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What FUNDAE is and what it means for companies: a complete guide to subsidized training
16.02.2026
15 minutes to read

What FUNDAE is and what it means for companies

Many companies in Spain lose the opportunity to recover thousands of euros every year, simply because they do not use the subsidized training mechanism through FUNDAE or use it incorrectly. At the same time, the system itself was created as a real tool to support business: the government reimburses the cost of employee training, helping companies to improve staff qualifications without significant expenditures from the budget. However, in practice, FUNDAE remains a Pandora's box for many people: it is unclear who can use the program, how the available credit is calculated, what documents are needed, and for what one can lose compensation. Errors in calculations, broken deadlines or incorrect training often lead to a denial of the bonus.
In this article, let's understand what FUNDAE is, how the system of subsidized training for companies works, what requirements are imposed on businesses and training organizers, as well as how to build the process so as to get maximum benefit without risks for the company.

What FUNDAE is and what it means

FUNDAE (Fundación Estatal para la Formación en el Empleo) is the public fund in Spain responsible for managing the subsidized vocational training system for company employees. Simply put, through FUNDAE, businesses can partially or fully offset the cost of employee training with funds generated from mandatory social contributions for vocational training.
The mechanism is designed so that each company that pays social insurance contributions receives an individual training credit each year. This credit can be used to finance professional development courses, staff retraining and the development of employees' professional skills. If the credit is not used within a year, in most cases it is burned up and the company actually loses the money that has already been paid in contributions.It is important to realize that FUNDAE does not hand out money. Compensation takes place through the social contribution system: once the training has been correctly processed, the company reduces the amount of contributions to Seguridad Social by the amount of the training credit used. Therefore, the correct administration of the process becomes key: from selecting courses to meeting notification and reporting deadlines.

Companies often lose some or all of the available credit due to errors in the design, notification deadlines or selection of inappropriate courses. Our team provides a turnkey implementation of FUNDAE, from calculating available credit to getting all documentation and interaction with FUNDAE correct. If you want to use the system without risks and losses, it is better to build the process with professional support.

What FUNDAE stands for and what its official function is

The main role of the fund is to administer and control the system of subsidized vocational training for company employees in Spain. Through this mechanism, the government ensures that funds collected in the form of vocational training contributions are actually used for their intended purpose - to develop employees' skills and improve staff qualifications.
Key functions include:
1. Management of a digital platform for registration of training programs and notifications of the start and completion of training;
2. Setting rules and requirements for companies, training providers and training centers;
3. Monitoring compliance of courses with established standards and acceptable training formats;
4. Verifying the correctness of credit calculation and the legitimacy of credit utilization;
5. Conducting follow-up checks and audits to prevent abuse and fictitious training.
In fact, it is through this body that the transparency of the entire system is ensured: from the moment of training planning to the crediting of the subsidy in the social contribution system. For businesses, this means that every mistake in the timing of notifications, documents or choice of training format can result in the denial of credit or the requirement to return the compensation already received.
Differences between FUNDAE and other public bodies
There are several public bodies involved in the vocational training and employment system in Spain and their functions are often confused. The key difference is that FUNDAE is responsible specifically for managing the subsidized training mechanism for companies, and not for employment or social benefits.
For clarity, here is a brief comparison of the functions of the different bodies:
This distinction is important to keep in mind when dealing with subsidized training:
1. The issues of credit calculation, notification of the start of training and crediting of the subsidy fall under the administration of FUNDAE;
2. Employment, benefits, and employee status issues are the responsibility of SEPE and Regional Services.
Failure to understand the differences between these entities often results in companies making the wrong contacts or miscommunicating the training approval process, which ultimately delays timelines and increases the risk of denial of subsidy credit.
The system of subsidized training for businesses is based on the principle of “refunding part of the paid contributions for personnel training”. The company plans employee training in advance, registers the program in the system, conducts the training and then compensates the costs by reducing mandatory social contributions. Correct calculations, observance of notification deadlines and compliance of courses with the established requirements are key.
Which companies can benefit from subsidized training
Eligible to use the training credit are companies that:
1. Are registered in Spain and are registered with the social security system;
2. Have employees for whom vocational training contributions are paid;
3. Do not have serious tax and social contributions violations;
4. Comply with the requirements for informing employees about the training.
The format of the business (micro, SME or large company) does not limit access to the system, but the amount of credit available depends directly on the size of the company and the amount of contributions paid in the previous year.
How the credit for subsidized training is calculated
The amount of credit available is based on the amount of training fees paid by the company in the previous reporting period and the number of employees. For small companies, there are minimum guaranteed limits, allowing the system to be used even with a small staff.
In practice, the calculation takes into account:
1. The amount of professional training contributions for the previous year;
2. The size of the company (in terms of the number of employees);
3. The percentage factors established by the state.
! An error in the calculation of the available credit is one of the most common reasons for denial of subsidy credit or subsequent additional charges on audits.
Basic steps to enroll in FUNDAE subsidized training
The process of implementing subsidized training in a company typically involves several mandatory steps:
1. Analyzing training needs and selecting appropriate programs;
2. Verifying available training credit for the current year;
3. Registering the training in the system before it starts;
4. Conducting the training in an acceptable format;
5. Fixing the fact of course completion by employees;
6. Offsetting the amount of the subsidy through the social contribution system.
Even with correctly selected courses, it is the violation of notification deadlines or errors in reporting that most often cause loss of the right to reimbursement.

How FUNDAE works for companies

Most companies encounter problems at the administration stage: incorrect notifications, errors in credit calculations, missed deadlines or incorrect paperwork. We help build a turnkey process for working with the subsidized training system: from calculating available credit to correctly closing all stages of training in the system. This allows businesses to utilize training opportunities without the risk of financial losses and claims from regulatory authorities.
In order for a company to legally use the subsidized training mechanism, a number of formal and organizational requirements must be met. They concern not only the company itself, but also the organizers of training, as well as the procedure of control by the fund. Non-compliance with these requirements is one of the main reasons for refusals to credit the subsidy and subsequent financial adjustments.
Responsibilities of the company (formal and documentary)On the part of the company, it is required:
1. To be registered in the social insurance system and to pay vocational training contributions on a regular basis;
2. To notify the start of training within the established deadlines;
3. Inform employees about the conditions and objectives of the training;
4. Ensure that employees actually participate in the courses;
5. Keep supporting documents (contracts, lists of participants, training reports);
6. Correctly reflect the offset of the subsidy in the reporting on social contributions.
Even when training is actually conducted, the absence of some documents or violation of notification deadlines may lead to the recognition of expenses as unjustified.
Responsibilities of the organizer of training and the training centerIf a company engages an external organization or training center, they are also subject to mandatory requirements:
1. Having the right to provide educational services in permissible formats;
2. Compliance of the programs with the established criteria for subsidized training;
3. Reporting on course content, duration, and enrollment;
4. Compliance with requirements for attendance records and learning outcomes;
5. Providing access to documentation in the event of an audit.
The company is responsible for the choice of partner: errors or irregularities on the part of the training organizer may result in the refusal to credit the subsidy specifically to the business.

Requirements for using FUNDAE

The use of training credits is subject to follow-up controls. Checks may be either random, as part of planned or unplanned activities. The controls evaluate:
1. Correctness of the calculation of the credit utilized;
2. Compliance with notification deadlines for the start and completion of training;
3. Compliance of courses with established requirements;
4. Availability of supporting documents;
5. Actual completion of training by employees.
If violations are detected, additional social contributions may be charged, the company may be required to return unauthorized credits and administrative sanctions may be imposed. Therefore, it is critical for companies to organize the process in such a way that all stages of training are documented and comply with the established rules.
Benefits of FUNDAE for companies and employees
Subsidized training through the government system gives companies a real opportunity to invest in staff development without putting a significant strain on budgets. Instead of paying for training entirely out of their own funds, businesses utilize the fees already paid, returning them in the form of practical benefits for the team. This is particularly relevant for companies that regularly face the need to update employee skills due to digitalization, regulatory changes, or increased competition in the marketplace.
Economic benefits of subsidized training
The financial effect is not only seen in the direct reimbursement of part of the training costs. Companies are able to plan their personnel development budget in a more predictable and systematic way by building training into the annual financial plan. With proper credit management, the cost of professional development can be significantly lower than the market value of courses, which is especially important for small and medium-sized businesses with limited resources.
Impact on productivity and competitiveness
Investing in training has a direct impact on operational efficiency. Employees adapt more quickly to new tools, processes and market requirements, errors are reduced, and the speed at which tasks are completed increases. In the long term, this strengthens the company's competitive position: the business implements changes faster, improves service quality and resilience to external challenges.
Benefits for employees and their professional development
For employees, participation in subsidized training means access to up-to-date knowledge and skills without personal financial costs. This increases motivation, loyalty to the employer and involvement in processes within the company. In addition, systematic training contributes to the professional development of employees, which has a positive impact on retaining valuable talent and reducing turnover.

Control, monitoring and verification by FUNDAE

Even understanding the benefits of subsidized training, many companies do not use the system in practice due to the complexity of the processes and lack of internal resources for administration. We help to customize the training model to meet the needs of a particular business: we assess the needs of the team, help plan training for the year ahead and structure the process so that personnel development becomes part of the company's strategy rather than a one-off formality.

Types of subsidized training through FUNDAE

The subsidized training system allows companies to flexibly tailor staff development to meet real business objectives. The choice of format and type of training affects not only employee convenience, but also compliance with subsidy crediting requirements. An incorrectly chosen format or a program that does not comply with established rules can result in a denial of reimbursement, even if the training was actually delivered.
Face-to-face, online and blended learning
Face-to-face training is more commonly used when it is important to practice practical skills, teamwork or training that requires constant contact with the instructor. This format is suitable for team management training, soft skills development, customer service and specialized practical courses.
Online training gives companies more flexibility. It allows you to train employees without being tied to a location, reduces logistics costs and makes it easier to scale training for distributed teams. The blended format combines the advantages of both approaches: the theoretical part is online and the practical part is face-to-face, which is especially effective for complex professional development programs.
The most popular courses among companies
In practice, companies most often use subsidized training to close specific operational needs. In periods of digital transformation, there is a growing demand for courses in IT tools, data analytics and cybersecurity. In highly competitive sectors, programs in sales, customer experience management and project management are in demand.
The choice of training areas is usually linked to the stage of business development. Fast-growing companies prioritize management and leadership programs, while stable organizations prioritize improving process efficiency and updating employees' skills in their current functions.
Examples of subsidized training programs
The system can finance both short-term professional development courses and longer competency development programs. These could be courses in specific tools, software, team management, cybersecurity, accounting or industry standard compliance. The key criterion remains the practical value of the training for the company and the compliance of the program with the established requirements in terms of format and content.
Stages of FUNDAE implementation in the company
In order for subsidized training to really work for the benefit of the business, it is important to build the process not as a one-time action, but as a systematic element of personnel management. Companies that plan the training in advance and correctly formalize all the stages get the most out of the available credit and reduce the risk of refusals during inspections. In practice, implementing the mechanism usually involves several logical steps.
In the first step, the company determines which skills and competencies need to be developed in the coming year. This may be related to the introduction of new tools, scaling the business, regulatory changes or team growth. It is important not just to select courses, but to link the training to the real objectives of the business units and the company's strategic goals.
In practice, the analysis often includes:
  Assessing the current competencies of employees;
  Identifying bottlenecks in processes;
  Agreeing training priorities with team leaders;
  Formation of an annual training plan with an approximate budget and timeline.
Registration in the FUNDAE system and administrative support
After planning, it is necessary to correctly register access to the system and prepare the administrative part. This includes verifying available training credit, setting up access to the platform, and identifying responsible parties within the company. At this stage, the foundation is laid for the subsequent correct crediting of the subsidy.
It is important to define in advance:
  Who is responsible for communication with the system and training organizers;
  Who controls the timing of notifications of course start and completion;
  How training documentation will be maintained.
Notification of course start, completion and confirmation of training
Correct notifications are one of the most critical elements of the process. Even when training is actually delivered, failure to comply with notification deadlines can result in loss of eligibility for reimbursement. Therefore, companies are building internal procedures to monitor timelines and data completeness to minimize risk.
Often required:
  Provide timely notification of the start of training;
  Capture the fact that employees have taken courses;
  Correctly close training in the system and validate results;
  Reflect the offset of the subsidy in the reporting of social contributions.

Training needs analysis and annual planning

In companies that do not have a separate training specialist, the administrative burden often falls on HR or accounting and becomes a secondary task. We help build the process of working with the subsidized training system into the company's current business processes so that employee training does not become a source of errors, delays and loss of available credit.

Even companies that use subsidized training on a regular basis are often faced with denials of credit or having to repay amounts already credited. In most cases, the problems are not due to the training itself, but to administrative errors and formal irregularities. Below are typical mistakes that most often lead to financial losses.
Mistakes in calculating available credit
The calculation of available training credit is the foundation of the entire system. Mistakes at this stage result in the company either putting more money into the training plan than it can compensate for or, conversely, not using the full available limit. Often the problem arises from misinterpreting prior year contribution data or miscounting headcount.
Companies make the following miscalculations:
  Focusing on outdated data on the size of the credit;
  Fail to account for changes in employee headcount;
  Incorrectly apply percentages when planning the training budget.
Documentation and timing problems
Even with a correctly calculated loan, a company can lose eligibility due to formal irregularities. The most common problems relate to missed deadlines for notifications of the start or completion of training, as well as missing portions of supporting documentation.
Typical situations include:
  Notification of the start of a course after the actual start of the training;
  Incomplete lists of participants;
  Lack of confirmation that employees have completed training;
  Errors in the data entered into the system.
Violations that may lead to loss of subsidy
A separate category of risks is related to the non-compliance of the training itself with the established requirements. Even if administered correctly, a company may lose reimbursement if the courses selected do not meet the criteria for subsidized training or have been conducted in an irregular manner.
Such violations include:
  Selection of programs unrelated to employees' professional activities;
  Failure of the training format to meet the requirements;
  Fictitious training without actual employee participation;
  Lack of confirmation from the training organizer.

Common mistakes when working with FUNDAE

Companies often have the same questions around the subsidized training system. Below are the most common ones with practical explanations.
What is FUNDAE and how does it differ from the former Fundación Tripartita?
Previously, the subsidized training system was administered by Fundación Tripartita para la Formación en el Empleo. Over time, the structure was reorganized and the functions were transferred to a new public fund. In essence, this is not a fundamentally new mechanism, but the development and institutionalization of the same subsidized training system within a renewed governance model.
For companies, this means that the basic principles of working with learning credits have been retained, but the requirements for transparency, digital administration and control have been strengthened. The updated model involves more stringent requirements for documenting training and adhering to procedures.
What FUNDAE means for small and microbusinesses
For smaller companies, the system is particularly important because it allows them to invest in employee training without a significant financial burden. Even with a small staff, companies have access to a minimum guaranteed credit that can be used for basic professional development programs.
In practice, it is small businesses that most often lose available credit due to a lack of a systematic approach to training. That said, a properly structured process allows micro and small companies to regularly upskill their staff without significantly increasing team development costs.
Is it possible to lose FUNDAE credit if it is not used?
Yes, in most cases, unused credit is burned off at the end of the reporting period. The company actually loses the opportunity to reimburse part of the training costs, although the corresponding fees have already been paid earlier.
For this reason, companies that plan training in advance and integrate it into the annual HR cycle get more out of the system. Regular use of the available credit allows not only to develop employees, but also to avoid the loss of already available financial resources.

Frequently asked questions about what is FUNDAE

How to choose a training provider or intermediary organization to work with FUNDAE

The choice of training provider or intermediary organization has a direct impact on whether a company will be able to correctly process the training and credit the subsidy without financial risk. Even a useful and high-quality course may not be accepted for reimbursement if the partner does not comply with notification, training format or documentation requirements. Therefore, when making a selection, it is important to evaluate not only the content of the program, but also the provider's ability to work within the regulations of the subsidized training system.
Companies often face the situation when a provider undertakes to organize courses, but is not ready to be responsible for the administrative part. As a result, the responsibility for mistakes falls entirely on the business, and the risk of losing credit increases.
Criteria for choosing a reliable subsidized training provider
When choosing a training partner, it makes sense to focus on specific practical criteria that directly affect the security of the subsidy credit:
  Experience working specifically with subsidized training, not just in corporate education;
  Understanding of course format requirements and notification deadlines;
  Willingness to provide a full set of supporting documents;
  Established internal processes to monitor timelines and data correctness;
  Transparent terms of cooperation without promises of “guaranteed” credit;
  Readiness to accompany the company during inspections and inquiries from regulatory authorities.
Such a preliminary assessment allows us to reduce the risk of situations when training is conducted but cannot be credited due to formal violations.

We often connect after a company has been denied credit for a subsidy due to errors on the part of the provider. To avoid such situations, we can evaluate the selected partner and training format in advance from the point of view of the system requirements and help build a model of cooperation that will minimize the risks for the business.

Questions to ask before ordering training
Before ordering training for employees with the expectation of subsequent reimbursement of costs, it is important for a company to clarify key points with the training provider or organizer in advance. This helps to reduce the risk of refusal to offset the subsidy and avoid situations where training is formally provided but cannot be accepted for reimbursement due to non-compliance with the requirements.
It is worth asking the following questions before entering into a training contract:
  Does the program meet the requirements for subsidized training and can be credited through the system;
  Whether the allowable training format (face-to-face, online or blended) is provided in terms of requirements;
  What documentation will be provided at the end of the training to verify completion of the courses;
  Who is responsible for notifications of training commencement and completion and the deadlines for submitting them;
  Whether the provider has experience in accompanying companies during inspections;
  What risks the company bears in case of errors on the part of the training provider.
Clear answers to these questions before the start of training allow you to understand in advance what obligations fall on the business, and to what extent the selected partner is ready to take responsibility for the correct design of the process.

Many companies choose a training provider based on price and course content alone, without assessing the administrative risks. We help not only to find the right training programs for the business objectives, but also to check whether the selected training provider and format meet the requirements of the subsidized training system, so that the company does not face a denial of credit after the completion of the courses.

Can subsidized training be used for new employees?
Yes, if the employee is formally employed and vocational training contributions are paid for him. The training must be related to his/her professional duties in the company.
Can the training be reimbursed if the course has already started?
No, the notice of commencement of training must be submitted before the course actually starts. If the deadline is missed, the right to reimbursement for that training is lost.
Can credit be used for executive training?
Yes, executive training can also be credited if it is related to their professional functions and meets the format and design requirements.
Can unused credit be carried over to the next year?
In most cases, unused credit is burned off at the end of the reporting period. Therefore, it is best to plan ahead for training rather than deferring it to the end of the year.
Do I have to engage an external provider for training?
No, a company can organize training on its own, as long as all format and documentation requirements are met. However, in the absence of experience, this increases the risk of errors in the design.
Can a subsidy be used for training foreign employees?
Yes, if the employees are officially employed in Spain and the relevant contributions are paid for them. Nationality does not affect the possibility of participating in training.
What if additional verification of training is requested?
It is necessary to provide a full set of documents confirming that the training has been carried out and that the calculations are correct. If procedures are followed, such verifications usually do not result in financial penalties.
Can subsidized training be used for trainees or interns?
Only if they are formalized and vocational training fees are paid on their behalf. Unregistered trainees are not included in the system.
Can training be conducted in a foreign language?
Yes, the language of instruction is not a restriction as long as the program meets the requirements and is documented. It is important that the course content is related to the employees' professional activities.
Can training undertaken outside Spain be credited?
In certain cases, yes, provided the formal requirements for the format, documentation and registration of the training are met. However, such cases require particularly careful checking of the conditions for credit in advance.
Frequently asked questions about what FUNDAE is
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