Working in Spain as an Expat: Employment Rights, Contracts and Social Security in the Canary Islands 2026

Step 1: Work Authorisation — Do You Need One?

EU/EEA/Swiss Citizens

No work permit needed. As an EU citizen, you have the right to work in Spain on the same terms as Spanish nationals under the right of free movement (Directive 2004/38/EC).

You must:

• Register with the Registro Central de Extranjeros within 3 months of arrival (at the local Police station in Las Palmas or Santa Cruz de Tenerife)
• Obtain your NIE (Número de Identificación de Extranjero) — required for employment contracts, social security registration, and tax filings

Non-EU Nationals (General Rule)

You need a work and residence authorisation before starting employment in Spain. The main routes are:

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Step 2: Employment Contracts in Spain

Since the 2022 Labour Reform (RD-ley 32/2021), temporary contracts have been heavily restricted. The default is the indefinite contract (contrato indefinido).

Main Contract Types

1. Contrato Indefinido (Permanent Contract)

• No end date
• Dismissal requires just cause (disciplinary or objective)
• Most common type since 2022

2. Contrato Temporal por Circunstancias de la Producción

• For genuine production spikes or seasonal work only
• Maximum duration: 6 months (extendable to 12 months by sector collective agreement)
• If used fraudulently, automatically converts to indefinite

3. Contrato de Sustitución

• To replace an absent employee (sick leave, maternity/paternity leave, etc.)
• Duration linked to the replacement period

4. Contrato Fijo Discontinuo (Intermittent Permanent Contract)

• For seasonal or cyclical activities that recur regularly
• Worker is called up each season — replaces the old seasonal contract
• Very common in the Canarian tourism sector

5. Contrato de Formación en Alternancia

• Combines work and training (an age limit of 30 applies only to certain programmes, art. 11.2 ET)
• Duration: 3 months to 2 years

Mandatory Written Content

Every contract must state (art. 8.5 ET):

• Identity of employer and employee
• Start date and duration
• Job category and workplace
• Salary and payment method
• Working hours
• Reference to the applicable collective agreement
• Information on trial period

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Step 3: Collective Agreements (Convenios Colectivos)

Spain's labour market is largely governed by convenios colectivos — sector-wide or company-level collective bargaining agreements. They set the specific minimum salary, working conditions, and benefits for each sector, which are often higher than the statutory minimums.

For the Canary Islands, key collective agreements include:

• Hostelería de Canarias (Hotels, Restaurants) — very relevant for tourism sector workers
• Construcción de Canarias (Construction)
• Comercio de Las Palmas / Santa Cruz de Tenerife
• Limpieza de Edificios y Locales de Canarias

Always ask your employer which convenio applies to your position — it determines your minimum salary, overtime rates, holidays and bonuses.

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Step 4: Salary and Working Hours

Minimum Wage (SMI) 2026

• €1,221 gross/month in 14 payments (€17,094 gross/year) — Real Decreto 126/2026
• Cannot be waived by any contract or agreement
• Applies to all workers regardless of nationality

Working Hours

• Maximum: 40 hours per week (averaged annually under collective agreement)
• Maximum daily: 9 hours (8 for workers under 18)
• Rest between working days: minimum 12 consecutive hours
• Weekly rest: at least 1.5 consecutive days (usually weekend)
• Maximum overtime: 80 hours per year (must be compensated in time off or paid at overtime rate)

Annual Leave

• Minimum: 30 calendar days per year (art. 38.1 ET)
• Collective agreements or the individual contract may improve on this minimum
• Leave cannot be replaced by cash payment (except on contract termination)
• Must be scheduled by mutual agreement, at least 2 months in advance

Payslip (Nómina)

Your employer must provide a monthly payslip showing:

• Base salary + supplements
• Prorated extraordinary payments (pagas extras)
• Social Security contributions withheld
• IRPF withholding
• Net amount

Spanish workers typically receive 14 salaries per year: 12 monthly + 2 "pagas extra" (usually in June/July and December). Some employers pay these spread across 12 months.

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Step 5: Social Security Registration

Both employee and employer must be registered with the Spanish Social Security system (Tesorería General de la Seguridad Social — TGSS).

Employer's Obligation

The employer must register the employee before the first day of work (alta previa). They cannot wait until the employment contract is signed.

Social Security Contributions (2026 approximate)

What Social Security Covers

• Healthcare (access to Spanish public health system)
• Sick leave (baja médica — for common illness or non-work accident the benefit starts on day 4; days 4 to 15 are borne by the employer, art. 173.1 LGSS)
• Maternity/paternity leave (19 weeks each, fully paid — art. 48.4 ET)
• Unemployment benefit (paro)
• Work accident and occupational disease
• State pension

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Step 6: Trial Period

The trial period (período de prueba) allows either party to terminate without compensation during the initial period:

During the trial period, either party can terminate without notice and without paying severance.

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Step 7: Dismissal Rights and Severance

Types of Dismissal

1. Disciplinary Dismissal (Despido Disciplinario) Based on serious employee misconduct (repeated absenteeism, insubordination, workplace fraud, etc.). Formal written notice required. If challenged and upheld as "fair", no severance.

2. Objective Dismissal (Despido Objetivo — art. 52 ET) Based on economic, technical, organisational or production reasons (ETOP) or individual causes (ineptitude, failure to adapt to technical changes in the job). 20 days' salary per year of service (max 12 monthly salaries). 15 days' advance notice.

3. Collective Redundancy (despido colectivo — art. 51 ET) Where, within a 90-day period, terminations on economic, technical, organisational or production grounds affect at least 10 employees in companies with fewer than 100 workers, 10% of the workforce in companies with 100 to 300 workers, or 30 employees in companies with more than 300 workers. Requires a consultation period of no more than 30 calendar days (15 in companies with fewer than 50 employees).

Severance Pay Reference Table

How to Challenge a Dismissal

1. 20 working days from dismissal notification — time limit is absolute
2. File a papeleta de conciliación at the SMAC (Servicio de Mediación, Arbitraje y Conciliación)
3. If no agreement: file a claim at the Juzgado de lo Social
4. Hearings typically take 4-12 months from filing

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Step 8: IRPF and the Beckham Law for Expat Workers

Standard IRPF (Income Tax for Residents)

Once you are a tax resident in Spain (183+ days/year), your employment income is taxed under IRPF — Spain's progressive income tax:

The Canary Islands set their own regional IRPF scale (art. 18 bis of Decreto Legislativo 1/2009), from 9% on the first bracket to 26% above €123,745; it is added to the State scale (9.5% to 24.5%).

The Beckham Law — Flat 24% Rate for Qualifying Expats

If you are a new tax resident in Spain (not resident in the previous 5 years) and you move to Spain for work (as an employee, director, or in the entrepreneurial-activity and highly-qualified-professional cases of art. 93.1.b) LIRPF), you may qualify for the Régimen Especial de Trabajadores Desplazados (Ley Beckham):

• Flat rate of 24% on Spanish-source income up to €600,000 (47% above that)
• Dividends, interest and capital gains are taxed separately under the savings scale of art. 93.2.e).2.º LIRPF: 19% on the first €6,000, rising by brackets to 30% above €300,000 (not a single flat rate)
• No obligation to declare worldwide assets on Modelo 720 (under normal circumstances)
• Duration: year of arrival + 5 subsequent years

Application: within 6 months of registering with Social Security. File Form 149 with the Agencia Tributaria.

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Step 9: Self-Employed (Autónomo) in the Canary Islands

If you work independently — freelance, consultant, digital nomad business — you'll need to register as autónomo (self-employed):

1. Register with the Agencia Tributaria (Modelo 036/037)
2. Register with Social Security as autónomo (RETA)
3. Issue invoices with IGIC (Canarian VAT equivalent at 7%) if your activity is subject
4. File quarterly IGIC declarations (Modelo 420) and IRPF advance payments (Modelo 130)

Monthly RETA contribution 2026 (income-based system since 2023):

• Minimum: €200/month (estimated net income under €1,166/month)
• Scale rises progressively to ~€590/month for highest incomes
• Beckham Law autónomos: social security contributions follow the general regime

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Self-Employed Digital Nomads

If you hold a Digital Nomad Visa (Visado de Nómada Digital — Ley 28/2022), you can work remotely for non-Spanish companies from the Canary Islands:

• Self-employed professionals may do a maximum of 20% of their professional activity for companies located in Spain (art. 74 bis.1 Ley 14/2013); employees may only work for companies outside Spain
• This limit is a condition of the telework authorisation
• Beckham Law: employees holding the international telework visa may opt for the regime if the other conditions are met (art. 93.1.b).1.º LIRPF); self-employed professionals qualify only in the cases of art. 93.1.b).3.º and 4.º (entrepreneurial activity, or highly qualified professionals providing services to start-ups or carrying out training, research, development and innovation activities)
• Social Security contributions mandatory from day 1

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Why the Canary Islands Are Especially Attractive for Expat Workers

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ALY Abogados — Labour and Immigration Law in Las Palmas

We assist expat workers, employees and self-employed professionals in the Canary Islands with:

• Work authorisation and NIE for non-EU nationals
• Employment contract review and advice
• Unfair dismissal claims and severance negotiations
• Beckham Law applications (Form 149)
• Autónomo registration and fiscal structure planning
• Digital nomad visa applications and renewals

Free initial consultation for dismissal cases. For all other matters, your first consultation fee is deducted from our fees if you instruct us. Call +34 633 572 607.

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Lázaro Héctor Amable Méndez — Lawyer, Bar Association No. 5.231 ICALPA