Guide to business in Spain Guía de negocios en España


2. State incentives for training and employment


These incentives, which form part of the Government's employment promotion policy, can signify important savings in labor costs and are divided into two types:

2.1. Training incentives

Since the approval of Royal Decree 395/2007, regulating the Vocational Training for Employment subsystem, the Vocational Training for Employment subsystem has combined both the training aimed at employed workers (Ongoing Vocational Training) and the training aimed at unemployed workers (Occupational Training) under a single model referred to as Vocational Training for Employment.

In this context, the Vocational Training for Employment subsystem encompasses a set of instruments and actions aimed at encouraging and extending to companies and to employed and unemployed workers a type of training that meets their needs and contributes to the development of a knowledge-based economy.

The following are the initiatives making up this training subsystem:

  1. Demand-based training: training initiatives fostered by companies and individual leaves of absence for training, financed in whole or in part with public funds, to meet the specific training needs raised by companies and their workers.
  2. Supply-based training: comprising both training initiatives aimed primarily at employed workers and training initiatives aimed primarily at unemployed workers with a view to offering them training which capacitates them for qualified work and access to jobs.
  3. Training alternating with work: training initiatives under vocational training contracts and public training/work programs, enabling the worker to combine training with professional practice on the job.
  4. Programs to support and accompany training: aimed at improving the efficiency of the Vocational Training for Employment subsystem.

The most notable initiatives, for the purposes of interest here, are demand-based training and programs to support and accompany training.

Thus, demand-based training is regulated by Order TAS/2307/2007, partially implementing Royal Decree 395/2007, regulating the vocational training subsystem for employment in connection with demand-based training.

The demand-based training system is implemented through the grant of an annual credit to companies-consisting of a percentage of reductions in their workers' social security contributions —which must be earmarked for training activities for their workers.

Guide to business in Spain

Investment aid and incentives in Spain


ICEX - Gobierno de España - Ministerio de Economía y competitividad
Elaborado por Garrigues - Abogados y Asesores Tributarios
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