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Remote’s guide to employing in

Spain
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Make employment in Spain easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Spain, all in one easy-to-use platform.

  • Capital City

    Madrid

  • Currency

    Euro (€, EUR)

  • Languages

    Galician, Basque, Spanish and Catalan

  • Population size

    47,329,981

Services available in this country:
Employer of Record ProductContractor Management
Spain

Facts & Stats

Spain Map Illustration
  • Capital City

    Madrid

  • Currency

    Euro (€, EUR)

  • Languages

    Galician, Basque, Spanish and Catalan

  • Population size

    47,329,981

  • 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.)

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.

Grow your team in Spain with Remote

Looking to employ workers in Spain? Companies hiring in Spain must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.

Remote can employ your team in Spain on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Spain team. You can also pay contractors now in Spain with Remote.

Risks of misclassification

Spain, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Spain may lead to fines and penalties for the offending company.

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 labour 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.

Minimum Wage

€1,125.80 per month in 12 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.

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 labour 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 3 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.

8 Public holidays

Jan
Monday, 01 January 20241New Year (Año Nuevo)
Mar
Friday, 29 March 20242Good Friday (Viernes Santo)
May
Wednesday, 01 May 20243Labour Day (Día del Trabajador)
Aug
Thursday, 15 August 20244Assumption of Mary (Asunción)
Oct
Saturday, 12 October 20245Hispanic Heritage Day (Fiesta Nacional de Espana)
Nov
Friday, 01 November 20246All Saints' Day (Fiesta de Todos los Santos)
Dec
Friday, 06 December 20247Day of the Constitution (Día de la Constitución Española)
Wednesday, 25 December 20248Christmas day (Navidad)

Competitive benefits package in Spain

Remote supports our clients by offering competitive benefits packages that will help you attract and retain the best talent across the globe! Our benefits specialists have done the research on norms and requirements in each local market and have crafted packages that will allow your employees to thrive, no matter what country they live in.

Our benefits packages in Spain are tailored to fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance

  • Dental Insurance

  • Vision Insurance

  • Mental Health Support

  • Pension or 401(K)

  • Life and Disability Insurance

Local market insights

  • In Spain, 80%* of employers offer supplemental health insurance to their workforce. (*based on 3rd-party market research from our partners)

  • Although the country has a public health system, supplemental health insurance provides employees with access to a wider range of options for providers and specialists, as well as significantly shorter wait times. Our plans also offer global coverage (excluding the US) to protect your employees when they are travelling outside their home country.

Our core benefits (which often include things like healthcare) are required in most countries where we hire. Because Remote is the employer of record, it’s important for us to offer the same core benefits to all employees in a country to ensure fair equity and non-discriminatory hiring practices, which protects your business and ours. Note that we do not add a markup on any benefits premiums or administration costs.

If you'd like specific information about our benefits packages in Spain, start onboarding your first employee with Remote today.

For more insight into fair equity and benefits best practices, download our Global Benefits Guide and share with the rest of your hiring team.

Taxes in Spain

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

  • 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

Types of leave

All full-time workers are legally entitled to 23 days paid holiday leave a year. In addition, full-time workers have 14 paid public holidays a year.

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 changes, the company has to provide 15 days prior notice.

Probation periods

The establishment of a probationary period is not mandatory under Spanish labour 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.

Fair Pricing in Spain

Employer of Record

Hire and pay your global team

Starting at US$599/month

Top features

  • Satisfaction guaranteed

  • No deposits or hidden fees

  • Zero onboarding or offboarding fees

  • Compliant equity incentives support including withholding and reporting

  • Built-in security and compliance

  • Fast onboarding (average 2-3 days)

  • Flexible, localised benefits

Contractor Management

Compliantly onboard and pay contractors

US$29

per contractor/month

Start free trial

Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries

  • Create, edit, and sign tailored, localised contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

Global Payroll

Consolidate your multi-country payroll

US$50

per employee/month

Top features

  • Reduce costs by centralising payroll management

  • Ensure local compliance for every country

  • Direct support from in-house local payroll experts

  • Accurate, on-time, compliant payroll to level-up your employee experience

  • Tax and labour authority reporting handled for you

HRIS

Manage all of your employees in one place

Free
Sign up

Top features

  • Guided onboarding and offboarding

  • Employee profile and document management

  • Time and attendance (time off and tracking)

  • Expense management and reimbursement

  • Employee self-serve on the platform and mobile app