SPAIN PEO & EOR
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As a Global PEO & EOR service provider, we pride ourselves on our global reach, in-country knowledge, and ability to swiftly and efficiently mobilize workers around the world. Our robust PEO/EOR covers everything from global HR, payroll, compliance, in-country support, immigration, visas, and more.
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DID YOU KNOW
- Spain was the world’s first global empire, and its presence is still felt in much of South America. As a result of this, Spanish is the second most spoken native language worldwide
- In Spain, it is considered good luck to eat 12 grapes at once to see in the New Year
- Similar to Italian and French, Spanish is one of the Romance Languages, and derives from Vulgar Latin.
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SPAIN EOR Services
Relaxed culture, great cuisine, and unique history
With its high standard of living, incredible climate, and relatively affordable lifestyle, it’s no surprise that Spain is one of the world’s most popular destinations to immigrate to. Spain enjoys a relaxed culture, great cuisine, and a unique history which is still prevalent in its cities and architecture.
Spain’s culture is vast, from its Arabic-inspired customs across the Andalusian region to the more European-influenced areas of its central and Northern parts. When it comes to Spain, there is absolutely something for everybody to enjoy in this unique nation.
As a part of the European Union, the Spanish market is easily accessible for expatriates and foreign businesses within the EU. For those outside of the EU, partnering with a Spain EOR provider like Gibson Watts Global can prove useful to expedite and simplify the process.
Working in SPAIN
Financial Year Dates
Spain’s financial year runs from January 1st to December 31st.
Minimum Wage
The minimum wage in Spain for 2025 is set at €1,184 per month, totaling €16,576 annually over 14 payments. This represents a 4.4% increase from the previous year, benefiting approximately 2.4 million workers.
Standard working hours
The standard workweek in Spain is 40 hours, typically divided into five 8-hour workdays. Many businesses operate from 9AM to 6PM, often with a ‘siesta’ break in some regions. An agreement has been reached to reduce the maximum legal workweek in Spain from 40 hours to 37.5 hours without a reduction in salary, with implementation expected before the end of 2025. This agreement was formalized between Spain’s Ministry of Labour and the trade unions CCOO and UGT on December 20, 2024. The proposed change aims to improve work-life balance and productivity for approximately 12 million workers.
Overtime
Overtime in Spain is voluntary and must be compensated either through pay or additional time off. The standard overtime pay is at least 1.25x the regular rate and should not exceed 80 hours per year, unless stated in a collective agreement.
Holiday Allowance
Employees in Spain are entitled to a minimum of 30 calendar days of paid annual leave (equivalent to 22 working days) per year. Public holidays are in addition to this leave.
Sick Leave
Employees are entitled to paid sick leave in Spain, typically covered as follows:
- First 3 days: No mandatory payment (some employers provide compensation).
- Days 4–20: 60% of the employee’s salary (covered by social security).
- Day 21 onwards: 75% of the salary (covered by social security).
Maternity & Paternity Leave
- Maternity Leave: 16 weeks (fully paid), with at least 6 weeks taken after birth
- Paternity Leave: 16 weeks (fully paid)
Both parents are entitled to equal, non-transferable parental leave under Spain’s gender equality policies.
Public Holidays
Spain has national and regional public holidays, which vary by autonomous community. Common national holidays include:
- New Year’s Day
- Epiphany (Three Kings’ Day)
- Good Friday
- Labor Day
- Assumption of Mary
- National Day of Spain
- All Saints’ Day
- Constitution Day
- Christmas Day
Each region also observes local holidays, so specific dates may vary.
Social Contributions
Both employers and employees contribute to Spain’s social security system, covering pensions, unemployment benefits, and healthcare.
Employer Contributions:
- Social Security: Approximately 31% of salary (varies by sector)
- Unemployment Insurance: 5.5%
- Work Injury Insurance: 1.5% – 7% (depending on industry risk level)
Employee Contributions:
- Social Security: 6.45% of salary
Income Tax
Spain has a progressive income tax system, with rates depending on income level and region. For the Comunidad de Madrid in 2025, the general tax brackets are:
- Up to €12,450 – 19%
- €12,451 – €20,200 – 24%
- €20,201 – €35,200 – 30%
- €35,201 – €60,000 – 37%
- €60,001 – €300,000 – 45%
- Over €300,000 – 47%
Residents are taxed on worldwide income, while non-residents are only taxed on Spanish-sourced income at a flat 24% rate.
Health Care
Spain has a universal healthcare system, ranked as one of the best in the world. Public healthcare is free or low-cost for residents, funded through social security contributions.
While the public system is excellent, many employers offer private health insurance to provide quicker access to specialists and private hospitals.
Visas
Spain offers various visa options for foreign workers and businesses:
Work Visa
Required for non-EU citizens who wish to work in Spain. The visa is sponsored by an employer and typically valid for one year, renewable.
EU Blue Card
A special permit for highly skilled workers from non-EU countries, allowing them to work in Spain and other EU member states.
Self-Employment Visa
For entrepreneurs and freelancers looking to start a business in Spain.
Digital Nomad Visa
Introduced in 2023, this visa allows remote workers to live and work in Spain while being employed by a company outside Spain.
13th salary?
Spain commonly follows a 14-payment system, where employees receive an extra salary in July and December as part of their compensation package. Some employers consolidate these into 12 payments instead.
Cultural Information
The siesta tradition is still observed in some regions, with businesses closing in the afternoon.
Spanish is the official language in Spain, although other languages such as Galician, Catalan and Basque are also spoken throughout the nation. The primary religion in Spain is Catholicism, however Islamic, Hindu, and Jewish groups are found all through Spain.
Spanish cuisine is world-famous, with tapas, paella, and jamón ibérico being culinary highlights.
