Foreign nationals from outside the European Union (EU), European Economic Area (EEA), and Switzerland generally require both a work permit and a residence permit before commencing employment in Spain. Employers usually initiate the work authorisation process by demonstrating that the position complies with Spanish immigration requirements.

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EU, EEA and Swiss citizens may work in Spain without a work permit but must register with the local authorities if staying longer than three months.

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Spain offers several residence pathways, including highly qualified professional permits, intra-company transfers, digital nomad visas and entrepreneur visas. Employees must be registered with the Spanish Social Security system before employment begins.

• Employers must register with the Spanish Social Security Treasury (TGSS) and the Spanish Tax Agency (AEAT) before hiring employees.
• Payroll is generally processed monthly, although some collective agreements provide for 14 salary payments annually by including additional payments in July and December.
• Payroll includes salary, bonuses, overtime, taxable benefits and statutory allowances.
• Employers are responsible for withholding personal income tax (IRPF), deducting employee social security contributions, paying employer social security contributions and submitting monthly payroll filings.
• Employer Contributions generally include:
  
  • Social Security (approximately 29%–31% depending on contribution bases and risk category)
  • Unemployment insurance
  • Wage Guarantee Fund (FOGASA)
  • Vocational training
  • Occupational accident insurance (rate varies by industry)
  Employee Contributions generally include:
  • Social Security contributions (approximately 6.4% of salary)
  • Personal income tax withholding (IRPF)

• Employment contracts may be indefinite or fixed-term where legally justified. Written contracts are required for many employment arrangements and are strongly recommended in all cases.
• Probation Period: Typically up to 6 months for qualified employees and 2 months for other employees, although collective agreements may vary.
• Working Hours: Standard working time is generally 40 hours per week averaged over the year.
• Overtime: Generally voluntary unless otherwise agreed and is limited to 80 overtime hours annually, excluding emergency work. Overtime must be compensated through premium pay or equivalent time off.
• Minimum Wage: Spain has a national statutory minimum wage which is reviewed annually.
• Termination: Employers must follow statutory dismissal procedures. Terminations may be objective, disciplinary or collective depending on the circumstances.
• Notice Periods: Notice depends on the employment contract, collective agreement and reason for termination.
• Severance: Employees dismissed for objective reasons are generally entitled to statutory severance. Higher compensation may apply where dismissals are ruled unfair.

• Spain provides comprehensive statutory employee protections through its social security system.
• Annual Leave: Minimum 30 calendar days (22 working days) of paid annual leave.
• Public Holidays: Approximately 14 paid public holidays each year, including national, regional and local holidays.
• Sick Leave: Employees receive sickness benefits through the Social Security system, with employers responsible for salary payments during part of the initial absence depending on the circumstances.
• Maternity Leave: 16 weeks of paid leave.
• Paternity Leave: 16 weeks of paid leave, broadly aligned with maternity leave.
• Parental Benefits: Additional family-related leave and flexible working rights are available under Spanish labour legislation.
• Social Security: Covers healthcare, pensions, disability, unemployment and occupational injury benefits.
• Many employers also provide supplementary benefits such as:
  
  • Private medical insurance
  • Meal vouchers
  • Transport allowances
  • Pension plans
  • Life insurance

• Tax Residency: Individuals spending more than 183 days in Spain during a calendar year, or whose centre of economic interests is located in Spain, are generally considered tax residents.
• Residents: Taxed on worldwide income.
• Non-Residents: Taxed only on Spanish-source income.
• Tax Year: 1 January – 31 December.
• Tax System: Progressive national and regional income tax rates. Combined rates generally range from approximately 19% to 47%, depending on the autonomous community.
• Double Taxation Treaties: Spain maintains an extensive network of double taxation agreements with numerous countries.