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.)

  • Languages spoken

    Spanish, Catalan, Basque, Galician

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.

  • Capital city

    Madrid

  • Currency

    Euro
    (, EUR)

  • Languages spoken

    Spanish, Catalan, Basque, Galician

  • Population size

    47,329,981 (2020 est.)

  • Ease of doing business

    Very easy

  • Cost of living index

    $$$ (44 of 139 nations)

  • Payroll frequency

    Monthly

  • VAT - standard rate

    21%

  • GDP - real growth rate

    2.582% (2018 est.)

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.

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.

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
Saturday, January 1, 2022New Year's Day
Thursday, January 6, 2022EpiphanyRegional Holiday all regions, although the Basque Country and La Rioja don’t observe it
Saturday, January 22, 2022San Vicente Mártirlocal holiday in Valencia city
Monday, February 28, 2022Day of Andalusia
Tuesday, March 1, 2022Day of Andalusia,Day of Balearic Islands
Saturday, March 19, 2022San JoséExtremadura and Madrid
Tuesday, April 12, 2022San Vicente Ferrerlocal holiday in Valencia city
Thursday, April 14, 2022Holy ThursdayAll regions but not in Catalonia
Friday, April 15, 2022Good Friday
Monday, April 18, 2022Easter Monday,Lunes de PascuaBalearic Islands, Basque Country, Catalonia, La Rioja, Navarre, and Valencia
Saturday, April 23, 2022Saint George’s DayCatalonia (not an official holiday, however)
Saturday, April 23, 2022Day of Aragon/Day of Castile and Léon
Sunday, May 1, 2022Labor Day
Tuesday, May 3, 2022Day of MadridLocal holiday in Madrid
Sunday, May 15, 2022Saint IsidoreMadrid (not an official holiday, however)
Tuesday, May 17, 2022Galician Literature Day
Tuesday, May 24, 2022Whit Monday or Pentecost MondayCatalonia
Monday, May 30, 2022Day of the Canary Islands
Tuesday, May 31, 2022Day of CastillaCastilla-La Mancha
Thursday, June 9, 2022Day of Murcia/Day of La Rioja
Monday, June 13, 2022San AntonioCeuta
Thursday, June 16, 2022Corpus ChristiCastilla-La Mancha
Friday, June 24, 2022St John’s Day,San JuanCatalonia
Thursday, July 21, 2022Eid al-AdhaCeuta and Melilla
Monday, July 25, 2022Day of Galicia
Monday, July 25, 2022St James’ DayBasque Country as well as Navarre
Thursday, July 28, 2022Cantabrian Institutions DayCantabria
Friday, August 5, 2022Santa Maria de AfricaCeuta
Monday, August 8, 2022The Day of CantabriaCantabria
Monday, August 15, 2022Assumption of Mary
Tuesday, August 16, 2022Assumption of Mary Holiday
Friday, September 2, 2022Day of CeutaCeuta
Thursday, September 8, 2022Day of Asturias/Day of ExtremaduraAsturias, Extremadura
Sunday, September 11, 2022Day of Catalonia
Thursday, September 15, 2022Day of the Bien AparecidaCantabria
Saturday, September 17, 2022Day of MelillaMelilla
Saturday, September 24, 2022La MercéBarcelona
Sunday, October 9, 2022Day of Valencia
Wednesday, October 12, 2022Spanish National Day
Tuesday, November 1, 2022All Saints' Day
Wednesday, November 9, 2022La AlmudenaMadrid (not an official holiday, however)
Saturday, December 3, 2022San Francisco JavierNavarre
Tuesday, December 6, 2022Constitution
Thursday, December 8, 2022Immaculate Conception
Sunday, December 25, 2022Christmas Day
Monday, December 26, 2022Saint Stephen’s DayCatalonia
Tuesday, December 27, 2022Christmas Holiday

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 installments on or before the last working day of each calendar month, payable in arrears.

In Spain, it is also mandatory to make 14 salary payments: 12 months of work and 2 additional allowances (a holiday payment and a Christmas payment). Remote allows the employee to choose whether they would like to be paid in either 12 or 14 allotments:

  • By choosing 12 months, the employee will get two extra months worth of salary prorated throughout the year.
  • By choosing 14 months, the employee will receive the 13th payment and 14th payments in July and December

It is customary that 12 payments are chosen in Spain, however, both payment options are possible. Remote allows the employee to change this once per year.

At Remote, Spanish employees will be paid 13th and 14th extra payments between the 15th and 20th of July and December.

Note that Spanish labor law allows the employer to decide how these extra payments should be paid.

Onboarding Time

We can help you get a new employee started in Spain fast. The minimum onboarding time we need is only 7 working days.

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.

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.

  • Medical insurance plan
  • Dental insurance plan
  • Vision insurance plan
  • Paid holidays
  • Flexible work schedule
  • Pension scheme
  • Life insurance
  • Other insurance

Taxes in Spain

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

  • Employer Social Security Contributions (31.55%)

    • Employer Social Security contributions are capped monthly on a base of EUR 4139.40

    • 23.60% - Common Contingencies

    • 5.5% - Unemployment for permanent employees (or 6.70% for temporary employees)

    • 1.65% - Occupational accident and professional disease contribution

    • 0.6% - Professional Training

    • 0.2% - Wage Guarantee Fund

  • Employee

    • 6.35% - Social Security

    • 1.55% - Unemployment

    • 0.1% - Professional Training

  • Employee income taxes

    • 19% - Up to 12,450

    • 24% - 12,451 - 20,200

    • 30% - 20,201 - 35,200

    • 37% - 35,201 - 60,000

    • 45% - Above 60,000

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.

Maternity leave

Maternity leave is 16 weeks for Spanish employees. At least six uninterrupted weeks must be taken immediately following the birth. Four of these weeks can be taken leading up to the birth. During the maternity period, workers are not paid a salary but instead a maternity benefit. This contribution is paid directly from the Social Security Administration to the employee. Women have the right to one hour of absence from work each day to breastfeed an infant of less than nine months. The employee can also choose to accumulate these hours, and take off 15 consecutive natural days after the maternity leave instead.

Parental and paternal leave

In Spain, 16 weeks of paternity leave is also available. The first six weeks have to be taken immediately without interruption (starting on the day of birth of the child). The other 10 weeks must be taken before the child is one year old. This leave must be taken in batches of one week as a minimum, but the weeks can be split over time if desired. The employee receives 100% pay during this time (as long as payment does not exceed 4070.10 EUR). The father is also entitled to take unpaid childcare leave until the child is three years old.

Breastfeeding leave

Parents can take an additional breastfeeding leave after parental leave. This breastfeeding leave can be enjoyed in two ways:

  • take one hour off during the day, until the child is nine months old (it can either be one hour, or half an hour at the beginning and at the end of the working day)
  • take 15 consecutive natural days after the parental leave

The breastfeeding leave is considered as working time, meaning that the employee doesn't receive anything from Social Security and is paid by the company at 100%.

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.

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

The establishment of a probationary period is not mandatory under Spanish labor legislation. The applicable CBA includes the maximum probationary periods to be agreed with the employees. It is feasible that for the same professional category, you agree different probationary periods with employees if there is justified reason (as a matter of example: experience, training, languages, etc.) and provided that you respect the probationary periods limits established in the CBA.

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