Employee benefits in
Spain

SALARY PAYMENT IN Euro (EUR, €)

CONTRACT LANGUAGES Spanish / English

PAYROLL TAX 29.90%

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours
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Horizons-owned entity with local country experts in Madrid & Barcelona.

We offer fair, scalable, and transparent pricing on Spain PEO service. Contact us for a cost breakdown

End service in Spain with no additional penalties or fees.

Including vision & dental, necessary for Spain.

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Spain

Healthcare in Spain

Spanish healthcare is publicly funded, so you don’t need to offer private health insurance and most employers don’t, except for some high-level positions. Expats who live, work, and pay social security contributions in Spain are entitled to public healthcare access.

Pensions in Spain

Pensions in Spain are funded by both the employee and employer. Employees must contribute 4.7% of salary while employers must contribute 23.6%. Offering higher-than-mandatory pension contributions is a common benefit and a good way to attract the country’s top talent.

Disability in Spain

Spain has a range of laws to support people with disabilities. From the perspective of employers, the most important law requires employers to hire disabled workers at a rate of 2% of their total workforce, regardless of workforce size. There are some alternatives if this target can’t be met, for example, employers can subcontract disabled workers or donate to certain approved organizations.

Disability benefits are paid in the case of disability impacting an employee’s ability to work, with varying payments depending on the nature of the disability. This is covered by the country’s social security system.

Unemployment in Spain

Workers in Spain on indefinite-term contracts who are terminated are generally entitled to severance equaling around one month’s pay for every year worked, plus an extra month upon termination.

Unemployed people can also receive unemployment benefits, covered by the country’s social security system, if they have made social security contributions for at least 360 days.

Hiring in Spain, Made Easy

Your business can easily hire employees in Spain without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

What employee benefits are mandatory in Spain?

Mandatory benefits in Spain include:

Minimum wage
Parental leave
Annual leave
Overtime compensation
Sick leave
Insurance

Note that the healthcare system in Spain is publicly funded, so employers don’t need to offer private health insurance.

What employee benefits does Horizons cover in Spain?

Horizons can cover any employee benefit you want to offer in Spain. We ensure full compliance with the labor law by making sure all mandatory benefits are offered, and provide our client company flexibility in which other benefits, and how much, they want to offer their employees in Spain.

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

"As a seed-stage, London-based startup, we were initially hesitant to expand internationally due to the administrative workload involved. Horizons took the headache out of the process, allowing us to hire a team of software engineers in Germany."

Gabor SzedlakCo-founder & COO at MindLabs (UK)

"I truly appreciated the thoroughness and the professionalism of Horizons personnel while we hired internationally with them. They were knowledgable on all subject matters pertaining to international employment."

Gary PaskyVP Software Development, PICS ITech (USA)

"On deciding to begin commercial activities in Asia Pacific, we needed a provider to handle the employment and remuneration of our workforce. With Horizons the result was fast, efficient, and fit-for-purpose. We recommend Horizons as an EOR provider.”

Chris MorrellManaging Director, Schaeffler Group (Germany)

"The collaboration with the Horizons team is excellent. Both our local employee as well as our HQ in Germany are more than pleased with the support provided and the simplicity of the service. We can highly recommend the Horizons solution to anyone."

Christoph EngelbertCo-Founder & CTO, Clevabit (Germany)

"We needed an EOR that could provide expert support for payroll in APAC. We are pleased with Horizons’ expertise and the fact that they are flexible, responsive, and easily accessible from Belgium. They were able to provide services within the short timeline we required."

Katia FlamandHuman Resources, Devian Chemicals (Belgium)