Hire employees
and contractors in Spain

Remote’s guide to employing in Spain.

Capital city
Madrid
Currency
Euro (€, EUR)
Population size
47,329,981 (2020 est.)
Language spoken
Spanish, Catalan, Basque, Galician
01

Facts & stats

Spain (Spanish: España), officially the Kingdom of Spain (Spanish: Reino de España), is a country in Southwestern Europe with some pockets of territory across the Strait of Gibraltar and the Atlantic Ocean. Spain is a secular parliamentary democracy and a parliamentary monarchy, with King Felipe VI as head of state. It is a major developed country and a high income country, with the world's fourteenth-largest economy by nominal GDP and the sixteenth-largest by PPP.

Spain Map
  • Capital city
    Madrid
  • Currency
    Euro (€, EUR)
  • Language spoken
    Spanish
  • Population size
    47,329,981 (2020 est.)
  • Ease of doing business
    Very easy
  • Cost of living index
    $$$
  • Payroll frequency
    Monthly
  • VAT - standard rate
    21%
  • GDP - real growth rate
    2.582% (2018 est.)
02

Grow your team in Spain with Remote

Employing in Spain requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. The complexity of employment regulations in Spain makes full compliance with employment laws a burdensome process.

Through Remote’s Global Employer of Record solution, your team is employed by our local legal entities in each country, and we take care of payroll, tax, benefits and compliance so you can focus on what matters most -- your people.

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Spain risks illustration

Risks of misclassification

Spain, like many other countries, treats self-employed individuals or contractors and full-time workers differently and there are risks associated with misclassification.

03

Employing in Spain

Employment law in Spain is not contained under a single law. Instead it is governed by statutory regulations codified in (among other laws) the Spanish Civil Code and the Spanish Workers' Statute. The Spanish Workers' Statute regulates legal and regulatory of Spain, the will of parties intended in employment contracts, local and professional customs and practices as well as collective bargaining agreements.

Spanish employment law provides strong labor conditions and protections for employees, so employing people will generally be an important investment and commitment.

Temporary agencies are popular options for more flexible workforce arrangements. For these and many other reasons, the following are only guidelines in the broadest sense, and professional legal services are recommended when employing in Spain.

Public holidays

Date Holiday Name Extra information
New Year's Day
Epiphany
Maundy Thursday Not observed in Catalonia and Valencia
Good Friday
Easter Monday Only observed in Catalonia, the Baleriac Islands, Navarre and Basque Country
Labour Day/May Day
Assumption
Spanish National Day
All Saints Day
Spanish Constitution Day
Immaculate Conception
Christmas Day
Boxing Day
Minimum
Wage

€1108 per month in 12 payments, €950 per month in 14 payments.

Payroll
Cycle
For customers of Remote, all employee payments will be made in equal monthly instalments on or before the last working day of each calendar month, payable in arrears.
Onboarding
Time
We can help you get a new employee started in Spain fast. The minimum onboarding time we need is only 72 hours.

Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.

For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.

Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.

04

Competitive benefits package in Spain

Besides providing your employees with all statutory benefits in Spain, Remote can advise on and arrange for custom benefits and perks for your employees upon request.

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05

Taxes in Spain

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Spain.

  • Employer

    • 23.6% - Social Security
    • 5.5% - Unemployment
    • 0.2% - Salary Guarantee Fund
    • 0.6% - Professional Training
  • Employee

    • 4.7% - Social Security
    • 1.55% - Unemployment
    • 0.1% - Professional Training
    • 19% - Up to 12,450
    • 24% - 12,451 - 20,200
    • 30% - 20,201 - 35,200
    • 37% - 35,201 - 60,000
    • 45% - Above 60,000
06

Types of leave

Statutory
leave

All full-time workers are legally entitled to 22 days paid holiday leave a year. In addition, full-time workers have 14 paid public holidays a year.

Pregnancy and
maternity leave

Pregnant employees can take up to 16 weeks of maternity leave. The leave has to be taken immediately after the birth and the length is increased in case of multiple births and medical complications. Pregant employees and those who have recently given birth are also entitled to time off for attending antenatal clinics and breastfeeding in addition to maternity leave..

Parental and paternal
leave

The father can take up two working days of paid absence immediately after the birth and are entitled to 13 additional days of paternity leave. A male employee can also share his partner's maternity or adoption leave if agreed upon or if the mother dies whilst on maternity leave.

Other
leave
  • Adoption: upon adoption of a child or have taken in a foster child, employees are entitled to the same entitles apply as for maternity and paternity rights. Applies to both parents.
  • Emergency and short absence leave: intended for unforeseen personal circumstances for which an employee has to take time off immediately. Examples include making arrangements for the care of a sick family member or in the event of a death in the family. Up to two calendar days or four if travel is required.
  • Time off work for public duties: intended for allowing employees to fulfill certain public duties related to roles such as local councillors, school governors, trade union member, etc.
  • Long-term care leave: when a child, partner or parent of the employee is seriously (i.e. life threateningly) ill and requires care, the employee can request long-term care leave.
  • Unpaid leave: the employee may take unpaid leave in consultation with the employer on a full-time or part-time basis. Granted at the discretion of the employer, but must always be set in an individual or collective agreement. Unpaid leave periods are not regulated by law.
07

Employment
termination

Termination process

Spanish employers in general can provide any fair reasons for termination of an employee. Any dismissal from the end of the employer for an employee that has been employed longer than six months has to be "socially justified" by the following:

  • Dismissal of the employee without notice for disciplinary reasons, for example in case of theft or any other serious misconduct;
  • Ordinary dismissal with notice based on economic factors related to production, the organisation of work, the proper functioning of the business and redundancy; or

Notice period

The statutory notice period for an employer depends on the reason for dismissal and the collective bargaining agreement the employment contract is subject to. For dismissals due to economic factors related to production, the organisation of work, the proper functioning of the business and structural, the company has to provide 15 days prior notice. Employees are generally required to provide 2-3 weeks of prior notice when resigning, depending on the collective bargaining agreements.

Probation periods

Length of probation period depends on a number of factors. The education level of the employee: six months maximum for college and junior college graduate specialists. The size of the company: for below 25 employees it cannot exceed three months for employees that aren't college and junior college graduate specialists. Contract term: one month for fixed-term contracts of less than one month. Collective bargaining agreements also establish their own probation periods.

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