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Spain: Country Fact Sheet

Spain: Country Fact Sheet

General Overview

CapitalMadrid
Population~48 million
LanguageSpanish
CurrencyEuro (€)
Time ZoneCET

Business & Taxation

Standard VAT Rate21%
GDP~$1.89 trillion (2025 est.)
Ease of Doing BusinessRanked 30th globally (World Bank)

Public holidays, leave, & benefits

Public holidays (2026)

  • 1 Jan.
    Thursday
    New Year's Day (Año Nuevo)
  • 6 Jan.
    Tuesday
    Epiphany (Epifanía del Señor / Día de Reyes)
  • 2 Apr.
    Thursday
    Maundy Thursday 1 (Jueves Santo)
  • 3 Apr.
    Friday
    Good Friday (Viernes Santo)
  • 5 Apr.
    Sunday
    Easter Sunday 2 (Domingo de Resurrección)
  • 1 May.
    Friday
    Labor Day (Fiesta del Trabajo)
  • 15 Aug.
    Saturday
    Assumption of Mary (Asunción de la Virgen)
  • 12 Oct.
    Monday
    National Day of Spain 3 (Fiesta Nacional de España)
  • 1 Nov.
    Sunday
    All Saints' Day ( Día de Todos los Santos)
  • 6 Dec.
    Sunday
    Constitution Day (Día de la Constitución)
  • 8 Dec.
    Tuesday
    Immaculate Conception ( Inmaculada Concepción)
  • 25 Dec.
    Friday
    Christmas Day (Navidad)
  • 1. Regional observation varies. Most regions observe Maundy Thursday, while others (like Catalonia and Valencia) observe Easter Monday instead.
  • 2. Not officially classified as a paid public holiday since it falls on a statutory rest day.
  • 3. Please note that if this falls on a weekend, the observed holiday (often the following Monday) is only observed in some regions.

Workforce & employment framework

Standard working week

40 hours

Collective bargaining agreements (CBAs)

Heavily influence employment terms, conditions, and costs.

Employment contracts:
  • Permanent (default)
  • Temporary (strictly regulated; misuse can trigger fines; max duration generally 36 months depending on renewal rules)
Termination basics
  • Notice periods vary by role and tenure
  • Strong protections against unfair dismissal
  • Compensation often applies (typically 20–33 days’ salary per year of service for unfair dismissal)
  • Termination disputes can be costly
Hiring considerations
  • Regional labour rules and calendars apply
  • Incorrect use of temporary contracts is a common risk
  • CBAs significantly impact costs and conditions
  • Administrative complexity is common

BRIDGE IN Insight

Spain offers access to scale and diverse talent, but employment structures require disciplined local management and strict compliance with labour regulations.

Standard Mandatory Contributions

Income Tax:

Progressive (19–47% brackets, depending on income and region)

Social Security Contributions:

Employer: ~28–31% (varies by sector)
Employee: ~6–7%

Payroll calculations depend on contract type, sector, CBA, and region)