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Spain

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Employer of Record (EOR) in Spain

What you'll learn

  • Country Introduction
  • Employment Terms
  • Minimum Wage and Working Hours
  • Statutory Leave Laws
  • Termination Process
  • Additional Information
Spain Introduction

Spain is a country located in the Iberian Peninsula in western Europe, bordered by Gibraltar, France, Andorra, and Portugal. Spain is the world’s 2nd-most visited country, and Spanish art, music, literature, and cuisine have been influential worldwide (as well as its coffee). Spain is a developed country with a high-income average and advanced economy, and its healthcare system is renown for its quality and efficiency. At the end of 2022, Spain launched a digital nomad visa program.

Employment Terms

Types of Contracts

Indefinite only; fixed-term contracts are only to be used for special justified situations (such as maternity cover).

Working Hours

The standard working hours in Spain are 40 hours per week.

Overtime

Overtime should be reduced to a minimum in Spain. However, if there is a solid cause for the overtime, such as a rise in workload, employees are entitled to an equivalent number of paid hours off to the amount of extra worked. These paid hours off must be used within the same calendar year.

Minimum Wage

The minimum wage in Spain is 1,260 EUR per month.

Probation Period

The maximum probation period is 6 months. During probation, there is no notice period.

Taxes & Local Employment Costs

Employee Taxes

Employees are subject to income tax, which varies due to several aspects of their personal situation. For information on personal income taxes, see here. Employees must additionally make a social security contribution of 6.45% of their gross salary.

Employer Taxes & Contributions

Employers must make contributions to social security of 31.9% of the employee’s gross salary, which covers the following:

  • Public health service
  • Contribution to pensions
  • Unemployment coverage
  • Work accident insurance
  • Some professional training

The employer must also provide or negotiate by law:

  • The equipment for working remotely
  • Remote working allowance: minimum EUR 17 per year
  • Health & Safety service for preventing workplace risks, which includes training and medical checks: approximately EUR 120 per year

Types of Leave

Annual Leave

The statutory minimum number of annual leave days in Spain is 23 working days per year.

Sick Leave

Employees are entitled to sick leave, with the following rules on pay depending on the length of leave:

  • 0-3 days = 0%
  • 4-15 days = 60% of wages (paid by employer)
  • 16-20 days = 60% of wages (paid by social security)
  • 21-365 days = 75% of wages (paid by social security)

From the 30th day onwards, temporary disability benefits kick in, and the employer must supplement these up to 100% of the employee’s salary for a maximum of 12 months.

Parental Leave

Pregnant employees are entitled to 16 weeks of maternity leave in Spain, of which at least 6 weeks must be taken after the birth. Employees will receive benefits from social security while on maternity leave, usually equal to 100% of the average wages.

Fathers are also entitled to 16 weeks of paid paternity leave paid by social security, and both parents in same-sex couples are entitled to paid leave.

Other Leave

Employees will receive the following amount of paid leave in the following situations:

  • 2 days: For the birth and/or death of a child,
  • 2 days: For an accident or serious illness
  • 2 days: For hospitalization or surgical intervention without hospitalization that requires home rest, of relatives up to the second degree of consanguinity or affinity. If the employee needs to travel for this purpose, they will receive 4 days of paid leave.
  • 4 days: In case of the death of a spouse, parents, or children, including any necessary travel during this period.
  • 1 day: For relocating to a new residence.
  • Indispensable time: When performing a public or personal duty that can't be avoided. The employer can place an individual on leave if fulfilling their obligations prevents them from working for over 20% of scheduled hours in 3 months. Any pay earned during this time will be subtracted from their previous salary.
  • 4 days: To carry out union or personnel representation functions as defined by law and in the agreement.
  • 4 days: For the time necessary to carry out prenatal exams, childbirth preparation, and adoption-related duties. In addition, for attending mandatory sessions or fulfilling responsibilities related to adoption or foster care.

Public Holidays

There are 14 public holidays in 2023 for Spain, though these vary according to the region; see here for a list.

Benefits

Summary

Employers in Spain can typically offer the following benefits:

  • Medical Insurance
  • Car Allowance
  • Health Allowance

Learn more about employment benefits in Spain.

Termination Process

Notice Period

During probation, there is no notice period. After probation, the minimum notice period is 15 days for both employer and employee.

Pay in lieu of notice is possible.

Statutory Payments

Employees are entitled to a payment of 33 days of the monthly wage for each year of service, which should be paid in the final salary. Any unused vacation days should be paid in the final salary.

Additional Information

It’s mandatory for employers to give out 13th-month and 14th-month salary bonuses each year, both equal to 1 month of pay. These are normally paid out in July and December.

OVERVIEW
Language(s):
Spanish, Catalan, Galician, regional languages
Currency:
Euro (EUR)
Capital City:
Madrid
Population:
47.5 Million
Cost of Living Rank:
53rd
VAT (Valued Added Tax):
21%
Employer TaxES
31.9%
(estimated)

★  31.9% - Social Security (health, pension, unemployment, etc)

Get Started in 3 Steps

1

Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.

2

Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.

3

Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
Best Pricing
Available in 180+ countries
How Remofirst employs in Spain

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Spain get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), Australian Dollars (AUD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Spain are paid on time in Euro (EUR). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Spain, they can speak with our customer support team to get answers from our team of experts.