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WORKING IN SPAIN

Is doing vocational training in Spain worth it?

The Spanish education system offers a whole host of vocational training courses. The Local looks at what 'formación profesional' is, the pros and cons, and the best (and worst) to study in terms of job prospects and pay.

Is doing vocational training in Spain worth it?
Photo: JONATHAN NACKSTRAND/AFP

The Spanish Ministry of Education and Vocational Training recently presented proposals for an overhaul to its vocational training programmes, known as formación profesional (FP) in Spanish.

FP courses are non-academic vocational courses that allow people to take on more job-focused training, continue studying after high school, go back to school after many years, or even study alongside their careers. 

There are a seemingly limitless variety of courses on offer, with everything from short 50 or 60-hour courses on artisan baking to highly-specialised audio description and subtitling courses taught over several hundred hours.

FP courses can range from a graphic printing technician to an electrician or even a renewable energy specialist. 

READ ALSO: EXPLAINED: The planned changes to vocational training in Spain

Medio and Superior

The first thing to understand is that in Spain there are three types, or levels, of FP training and qualifications. The two main ones are Grado Medio and the second Grado Superior.

As you might’ve guessed, the Superior, as it’s known, is of a higher level and can be used to apply directly for university. The Grado Medio can be used to move onto the Superior or start a bachillerato course.

There is also a third type of course, the FP básica, which is available to students who have studied until the third year of ESO or secondary school, but may have found traditional schooling difficult and could be better suited to more vocational training. The FP básica, which is often agreed upon between schools and parents, is a way of allowing students to continue some kind of formal training combined with job-related experience. 

READ ALSO: Spain to grant residency to unauthorised foreigners who complete vocational training

But is it actually worth studying an FP course in Spain? What are the advantages and disadvantages?

Pros

  • FP courses are more practical, preparing students for the world of work as opposed to university. This is especially true in ‘dual training’ and the Workplace Training (FCT) modules.
  • Though there’s still a bit of snobbery about non-academic courses, as there is in many countries, often the more specific and rigorous FP training can make people better prepared for the employment market and actually have better job prospects than many university degrees.
  • The training is often very specialised in fields employers are seeking.
  • All the courses (or ‘ciclos‘ as they’re sometimes known) last two years, half the length of a university degree in Spain, which means that FP students begin working (and earning) sooner than university graduates.
  • Some kinds of internships or work experience at industry-relevant companies are almost always included in Grado Superior studies.
  • FP training keeps the door open to university studies later down the road, and often you can transfer credits from your Grado Superior to your university course, cutting down the length.
  • Many FP courses can be taken online. 

Cons

  • Salaries are often lower than those of university graduates, especially when starting out in the job market.
  • It can, in some industries, be more difficult to climb up the corporate ladder and get managerial positions.
  • Unfortunately, there can somewhat of a stigma in Spain that FP vocational training is for ‘bad students’ who didn’t get into university.
  • The demand for FP courses is greater than the supply in some parts of Spain. 
  • If you choose to do your FP with a private company, vocational training can be expensive. 

Job prospects and salaries

Analysis from the Vocational Training Observatory (FP) of CaixaBank Dualiza looked at different FP courses and how they translate into the labour market and salaries. The type of FP course, it seems, can have a big impact on employability and salary. While around 70 percent of mechanical manufacturing FP graduates go on to achieve ‘high salary levels’, only 8 percent of Personal Image graduates (those studying courses such as beauty and hairdressing) reach this level, for example.

Based on their data, FP courses with a focus on industrial training are the ones with the best employment prospects. The following stood out from the report:

  • Installation and Maintenance (89.4 percent in work)
  • Mechanical Manufacturing (88 percent)
  • Transport and Vehicle Maintenance (87.2 percent)
  • Electronics (86.1 percent)

In terms of salary prospects, Mechanical Manufacturing, Installation and Maintenance courses came out on top with the highest percentage of graduates in the 4th and 5th quintiles (the top pay brackets), on 69.5 percent and 66.4 percent respectively. 

The worst FP courses in terms of pay were those studying beauty, where 78.3 percent of graduates are in the first and second quintile (with the lowest salaries), followed by Commerce and Marketing (65 percent), Image and Sound (57 percent) and Graphic Design as well as Socio-cultural and Community services (both with 51.8 percent).

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AMERICANS IN SPAIN

EXCLUSIVE: What the new Spain-US social security deal means for Americans

The Local speaks to the Spanish government and tax experts to understand what the new social security and pensions agreement between the United States and Spain means for American workers, digital nomads and pensioners in Spain.

EXCLUSIVE: What the new Spain-US social security deal means for Americans

In early April, the United States and Spain announced a new social security and pension agreement.

The first update to the bilateral agreement between the two countries since 1986 was announced by US Ambassador to Spain, Julissa Reynoso, and Spain’s Minister of Inclusion, Social Security, and Migration, Elma Saiz.

The official agreement is unpublished so The Local spoke with a representative from Spain’s Ministry of Inclusion, Social Security, and Migration as well as international tax experts to understand the agreement in more detail.

Key aspects of the agreement

The Ministry told The Local Spain that the agreement is a step towards, bolstering mobility between Spain and the United States by improving pension calculations and social security protections.

The agreement has to do with the accumulation of benefits and affects working Americans living in Spain. There are two main components; the first affects which system people pay into (Spanish or American) and the second maximises the amount people can collect from social security.
 
Regarding paying into social security, the new agreement extends the “posting period” from three years to five years, with the possibility of extending it to seven years.

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This is meaningful for US employees who are working in Spain and means that they can now pay into the US social security system, rather than the Spanish social security system for longer.

Whereas the employee contributions in Spain and the United States are similar, 6.4 percent in Spain and 6.2 percent in the United States, the rate that employers pay differs greatly. In the United States the employer pays 6.2 percent into social security, whereas in Spain they pay 31 percent.
 
Why does this matter? “Previously when Americans moved to Spain, US employers were cutting the amount that they paid in salary because the cost of employment went up so much”, Louis Williams, Co-Founder and CEO of Entre Trámites, told The Local Spain.

It’s also made employers hesitant to grant digital nomads an Employer of Record (EOR) which would allow American workers to be on a Spanish contract.

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In terms of collecting benefits, the representative from Spain’s Ministry of Inclusion, Social Security, and Migration says, “In the calculation of the Spanish pension there have been technical modifications that will benefit especially those people who developed their last working life in the United States, without this harming those who have worked in Spain immediately before requesting the benefit.”

In other words, under the new agreement, after calculating a person’s benefits under each country’s system, the recipient will be awarded the most beneficial of those two calculations.

Impacts for self-employed workers and digital nomads

According to the Ministry, “The agreement allows self-employed workers to temporarily move to the other State while maintaining their legislation, a possibility that was previously restricted only to employed workers.”
 
This has big implications for people who avoid moving to Spain because of the complicated social security contributions scheme, as they’ll now be able to continue paying US social security taxes (rather than Spanish) for up to seven years.
 
“The interesting thing is if this is extended to digital nomads because it would make the digital nomad visa more attractive,” says Williams.

“Why? Because if you’re posted by an employer (who can now avoid high Spanish social security taxes) you’re eligible for Beckham’s Law.” The law, which does not extend to autonomous works, can cap tax liabilities at 24 percent.
 
Being posted could make life much simpler, according to Elliott Locke, ACSI, co-founder of abroaden, a financial wellbeing and education start-up for people living abroad headquartered in Barcelona.

“The calculus is harder for freelancers given the different legal structures and methods for freelancing between the two countries. In many ways, if an American moves here to work remotely, it could be beneficial for them to have their US-based employer hire them on a local contract through an employer-of-record,” Locke told The Local.
 
In short, the new agreement could make it more attractive for U.S. companies to post employees in Spain, making them eligible for Beckham’s law and allowing autonomous workers to pay into the U.S. social security system, making it more beneficial and easier to be a digital nomad in Spain.

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Who benefits from the new agreement?
 
The people who will feel this new agreement the most are employers, digital nomads, retirees who have paid into both systems over the years, and finally, civil servants. “Spain has incorporated as possible beneficiaries of the Agreement those people who have contributed to the civil servant’s regime (passive class regime), who were excluded in the previous Agreement,” says the Ministry.
 
When can we expect the new agreement to come into force?

Don’t hold your breath; this is Spain after all, but we can expect the agreement to come into force within the next two years.

The deal has to pass through Congress before approval, which is likely why it has not yet been published. If things move quickly, people could expect to benefit within a year.

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