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Hiring grants: rebates and grants for taking on staff

For hiring an employee on a permanent contract there are two kinds of grant. The national rebates in Royal Decree-law 1/2023 reduce your Social Security contributions when you hire certain groups: for example, €110 a month for 3 years for a long-term unemployed person. They apply automatically when you settle your contributions. Hiring grants go by call, with a deadline, an application and justification. In both cases you must be up to date with the tax authorities and Social Security; for the rebates, you must also keep the job for the time the rule sets.

Source: Royal Decree-Law 1/2023 of 10 January, art. 1 (consolidated text) (2026-11-14) · Royal Decree-Law 1/2023, art. 36 (2026-11-14) · Royal Decree-Law 1/2023, art. 21 (2026-11-14) · Royal Decree-Law 1/2023, art. 8 (2026-11-14) · Royal Decree-Law 1/2023, art. 9 (2026-11-14) · Ley 38/2003, General Grants Law (Ley General de Subvenciones), art. 14 (2026-11-14)

What types of hiring grants exist

Spain has two families of hiring grants. The first is Social Security contribution rebates. They are governed by Royal Decree-Law 1/2023 and applied by the Tesorería General de la Seguridad Social (the Social Security treasury) directly when contributions are settled, using the registrations and changes the company reports. There is no call and no application deadline: if the contract and the person fit one of the cases, the rebate is applied.

The second is hiring grants with their own call. They are published mainly by the autonomous communities through their employment services, and also by many town councils and provincial councils. Each one has its own rules (regulatory bases), a fixed budget, an application deadline and a justification stage afterwards.

The practical difference is simple. With a rebate, what matters is reporting the registration correctly and meeting the requirements. With a grant, you also have to submit an application, wait for the decision and justify afterwards. That is why it is worth reading the rules before you sign the contract, not after.

Source: Royal Decree-Law 1/2023 of 10 January, art. 1 (consolidated text) (2026-11-14) · Royal Decree-Law 1/2023, art. 36 (2026-11-14)

State rebates: some examples with their figures

These are some of the cases covered by Royal Decree-Law 1/2023. They are not all of them: each measure has its own conditions.

  • Permanent contract for an unemployed person registered for at least 12 of the previous eighteen months: €110 a month for 3 years, or €128 a month if the person is a woman or aged 45 or over (art. 21).
  • Permanent contract for a person in a situation of social exclusion, previously confirmed by the social services or the competent public body: €128 a month for 4 years (art. 20).
  • Work-study training contract: €91 a month for as long as it lasts, plus another rebate of €28 a month on the employee's own contributions (art. 23).
  • The amounts are for a full-time contract. For part-time contracts they are reduced in proportion to working hours, and hours cannot fall below 50% of those of a comparable full-time employee (art. 10).

Source: Royal Decree-Law 1/2023 of 10 January, art. 1 (consolidated text) (2026-11-14) · Royal Decree-Law 1/2023, art. 21 (2026-11-14) · Royal Decree-Law 1/2023, art. 20 (2026-11-14) · Royal Decree-Law 1/2023, art. 23 (2026-11-14) · Royal Decree-Law 1/2023, art. 10 (2026-11-14)

Who can apply and which requirements keep coming up

Some requirements appear almost every time, for rebates and grants alike. It is worth checking them before you hire.

  • Being up to date with the tax authorities and Social Security. For rebates, Royal Decree-Law 1/2023 requires it (art. 8); for grants, you must prove it before the proposed decision (Ley 38/2003, art. 14).
  • Not falling under any of the prohibitions in Ley 38/2003 (art. 13): being in insolvency proceedings, having a conviction or penalty that removes the right to grants, or not being up to date with repayments.
  • Not being excluded for serious or very serious infringements, and having an equality plan if the company is required to have one (Royal Decree-Law 1/2023, art. 8).
  • Meeting the conditions each measure sets for the person hired: registration as unemployed, age, or whatever situation the law or the rules specify.

Source: Royal Decree-Law 1/2023, art. 8 (2026-11-14) · Ley 38/2003 of 17 November, General Grants Law (Ley General de Subvenciones), art. 13 (2026-11-14) · Ley 38/2003, General Grants Law (Ley General de Subvenciones), art. 14 (2026-11-14)

Exclusions that catch many companies out

Even when the person fits an eligible group, some hirings are left out. These are the ones that come up most in Royal Decree-Law 1/2023.

  • Hiring relatives of the employer up to the second degree (art. 11).
  • Hiring someone who worked at the company on a permanent contract in the previous 12 months, or on a temporary contract in the previous six (art. 11).
  • Hiring someone who left a permanent contract at another company in the previous 3 months, unless it was an unfair or collective dismissal (art. 11).
  • Not keeping the job: for rebates on permanent contracts, the person must stay registered for at least 3 years from the start of the contract; otherwise the company loses the benefits (art. 9).
  • The following do not count towards that requirement: resignation, retirement, death, permanent disability, termination during the probation period, and disciplinary dismissals or dismissals on objective grounds not declared unfair (art. 9).

Source: Royal Decree-Law 1/2023, art. 11 (2026-11-14) · Royal Decree-Law 1/2023, art. 9 (2026-11-14) · Royal Decree-Law 1/2023, art. 9 (2026-11-14)

How and where to submit hiring grant applications

Companies and associations are required to deal with the Administration electronically, so they apply through the online portal of the body that issues the call (Ley 39/2015, art. 14). A self-employed individual can choose, unless the call requires otherwise. If someone else submits the application for you, they must prove they represent you: for example, with a power of attorney granted apud acta on the online portal or registered in the electronic register of powers of attorney (arts. 5 and 6).

You will normally be asked for the contract, the Social Security registration, the certificates showing you are up to date and a declaration of honour. You do not have to provide again documents already held by the administration handling your case or produced by another (art. 28). If the application is incomplete, you are asked to complete it within 10 days, with a warning that if you do not, you will be treated as having withdrawn (art. 68). In competitive calls, that deadline is not extended.

Source: Ley 39/2015 of 1 October, on Common Administrative Procedure (Procedimiento Administrativo Común), art. 14 (2026-11-14) · Ley 39/2015, arts. 5 and 6 (2026-11-14) · Ley 39/2015, art. 28 (2026-11-14) · Ley 39/2015, art. 68 (2026-11-14)

Common mistakes that leave an application out

Many applications fail not on substance but on a formal detail. These are the most common slips.

  • Registering the person before applying for the grant when the rules require applying before the contract.
  • Applying after the deadline. Deadlines in days are working days and exclude Saturdays, Sundays and public holidays (Ley 39/2015, art. 30), and each call sets its own closing date.
  • Having a small debt with the tax authorities or Social Security when they check whether you are up to date (Royal Decree-Law 1/2023, art. 8; Ley 38/2003, art. 14).
  • Not answering in time a request to complete the application: you have 10 days (Ley 39/2015, art. 68).
  • Forgetting the justification. Payment comes after you justify, and failing to justify, or justifying badly, is grounds for repayment with late-payment interest (Ley 38/2003, arts. 34 and 37).

Source: Ley 39/2015, art. 30 (2026-11-14) · Ley 39/2015, art. 68 (2026-11-14) · Royal Decree-Law 1/2023, art. 8 (2026-11-14) · Ley 38/2003, General Grants Law (Ley General de Subvenciones), art. 14 (2026-11-14) · Ley 38/2003, General Grants Law (Ley General de Subvenciones), arts. 34 and 37 (2026-11-14)

What Aupamos does with these grants

Aupamos is a private service. We help you with the grants that have a call, which are the ones that require an application, a deadline and paperwork.

  • To submit an application on your behalf, your representation has to be proven, for example with a power of attorney granted apud acta on the online portal or registered in the electronic register of powers of attorney (Ley 39/2015, arts. 5 and 6).
  • If one interests you, the eligibility check is free and we reply within 48 hours on working days from when we have your complete details.
  • Before the proposed decision you must prove you are up to date with the tax authorities and Social Security, and afterwards justify the activity and keep the supporting documents (Ley 38/2003, art. 14).
  • We only charge if the grant is awarded and you get paid: 15% + VAT of the amount awarded up to €20,000 and 10% + VAT from €20,000 to €100,000 and no upfront payment. You pay it when you receive the grant.
  • Contribution rebates are applied by the Tesorería General de la Seguridad Social when contributions are settled; whoever handles your payroll and employment admin helps you there.
  • The maximum time to decide and notify cannot exceed 6 months from publication of the call, unless a law or European rules set another period (Ley 38/2003, art. 25).

Source: Vera Senses S.L., owner of aupamos.com (Aitor, 2026-11-14) (2026-11-14) · Vera Senses S.L., owner of aupamos.com (Aitor, 2026-11-14) (2026-11-14) · Royal Decree-Law 1/2023, art. 36 (2026-11-14) · Ley 39/2015, arts. 5 and 6 (2026-11-14) · Ley 38/2003, General Grants Law (Ley General de Subvenciones), art. 14 (2026-11-14) · Ley 38/2003, General Grants Law (Ley General de Subvenciones), art. 25 (2026-11-14)

Frequently asked questions

Do I have to apply for the rebate for hiring a long-term unemployed person?

There is no separate application. The Tesorería General de la Seguridad Social applies it when contributions are settled, using the registration details you report. What you do have to do is report the contract correctly and meet the requirements, such as being up to date with the tax authorities and Social Security.

Source: Royal Decree-Law 1/2023, art. 36 (2026-11-14) · Royal Decree-Law 1/2023, art. 8 (2026-11-14)

Can I combine a state rebate and a regional grant for the same contract?

It depends on the rules of the regional grant: some allow it and some do not. In addition, Ley 38/2003 requires you to tell the awarding body about any other grant or income that funds the same thing.

Source: Ley 38/2003, General Grants Law (Ley General de Subvenciones), art. 14 (2026-11-14)

What happens if the employee leaves early?

Resignation, retirement, death, permanent disability, termination during the probation period, and disciplinary dismissals or dismissals on objective grounds not declared unfair do not count as a breach of the retention requirement. If the person leaves for any other reason before 3 years, the company loses the benefits.

Source: Royal Decree-Law 1/2023, art. 9 (2026-11-14) · Royal Decree-Law 1/2023, art. 9 (2026-11-14)

How long does a hiring grant take to be decided?

Each call sets it. As a general rule, the maximum time to decide and notify cannot exceed 6 months from publication of the call, unless a law or European rules say otherwise. If it expires without a decision, the application is treated as rejected.

Source: Ley 38/2003, General Grants Law (Ley General de Subvenciones), art. 25 (2026-11-14)

How much do you charge to handle a hiring grant?

We only charge if the grant is awarded and paid: 15% + VAT of the amount awarded up to €20,000 and 10% + VAT from €20,000 to €100,000 and no upfront payment. You pay it when you receive the grant. The prior eligibility check is free.

Source: Vera Senses S.L., owner of aupamos.com (Aitor, 2026-11-14) (2026-11-14) · Vera Senses S.L., owner of aupamos.com (Aitor, 2026-11-14) (2026-11-14)

Sources

  • Royal Decree-Law 1/2023 regulates incentives for hiring and other employment measures funded through Social Security contribution rebates (art. 1). (Royal Decree-Law 1/2023 of 10 January, art. 1 (consolidated text), 2026-11-14)
  • The Tesorería General de la Seguridad Social applies the rebates automatically when contributions are settled, using the registrations and changes reported by the company (art. 36). (Royal Decree-Law 1/2023, art. 36, 2026-11-14)
  • Hiring unemployed people registered for at least 12 of the previous eighteen months on a permanent contract entitles the employer to a rebate of €110 a month for 3 years, or €128 a month if the person is a woman or aged 45 or over (art. 21). (Royal Decree-Law 1/2023, art. 21, 2026-11-14)
  • Hiring people in a situation of social exclusion on a permanent contract entitles the employer to a rebate of €128 a month for 4 years, with the exclusion previously confirmed by the social services or the competent public body (art. 20.1). (Royal Decree-Law 1/2023, art. 20, 2026-11-14)
  • The work-study training contract entitles the employer, for as long as it lasts, to a rebate of €91 a month and another of €28 a month on the employee's own contributions (art. 23). (Royal Decree-Law 1/2023, art. 23, 2026-11-14)
  • The amounts are set for a full-time contract; for part-time contracts they are reduced in proportion to working hours, which cannot be below 50% of those of a comparable full-time employee (art. 10.2). (Royal Decree-Law 1/2023, art. 10, 2026-11-14)
  • To be a beneficiary you must be up to date with the tax authorities and Social Security, not be excluded for serious or very serious infringements, and have an equality plan if the company is required to have one (art. 8). (Royal Decree-Law 1/2023, art. 8, 2026-11-14)
  • For rebates on permanent contracts, the company must keep the person registered for at least 3 years from the start of the contract; otherwise it loses the benefits (art. 9). (Royal Decree-Law 1/2023, art. 9, 2026-11-14)
  • Terminations by disciplinary dismissal or dismissal on objective grounds not declared unfair, resignation, retirement, death, permanent disability or termination during the probation period do not count towards job retention (art. 9.2). (Royal Decree-Law 1/2023, art. 9, 2026-11-14)
  • Among others, the following hirings are excluded: relatives of the employer up to the second degree; someone who worked at the company on a permanent contract in the previous 12 months or on a temporary one in the previous six; and someone who left a permanent contract at another company in the previous 3 months, unless it was an unfair or collective dismissal (art. 11.1). (Royal Decree-Law 1/2023, art. 11, 2026-11-14)
  • Among others, people or entities in insolvency proceedings, convicted or penalised with the loss of the right to grants, or not up to date with the tax authorities, Social Security or repayments cannot be grant beneficiaries (Ley 38/2003, art. 13.2). (Ley 38/2003 of 17 November, General Grants Law (Ley General de Subvenciones), art. 13, 2026-11-14)
  • The beneficiary must tell the awarding body about other grants or income funding the same activity, prove before the proposed decision that they are up to date with the tax authorities and Social Security, justify the activity and keep the supporting documents (Ley 38/2003, art. 14). (Ley 38/2003, General Grants Law (Ley General de Subvenciones), art. 14, 2026-11-14)
  • The grant is paid after the activity has been justified; failure to justify, or insufficient justification, is grounds for repayment with late-payment interest (Ley 38/2003, arts. 34.3 and 37.1.c). (Ley 38/2003, General Grants Law (Ley General de Subvenciones), arts. 34 and 37, 2026-11-14)
  • The maximum time to decide and notify a grant cannot exceed 6 months from publication of the call, unless a law or European rules set another period; if it expires without a decision, the application is treated as rejected (Ley 38/2003, art. 25). (Ley 38/2003, General Grants Law (Ley General de Subvenciones), art. 25, 2026-11-14)
  • Legal entities and bodies without legal personality are required to deal with the Administrations electronically; individuals can choose unless expressly required (Ley 39/2015, art. 14). (Ley 39/2015 of 1 October, on Common Administrative Procedure (Procedimiento Administrativo Común), art. 14, 2026-11-14)
  • To submit applications on behalf of another person, your representation must be proven, for example with a power of attorney granted apud acta on the online portal or registered in the electronic register of powers of attorney (Ley 39/2015, arts. 5 and 6). (Ley 39/2015, arts. 5 and 6, 2026-11-14)
  • Interested parties have the right not to provide documents already held by the acting Administration or produced by another Administration (Ley 39/2015, art. 28.2). (Ley 39/2015, art. 28, 2026-11-14)
  • If the application is incomplete, the applicant is asked to correct it within 10 days, with a warning that if they do not, they will be treated as having withdrawn; in competitive calls that deadline is not extended (Ley 39/2015, art. 68). (Ley 39/2015, art. 68, 2026-11-14)
  • Unless a law says otherwise, deadlines set in days are working days and exclude Saturdays, Sundays and public holidays (Ley 39/2015, art. 30.2). (Ley 39/2015, art. 30, 2026-11-14)
  • Grant application handling is charged only if the grant is awarded and paid: 15% + VAT of the amount awarded up to €20,000 and 10% + VAT from €20,000 to €100,000 and no upfront payment; the client pays it when they receive the grant (stated by the owner). (Vera Senses S.L., owner of aupamos.com (Aitor, 2026-11-14), 2026-11-14)
  • The eligibility check is free and answered within 48 hours on working days from when the complete details are received (stated by the owner). (Vera Senses S.L., owner of aupamos.com (Aitor, 2026-11-14), 2026-11-14)

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