Spain — Hiring & Payroll Setup

A foreign company hiring employees in Spain must evaluate whether the employment relationship will create a permanent establishment (PE) for Spanish corporate income tax purposes. A PE subjects the foreign entity to Spanish tax on profits attributable to the Spanish operations, mandatory tax registration, annual filing obligations, and potential withholding-tax compliance.

Definition under Spanish law. Spain follows the OECD Model Tax Convention framework. Article 13.1(a) of Royal Legislative Decree 5/2004 (the consolidated Non-Resident Income Tax Law, Ley del Impuesto sobre la Renta de no Residentes) taxes income from "activities or economic operations conducted through a permanent establishment located in Spanish territory." The Corporate Income Tax Law (Ley 27/2014 del Impuesto sobre Sociedades) incorporates the same PE concept for resident entities with foreign PEs.

Spanish administrative practice and bilateral tax treaties generally define a PE as a fixed place of business through which the enterprise's business is wholly or partly carried on. Enumerated examples include a place of management, branch, office, factory, workshop, warehouse, or construction site lasting more than 12 months (the threshold varies by treaty). Critically, dependent agents who habitually exercise authority to conclude contracts in Spain on behalf of the foreign enterprise can also create a PE, even without a physical office.

When does hiring an employee create a PE? Mere employment does not automatically trigger PE status, but the facts surrounding the employee's role often do. A PE is likely if the employee:

• Maintains a fixed place of business in Spain (e.g., leases an office, uses co-working space under a contract in the company's name, or works from home where the employer exercises control over the workspace).
• Has authority to negotiate and conclude contracts binding on the foreign company with Spanish customers or partners (dependent-agent PE).
• Performs core revenue-generating functions rather than preparatory or auxiliary activities (e.g., sales, client management, delivery of services, or production, not merely market research or purchasing).

Spanish tax authorities scrutinize substance over form. A "remote employee" structure where the individual performs high-value functions—signing deals, managing key client relationships, overseeing Spanish operations—will often be recharacterized as a PE if the economic reality shows a permanent establishment.

Treaty relief. Spain has concluded bilateral tax treaties with more than 90 jurisdictions. These treaties typically incorporate the OECD Model Article 5 PE definition and may provide carve-outs for preparatory or auxiliary activities, restrict dependent-agent PE to agents with habitual authority to conclude contracts, or set a time threshold for construction projects. A treaty-resident foreign company can invoke the treaty to override Spanish domestic law where the treaty is more favorable, but must satisfy treaty-residence conditions (often including a certificate of tax residence from the home country).

Practical mitigation. Companies wishing to hire in Spain without creating a PE typically:

1. Use an employer of record (EOR), where a Spanish-registered third-party entity becomes the legal employer and the foreign company engages the individual as a contractor or seconded worker under a service agreement.
2. Incorporate a Spanish subsidiary (sociedad limitada or sociedad anónima), which becomes a separate Spanish taxpayer and the local employer, avoiding PE attribution to the parent.
3. Limit the employee's authority and activities to preparatory or auxiliary functions (e.g., administrative support, market research, coordinating with HQ), ensuring the employee cannot bind the foreign company and does not maintain a fixed place of business.

Companies that proceed without an EOR or subsidiary and meet the PE threshold must register with the Spanish Tax Agency (Agencia Estatal de Administración Tributaria, AEAT), file annual corporate income tax returns (Modelo 200), and comply with transfer-pricing rules on intra-group charges. PE status also triggers social-security and payroll-tax obligations as an employer.

Source: Real Decreto Legislativo 5/2004 (Non-Resident Income Tax Law)

A foreign company hiring employees in Spain must register as an employer with the Tesorería General de la Seguridad Social (TGSS, the General Treasury of Social Security) before the employee's first day of work. This registration is mandatory under Spanish law and precedes the registration of individual employees. Failure to register triggers employer sanctions and blocks workers from accessing public healthcare and social-security benefits.

Legal obligation. Article 5 of Royal Decree 84/1996 (the General Regulation on Registration of Companies and Affiliation, Registration, Deregistration and Variations of Workers in the Social Security System) imposes mandatory registration on all employers who will employ workers for the first time. The employer must apply for registration before the corresponding activity starts—employment cannot lawfully begin until the employer is registered and the employee is individually affiliated.

The Código de Cuenta de Cotización (CCC). When the TGSS registers an employer, it assigns a Código de Cuenta de Cotización (CCC, Contribution Account Code)—a unique identifier linking the employer to its contribution obligations and to all workers employed within the same province. The CCC is province-specific; an employer operating in multiple provinces must obtain a separate CCC for each. The CCC appears on all payroll filings, contribution payments, and official correspondence with the TGSS.

Who must register. The registration obligation applies to:

• Spanish legal entities (sociedad limitada, sociedad anónima, and other corporate forms) hiring their first employee.
• Foreign companies with a Spanish subsidiary or branch that will employ workers in Spain.
• Individual employers (natural persons) hiring an employee, including for household employment.
• Self-employed persons (autónomos) who transition to employing others; a self-employed individual already registered in the Special Regime for Self-Employed Workers (RETA) must obtain a separate CCC when hiring an employee.

Foreign companies without a Spanish entity typically engage an employer of record (EOR) to avoid the registration burden; the EOR becomes the legal employer and holds the CCC, while the foreign company contracts with the EOR for the individual's services.

Prerequisites for registration. Before applying, the employer must:

1. Obtain a tax identification number (CIF, Código de Identificación Fiscal) from the Spanish Tax Agency (Agencia Estatal de Administración Tributaria, AEAT). Legal entities must complete tax registration before social-security registration.
2. Have proof of legal existence (for companies, a certificate of incorporation from the Registro Mercantil; for individual employers, identification documents).
3. Designate a workplace-risk insurance provider. Spanish law requires all employers to insure against workplace accidents and occupational illnesses. The employer must state, when registering, whether it will cover these risks through a private mutual society (mutua colaboradora con la Seguridad Social) or through the public system managed by the TGSS.

Registration procedure. Employers register online via the TGSS SEDESS portal (for collective employers—companies and legal entities) or the RED (Remisión Electrónica de Datos) system. Individual employers (natural persons) may also use the Import@ss mobile application. Registration requires:

• The employer's tax identification (CIF or NIE).
• Company details: legal name, registered address, economic activity code (CNAE).
• The province where the employees will work (determines the CCC assignment).
• Workplace-risk insurance election.

The TGSS processes the application immediately if documentation is complete, issuing the CCC on the spot in most cases. The employer then receives a registration certificate confirming the CCC, which it must retain for all future payroll and contribution filings.

Timeline. Registration must be completed before the employee begins work. In practice, employers typically register days or weeks before the anticipated start date to ensure the CCC is available for the individual worker's affiliation (the next mandatory step, which also occurs before the first day). Employers who hire workers before registration, or who fail to register entirely, face penalties under the Social Security inspection regime.

Ongoing obligations. Once registered, the employer must:

• Register each employee individually before their start date (affiliation and alta in the General Regime or applicable Special Regime).
• Report monthly payroll and contribution bases to the TGSS (typically through the monthly settlement filing, liquidación de cuotas).
• Pay social-security contributions monthly, covering both employer and employee portions (deducted from wages).
• Notify changes in company identification data (address, legal name, activity code) via the RED system.
• Deregister as an employer when the last employee separates and the employer ceases to employ anyone, though the CIF and corporate registration remain active.

Foreign companies establishing a permanent Spanish payroll should budget for local payroll counsel or a gestoría (administrative services firm) to manage TGSS registration, monthly filings, and compliance. The registration itself is a one-time step, but it opens the door to monthly reporting obligations that continue for the life of the Spanish employment relationship.

Source: Real Decreto 84/1996 (General Regulation on Registration of Companies and Affiliation) Source: Employer registration guidance (TGSS, administracion.gob.es)

Spanish employment law permits verbal employment contracts in principle, but a foreign employer hiring in Spain will nearly always face a statutory obligation to reduce the contract to writing. Article 8.2 of the Estatuto de los Trabajadores (Royal Legislative Decree 2/2015, the consolidated Workers' Statute) mandates written form for several categories of contracts that are common in cross-border hiring:

• Fixed-term contracts (contratos de duración determinada) exceeding four weeks, including contracts for a specific project or service (obra o servicio determinado) and temporary contracts to cover increased demand (contratos eventuales).
• Part-time contracts (contratos a tiempo parcial), regardless of duration.
• Training and apprenticeship contracts (contratos formativos).
• Intermittent fixed contracts (contratos fijos-discontinuos) and relief contracts (contratos de relevo).
• Distance-work contracts (employees working remotely or from home, governed since 2021 by the separate Remote Work Act, Ley 10/2021).
• Employees hired in Spain to work abroad for a Spanish company.

If an employer fails to execute a required written contract, Article 8.2 creates a rebuttable legal presumption that the contract is indefinite-term (por tiempo indefinido) and full-time (a jornada completa), unless the employer proves otherwise. This rule protects workers from informal arrangements and places the burden of proof squarely on the employer to demonstrate the temporary or part-time nature of the relationship if a dispute arises.

Either party—employer or employee—can demand at any time that the contract be formalized in writing, even after the employment relationship has begun (Article 8.2, final sentence). A foreign company that begins an oral indefinite full-time arrangement and later wishes to move to written form must comply with the employee's request.

Mandatory content and the _copia básica_ filing. The employer must deliver a basic copy (copia básica) of every written employment contract to the workers' legal representatives (the works council or union delegates) within ten days of contract execution, or directly to the public employment office (oficina pública de empleo, SEPE) if no worker representation exists (Article 8.4). This copia básica redacts the employee's national identity number, home address, marital status, and other personal data protected under Spain's data-protection laws, but it must include all substantive terms—position, salary, hours, contract type, and duration. The public employment office keeps the basic copy on file; inspectors use it to verify compliance.

The employer must also notify SEPE of the contract (or any extension) within ten days of execution, whether or not the contract is in writing (Article 8.3). This notification is separate from the social-security registration (alta) for the individual employee; both steps are mandatory and precede the employee's first day of work in practice.

Information duty for contracts over four weeks. If the employment relationship will last longer than four weeks, the employer must provide written information to the employee on the essential terms and principal working conditions within two months of the start date—but only if those terms do not already appear in a written employment contract (Article 8.5). This information duty implements EU Directive 91/533/EEC (the "Written Statement Directive," recently replaced by Directive 2019/1152, the Transparent and Predictable Working Conditions Directive, which Spain must transpose by 2022 deadlines). Royal Decree 1659/1998 specifies the mandatory elements:

• Identity and address of the parties.
• Workplace or, if variable, an indication that the employee may work at different locations.
• Job title, occupational category, or description of duties.
• Start date and, for fixed-term contracts, the expected or contractual end date.
• Duration and conditions of any probationary period.
• Compensation, including base salary, supplements, pay frequency, and the calculation method.
• Ordinary daily and weekly working hours.
• Annual paid leave entitlement.
• Notice periods for termination by either party.
• Applicable collective-bargaining agreement (convenio colectivo aplicable), if any, identifying the sector or company agreement that governs wages, hours, and conditions beyond the statutory floor.

For foreign companies hiring their first Spanish employee, the practical implication is that every contract should be in writing from the outset, even when the statute does not strictly require it (e.g., indefinite full-time contracts with no special features). Oral indefinite contracts are theoretically lawful, but the copia básica filing obligation, the social-security registration requirement, and the risk of presumption in favor of the employee make a written contract the universal standard. Spanish labor inspectors expect to see a signed contrato de trabajo and a time-stamped SEPE filing for every hire.

Consequences of non-compliance. Beyond the Article 8.2 presumption of indefinite and full-time status, an employer that fails to provide the written contract, the basic copy to worker representatives, or the mandatory two-month information risks administrative fines under the Labour and Social Security Inspectorate regime (Inspección de Trabajo y Seguridad Social). Infringements of formal contract requirements are classified as minor or serious depending on the number of affected employees and whether the omission was willful; fines range from €750 to €7,500 per infraction, with higher brackets for repeat violations or systematic non-compliance.

Foreign employers should ensure that:

1. The contract is drafted in Spanish. While the law does not expressly forbid bilingual contracts or translations for the employee's convenience, the copia básica filed with SEPE and presented to labor inspectors must be in Spanish. Courts and inspectors will interpret ambiguous or conflicting terms by reference to the Spanish text.
2. The contract identifies the applicable collective-bargaining agreement (convenio colectivo) by name, if one exists for the sector or company. Spain has thousands of sectoral and company-level agreements that set wage floors, working-time rules, probationary-period caps, and termination notice above the statutory minimum. The employer's failure to cite the correct convenio does not void the contract, but it creates uncertainty and potential liability if the agreement imposes higher standards than the contract states.
3. The contract specifies any probationary period (período de prueba) in writing; oral probation clauses are void. Article 14.1 of the Estatuto de los Trabajadores requires that the probationary period be agreed por escrito (in writing) to be enforceable.

Templates and formalities. Spain does not prescribe a single mandatory template for ordinary indefinite or fixed-term contracts (in contrast to some other EU jurisdictions), but the public employment service (SEPE) publishes model contracts (modelos oficiales) for common scenarios (fixed-term for project, part-time, training, remote work). Employers may draft bespoke contracts provided the mandatory elements appear and the contract complies with the applicable collective agreement and the Estatuto de los Trabajadores. In practice, most Spanish gestorías (payroll and administrative-services firms) and local employment lawyers maintain template libraries tailored to specific sectors and updated for legislative changes; a foreign company setting up its first Spanish hire should budget for local drafting support to ensure the contract reflects the correct convenio, social-security category, and any sector-specific clauses (e.g., mobility, non-compete, intellectual-property assignment).

For companies using an employer of record (EOR), the EOR typically holds a portfolio of compliant templates and manages the SEPE filing, copia básica delivery, and collective-agreement identification. The foreign company becomes the "economic employer" or client under a service agreement, while the EOR is the legal employer of record; the written employment contract runs between the EOR entity and the individual, not between the foreign company and the individual.

Source: Real Decreto Legislativo 2/2015 (Estatuto de los Trabajadores), Art. 8 Source: Real Decreto 1659/1998 (information duties, Art. 8.5 implementing regulation)

Before a newly hired employee in Spain can begin work, the employer must complete the individual worker registration process—alta del trabajador—with the Tesorería General de la Seguridad Social (TGSS, Social Security General Treasury). This step is distinct from the company's initial registration as an employer (CCC), and is a non-delegable legal obligation for both Spanish and foreign employers operating under Spanish law.

Statutory authority. The individual registration (alta) requirement is established under Article 32 and Article 30 of Royal Decree 84/1996 (General Regulation on Registration, Affiliation, Deregistration and Variations of Workers in Social Security), which require that every worker be affiliated with the Social Security system and registered before commencing any employment activity. Failure to register before the first day exposes the employer to administrative sanctions, loss of coverage for workplace accidents, and could invalidate the employment relationship.

Registration procedure.

• The alta filing must be completed before the worker’s start date. Employers submit the TA.2/S model (Alta de Trabajadores) either electronically (SEDESS online service or RED system for companies) or in person at TGSS offices. Entry via the Import@ss portal is possible for some categories.
• The filing requires employer CCC, employee identification (DNI/NIE/passport), employment start date, contract type and category/código cuenta de cotización, job classification group, and working hours.
• Workers without a Spanish número de la Seguridad Social (social security number) must be assigned one before the alta; this is usually handled as a preliminary administrative step using the TA.1 form. EU and EEA nationals must still obtain this number; non-EU nationals must also present a valid work authorization.

Contribution group and occupational category. The employer must assign the worker to an eligible contribution group (grupo de cotización) based on the occupational classification system. There are 11 groups defined in Article 26, determining the minimum contribution base for social-insurance withholding.

Timeline and penalties. Filing must occur prior to commencement of work—TGSS treats employment as illegal otherwise. Article 33 establishes fines for late or omitted registrations. The worker’s cover for workplace accidents does not commence until the alta is processed.

Practical note. For international assignments, the alta del trabajador is also the basis for requests for A1 certificates (EU coordination of social security), cross-border notifications, and correct application of special regimes (e.g., expatriate, agrarian, domestic).

Source: Real Decreto 84/1996 (Art. 30–34, Alta de los trabajadores)

A foreign company intending to hire employees in Spain must obtain a Spanish tax identification number—historically known as the CIF (Código de Identificación Fiscal) and now required as the NIF (Número de Identificación Fiscal) for legal entities—from the Spanish Tax Agency (Agencia Estatal de Administración Tributaria, AEAT).

Who must obtain a NIF:

• Any non-resident legal entity with obligations in Spain, including direct employment or permanent establishment, must secure a NIF before employer registrations with Social Security and employee onboarding can be completed.

Process:

• Application is generally made using AEAT form Modelo 036. This requires, at minimum, proof of legal existence/incorporation in the entity's home country and appropriate authorization for the legal representative acting in Spain. Documents not in Spanish may be required to be accompanied by official translations.
• The process can be initiated in person at AEAT offices or, for those with electronic certificates, online via sede.agenciatributaria.gob.es.
• Upon initial application, AEAT can assign a provisional NIF pending full verification of supporting documents. A definitive NIF is issued once document review is completed by AEAT.

Obtaining a valid NIF is an express legal precondition to registering as an employer (to obtain a CCC) with the Tesorería General de la Seguridad Social and is required in all filings with Spanish authorities related to labor and payroll. The assignment of a NIF alone does not establish Spanish tax residence or trigger routine corporate tax compliance unless the entity conducts taxable activities in Spain. The AEAT does not state guaranteed processing timelines and requirements may differ if documents require apostille or legalization.

Source: Obtención de NIF para entidades no residentes (Agencia Tributaria, sede.agenciatributaria.gob.es)

Every employer hiring its first worker in Spain—whether a Spanish company or a foreign entity establishing a presence—is required by law to arrange coverage for workplace accidents and occupational diseases (contingencias profesionales). This coverage must be set up before employment begins and is typically arranged through a registered mutual insurance company (mutua colaboradora con la Seguridad Social).

Statutory requirement and coverage: Article 42 of the Prevention of Occupational Risks Law (Ley 31/1995, de Prevención de Riesgos Laborales) places an obligation on every employer to organize the prevention of workplace risks, including financial protection for workplace accidents and professional illnesses. This obligation is further specified by Royal Decree 1993/1995, which governs the collaboration of mutuas with the Social Security system. The employer's duty is to collaborate for the management of occupational contingencies and to be affiliated with one authorized mutua before employing any workers. The mutua will manage benefits and payments for temporary incapacity resulting from occupational incidents.

Who must comply:

• All Spanish legal entities that employ workers.
• Foreign companies registering as employers for direct employment of personnel in Spain.

Self-employed persons (autónomos) are generally not required to affiliate with a mutua unless they themselves hire employees, at which point the obligation applies for their workforce.

How to comply:

• Select a mutua from the official register of authorized entities listed by the Ministry of Inclusion, Social Security and Migration.
• Formalize affiliation via the Social Security employer registration process (often the RED or SEDESS online platform), naming the mutua in the registration forms (e.g., TA.6).
• The mutua provides an affiliation certificate confirming coverage. This document serves as proof of compliance and may be requested in employment inspections or after a workplace incident.

Procedural note:

• These requirements are mandatory before a new employee's start date. The compliance obligation is statutory, and employers cannot lawfully begin an employment relationship without arranging this coverage.
• The specifics of penalties or blocked registrations, as well as the procedures for changing mutuas, are subject to further administrative regulation; the key statutes require coverage but do not spell out these mechanics in detail.

Source: Ley 31/1995, de Prevención de Riesgos Laborales, Art. 42 Source: Real Decreto 1993/1995, de colaboración en gestión mutuas

Employers in Spain must comply with statutory obligations to withhold, report, and remit social security contributions and income tax (IRPF) from employee wages, and to provide a lawful payslip (recibo de salarios) for every pay period. These obligations form the backbone of Spanish payroll compliance and apply to both Spanish and foreign employers operating in Spain.

Social security payroll withholdings and employer reporting. Article 141 of the General Social Security Law (Texto Refundido de la Ley General de la Seguridad Social, Royal Legislative Decree 8/2015) establishes the employer’s duty to deduct and pay both their own and the employee’s portion of social security contributions. Payroll withholdings must be reported to the Tesorería General de la Seguridad Social (TGSS) and remitted in accordance with regulatory deadlines (the detailed breakdown of rates and contribution bases is set by annual Social Security Orders, not directly within the main statute). Payroll declarations are submitted electronically, generally through the RED system for all but the smallest employers. The specific procedure and deadlines (typically payment is due monthly, within statutory timeframes detailed in Royal Decree 2064/1995) are further elaborated in implementing regulations and TGSS/INSS administrative guidance.

IRPF withholding. Spanish employers are further required to withhold personal income tax (Impuesto sobre la Renta de las Personas Físicas, IRPF) from employee wages and report those withholdings to the tax authority (Agencia Tributaria, AEAT). The statutory obligation is established by the IRPF Law (Ley 35/2006, Art. 101), as implemented by annual withholding instructions and the Modelo 111 reporting form. The withheld IRPF must be paid to AEAT monthly or quarterly, depending on employer size, and an annual withholding certificate is provided to the employee. The exact withholding rate is determined by the employee’s personal situation—but the duty to withhold, report, and remit is absolute for all salary paid in Spain.

Payslip requirements. Article 29.1 of the Estatuto de los Trabajadores (Royal Legislative Decree 2/2015) requires every employer to provide a payslip specifying the total income due and all deductions (including IRPF and social security) in a clear breakdown for each pay period. The breakdown and presentation (minimum content, distinction between wage/non-wage items, deduction detail) must at minimum follow the official payslip model or any sectoral collective agreement prescribing further detail. The payslip serves as proof of payment and full compliance; failure to issue it, or failure to include the legally required detail, exposes the employer to administrative sanctions.

Consequences of non-compliance. Employers failing to withhold, report, or remit social security or tax contributions may incur surcharges, fines, and additional interest for late or omitted payments. Statutory penalties for non-compliance are detailed in the General Social Security Law (Arts. 21-22, Title IV, and via the Social Security Inspectorate regime), and for tax infractions in the General Tax Law (Ley 58/2003).

Source: Ley General de la Seguridad Social (Royal Legislative Decree 8/2015), Art. 141 Source: Real Decreto Legislativo 2/2015 (Estatuto de los Trabajadores), Art. 29

Before making a first hire in Spain, a company must understand if and when they are required to register as an employer with the Public Employment Service (SEPE, Servicio Público de Empleo Estatal) and communicate employment offers or contracts. These requirements are distinct from social security and tax registrations, and serve to support labor-market monitoring, compliance, and eligibility for selected hiring incentives or non-EU national hires.

1. SEPE employer registration requirement Articles 16 and 17 of Royal Legislative Decree 3/2015 (Ley de Empleo) require all employers making use of public employment services—that is, companies using SEPE offices to advertise vacancies or recruit jobseekers—to be registered with their local SEPE office before engaging employees through those channels. Registration occurs at the provincial SEPE office corresponding to the workplace. The law does not require universal SEPE registration for companies that rely exclusively on private recruitment channels and do not use SEPE for hiring or submit vacancies through the public system.

2. Mandatory notification of job offers (comunicación de oferta de empleo) Article 16.1 and 16.2 of the Ley de Empleo obligate employers to notify SEPE of job offers only when seeking to recruit through public employment offices or when such notification is required by other legal frameworks (e.g., certain subsidized contract types or, critically, when labor-market testing is required to hire a national of a non-EU country under Spain’s immigration regime). There is no general law compelling all employers to notify SEPE of every job offer for routine local or EU national hiring.

• For non-EU national work permit applications, notification of the vacancy to SEPE and a period of labor-market testing is mandatory, as the SEPE certificate is required in the visa process (not governed by the Ley de Empleo alone, but by the immigration regime).
• For standard payroll hiring of Spanish or EU employees, notification of vacancies to SEPE is optional unless required by special contract types or regional programs.

3. Contract notification and the Contrat@ platform After any employment contract is signed—regardless of whether SEPE was involved in the hire—the employer must notify SEPE within ten days by submitting contract details. This obligation is statutory (Art. 8.3, Estatuto de los Trabajadores) and applies to all employers, not only those using SEPE for hiring. Employers typically use the electronic Contrat@ platform or file in person at the local office.

Summary:

• Register with SEPE if you post vacancies or recruit using public employment services; not required for exclusively private hiring.
• Notify SEPE of job offers only where the law requires (e.g., non-EU hires, certain subsidies).
• Always file contract details with SEPE after execution, within ten days, using Contrat@ or your local office.

Failure to comply with relevant notifications may result in administrative sanctions or block the employment or visa process for non-EU nationals.

Source: Ley de Empleo (Royal Legislative Decree 3/2015), Art. 16–17

New employers in Spain—whether domestic or foreign—must determine which collective bargaining agreement (convenio colectivo) applies to their operations from the outset. Spanish law gives binding force to these agreements for wages, working time, notice, and other essential employment conditions, often setting standards above the statutory floor for specific sectors, regions, or companies.

Statutory duty to apply the convenio Article 3.1(b) and Articles 82–84 of the Estatuto de los Trabajadores (Royal Legislative Decree 2/2015) establish that, where a collective agreement applies, its terms prevail over lower sources of law except for statutory minimum rights. Article 8.5 requires that the written contract (or, for indefinite contracts, the mandatory written statement) specify principal working conditions; listing the applicable convenio by name and scope is standard practice, though the statute does not prescribe a detailed format.

How to identify the applicable convenio The applicable convenio is determined mainly by the company’s predominant economic activity and location, in line with the scope defined in the convenio’s text. While the Estatuto does not refer to industry codes directly, the sector/activity is generally determined using the company’s CNAE (National Classification of Economic Activities) code—as reflected in local administrative practice and in many convenios themselves.

• National, regional, or provincial convenios are commonly published in the Boletín Oficial del Estado (BOE) or relevant autonomous community gazette. Company-specific convenios are binding for parties to them, but most new employers fall under a sectoral agreement unless they later negotiate a company-level convenio as per Article 83–84.
• In the case of “mixed-activity” businesses, established practice and some court decisions use the predominant activity by revenue or workforce. This is a matter of jurisprudence and administrative convention, not explicit statutory language.
• The Ministry of Labour maintains an official public registry (REGCON) for convenios, which employers can use to confirm the latest binding agreement for their sector. Use of REGCON is strongly recommended to avoid misapplication, though it is not itself mentioned by name in the statute.

Statutory conflict rules Article 83 clarifies that if more than one convenio could apply, the most specific by economic or geographical scope governs—though in practice, interpretation can vary and litigation may arise. Spanish courts resolve conflicts based on which agreement is most closely tailored to the company's main activity.

Failure to apply the binding convenio may lead to workers’ claims for underpaid wages and, if willful or egregious, sanctions through the labour inspectorate, as supported in practice and case law (though specific penalties are spelled out in other provisions of Spanish labour law, not in Articles 3 or 82–84).

Source: Real Decreto Legislativo 2/2015, Estatuto de los Trabajadores, Arts. 3, 8, 82–84

Spanish employment law allows the parties to agree a probationary period (período de prueba) at the outset of an employment contract, subject to explicit statutory limits and formal requirements. The probation clause must always be in writing to be enforceable (Estatuto de los Trabajadores, Artículo 14.1).

Maximum duration under the statute. Article 14.1 of the Estatuto de los Trabajadores (Royal Legislative Decree 2/2015) imposes maximum durations for probationary periods:

• Six months for qualified technicians (técnicos titulados). This includes university graduates or other workers in roles requiring a formal qualification, as defined by the position and not just by the employee's credentials.
• Two months for all other employees, unless the company has fewer than 25 employees, in which case the cap is three months.
• For temporary contracts of no more than six months’ duration, the probationary period may not exceed one month, regardless of occupational category, unless a sectoral collective bargaining agreement stipulates otherwise. This limitation was tightened in the 2022 labor reforms (effective from 31 December 2021, Real Decreto-ley 32/2021).

Modification by collective agreement (convenio colectivo): Sectoral or company-level collective agreements may set probationary periods different from, but not exceeding, the statutory maximums unless they provide for greater rights to the worker. The applicable convenio must be referenced in the written contract and, where stricter limits apply, employers must comply accordingly. Failure to observe the applicable limit (by law or by convenio) will void the excess and reduce the probation to the permissible duration (Article 14.1, second paragraph).

Formality and enforceability:

• To be valid, the probationary period must be expressly stated in writing before the start of employment. Oral or implicit agreements are not enforceable. A contract that does not mention probation is presumed to have none.
• During probation, either party may terminate the employment relationship without notice or indemnity, unless otherwise stipulated or forbidden by the convenio. Any termination for discriminatory or prohibited reasons is void, as in all employment relationships.
• If the employee has already performed equivalent functions in the company (e.g., previously employed via a temporary agency or as an intern), probation may be waived under the applicable collective agreement or established company practice.

Practical compliance traps:

• Many convenios specify shorter periods or sector-specific caps. Employers should consult the text of the applicable agreement (via REGCON or the Boletín Oficial del Estado).
• Listing a probationary period longer than the statutory or collectively bargained cap exposes the clause to partial invalidity, and only the legal maximum will be enforceable.

Summary: The most common statutory caps (as of 2024) are six months (qualified technicians), two months (others), except three months (small employers), and one month for temporary contracts under six months' duration. The probation must always be written. Collective agreements may impose stricter—but not more permissive—limits, which override the statute for the relevant employees.

Source: Estatuto de los Trabajadores, Artículo 14

Spain imposes a statutory national minimum wage across all employment contracts, known as the Salario Mínimo Interprofesional (SMI). The SMI establishes the absolute wage floor below which no employee—regardless of sector, contract type, or nationality—can lawfully be paid for full-time work.

2024–2025 rate and coverage The SMI for 2024–2025 is set at €1,134 per month for full-time work (14 payments per year, including extra summer and Christmas payments, as is standard in Spanish payroll practice), or €15,876 per year. Employers may also pay the SMI prorated across 12 monthly payments, yielding €1,323 per month. The SMI is gross (before tax and social-security withholding). This figure applies regardless of the employee’s age, experience, or sector, unless a higher wage floor is set by an applicable collective bargaining agreement (convenio colectivo).

Legal authority and adjustment The SMI is updated by annual decree of the Spanish government following consultation with unions and employers. The 2024 rate was set by Real Decreto 145/2024, published in the BOE and effective retroactively from 1 January 2024. Adjustments typically occur in January and are published in the Boletín Oficial del Estado (BOE). Article 27 of the Estatuto de los Trabajadores (Royal Legislative Decree 2/2015) sets forth the indexation framework, requiring the government to consider inflation, productivity, and economic conditions when updating the SMI.

Scope and exclusions The SMI applies to all employment contracts, including indefinite, fixed-term, part-time, and temporary agency workers, except apprenticeships and certain training contracts, which may be set at percentage rates. Payment in kind cannot exceed 30% of the wage.

Relationship to collective agreements (convenios colectivos) Sectoral or company-level convenios colectivos often set wage floors above the SMI; the SMI remains a universal legal minimum. No employee covered by Spanish law may be paid a base salary lower than the SMI, even if the contract or collective agreement is silent or provides a lower figure. Inspectors routinely audit compliance with the SMI during payroll inspections.

Practical compliance Employers must update offers and payroll settings whenever the SMI is revised. Retroactive adjustment may be required—Real Decreto 145/2024 applies the new rate from 1 January 2024, regardless of when the decree was published. The SMI is published for 14 payments; foreign employers unfamiliar with the Spanish “14-month” system should consult a gestoría to ensure correct annualization. Minimum wage infractions expose employers to sanctions under the Labour Inspectorate regime (Inspección de Trabajo y Seguridad Social) and back-wage actions.

Source: Real Decreto 145/2024, de 6 de febrero, por el que se fija el salario mínimo interprofesional para 2024 Source: Estatuto de los Trabajadores, Artículo 27

Spanish law requires every employer to provide employees whose contract will last more than four weeks with a written statement specifying the essential terms and principal working conditions of employment. This requirement—set out in Article 8.5 of the Estatuto de los Trabajadores (ET) and specified in Royal Decree 1659/1998—operationalizes Spain’s obligations under the EU Working Conditions Directive (now Directive (EU) 2019/1152), as implemented via national law and updated by subsequent reforms.

Who is covered and timing of delivery The obligation applies to all employment relationships exceeding four weeks’ duration, regardless of contract type or working hours. The employer must provide the statement within two months from the employment start date, unless all required terms are already detailed in a written contract furnished at outset (Article 8.5 ET). In practice, this means that if the employment contract is comprehensive and meets all statutory requirements, this separate statement may be unnecessary. Otherwise, the information statement is a mandatory stand-alone notice.

Mandatory contents (Royal Decree 1659/1998, Art. 2): The following essential terms must be communicated in writing:

• Identity of parties (employer and employee) and addresses
• Start date of employment and, if fixed-term, the expected duration
• Workplace location or, if variable, a statement that work may occur at multiple sites
• Job title, occupational category, or a brief description of responsibilities
• Base salary and any wage supplements, method of calculation, and payment frequency
• Normal daily/weekly working hours and work schedule
• Amount of paid annual leave
• Duration and conditions of any probationary period
• Notice periods required for termination by either party
• Reference to the applicable collective bargaining agreement (convenio colectivo), if any

If an employer unilaterally changes any of these terms, notification of the change must also be provided to the employee in writing at the earliest possible time and no later than the effective date.

Alignment with the EU Directive Directive (EU) 2019/1152 on Transparent and Predictable Working Conditions replaced the previous Written Statement Directive, strengthening minimum information rights. Spain’s framework already reflected much of the content and timing required by the newer Directive, but Decree-law 32/2021 and subsequent adjustments in 2022–2023 further aligned national law with these standards. Notably, employers should verify current implementation status when onboarding employees, as further regulations may update the specifics.

Practical implications and compliance risk Employers in Spain commonly meet this obligation via (1) a comprehensive written contract, or (2) a separate “información sobre las condiciones esenciales del contrato de trabajo” statement delivered by the statutory deadline. Failing to comply exposes the employer to administrative fines under the Labour and Social Security Inspectorate regime. The burden of proof for compliance is on the employer in any dispute.

Source: Estatuto de los Trabajadores, Artículo 8.5 Source: Real Decreto 1659/1998

Spanish employment law sets detailed rules for maximum working hours, overtime, and rest breaks, which apply to all employment contracts unless a more favorable standard is set by an applicable collective bargaining agreement (convenio colectivo). The principal legislative source is the Estatuto de los Trabajadores (Royal Legislative Decree 2/2015), Articles 34 to 38, which establish the national framework for working time.

Maximum ordinary working time: Article 34.1 sets the statutory maximum ordinary working time at 40 hours per week of actual work as an annual average. This means an employer may, by agreement or scheduling, distribute working hours irregularly across weeks or months, provided the average does not exceed 40 weekly hours over the course of a year. The annual cap is enforced in the employment contract and payroll settings and usually results in a maximum of 1,826 hours per year unless otherwise set by the convenio.

Overtime (horas extraordinarias): Article 35 restricts overtime to a maximum of 80 hours per year, not counting hours worked to prevent or repair accidents or other extraordinary and urgent matters. Overtime must be compensated either by additional pay (at the statutory or collectively bargained rate) or with equivalent time off in lieu. The employer must record overtime worked, notify employees monthly, and reflect the figures in the official working time records. Sectoral and company-level convenios may impose tighter limits or require specific documentation/approval steps for overtime.

Rest periods:

• Daily rest: Article 34.3 requires a minimum daily rest of 12 consecutive hours between the end of one working day and the beginning of the next.
• Weekly rest: Article 37 mandates a minimum weekly rest of one and a half uninterrupted days, usually Saturday afternoon and Sunday, or as established in the applicable convenio. This can, by agreement, be accumulated over up to 14 days, provided the pattern meets or exceeds the minimum average rest.
• Rest breaks within the working day: Article 34.4 grants workers a minimum break of 15 minutes if the daily working time exceeds six hours. This break is commonly unpaid, unless otherwise stated in the contract or collective agreement.

Night work, shift work, and other limits: Articles 36 and 38 impose further restrictions on night work, shift work, and special regimes (minors, hazardous environments). Night work (between 10pm and 6am) is subject to extra statutory protections, including a maximum of 8 hours of night work within any 24-hour period, with stricter limits if hazardous conditions apply.

Practical compliance: Employers must keep accurate working time records by employee, preserve them for at least four years, and make them available to workers and labour inspectors. Failure to comply can trigger significant fines.

For foreign employers onboarding workers in Spain, these limits are mandatory contract terms and inform pay calculations, scheduling, job offers, and time-tracking policies. Sectoral convenios may set stricter caps or longer paid breaks, which always override the statutory floor.

Source: Estatuto de los Trabajadores, Artículos 34–38

Spanish employers—including any foreign company hiring or onboarding employees in Spain—must comply with national and EU data protection laws that apply specifically to processing employee personal data. The core duty is to collect and process staff data in line with the EU General Data Protection Regulation (GDPR, Regulation (EU) 2016/679), as supplemented in Spain by Organic Law 3/2018 on Data Protection and Guarantee of Digital Rights (Ley Orgánica 3/2018, LOPDGDD).

Obligations at onboarding: Any employer collecting, recording, or storing data for purposes of recruitment, payroll, social security, or contracting must:

• Inform the employee, in writing and before collecting data, about the identity and contact details of the data controller (usually the employing company or its Spanish branch), the reasons for processing, data retention period, and rights of access, rectification, erasure, objection, and portability.
• Maintain an internal, written register of processing activities in accordance with Art. 30 GDPR and Arts. 31–32 LOPDGDD. This register must be made available to the Spanish Data Protection Agency (AEPD, Agencia Española de Protección de Datos) upon request but is not proactively filed or published—Spain abolished the old public notification regime after GDPR took effect in 2018.
• Contractually instruct any payroll provider, HR consultant, or IT processor through a GDPR-compliant data processing agreement (as per Arts. 28–29 GDPR), making clear how employee data is protected and restricted in use.
• Ensure technical and organizational security measures appropriate to employment data—such as secure storage, controlled access, and breach documentation—in line with Art. 32 GDPR and Title V LOPDGDD.

Special categories of data: Processing health data (e.g., for sick leave, occupational accidents, or incapacity registration) requires additional restrictions and heightened safeguards and must be strictly limited to what is required by labor or social security law. Criminal record checks are only lawful where expressly permitted by national regulation for the job type in question (Art. 10 LOPDGDD).

Onboarding compliance in practice: There is no longer a public notification or registration step with the AEPD when onboarding employees. However, failure to provide the mandatory data protection notice, to keep an up-to-date processing register, or to safeguard employee data can lead to investigation and administrative fines by the AEPD. Serious infringements—such as processing without legal basis, inadequate security, or failure to provide information to employees—can result in penalties up to €10 million or 2% of annual turnover (Art. 83 GDPR, Art. 71 LOPDGDD).

Source: Ley Orgánica 3/2018, LOPDGDD Source: Reglamento (UE) 2016/679, GDPR, Artículos 28–32

Spanish law requires every employer hiring workers in Spain—including foreign companies making their first hire—to guarantee workplace health and safety via occupational risk prevention measures. The foundational authority is Ley 31/1995, de Prevención de Riesgos Laborales (PRL), Articles 18–22, which set out employer duties regarding risk assessment, safety information, and the statutory framework for mandatory health surveillance (reconocimiento médico).

Current legal framework (May 2026): Employers must offer pre-employment and periodic medical examinations tailored to the risks each worker may face, as well as provide written risk-prevention information at onboarding. Exams are performed by authorized occupational health professionals and refusal is permitted (with limited exceptions for high-risk activities), with results kept confidential and regulatory documentation required for inspection. Employers usually contract an external Servicio de Prevención Ajeno to manage these requirements.

Material 2026 update – mandatory exams for drivers (BOE Resolution 663/2026): As of January 12, 2026, BOE Resolution 663/2026 clarifies that pre-employment and periodic occupational health examinations cited under Article 22 PRL are mandatory for any employee performing driving duties, including those who drive only occasionally as part of their job. These medical exams must now include specific alcohol and drug consumption tests. Employers are required to inform affected employees of the concrete tests to be performed, and results must remain confidential. This closure of the "occasional driver" loophole is a material compliance expansion: all roles involving any driving duties now trigger mandatory, not optional, surveillance under Art. 22 PRL. Documentation of risk and exam findings must be maintained for inspection, and the employer’s external prevention service will typically coordinate the new requirements.

2026 legislative reform – material changes pending: On April 28, 2026, the Council of Ministers approved an anteproyecto de ley (draft reform) to modernize the PRL. The pending reform, not yet enacted, would:

• Expand the notion of workplace health to denote explicit obligations regarding psychosocial, emotional, digital, and climate-related risks in addition to traditional physical risks.
• Require mandatory occupational health examinations for employees returning from prolonged health-related absences (return-to-work protocols), in addition to onboarding and periodic checks.
• Direct the government to develop implementing regulations, with the main effective date anticipated for January 2, 2027, and transitory provisions expected.

Compliance status and monitoring:

• As of this update, the obligations in Articles 18–22 PRL and the new BOE Resolution 663/2026 are in force and binding.
• The broadening of risk and return-to-work protocols proposed in the legislative draft are not yet law. Employers should monitor further developments and plan for significant compliance changes in 2027 if the reform passes in its current form.

Source: Ley 31/1995, de Prevención de Riesgos Laborales, Artículos 18–22 (text in force) Source: Resolución de 12 de enero de 2026 (BOE‑A‑2026‑663) – reconocimiento médico obligatorio para conductores Source: Ministerio de Trabajo, nota de prensa reforma LPRL (April 28, 2026)