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Europe

Spain

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Employer of Record (EOR) in Spain

What you'll learn

  • Country Introduction
  • Tax Breakdown for Employers
  • Statutory Leave Laws
  • Minimum Wage and Working Hours
  • 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. Spain is a developed country with a high-income average and advanced economy, and its healthcare system is renown for its quality and efficiency.

Paid Leave and Statutory Leave

Parental Leave

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

Sick Leave

Employees are entitled to sick leave for up to 365 days, paid at different amounts based on the length:

  • 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)

Paid Leave

There are 10 public holidays in Spain, and employees are entitled to 30 days of paid time off each year. Employees can also qualify for other types of leave, such as caring for family, bereavement, marriage, and more.

Wage Requirements and Working Hours

The minimum wage in Spain is EUR 1,166 per month, and a standard workweek is 40 hours at 8 hours per day. The maximum amount of overtime hours is 80 hours per year.

Termination Process

Process

The termination process depends on the employment contract or collective agreement and the reason for termination.

Notice Period

The standard notice period is usually 15 days, payment can be given in lieu of notice.

Severance Pay

Severance pay is applicable when the employer terminates the employment contract without notice, in which case the severance payment is the same amount the employee would earn if they had been given notice. In other cases, the standard severance payment is 20 days of wages per year of service at the company.

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
29.9%
(estimated)

★  23.6% - Social Security

★  5.5% - Unemployment

★  0.2% - Salary Guarantee Fund

★  0.6% - Professional Training

Simplified Global HR and Payroll.
Let’s work on it together.

We've made the process really simple
with only 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 150+ 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), 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 use our platform's chat function to get answers from our team of experts. Every client of Remofirst also receives a dedicated account manager that will serve as a point of contact for global HR support.