Agile HRO

Country Explorer

spain flag

Compliantly hire and expand your business in Spain

When it comes to employing and managing employees in Spain, there are specific procedures and regulations that must be followed.
spain map
Spain is a country located in Southwestern Europe, with parts of its territory in the Atlantic Ocean, the Mediterranean Sea and Africa. It is the largest country in Southern Europe and the fourth-most populous European Union member state. Spanning across the majority of the Iberian Peninsula, its territory also includes the Canary Islands in the Atlantic Ocean, the Balearic Islands in the Mediterranean Sea, and the autonomous cities of Ceuta and Melilla in Africa. Peninsular Spain is bordered to the north by France, Andorra, and the Bay of Biscay; to the east and south by the Mediterranean Sea and Gibraltar; and to the west by Portugal and the Atlantic Ocean. Spain’s capital and largest city is Madrid, and other major urban areas include Barcelona, Valencia, Zaragoza, Seville, Málaga, Murcia, Palma de Mallorca, Las Palmas de Gran Canaria, and Bilbao.




GDP per Capita

$1.582 trillion

Total GDP


Total Population


Human Development Index

UTC+0/+1 (DST +1)

Time Zone


Official Language

Euro (EUR)


505,994 km2 (195,365 mi2)

Land Area

Here's what you need to know

Overall, employing workers in Spain requires careful attention to the specific requirements and regulations. Working with a local expert in employment and payroll can help ensure that you’re meeting all the legal requirements and providing a positive employment experience for your staff.
Employment contracts are not mandatory in Spain, but highly recommended. They should clearly outline:

Job title, duties, and responsibilities

Salary and benefits (including 13th month salary and vacation bonus)

Working hours and overtime pay

Leave entitlements (annual leave, sick leave, etc.)

Termination terms (notice period, severance pay)

Confidentiality clauses (if applicable)

Minimum Wage

Spain has a national minimum wage, currently set at €1,134 gross per month (as of January 1, 2024).

Payroll Terms

Salaries are typically paid monthly by bank transfer between the 25th of the month to which the pay relates and the 5th of the following month. Payslips with details of gross pay, deductions, and net pay are mandatory.


Spain operates a progressive income tax system. Employees pay income tax based on their annual earnings, with rates ranging from 19% to 47%. Employers withhold income tax at source and remit it to the Spanish Tax Agency (AEAT) along with social security contributions.

Social Security

Both employers and employees contribute to social security programs covering pensions, unemployment, healthcare, and parental benefits. Contribution rates vary depending on the employee's salary and type of employment contract.

Spain has a standardized leave policy mandated by the Workers’ Statute:

Annual Leave

Minimum of 30 calendar days per year (22 working days), increasing with service duration. Unused vacation days cannot be "sold back" to the employer and must be compensated if not used upon leaving the company.

Sick Leave

Up to 14 days per year with doctor's certification, extending to a year in specific cases.

Maternity Leave

Up to 16 weeks of paid leave for female employees, followed by an optional unpaid parental leave (up to 3 years).

Paternity Leave

5 days of paid leave for male employees, with an optional 15-day extension (unpaid) at the employer's discretion.

Public Holidays

10 national holidays per year with the potential for regional variations. Each municipality enjoys a total of 13 public holidays per year.

Probationary Period

There's no mandatory probationary period in Spain. However, employment contracts often include one, typically lasting between 1 and 6 months. During this time, termination can be easier for both employer and employee.

Termination of Employment

Termination of employment should follow the terms outlined in the contract or the Workers' Statute. Notice periods vary depending on the reason for termination and the employee's length of service. Severance pay may also be required under certain circumstances.

Download the full Employment & Payroll Guide to Spain

Enter your details and receive the full guide to your inbox

Looking to take on the global marketplace with confidence?

Fast-track your EOR quickly and compliantly with the local laws of any country. We are here to help you achieve your international business expansion challenges.
Quick Hassle-Free Market Entry
Agile will help you hire and onboard talent across countries within a week and even less in many cases. So, you can get up and running in a completely new country in a short period.
Cost Effective
Hiring employees without the need to set up a legal entity in countries will help save a lot of time, sometimes up to 85%. In addition, you will not have to worry about establishing a foreign entity and all the maintenance costs that come with it.
Employee Onboarding
As an expert in local laws and regulations, we can help you adhere to the local and national regulations, including the market norms. We offer a ‘ready-made’ HR support infrastructure that takes the guesswork out of hiring international employees.
Payroll Management
Agile handles international payroll processing in adherence to the local rules of a country’s local jurisdiction. It includes utilizing manual as well as automated processes to ensure the local workforce gets their pay after allowing all the right deductions.
Onsite HR & Legal Team
Our team comprises experts who offer local legal guidance through employee onboarding, benefits distribution, HR compliance, contract renewals, termination, and more.
Stay Compliant with Local Laws
By hiring us, you can outsource the complex task of regulatory compliance to the experts. We ensure your company, intellectual property, and support employees are all well-protected.
guide book icon

Everything you need to know to hire globally

Our Ultimate Guide To Global Employment answers all your questions about global EOR, payroll, mobility, benefits, compliance, and more!

Our track record speaks for itself, but don’t take our word for it

24/5 support
120+ currencies
100+ countries
30 years in Human Resources

Agile HRO has accelerated the international expansion of hundreds of companies for over 25 years.

Ready to go global?

Agile HRO are not just HR experts; we are your strategic ally in global growth. From consultation to execution, we are dedicated to ensuring your success on the global stage.

Need more assistance?

Get in touch with Agile

Schedule a demo call with Q&A

We value your privacy. By submitting the above information, you agree to our privacy policy. This site is protected by reCAPTCHA.

Need more assistance?

Get in touch

We are looking forward to hearing from you.

    By submitting the above information, you agree to our privacy policy.
    This site is protected by reCAPTCHA

    Get Started with Agile

    Schedule a 30-minute product demo with Q&A

    We value your privacy. By submitting the above information, you agree to our privacy policy. This site is protected by reCAPTCHA.