Looking to hire in Spain

Spain provides statutory paid annual leave and sick leave protections. Employers should ensure their internal policies at least meet these minimum standards.

Employees are entitled to at least 22 days of paid annual leave per calendar year. Leave accrues monthly over the calendar year, and unused days cannot be carried over to the next year under this baseline rule.

Sick leave is provided on an anniversary-year basis with yearly accrual. Unused sick leave cannot be carried over. A medical certificate is required from the first day of sick leave.

To have expenses reimbursed in the current payroll cycle in Spain, they must be reviewed and approved by both the client and the Employer of Record by specific times on the payroll cut off date. Items approved after these times are pushed to the next payroll. Expenses approved after the payroll cut off date are also included in the next scheduled payroll.

Some expenses, including certain travel and equipment costs, must be supported by a tax invoice issued in the name of the employer. Employees can confirm the correct entity name in their employment agreement. Reimbursements of approved expenses within the applicable limits are not subject to tax, while expenses submitted without the required documentation are treated as taxable. Car leasing cannot be treated as a benefit in kind because the lease would need to be in the company’s name, which is not possible in this setup.

Phone and internet subscriptions are treated as taxable and reclassified as allowances. Coworking costs can be reimbursed tax free when properly documented with a tax invoice in the employer’s name, including full company and VAT details.

Work equipment and supplies are generally non taxable when supported by appropriate documentation. For most items, a tax invoice is required showing the date, amount, merchant, description, and, where applicable, the employer’s full details and VAT amount. Office supplies and postal charges may also be supported by a receipt instead of a tax invoice. Software subscriptions must show the employee’s name.

Most business travel expenses in Spain can be reimbursed on a non taxable basis when supported by appropriate documentation. For non-business travel, certain items such as accommodation, flights, train tickets, and car rental can still be non taxable if the tax invoice includes the employer’s name, address, and VAT ID. Many travel costs require a tax invoice or receipt, and some accept vouchers, booking confirmations, or bank evidence as long as all required details are clearly visible.

Everyday meal costs and client entertainment can be reimbursed on a non taxable basis when supported by a tax invoice or receipt. Documentation must clearly show when and where the expense was incurred, the amount, and what was purchased.

Certain professional development and promotional costs are also non taxable when properly documented. Training, courses, and books must be linked to the employee, while promotional items must clearly identify the employer and VAT details on the tax invoice.

Under EU Directive 90/270/EEC, employers must reimburse employees for protective eyewear and eye exams when needed due to screen work, and the need must be certified through a medical exam or health and safety assessment. These reimbursements are non taxable, with an administrative annual threshold for eyewear costs before pre-approval is required.

Employers in Spain may offer a non taxable per diem to cover living expenses, including meals and incidentals, during business travel. These amounts do not cover accommodation or transport to and from the destination. Employees must provide travel evidence and specify the dates of travel, destination, and business purpose when claiming per diems.

Specify travel dates and destination and upload supporting documentation such as flight tickets or hotel booking

Bonuses in Spain include contractual and discretionary payments such as incentives and commissions, and they are taxed as regular income with applicable social security contributions. Spain applies progressive tax rates and withholds tax at source, so withholding in pay periods that include bonus payments may be higher than usual.