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Hire and manage employees in Spain

As your Employer of Record (EOR) in Spain, we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary.
Last updated:
November 10, 2026
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Table of Contents

General Overview

Spain is the fourth-largest economy in the eurozone, with strong tourism, services, agriculture and industrial sectors. Employment is governed by the Workers’ Statute (Estatuto de los Trabajadores) and by sector or company collective agreements, which set many of the practical terms, from salary scales to working hours.

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Employment Contracts

Since the 2022 labor reform, the default contract in Spain is indefinite (permanent). Temporary contracts are allowed only for specific reasons, such as production peaks (up to 6 months, or 12 months under a collective agreement) or replacing an absent employee. Contracts must follow the applicable collective agreement and be registered with the public employment service.

An EOR provider placing employees with clients in Spain should hold an ETT (temporary work agency) authorization. Without it, the arrangement may be treated as an illegal transfer of workers, and both the client and the provider can become jointly liable.

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Probation Period

Unless the collective agreement says otherwise, probation can last up to 6 months for qualified technical staff and 2 months for other employees (3 months in companies with fewer than 25 employees). For temporary contracts of up to 6 months, probation cannot exceed 1 month.

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Working Hours

The maximum working week is 40 hours on an annual average, with no more than 9 hours of ordinary work per day unless a collective agreement provides otherwise. Employees are entitled to at least 12 hours of rest between working days and 1.5 days of uninterrupted weekly rest. Employers must keep a daily record of each employee’s working hours.

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Vacation Days

Employees are entitled to at least 30 calendar days of paid vacation a year, which usually corresponds to 22 working days. Collective agreements may grant more.

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Sick Leave

For sickness unrelated to work, the first 3 days are unpaid unless the collective agreement provides otherwise. From day 4 to day 20, the employee receives 60% of their contribution base, and from day 21 onwards 75%. The employer pays the allowance from day 4 to day 15; after that, it is covered by social security, although the employer usually advances the payment. Many collective agreements top this up to 100%.

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Wages and Salary Payment

The minimum wage (SMI) for 2026 is €1,221 per month in 14 payments, or €17,094 a year, applied retroactively from January 1, 2026. Salaries are usually paid monthly in 14 installments, with extra payments in July and December, although the extra payments can be spread across 12 monthly payments if the collective agreement allows it.

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Public Holidays

Spain has up to 14 paid public holidays a year: national holidays, holidays set by each autonomous community, and 2 local holidays. National holidays include:

  • January 1: New Year’s Day
  • January 6: Epiphany
  • Good Friday
  • May 1: Labor Day
  • August 15: Assumption Day
  • October 12: National Day
  • November 1: All Saints’ Day
  • December 6: Constitution Day
  • December 8: Immaculate Conception
  • December 25: Christmas Day

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Employer Taxes

Employers contribute about 30.65% of an employee’s gross salary to social security in 2026:

  • 23.60% for common contingencies (pensions, health, sick leave)
  • 5.50% for unemployment on permanent contracts (6.70% on temporary ones)
  • 0.75% for the intergenerational equity mechanism (MEI)
  • 0.60% for vocational training
  • 0.20% for the Wage Guarantee Fund (FOGASA)

On top comes occupational accident insurance, which varies by activity. Contributions are calculated on a monthly base of up to €5,101.20 in 2026; above that, a small solidarity contribution applies.

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Employee Taxes

Employees contribute about 6.50% of their salary to social security. Personal income tax (IRPF) is progressive and combines a state and a regional scale, starting at 19%; the top combined rate is around 45–50%, depending on the region. Professionals who move to Spain may qualify for the special regime for inbound workers (the Beckham law), which taxes Spanish employment income at a flat 24% up to €600,000.

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Notice Period

The notice period is usually set by the collective agreement. For objective dismissals, the employer must give 15 days’ notice. When a temporary contract of more than 1 year ends, the employer must also give 15 days’ notice. Disciplinary dismissals require no notice.

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Termination and Severance Pay

  • Objective dismissal (economic, technical, organizational or production reasons): 20 days’ salary per year of service, capped at 12 months’ salary.
  • Unfair dismissal: 33 days’ salary per year of service, capped at 24 months’ salary, unless the employee is reinstated.
  • End of a temporary contract: 12 days’ salary per year of service.

Disciplinary dismissals upheld by a court carry no severance.

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Last reviewed: November 2026.

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Frequently
Asked
Questions

What is International EOR and PEO?

International EOR (Employer of Record) and PEO (Professional Employer Organization) are services that enable businesses to compliantly hire, manage, and pay employees in foreign countries without the need for establishing a legal entity. EOR acts as the legal employer while PEO co-employs workers, handling administrative tasks such as payroll, taxes, and benefits.

Does Acvian handle time record submissions?

Acvian does not handle time record submissions directly. It is the client’s responsibility to track and submit employee work hours. However, Acvian can offer guidance and best practices to ensure efficient time tracking and compliance with local labor laws.

How can employees view their payroll details?

Employees can view their payroll details through the monthly payslips they receive and also via our Acvian platform. These payslips contain information on earnings, deductions, taxes, and net pay, giving employees a clear overview of their monthly payroll. Please note that in some countries, employers are restricted from viewing payslips due to data protection regulations, and only employees can share their payslips. For more details on these regulations, please contact our specialists.

How Acvian handles payroll disputes?

Acvian addresses payroll disputes promptly, working closely with both the client and the employee to investigate and resolve any issues.

Does Acvian require advanced monthly payments of salaries and service?

Yes, Acvian requires advanced monthly payments for salaries and service to ensure timely and accurate payroll processing.

Can Acvian provide consultations regarding a labor and tax legislation?

Yes, Acvian can provide consultations regarding labor and tax legislation. Our team of experts is well-versed in local regulations and can offer guidance to help your business maintain compliance, reduce risk, and navigate the complexities of international employment and taxation laws.

Which benefits does Acvian provide?

Acvian provides a diverse range of benefits, including but not limited to:

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  • Health insurance
  • Car leasing
  • Gym allowance
  • Per diem compensation
  • Maternity leave

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We can customize and offer many kinds of benefits requested by the client, ensuring that your employees receive the support and perks that align with your company culture and local regulations.

Can Acvian provide private health insurance?

Acvian can provide private health insurance options as part of its comprehensive employee benefits package.

What would the monthly/yearly costs for the employee be?

The monthly/yearly costs for an ‘average’ package vary depending on the specific plan and location. See our estimated price packages here. Acvian’s team can provide detailed cost breakdowns based on your requirements.

Can Acvian help with entity set up?

While Acvian doesn’t directly provide entity set-up services, we can introduce you to local lawyers who specialize in this area to assist you with your needs. See also, when it's better to set the entity or use the EOR.

Offboarding: how it is handled?

Offboarding is managed by Acvian in a structured and compliant manner. We coordinate with your business to ensure all necessary documentation, exit interviews, and final payments are completed. Acvian also ensures adherence to local labor laws and regulations, including providing any required notice periods and managing the termination process.

When does business need it?

Businesses typically need EOR and PEO services when they:

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  • Expand into new international markets.
  • Hire remote employees in foreign countries.
  • Seek to streamline global workforce management.
  • Aim to ensure compliance with local labor laws and regulations.
  • Want to reduce the time and cost of establishing legal entities abroad.

Is Acvian compliant with GDPR?

Yes, Acvian is fully compliant with GDPR regulations. We collect and process personal data in accordance with the law, ensuring that data is used only for general, allowed purposes such as marketing and other legitimate business activities.

Do you provide employment agreements?

Yes, Acvian provides both permanent and fixed-term employment contracts, with the possibility of extension. After the second extension, the contract becomes indefinite.

How do employees view their payroll?

Employees can view their payroll details through the monthly payslips they receive and also via the Acvian platform.

Where can Acvian supply EOR services?

Acvian can supply EOR services in over 180 countries, encompassing almost all European nations, the United States, and Canada, providing extensive coverage to support your business’s global expansion and workforce management needs. See our coverage here.

How does payroll work under EOR?

Under EOR, Acvian manages the payroll process by:

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  • Acting as the legal employer of your foreign workforce.
  • Handling salary calculations, deductions, and disbursements.
  • Ensuring compliance with local tax and labor laws.
  • Managing payroll taxes, social contributions, and benefits.
  • Providing timely and accurate payroll processing for your employees.

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Explore the details here.

Can you provide support for expatriate EOR workers?

Yes, Acvian provides comprehensive support for expatriate EOR workers, including:

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  • Visa and work permit assistance.
  • Relocation and housing support.
  • Local registration and compliance.
  • Payroll and tax management.
  • Coordination of benefits and insurance coverage.

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Explore in details here.

What are the details of expats support?

Expats support from Acvian encompasses a range of services designed to facilitate a smooth transition for employees working abroad. Key aspects include:

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  • Assistance with visa and work permit applications, renewals, and compliance.
  • Support for relocation, including housing, schooling, and local registration.
  • Guidance on local tax regulations and filings.
  • Coordination of locally compliant benefits and insurance coverage.
  • Ongoing support for any changes or issues that may arise during the expatriate assignment.

What happens after onboarding?

After onboarding, Acvian maintains an ongoing relationship with your business and employees, ensuring smooth payroll processing, managing tax and regulatory compliance, handling benefits administration, and providing support for any changes or issues that may arise in the employment lifecycle. This allows you to focus on your core business operations while Acvian manages your international workforce.

How many days will it take for our personnel to be onboarded?

The onboarding process typically takes between 2 to 4 weeks, depending on the country and complexity of the employee’s situation. However, Acvian strives to expedite this process, ensuring a smooth and efficient transition for your personnel. See our story of the urgent employment project.

Does Acvian provide in-country support for employee inquiries or assistance requests?

Yes, Acvian provides in-country or regional support for employee inquiries and assistance requests. We have dedicated managers in the countries where we support your employees, ensuring prompt and knowledgeable assistance tailored to local regulations and practices.

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