What should I know about hiring in Spain?
Employing workers in Spain may be a win-win situation for companies of all sizes. When it comes to growing their workforce and expanding their operations, many companies look to Spain. Yet, it might be difficult and expensive if you are unaware of the local laws and regulations pertaining to employment in Spain.
Every worker in Spain must have a legally binding employment contract. The length of the contract, the salary, and the number of hours worked must all be specified in such agreements. In Spain, businesses must pay into the social security system on behalf of their employees.
These contributions pay for benefits like healthcare, retirement, and unemployment insurance. You can ensure that you comply with local laws and that your employees are adequately taken care of by knowing the critical variables involved in hiring and managing employees in Spain.
Why is Spain a good choice for finding remote employees?
Spain is becoming increasingly popular as a desirable location for hiring remote workers. In addition, Spain is an excellent option for companies wishing to grow their remote workforce due to its diverse cultural landscape, robust economy, and highly qualified workforce.
A substantial number of techies, engineers, and financiers are among Spain’s highly trained labor force. Spanish workers are an excellent option for remote work due to their work ethic, creativity, and flexibility.
Businesses wishing to minimize their labor costs may want to consider Spain because of its lower cost of living than many other European countries. To further reduce costs, the Spanish government provides tax breaks to businesses that employ remote labor.
How can Native Teams help you hire in Spain
When looking for remote employees from Spain, Native Teams can be invaluable resources due to their in-depth familiarity with the local labor market and the ability to offer advice and suggestions you would not have otherwise considered. With the support of our employer of record services, Native Teams can assist you in finding new employees, integrating them into your business, and ensuring that they are paid, taxed, and taken care of in line with Spanish law.
Hire your first Spanish employee with Native Teams.
Legal requirements for hiring in Spain
Spain’s minimum monthly salary is EUR 1,080.
Contributions & taxes
The employer cost is generally estimated at 29.90% of the employee’s salary.
The standard rate of CIT in Spain is 25%. Company and industry classifications might affect the applicable tax rate.
The total employee cost is 6.40%.
- 19.00%: 0.00 EUR to 12,450.00 EUR;
- 24.00%: 12,450.00 EUR to 20,200 EUR;
- 30.00%: 20,201.00 to 35,200 EUR;
- 37.00%: 35,200.00 EUR to 60,000 EUR;
- 45.00%: 60,000.00 EUR to 300,000.00 EUR;
- 47.00%: 300,000.00 EUR and over
To calculate the salary and taxes in Spain please click here.
Salaries in Spain are traditionally dispersed on the final working day of each month.
Is there a 13th salary in Spain?
The employee’s employment contract and any applicable collective agreements will specify the number of installments to be paid throughout the year to account for the double salary payment the employer will make in July and December.
In most cases, the collective agreements specify probationary or trial periods. Nonetheless, in Spain, extending notice periods by 2 to 6 months is customary for senior personnel and graduate technicians.
Generally, employers in Spain require employees to give 15 days’ notice before terminating their employment, but sometimes, they may pay employees instead.
An employer is only required to pay severance if they terminate the employee’s contract without cause. An employer can terminate an employee’s employment with a specified notice period or terminate immediately by paying an indemnity instead of notice. It is also possible to combine the two approaches, with notice being given followed by an indemnity payment to cover the remainder of the notice period.
The indemnity in place of notice is equal to one year’s salary, including all mandatory and voluntary fringe benefits, paid to the employee at the moment of termination. If an employer is terminating a contract, they must also follow the following legal requirements:
- When terminating an employee, the company must give them a written notice explaining their decision;
- Employers are obligated to compensate departing workers with 20 paid days for each year of employment, up to 12 months’ compensation, if the employee provides written notice of resignation;
- There must be at least 30 days notice given to the employee before the contract is officially terminated;
- If a dismissal is unfair, the employer must pay the employee a sum equal to 45 days’ pay for each year of service or 33 days’ pay for each year of service after that date, up to a maximum of 42 months’ salary.
In Spain, a maximum of 40 hours per week, based on an annual calculation, constitute full-time employment. The work week is Monday through Friday. The typical Spanish workday is divided into two halves: from 9 am to 2 pm and from 5 pm to 8 pm, with the well-known “siesta” in between. The last working day must end at least 12 hours before the first working day of the following week.
Leave and benefits
Spain’s municipalities (regions) have different public holidays. There may be 14 bank holidays in a calendar year in each municipality. They comprise:
- The Spanish government has established 8 bank holidays;
- The local government has established 4 regional holidays;
- The town hall declared 2 municipal holidays.
Spain has the following national holidays:
- January 1: New Year’s Day
- January 6: Epiphany of the Lord
- Good Friday
- August 15: Assumption of our Lady
- October 12: Fiesta de la Hispanidad
- November 1: All Saint’s Day
- December 6: Spanish Constitution Day
- December 8: Immaculate Conception
Suppose an employee becomes temporarily disabled due to illness or injury. In that case, they are entitled to temporary disability compensation in sick pay equal to at least 60% of their usual wage.
Workers in Spain are entitled to the following in the event of a non-work-related injury or illness:
- 1 to 3 days: 0% unless the CBA or an agreement with the employer stipulates otherwise, there is no responsibility to pay;
- 4 to 15 days: 60%;
- 16 to 20 days: 60% paid by social security;
- +21 days: 75% paid by social security.
Maternity leave & paternity leave
In the event of multiple births or if the mother’s pregnancy is considered high-risk, the employee’s unpaid maternity leave period may be extended to 18 weeks.
The 16-week maternity leave is divided into two parts:
- Involuntary time off for the first six weeks after giving birth;
- With 15 days’ notice, you can take the remaining 10 weeks of full leave or 20 weeks of half leave at any time up to a year later.
All fathers are entitled to 16 paid days of paternity leave or extended to 18 weeks for multiple births. The Spanish government will cover the whole cost of paternity leave if the father has paid into the social security system for at least 180 days during the last 7 years of employment or 360 days during his entire working career. Paid leave should be given to both parents in same-sex marriages.
Employees are eligible for 2 paid days off in the event of a death in the immediate family and 4 if travel is required.
Two additional weeks of maternity leave are granted to employees in the event that their newborn, adopted, or fostered child develops a disability during the leave.
Employees are eligible for up to 15 days of leave in the case of a marriage.
Family care leave
Assisting a very ill household member or family member is eligible for up to 2 years of unpaid absence for employees.
What are the minimum vacation days?
Workers in Spain receive 30 days of paid vacation every year, divided evenly between the calendar and business years.
Health Security & private Insurance
Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.
* Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices.*
Relocation and work permits
Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.
How long is the visa/work permit process?
2 to 8 weeks depending on the authorities and provided documents
Which documents do you need?
Why use Native Teams for hiring in Spain?
Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:
- No paperwork: We will handle all the necessary paperwork for you.
- Save on taxes: We help you handle your taxes.
- No company set up: You can expand your business using our company entitles.
- Online onboarding: We’re here to ensure your onboarding process is trouble-free.
- No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
- Increase your profit: We assist you in growing your business and maximizing your profits.
- Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
- Local support: We can assist you in understanding and complying with the relevant local laws.