HR Compliance Guide · Spain

🇪🇸 HR Compliance in
Spain

Employment contract requirements, working time rules, data protection, discrimination law and health and safety obligations for employers in Spain.

Spain Overview

Working Time Rules — Spain

Standard Weekly Hours

40 hrs

Max Weekly Hours

80 hrs

Overtime Rate

1.25× standard rate

HR Compliance Areas — Spain

01

Employment contracts

All employees in Spain must have a written employment contract issued before or on the first day of work. It must cover role, salary, working hours, notice period, and leave entitlements.

02

Working time regulations

Spain law governs maximum working hours, mandatory rest breaks, and overtime rules. Employers must keep accurate records of hours worked. Violations can result in significant fines.

03

Anti-discrimination obligations

Employers in Spain are prohibited from discriminating on grounds including age, gender, race, religion, disability, and sexual orientation. This applies to recruitment, pay, promotion, and termination.

04

Data protection and employee privacy

Employee personal data must be handled in accordance with Spain data protection law. This includes payroll data, health records, and performance data. Employees have the right to access their personal data.

05

Health and safety

Employers in Spain have a statutory duty of care to provide a safe working environment. Risk assessments must be conducted and documented. Employees must be trained in relevant health and safety procedures.

06

Record keeping

Spain law requires employers to retain employment records for a minimum statutory period including contracts, payslips, absence records, and disciplinary records.

Health Insurance Schemes — Spain

Public and private health insurance schemes applicable to employers and employees in Spain.

Spanish Public Health System (SNS)

PublicMandatory
Official source ↗

Employer Cost

Varies / See notes

Employee Cost

Varies / See notes

Universal public health system funded via general Social Security contributions. All workers and their families are covered. Employers do not make a separate health insurance contribution beyond their Social Security obligations (23.6% common contingencies which includes health cover). Administered by regional health authorities.

Private Health Insurance (Seguro Medico)

Private — Optional
Official source ↗

Employer Cost

Varies / See notes

Employee Cost

Varies / See notes

Private health insurance is a popular employer benefit in Spain, covering faster specialist access, dental, and private hospitalisation. Employer-paid premiums up to EUR 500/year per employee (and EUR 500 per family member) are exempt from income tax and Social Security contributions. Major providers include Adeslas, Sanitas, and Asisa.

Opt-out: Voluntary. Increasingly offered as a standard benefit by Spanish employers.

Record Retention Requirements — Spain

Mandatory record keeping periods for employers in Spain.

Record TypeRetentionBasisDigital OKRegulator

Occupational risk prevention records

Fines up to EUR 819,780 for very serious breaches

5 yearsFrom document dateYesInspeccion de Trabajo y Seguridad Social

Payroll records (nominas)

Administrative sanctions up to EUR 187,515 for serious infractions

4 yearsFrom end of tax yearYesAgencia Tributaria (AEAT) / Seguridad Social

Employment contracts

Administrative sanctions and civil liability

4 yearsFrom terminationYesMinisterio de Trabajo y Economia Social

Remote Work Rules — Spain

Permanent establishment risk, tax thresholds, and digital nomad visa information for Spain.

PE Risk Threshold

183 days

Tax Liability After

183 days

Work Permit After

From day 1

Digital Nomad Visa

Yes — 12 months

Social Security Implications

Spain follows EU Regulation 883/2004. Spain offers the Beckham Law (Ley Beckham) — a special expat tax regime allowing a flat 24% tax rate on Spanish-source income up to EUR 600,000 for up to 6 years. Available to workers who become Spanish tax residents after not having been resident for the previous 5 years.

Digital Nomad Visa Requirements

Digital Nomad Visa (Visa para Nomadas Digitales): minimum income EUR 2,334/month (200% of Spanish minimum wage). Must work for non-Spanish employers (up to 20% for Spanish clients permitted). Valid for 1 year, extendable to 3 years as residence permit. Must have health insurance and no criminal record.

Bilateral Agreements

EU Member States (Regulation 883/2004)United StatesUnited KingdomAndorraMorocco

Spain launched its Digital Nomad Visa in 2023 under the Startup Law. The combination of the digital nomad visa and the Beckham Law tax regime makes Spain one of the most attractive destinations in Europe for remote workers. Spanish tax residency arises after 183 days. Barcelona, Madrid, Valencia, and the Canary Islands (with special ZEC tax incentives) are popular hubs.

Expense Reimbursement Rules — Spain

Tax treatment of common employer expense reimbursements in Spain.

Expense TypeTax TreatmentExempt Amount / RateReceipts

Home office expense reimbursement

Spain does not have a specific statutory tax-free daily home office allowance. Employer reimbursements for actual documented home office costs (internet, electricity) are generally exempt from IRPF and Social Security if properly documented. The 2020 Royal Decree-Law 28/2020 on remote work requires employers to cover all work-related costs for teleworkers.

Fully ExemptRequired

Meal allowance (dietas por desplazamiento)

Tax-exempt meal allowances for business travel: EUR 26.67/day for domestic travel without overnight stay, EUR 53.34 with overnight stay. International: EUR 48.08/day without overnight, EUR 91.35 with overnight stay. No receipts required within these limits. Above the limits, the excess is taxable income.

Partially ExemptNot required

Mileage / Kilometraje

Tax-free mileage rate in Spain is EUR 0.26 per km (2024). Reimbursements at or below this rate are exempt from IRPF and Social Security contributions. Above the rate, the excess is treated as employment income. A trip record (with date, destination, km, and business purpose) must be maintained.

Fully ExemptEUR 0.26/kmNot required

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This guide is for informational purposes only and does not constitute legal advice. Employment law in Spain is subject to change. Always consult a qualified local employment lawyer.

About This Guide

  • Sourced from official government publications
  • Updated monthly — always current rules
  • For guidance only — not legal advice

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