Spain

Spain

Global Employment Solutions & PEO in Spain

Omnipresent makes it fast and easy to employ remote talent in Spain. We take care of payroll, compliance, taxes, and admin so you can focus on growing your business.

OmniAtlas Employment Rating

Capital City
Madrid
Currency
Euro (€, EUR)
Native Language
Spanish
Payroll Frequency
Monthly
Employee Protections
Strict
Employment Costs
High
Termination
Difficult
Immigration
Easy
Cost of Living
Moderate
Population
46 Million

What You Need to Know About Employing in Spain


Don’t risk non-compliance with local employment, social insurance, and tax regulations.

How it works
Payroll & Taxes
Employer Costs
Working Hours
Holidays & Vacation
Types of Leave
Health & Benefits
Termination Laws
Spain

How Do Omnipresent Global Employment Solutions Work?


Omnipresent provides global employment solutions and professional employment organisation (PEO) services for companies looking to grow and build out a global team in Spain. Traditional methods of establishing global employment and subsidiaries in Spain typically take months and can incur heavy costs. Omnipresent’s global employment solutions and PEO services are helping hundreds of organisations onboard new employees in Spain in a matter of days with full compliance of local labour laws. We use a tech-forward approach to streamline the process. 


  • Your company conducts the hiring and candidate selection process in Spain.
  • Omnipresent hires the selected candidate through our local professional employment organisation in Spain.
  • We take care of ensuring your new employee is hired in compliance with local labour laws, payroll regulations, benefits and more -- all without needing to set up a subsidiary in Spain.
  • The individual is legally contracted by Omnipresent but assigned to work for your company and reports to a manager or team in your organisation as your full-time employee.

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Payroll & Taxes in Spain


Employee Income Taxes:

The rates are progressive and depend on the employee's salary.


If the employee's gross taxable income is:


  • EUR0 - EUR17,707.20, withholding tax is charged at 24.75%.
  • EUR17,707.20 - EUR33,007.20, withholding tax is charged at 30%.
  • EUR33,007.20 - EUR53,407.20, a fixed sum of EUR2,124.86 is payable on the first EUR17,707.20, withholding tax is charged at 40%.
  • EUR53,407.20 - EUR120,000.20, withholding tax is charged at 47%
  • EUR120,000.20 - EUR175,000.20, withholding tax is charged at 49%.
  • EUR175,000.20 - EUR300,000.20, withholding tax is charged at 51%.
  • For EUR300,000.20 or more, withholding tax is charged at 52%.


Regional tax:

Regional tax is applied in a similar way as the state tax. The rates vary, depending on the autonomous region in which the employee works (Spain is divided into 17 autonomous regions). 


Social security contributions:

Social security contributions are paid at various rates, depending on the different contingencies (for example, overtime, unemployment and occupational training) that are covered under the system. For common contingencies, the employer pays 29.9% of the employee's net taxable income and the employee pays 6.35% (this is deducted from the employee's salary). There is a minimum and a maximum contribution for all employees depending on its category within a range from EUR753.00 to EUR3,425.70.


Payroll Cycle:


Spain

Employer Costs in Spain


Employer Contributions:

23.60% -  Social Security (common contingencies)

5.50% - Unemployment (6.70% for temporary contracts)

0.20% - Salary Guarantee Fund

0.60% - Professional Training


There may be additional percentage for accident insurance, which will depend on the job position and activity.


Employee Contributions:

4.70% - Social Security (common contingencies)

1.55% - Unemployment (1.60% for temporary contracts)

0.10% - Professional Training


Percentages will depend on the salary and are estimates, as there are minimum and maximums for the Social Security contributions.


Spain

Working Hours in Spain


Typical Working Hours per Week:

The typical work week in Spain consists of 40 hours per week.

It’s important to note that typical working hours can vary by industry in some countries. Contact our team for the most up-to-date information!



Overtime Laws:

Overtime laws in Spain are complex and can depend on the specific circumstances and the employee. We are happy to discuss in more detail for a specific context.


Spain

Public Holidays & Vacation Time in Spain


Standard Public Holidays in Spain

  • New Year's Day
  • Epiphany
  • Maundy Thursday (Not observed in Catalonia and Valencia)
  • Good Friday
  • Easter Monday (Only observed in Catalonia, the Balearic 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


Vacation Time in Spain

Spain allows employees a minimum of 30 calendar days (22 working days) of leave. Annual leave is specified in the various collective agreements so it is possible for some employees to have more time off.


Spain

Types of Leave in Spain


Sick Leave:

Sick leave in Spain includes up to 1 year or up to 18 months (extended sick leave), reimbursed by the Social Security Department. Each employee must have paid 180 days of Social Security contribution within 5 years to qualify for this leave.


Maternity Leave:

Spain has strong maternity leave regulations including 16 weeks all of which are paid.


Paternity Leave:

Paternity leave in Spain allows the father to be entitled to the same leave as the mother. 


Other Types of Leave:

  • Marriage leave
  • Moving leave
  • Death of a family member or to take care of second degree relative

Spain

Health Insurance & Supplementary Benefits in Spain

We believe that remote employees should be able to access their local, as well as a high standard international benefits anywhere they are. Details about international or country specific benefit packages can be provided on request. Please contact us for further details.

Spain

Termination & Severance in Spain


Termination

Termination in Spain is subject to more difficulties and regulation than other countries. There are a range of reasons that an employer can use to terminate an employee, which depend on the specific circumstances. If you would like to know more specific details, please contact us


Severance:

As a general rule, apart from gross misconduct, for every other type of termination there is a minimum severance payable. Please contact our team for details.


Notice of Termination:

If not subject to disciplinary dismissal there is a minimum 15 days for either party. The employer and employee can also agree to the advance notice set out in the applicable collective bargaining agreement.


Unprotected & Protected Termination

Laws in Spain protect employees from illegal termination of employment and because there are a range of reasons an employee can be terminated, it is important for those looking to employ in Spain to reach out to us directly with questions.

Spain

Grow your global team. 

Employ the best talent, anywhere in the world


The benefits of growing a global team and finding the best talent anywhere in the world are endless. It’s important to note that labour laws and regulations in Spain are strict with penalties for non-compliance. Let our team take care of the global employment solutions such as payroll, benefits, compliance, taxes, and admin so you can focus on growing your business. We are here to help you every step of the way.


Want to onboard an international employee today? Call us.

Join thousands of companies who are leading the way and employing remote teams all over the world.

Omnipresent makes it easy to employ, pay and support your international team.

Book a call with us to start building your global team today.

Employ Anywhere. Be Omnipresent.  

Curious to learn more?
Book a Call