Hire and manage employees in Spain

Key takeaways

• Spain’s Workers’ Statute (Estatuto de los Trabajadores) is the primary employment law. It is complemented by collective bargaining agreements (convenios colectivos), which often set better terms than statutory minimums and are legally binding for covered industries.

• The minimum wage (SMI) for 2026 is €1,221 per month (a 3.1% increase from 2025, effective January 1, 2026), distributed across 14 payments per year totalling €17,094 gross annually.

• Employer Social Security contributions total approximately 30.57% of gross salary (23.60% general contingencies + 5.50% unemployment + 0.70% training + 0.20% FOGASA + variable accident rate). Employee contributions are approximately 6.48%.

• Annual leave is 30 calendar days per year. Maternity and paternity leave are each 16 weeks, fully paid by Social Security at 100% of the contribution base. Both parents have equal, non-transferable entitlement.

• Spain does not have at-will employment. Unfair dismissal (despido improcedente) carries 33 days’ salary per year of service (capped at 24 months). Objective dismissal carries 20 days per year (capped at 12 months).

• Foreign companies can hire Spanish employees without a local entity using an Employer of Record (EOR). An EOR handles Social Security registration, payroll (nómina), IRPF withholding, and full Workers’ Statute compliance.

Employer of Record (EOR) vs. setting up an entity in Spain

The first step is deciding whether to hire your Spanish employees via an Employer of Record (EOR) or to set up your own entity. Read our guide to hiring through an EOR in Spain to understand the steps and how Rippling can help you hire and onboard Spanish employees in 90 seconds.

• Legal entity in Spain (Sociedad Limitada or branch office). Requires registration with the Mercantile Registry, Tax Agency (AEAT), and Social Security. Gives you direct legal presence but takes several weeks and ongoing compliance overhead.

• Spanish EOR. An EOR acts as the legal employer on your behalf, handling Social Security, payroll, IRPF, and Workers’ Statute compliance without you needing a local entity.

Read our full EOR guide for Spain for a complete comparison.

Classifying Spanish workers: employees vs. contractors

If you’re considering hiring employees in Spain, it is crucial to accurately classify your workers. Spain strictly distinguishes between employees (trabajadores por cuenta ajena) and self-employed contractors (autónomos). Misclassification can result in significant back-payments of Social Security contributions and fines. The key factor is economic dependence and integration into the company’s organisation. Learn more in our worker classification guide for Spain.

Work permits for Spanish employees

EU/EEA citizens can work in Spain freely. Non-EU citizens require a work permit (permiso de trabajo) and a residence visa, which the employer must typically sponsor. Common permits include the Highly Qualified Professionals visa and the intra-company transfer permit. Read our guide on work permits in Spain.

New hire onboarding checklist

After confirming your employee’s legal eligibility to work in Spain, you can begin onboarding. A successful onboarding starts before day one and continues through the first 90 days. See our new hire checklist for Spain for a full list.

Before their first day

• Register the employee with Social Security (alta en la Seguridad Social) before their start date.

• Send and sign the employment contract (contrato de trabajo).

• Enroll them in payroll and any company benefits.

• Order and configure their devices.

On day one and beyond

• Provide general and role-specific training.

• Schedule 30-, 60-, and 90-day check-ins.

• Set goals and offer regular feedback.

What to include in an offer letter in Spain

Offer letters are an essential part of hiring in Spain. The employment contract (contrato de trabajo) is legally required and must be in writing. It must be registered with the Spanish Public Employment Service (SEPE) within 10 days of signing. Key items to include: job title and duties, salary (including the number of annual payments), working hours, start date, trial period (periodo de prueba), and applicable collective bargaining agreement. Read our guide on offer letters for employees in Spain.

NDAs and confidentiality agreements in Spain

A non-disclosure agreement (NDA) is a legally binding contract that restricts employees from sharing confidential company information. NDAs are enforceable in Spain under the Civil Code, as long as they are reasonable in scope and duration. Post-contractual non-compete clauses are also valid if the employee is compensated (between 0.5 and 1 year of salary depending on duration). Read our guide on NDAs in Spain.

Running background checks on Spanish employees

Understandably, you may be eager to fill your position speedily. That said, background checks are an important step. In Spain, background checks are permitted but strictly regulated by the GDPR and the Spanish Data Protection Act (LOPD-GDD). Employers must have a legitimate basis for processing personal data and inform candidates. Criminal record checks require the candidate’s explicit consent. Read our guide on background checks in Spain.

Paying employees in Spain

In addition to choosing between an EOR or your own entity, you’ll need a payroll solution. The payroll (nómina) in Spain must be processed monthly. Employers are responsible for withholding IRPF (income tax) and Social Security contributions from employee salaries and remitting them to the AEAT and TGSS. The contribution base is the employee’s gross salary, subject to the minimum (€1,424.40/month) and maximum (€5,101.20/month) limits for 2026. Read our guide on running payroll for employees in Spain.

Mandatory employee benefits in Spain

When hiring employees in Spain, it’s essential to provide benefits packages that comply with legal requirements. Mandatory benefits include:

• Social Security coverage (healthcare, pension, unemployment, and disability) funded by employer and employee contributions.

• Paid annual leave: 30 calendar days per year.

• Maternity and paternity leave: 16 weeks each, fully paid by Social Security.

• 14 paid public holidays per year (8 national + regional and local holidays).

• Sick pay: Employer pays days 2–3; Social Security covers from day 4 onward at 60–75% of contribution base.

Read our full guide on employee benefits in Spain.

Managing remote employees’ computers and apps

The emergence of remote work has led to new possibilities for hiring talent in Spain. Managing employee devices from abroad requires the right tools. Rippling lets you ship, configure, and manage devices for Spanish employees remotely and instantly provision or deprovision app access. Read our guide on managing remote employee devices.

Protecting company IP in Spain

Protecting your intellectual property (IP) can make all the difference to the success of your business. Spain is a member of the EU, so IP law is heavily influenced by European directives. Key protections include: patents (registered with the Spanish Patent and Trademark Office / OEPM), trademarks, copyright (automatic upon creation), and trade secrets (protected under the Trade Secrets Act, Ley 1/2019). IP assignment clauses should be included in employment contracts. Read our primer on IP ownership in Spain.

Complying with Spanish labor laws

Arguably the most crucial aspect to consider when hiring in Spain is compliance with its complex labor laws. The Workers’ Statute is supplemented by sectoral collective bargaining agreements, which may provide better terms and are legally binding. Key compliance areas include: correct registration with Social Security before the employee’s start date; mandatory hourly time tracking (registro de jornada) for all employees since 2019; proper classification of employees vs. contractors; and compliance with working hours limits. Read our guide on labor and employment laws in Spain.

Terminating employees in Spain

Employment law in Spain is very strict when it comes to dismissals. There is no at-will employment. Terminations fall into two main categories: disciplinary (no severance if justified, but 33 days per year if declared unfair) and objective (20 days per year for economic/organisational reasons, capped at 12 months). Mandatory 15-day notice applies for objective dismissals. Any termination that is not properly justified can be declared unfair by a court. Read our full guide on terminating employees in Spain.