Government Incentives For Creating Employment in Spain

In an ongoing attempt to encourage the creation of employment (specifically permanent contracts or employment directed towards socially excluded minorities or other socially disadvantaged categories) the Spanish government provides for a number of incentives.
The complete list is quite long and the amounts and categories can vary over time.
The following is a list of some of the main ones available for 2011.
General Deductions in Social Security for Creation of Employment 1.
Permanent contracts for men over 45 who have been unemployed for more than 12 months: 1,200? annual deduction in the social security contributions for a maximum of 3 years.
2.
Permanent contracts for women over 45 who have been unemployed for more than 12 months: 1,400? annual deduction in the social security contributions for a maximum of 3 years.
3.
Permanent contracts for victims of gender violence: 1,500? annual deduction for a maximum period of 4 years.
4.
Permanent contracts for victims of domestic violence: 850? annual deduction for a maximum period of 4 years.
5.
Permanent contracts for victims of social exclusion: 600? annual deduction for a maximum period of 4 years.
6.
Temporary contracts for victims of gender or domestic violence: 600? annual deduction.
No maximum period.
7.
Temporary contracts for victims of social exclusion: 500? annual deduction.
No maximum period 8.
Conversion of certain types of temporary contracts into permanent contracts: 500? (men) or 700? (women) annual deduction for a maximum period of 3 years.
9.
Temporary Training contracts for young unemployed people between 16 and 25: 100? deduction of the social security payments.
No maximum period.
There are also quite a number of social security deductions and incentives available for those taking on handicapped workers.
The amount of these incentives depend on the nature of the contract as well as the category of worker.
As an example, the temporary employment of a handicapped worker can mean an incentive of 3,500? a year which can increase by 600? a year if the worker is female or over 45.
Apart from these deductions, it should also be borne in mind that there may be further deductions in the corporate or personal income tax to pay for the creation of permanent employment within a company.
For example, if it can be shown that there has been an average increase not only in the number of workers in the company but also the number of those with a permanent contract, there can be a reduction of up to 5,469.
20? in the tax to pay for that year.