* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City
Madrid
Currency

Euro (€)

Timezone

CET (GMT +1)

Payroll
Monthly
Employment Cost

31.90%

Annual Leave

22-30 days

In-demand Specialties*
Tourism And Hospitality, Construction And Real Estate, Manufacturing

The Ultimate Guide to Hiring Employees in Spain

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.

hiring-in-Spain-guide

Key Considerations Before Hiring In Spain

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. Grow your team in Spain with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Spain quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Spain's geographical location provides easy access to European, North African, and Middle Eastern markets, making it strategically positioned for international business.

Spain has tens of thousands of highly skilled workers. Spanish universities supply a steady stream of professionals with sought-after skills and qualities.

Spain has a growing innovation and technology sector, particularly in cities like Barcelona and Madrid, attracting tech talent and fostering innovation.

Over the past few years, Spanish government has worked to support free trade and investment by relaxing business regulations and increasing incentives to attract foreign businesses and investment.

playroll-good-to-know

Fundamental Aspects of Employment in Spain

All employment contracts in Spain must be written and contain certain mandatory clauses, including:

  • Identification of the employer and employee
  • Employment commencement date
  • Duration of employment
  • Location of business
  • Base salary, compensation, and benefits, if any
  • Professional group or category
  • Total working hours
  • Holiday entitlement
  • Termination clause

Probationary Period in Spain

Probationary periods are common but not required by law in Spain. Where there are no special provisions in an applicable collective bargaining agreement or employment contract, probationary periods have a maximum period of six months.

Working hours in Spain

The standard working week in Spain is 40 hours, spread over five days.

Overtime in Spain

In Spain, employees are legally entitled to overtime compensation if their work hours exceed the standard 40 hours per week. The maximum amount of overtime an employee can work annually is 80 additional hours. Overtime regulations are strictly enforced in accordance with collective bargaining agreements.

Navigating Key Aspects of Payroll in Spain

Spain has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January - 31 December

Fiscal Year in Spain

1 January - 31 December is the 12-month accounting period that businesses in Spain use for financial and tax reporting purposes.
monthly

Payroll Cycle in Spain

The payroll cycle in Spain is usually monthly, with employees being paid on the final working day of each month.
8.45 EUR p/h

Minimum Wage in Spain

The minimum wage for employees in Spain is typically 8.45 EUR per hour, amounting to ~1,080 EUR per month for a typical 40 hour work week.

Minimum wages and salaries in Spain

In Spain, minimum wages are established according to industry sectors in collective bargaining agreements. Generally, the standard minimum wage in Spain is set at 1,080 EUR per month. Temporary employees and seasonal workers, employed by the same company for fewer than 120 days, must receive a minimum daily wage of 51.15 EUR.

Bonus Payments in Spain

13th and 14th-month salary payments are mandatory in Spain. It is a customary practice to divide the annual salary into 14 installments, accommodating the additional salary payments that employers disburse in July and December. This arrangement is specified in both the employee's employment contract and collective agreements.

Comprehensive Overview of Employment Taxes in Spain

Understanding the tax obligations for both employers and employees is crucial when operating in Spain's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Spain.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 31.90% on top of the employee salary in Spain.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Spain, the typical estimation for employee payroll contributions cost is around 6.45%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

Individual income tax in Spain is a progressive tax system. Individual income tax ranges from 19% to 47%.

Tax Rate Income Bracket

Pension in Spain

The funding for Spanish government pensions comes from contributions made by employees and employers. To be eligible for a government pension in Spain, individuals must currently be at least 65 years old and have a minimum of 15 years of contributions to Spain's National Social Security System. Within the 15 years preceding retirement, a minimum of two years of contributions must have occurred.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Spain tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Spain

When it comes to terminating employment in Spain, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

In Spain, employers cannot terminate employment at will once the probation period has concluded, and termination must be justified by valid reasons. Other than voluntary termination by employee, mutual agreement or contract expiration, acceptable grounds for termination initiated unilaterally by employer include:

  • Probation period
  • Objective grounds
  • Disciplinary dismissal
  • Performance due to unsuitability for the job

Notice Period

Spanish law generally mandates a 15-day notice period for employment termination. Employers can substitute this notice requirement with financial compensation in lieu of notice.

Severance Pay

Employers are required to pay severance following objective dismissal. The compensation thereof is a non-taxable payout equivalent to 20 days of salary for each year of service, capped at 12 months' salary.

Annual Leave Entitlements and Company Policies in Spain

The annual leave entitlement in Spain is 22-30 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Spain

Spain's national holidays are listed below; however, regional variations may require the observance of additional and alternative holidays.

Holiday Date

Paid Time Off in Spain

Maternity Leave in Spain

Paternity Leave in Spain

Sick Leave in Spain

Bereavement Leave

Marriage Leave

Parental Leave In Spain

Spain's Benefits Built Into Playroll

Competitive benefits package in Spain

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Spain's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Spain

Make your benefits package in Spain a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Short-Term Sickness Insurance
  • Workman's Compensation
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in Spain

Playroll allows you to provide localized benefits for employees in Spain within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Spain create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Spain

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Spain.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!