Every year, thousands of Spanish companies lose part or all of their Fundae credit due to administrative errors, failing to report the start of training on time, or failing to complete the documentation correctly. And they do so without realizing it, because the subsidized training system has its own logic that isn’t always intuitive. The result is that some of the money your company has already paid in Social Security contributions simply remains in the system without you having taken advantage of it.
This article explains how Fundae works, how to calculate the credit you're entitled to, and how to avoid the most common mistakes that cause you to lose the benefit.
What is Fundae, and who is eligible?
Fundae (State Foundation for Employment Training) is the public entity that partners with SEPE to manage the subsidized training system for companies in Spain. It does not provide training directly: manages the system through which companies can recoup the cost of training their employees through rebates on Social Security contributions.
The following may be eligible all companies with employees who are registered with Social Security, regardless of their size or industry. Microenterprises with 1 to 5 employees are also guaranteed a minimum credit of 420 euros per year, even if their contributions toward vocational training fall short of that amount.
Subsidized training is not a grant: It is a credit that the company has already paid. through the vocational training contribution, which represents 0.70% of the contribution base (0.60% paid by the employer and 0.10% paid by the employee). If it is not used, that money remains in the public system and is not returned to the company.
Prerequisites: training credit and contribution
In order to receive a training tax credit, the company must be in good standing with their obligations with Social Security and the Tax Agency, and must have access to Fundae’s online application using the company’s digital certificate. The available credit is calculated based on the vocational training contributions made in the previous year, multiplied by the percentage corresponding to the average number of employees:
Companies with 1 to 9 employees receive a 100% refund of their contributions. Those with 10 to 49 employees receive a 75% refund. Companies with 50 to 249 employees receive 60%. And companies with 250 or more employees receive 50%, with the obligation to co-fund at least 40% of the training cost.
| Medium-sized team | % Bonus | Mandatory co-financing | Guaranteed minimum credit |
|---|---|---|---|
| 1–5 employees | 100% | No | 420 € / year |
| 6–9 employees | 100% | No | — |
| 10–49 employees | 75% | No | — |
| 50–249 employees | 60% | No | — |
| 250 or more employees | 50% | Yes, at least 40% | — |
The Step-by-Step Process
The bonus process follows a sequence that must be strictly adhered to. First, Notify participants of the start of the training via the Fundae app before it begins. This is the most common and most costly mistake: training that has already begun without having been reported is not eligible for a rebate under any circumstances. Second, conduct the training in accordance with the schedule, format, and participants that were reported. Third, once the training is complete, record its completion and apply the subsidy as a discount when settling Social Security contributions for the following month.
The bonus is not a direct payment: The company pays the training provider upfront and recovers the cost in the next TC1, reducing the amount due to Social Security that month.
Suspension and Rebate for Social Security Contributions
For the credit to be valid, each participant must have completed at least 75% of the training hours. If a participant falls below that threshold, that specific participant does not earn a credit, even if the rest of the group does. The minimum documentation that must be retained includes the contract with the training provider, the list of participants with their national ID numbers, the hours and dates of instruction, the assessment system used, and the certificates of completion. This documentation must be retained for four years in case Fundae requests it during a subsequent audit.
Most Common Mistakes That Cause You to Lose Your Bonus
The first and most common is notify participants that the training has begun after it has already started. It is the mistake that costs companies the most money, and there is no solution: training that has not been reported in advance is not eligible for a tax credit. The second is exceeding the available credit: Paying more than the amount due based on the contribution rate results in refunds with surcharges. The third one is failure to retain supporting documentation during the four-year statutory period, which prevents a response to a Fundae audit. The fourth is failing to monitor attendance: a participant who has not completed 75% hours renders their portion of the grant invalid. And the fifth is use the training credit for ineligible training, such as courses that do not meet the requirements for format, content, or duration established by the regulations.
How a training platform simplifies the entire process
A training management platform integrated with Fundae systematically eliminates most of these errors: automatically tracks each participant's progress, It alerts you when someone’s attendance falls below 75%, generates the required documentation in a format valid for Fundae, and tracks available credit versus committed credit in real time. What used to require spreadsheets, manual reminders, and last-minute searches before each payment is now managed automatically in the background.
