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SALARY PAYMENT IN Euro (EUR, €)
CONTRACT LANGUAGES Spanish / English
PAYROLL TAX 29.90%
PAYROLL CYCLE Monthly
TIME TO HIRE 12 hours
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Hire and pay talents
with Horizons in
180+ countries
Horizons provides compliance solutions to ensure your business in Spain operates in line with Spain labor laws and tax regulations. Businesses benefit from hiring in, investing in, or job outsourcing to, Spain in a range of industries, from customer service, to accounting services, to software development. We also process monthly payroll, and, as an Spain Employer of Record, absorb all local employer liabilities. Partnering with our Spain PEO is the quickest and most cost-effective way to enter the Spain market.
| PEO Platform Hire in Spain, and pay employees through our platform or app. | PEO Cost Our Spain PEO solution is the most affordable on the market. | Time-to-hire Fast onboarding in Spain, hire in as little as 12 hours. |
| Contracts We draft labor contracts compliant with Spanish labor law. | Local Benefits We administer all mandatory benefits and contributions in Spain. | 180+ Countries It doesn’t stop with Spain — we are an international PEO |
Spain’s employment laws are unique, and industries/job types can have their own sets of regulations. It is therefore important that you always completely understand the legal requirements relevant to your industry, before expansion and hire in Spain.
You should always provide new employees in Spain with a formal contract of employment with all relevant details of the employment agreement. This should be written in Spanish, with any references to compensation using the local currency of the Euro.
Note, it is a legal requirement to have a written employment contract for temporary employment contracts of more than four weeks.
Employees will usually expect a non-fixed-term contract, as these carry more legal protections than a fixed-term contract.
Note, if employees are to be engaged as remote workers, a remote working agreement is also required. This sets out how the employee will be reimbursed for remote work expenses, health & safety, and general remote working conditions. It is a requirement of Spain’s remote working law, passed into law in late 2020.
By partnering with our Spain Employer of Record & PEO, a team of local experts can provide assistance for drafting strong employment contracts that are compliant with local regulations.
| Probationary period | 0 – 6 months |
| Termination notice period | 15 days |
| Severance | 20 days’ salary per year of service, 12 months salary max |
| Probationary period | 0 – 6 months |
| Termination notice period | 15 days |
| Severance | 20 days’ salary per year of service, 12 months salary max |
The normal working week in Spain is 40 hours, and most office employees work Monday to Friday. Some businesses may offer an extended lunch break, but this is based on individual preference.
Throughout the work day, a 15-minute break is required after six continuous hours of work.
Employers in Spain are required to provide workers with a minimum of one and a half days uninterrupted rest per week.
Quick, compliant hiring in 12 hours—no subsidiary required.
Spain has nine national public holidays that are recognized across the country.
The autonomous communities of Spain (such as Catalonia, Andalusia and the Canary Islands) each have three additional public holidays.
| Date | Holiday name |
|---|---|
| 6 Jan Friday | Epiphany |
| 7 Apr Friday | Good Friday |
| 1 May Monday | Labor Day / May Day |
| 15 Aug Tuesday | Assumption of Mary |
| 12 Oct Thursday | Hispanic Day |
| 1 Nov Wednesday | All Saints’ Day |
| 6 Dec Wednesday | Constitution Day |
| 8 Dec Friday | Immaculate Conception |
| 25 Dec Monday | Christmas Day |
Employees in Spain usually receive 23 days of paid vacation leave per year, in addition to the public holidays.
While this 23 days can generally be broken up as the employer and employee would like, the employee is entitled to at least two consecutive weeks of vacation.
Employees in Spain can receive 60% or more of wages when they are unable to work through sickness or injury. This is covered by the government (although employers may need to pay and then receive a refund), and must be reviewed every 18 months.
Some employers may choose to contribute more to sick employees, but this depends on individual employment contracts and agreements.
Mothers in Spain can take up to 16 weeks of paid maternity leave, at least six of which need to be taken after birth. To receive this benefit, the mother has to have paid social security contributions to the Instituto Nacional de la Seguridad Social for at least 180 days in the last seven years (or 360 days across their lives).
Mothers can also take up to one year of unpaid maternity leave and are legally entitled to resume the same role. They can take another two years, but will not have a guarantee of returning to their role afterward.
There is also a tax deduction for working mothers of 1200 euros per year for each child under three years of age.
As a result of a law change in 2021, fathers are now also entitled to 16 weeks paid leave.
Paid parental leave (whether maternity or paternity) is funded by the Government, rather than the employer, and is funded at 100 percent of the individual’s employed wage.
When employees on indefinite-term contracts are terminated in Spain, a severance payment of around one month’s wages per year of employment is usually due. Also, an additional month of pay is usually paid upon termination.
Note, hiring and termination in Spain is not ‘at will’ as it is in the United States. It is only permissible to terminate employment ‘with cause’, where possible grounds are prescribed by law. Those possible grounds are:
Where an individual is terminated for disciplinary reasons, there is no requirement for severance payments.
These rules do not usually apply for employees in a probation period, which is generally two months, but can be more for certain roles.
Workers who feel they have been unjustly terminated can take legal action, which may complicate matters.
Navigating employee terminations and handling severance packages can be complicated for companies expanding overseas for the first time. A Spain PEO can mitigate risk for foreign companies and provide guidance through this process.
Spanish workers are taxed progressively, so higher earners pay more in taxes than those at lower incomes. The tax rate is between 19% and 45%.
Corporate tax is set at 25%, although other taxes may apply depending on the specific circumstances.
Employers need to contribute to a social security fund which comes to around 30% of each employee’s salary, with an upper limit of just over €3,500. Employees themselves have to contribute to this fund at a rate of 6.35 percent.
The social security fund has broad coverage in Spain (hence the high amount), and covers healthcare, incapacity, maternity, death and survival, invalidity, retirement and unemployment.
Spain has a social healthcare system that is funded by the government, so employers do not need to offer private health insurance. However, some companies do choose to, particularly for senior-level positions, and it can be a desirable feature for many potential employees.
As of June 2020, the minimum wage in Spain is €1,108.30 per month. Some roles and industries may have a higher minimum if this has been negotiated and agreed upon.
| Minimum Wage Country Comparison Chart | (Per month in USD) |
| Switzerland (Geneva) | $4,000 |
| Italy | $2,255 |
| Australia | $1996 |
| Algeria | $156 |
| Uzbekistan | $22 |
Establishing a Spanish benefits system for your workforce can be difficult as a foreign organization. With the language and cultural differences, and a complicated, unique collection of employment laws, running a comprehensive and compliant benefits system can be very time-consuming
A Spain Employer of Record, specializes in administering Spanish employee benefits systems. We’ll handle everything, using our experience to ensure you are ready to commence operations in Spain quickly and efficiently.
With Horizons, you get quick service, transparent pricing, and expert support.
A Spain PEO and a Spain EOR are two types of companies which specialize in providing human resources services to businesses in Spain.
The main difference between a Spain PEO and a Spain EOR is in the scope of their services.
Spain PEOs provide a full range of HR services, including payroll, benefits administration, and employee recruiting—all under one roof as a co-employer. Engaging a Spain PEO is essentially outsourcing your HR duties in Spain.
Spain EORs actually take over as the legal employer of your employees based abroad. Spain EORs become responsible for labor compliance for your employees in Spain.
At Horizons, we offer both PEO and EOR services in Spain. Get in touch now and let us know what service you are seeking.
A PEO in Spain can feasibly hire both local and foreign nationals to work in Spain.
However, the ability of Horizons to sponsor your foreign national employee in Spain may be limited due to visa quotas practiced in many countries.
Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.
In most cases, Horizons’ Spain PEO can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Spain.
It is possible to get a work visa in Spain. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Spain are limited, however—get started today to secure your employees’ visa spot.
Headquarters
71 Robinson Road #13-153
Singapore 068895
+65 3158 1382
Europe
Skalitzer Str. 85/86
10997, Berlin
+49 30 3119 9653
Americas
1700 S. Lamar Blvd Suite 338
Austin, Texas 78704
+1 (737) 265-6065
See more locations
Headquarters – Singapore
71 Robinson Road #13-153
Singapore 068895
+65 3105 1170
Skalitzer Str. 85/86
10997, Berlin
+49 30 3119 9653
1700 S. Lamar Blvd Suite 338
Austin, Texas 78704
+1 (737) 265-6065
See more locations
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