of their regular wage. From day four to day 15, the employer is liable to pay the wage, and after day 16, it is funded by the INSS (Spanish Social Security System). Collective agreements may have different sick leave arrangements.
In Spain, employees are entitled to 19 weeks of maternity leave (plus 2 additional weeks in the case of multiple births). The maternity leave period should be enjoyed continuously and is independent of any leave taken to attend medical examinations or due to a health risk during pregnancy. The mother may choose to begin maternity leave up to 4 weeks before the child is born, and at least 6 weeks must be utilized immediately after childbirth. If both the mother and father work, the mother may grant part of her maternity leave to the father, provided that she enjoys a minimum of 6 weeks postpartum and that her returning to work does not constitute a risk to her health. In cases of adoption and foster care, both pre-adoptive and permanent, of minors up to six years of age, the suspension will have a duration of 19 uninterrupted weeks and is extendable in cases of multiple adoptions. Under Spain's current law, women can transfer up to 10 weeks of leave to the father. Single parents are entitled to 32 weeks of leave, equal to the combined leave that a two-parent family would receive.
In Spain, fathers are entitled to 19 weeks of paid paternity leave. The Spanish social security system provides leave at 100% of covered pay. Leave can be taken either on a full or part-time basis, at a minimum rate of 50% of regular working time. 2 days of birth leave (separate from the paternity leave and paid for by the employer) are also provided to new fathers, with an extra 2 weeks added for multiple births, adoptions, or foster care. Single parents are entitled to 32 weeks of leave, equal to the combined leave that a two-parent family would receive. The first 6 weeks of the leave must be taken continuously after birth. The remaining 10 weeks may be interrupted and begin on the expiration of the mandatory leave after birth until the child turns 12 months old.
Individual dismissals on objective grounds are subject to a notice period of 15 days, while no notice is required for dismissals on disciplinary grounds. Where notice periods apply, the employer can also decide to pay in lieu of notice. In case of termination of fixed-term employment contracts with a duration exceeding one year, the employer must generally give a minimum notice period of 15 days in advance of the termination date. If an employee resigns, regardless of whether they were hired under an open-ended or fixed-term contract, they must give the employer the notice defined by any applicable collective agreement or by custom and practice in the workplace concerned (generally, the notice period ranges from 15 days to one month, though some collective agreements require a notice period of three months).
In Spain, in the event of dismissal for an objective reason (economic or organizational reasons, worker's capacity, etc.), an employee receives severance pay when the written contract termination notice is delivered. The amount of severance pay varies depending on the category of dismissal. Objective dismissal: A tax-free payment is provided in the amount of 20 days' salary per year of service, up to 12 months' salary. Disciplinary dismissal: If the dismissal is proven in court to be fair, the employee is entitled to no severance. If it is deemed unfair, the appropriate tax-free severance is 33 days' salary per year of service up to 24 months' pay.
In Spain, employees who have reached the statutory retirement age and have paid social security contributions for the necessary number of years (at least 15 years, two of which must be immediately preceding their retirement) are eligible for an old-age pension. The current retirement age limit is 65 years. The pension amount is based on the insured's average earnings over a 25-year reference period. For the first 15 years of insurance contributions, the pension is 50%, plus 0.21% for each additional month of contributions up to 146 additional months and 0.19% for each extra month from 147 to 251 months. Beyond that, the pension is paid at 100% of the insured's average earnings. Starting in 2026, Spain will calculate retirement pensions using two parallel systems and automatically apply whichever yields the higher benefit, but the existing method, based on the last 25 years of contributions, remains in force. The maximum benefit for 2025 is EUR 3,267.60 (Euros) per month and 45,746.40 (Euros) per year, paid in 14 payments. Currently, the minimum pension is EUR 15,786.40 per year with a dependent spouse, EUR 12,241.60 per year without a spouse, and EUR 11,620.00 per year with a non-dependent spouse.
In Spain, the law provides survivors benefits that become payable if the deceased worker was registered with a social security scheme (or an equivalent) and had paid contributions for at least 500 days in the five calendar years before their death (or a total of 15 years of contributions). No contributions are required for the orphan's pension or if the deceased was a pensioner. Survivors include the insured's widow(er) (in some cases, also an unmarried partner or divorced spouse), children under 21 years of age (or 24 when they earn only the minimum wage), and other members of the deceased's family (including grandchildren, siblings, grandparents, parents) if they: Lived with the deceased for at least two years before the death Were dependent on the deceased worker and not entitled to a public pension themselves.
In Spain, the Social Security system provides disability benefits, categorized as follows: Partial permanent disability - A decrease of no less than 33% in performance Total permanent disability - 100% decrease in performance of a particular job, but retained ability to work in other jobs Absolute permanent disability - 100% decrease in the ability to perform any job Great disability - Personal assistance is required to carry out essential acts of life. Partial permanent disability is paid as a lump sum equal to 24 monthly payments of the average earnings used for the temporary disability that preceded it. Total permanent disability pays a lifetime pension of 55% of the average earnings, rising to 75% in qualified cases when the beneficiary is over 55 years old and meets reintegration/employment conditions. Absolute permanent disability pays 100% of the average earnings. Great disability pays 100% of the base average earnings plus a supplement for third-person assistance. The average earnings depend on the cause: for common illnesses, it is calculated like retirement pensions (25-year average or 29-year average, dropping the 2 worst years); for work accidents/occupational disease, it is calculated from the prior contribution bases for professional contingencies under special rules.
Spain's national income tax rates for the current tax year are progressive as follows: 9.5% for annual income up to EUR 12,450 (Euros) 12% for annual income from EUR 12,450 to EUR 20,200 15% for annual income from EUR 20,200 to EUR 35,200 18.5% for annual income from EUR 35,200 to EUR 60,000 22.5% for annual income from EUR 60,000 to EUR 300,000 24.5% for annual income exceeding EUR 300,000 Different regions of Spain may impose their own varying rates of regional income tax. Non-residents who are not residents of an EU member country or a European Economic Area country must pay an income tax of 24% on all Spanish-sourced income. If the non-resident mentioned above has an annual income of over EUR 600,000, the tax rate assessed is 45%. EU residents are taxed at a 19% rate on employment income.
In Spain, the following are the most common national long-stay visa categories:
Long-term visas (work, residences, studies, family reunification, etc.) must be requested at the Consulate by prior appointment. EU citizens and those from visa-waiver countries do not need a visa to enter Spain.
A Work and Residence Permit is issued by Spain's Labor Authorities and allows employers to recruit outside the European Union (EU). After receiving the Work and Residence Permit from the employer, the employee can apply in person for a Work Visa. For a non-EU hire, the employer starts a formal immigration process before the foreign person can work. Required documents for the employee include: Copy of a valid passport Certificate of criminal records issued by the home country Official medical certificate Three passport-size photographs Fiscal registration number (NIE or CIF) and the Social Security registration number of the employer Offer of employment Job and company description Proof of the employer’s solvency.
