The German chancellor has accepted an invitation from Prime Minister Sanchez to spend two days in Spain. The visit follows the agreement signed by the two countries for the return to Spain from Germany of some migrants.
The new Spanish Prime Minister Pedro Sanchez greeted the German chancellor and her husband in the southern city of San Lucar de Barrameda on Saturday afternoon.
A working lunch with discussions about migration and refugees was planned.
Last Monday, Spain became the first EU country to sign an agreement with Germany for the return of asylum seekers if they had lodged an asylum claim in another EU state.
The two-day visit is expected to include discussions on economic and monetary reform in the EU, the recent NATO summit and European defense.
A German government spokesman on Saturday said the two leaders were also expected to visit the nearby Donana national park.