Explore how Marzuna’s innovative Employer of Record (EOR) solutions can transform your company’s expansion into Spain. By bypassing the complexities of establishing a subsidiary, you can opt for a streamlined, digital approach. Spain’s highly skilled workforce, eager to collaborate with foreign enterprises, presents vast opportunities for growth, with a GDP that consistently ranks among the world’s top 15 economies.
Partnering with us, a well-established player in the Spanish market, guarantees a successful and seamless expansion south of the Mediterranean Sea. Our state-of-the-art platform sets you apart from your competitors, providing a competitive edge. With access to the finest talent Spain has to offer through our advanced tools and extensive global network, you’re poised for success.
Leave the intricacies of hiring, contracting, payroll management, and compliance with Spain’s intricate labor laws to us. This way, you can focus all your energy on launching and expanding your business. Maximize your potential and seize the myriad opportunities Spain has in store.
Visit our website today to discover more about our comprehensive services and unlock the keys to your success.
Like in most other EU nations, employment in Spain is notoriously tough due to the country’s labor regulations, which significantly protect the labor market and give precedence to local workers. Spain has a lot of laws, therefore businesses have long faced a heavy and time-consuming compliance burden. However, the current economic unrest has forced Spain’s judiciary to accelerate reforms to labor laws and embrace more lenient employment standards.
| Title | Explanation |
|---|---|
| Statutory Working Hours | 40 hours per week |
| Mid-Day Break (Siesta) | A usual lunch break of one to two hours. Many businesses now provide employees one to one and a half hours to eat at the dining areas, restaurants, or offices. |
| Overtime Eligibility | A worker may put in a maximum of 80 hours of overtime per year. This excludes working overtime to make up for lost sleep and working to prevent or repair immediate harm. |
| Paid Public Holidays | 14 public holidays annually, out of which 2 are local. National holidays include
Any public holiday due on a Sunday is transferred to the coming Monday. |
| Holiday Pay | Employees are entitled to a minimum of 30 days of paid vacation, in addition to the 14 public holidays. |
| Medical Leave | The minimum guaranteed percentage of pay in the event of an illness or accident is determined by the government. A company may be required to pay the additional dues under the collective agreements. |
| Maternity Leave and Paternity Leave | Mothers are entitled to 16 weeks of leave, of which the first 6 must be used immediately following childbirth. The mother’s social security is provided a direct contribution from the pay during this time, but only up to a certain amount. Companies have the option of making extra payments. Fathers will be eligible to 16 weeks of paid paternity leave starting in 2021. The first six weeks of paternity leave must be taken as soon as the baby is born, just as maternity leave. |
| Disclosure and Confidentiality Of Personal Information | The Organic Law 15/1999 of December 13 on the Protection of Personal Data governs labour relations in Spain. |
| Anti-Discrimination Law | Employers are not allowed to treat workers unfairly based on their gender, race, ethnicity, religion, marital status, sexual orientation, political affiliation, union membership, socioeconomic class, or language. |
The primary objective of Spain’s labor laws is to establish strong and fair employment agreements between employers and employees. There are two primary types of employment contracts in Spain: fixed-term and indefinite (permanent) contracts.
Fixed-term contracts have a defined duration, typically ranging from six months to a year. They serve as a valuable tool for businesses looking to assess the performance of new hires before making a permanent commitment. One advantage for employers is that fixed-term contracts do not require a notice period before termination.
It is essential to note that there are limitations on the consecutive use of fixed-term contracts for the same position. According to regulations, employers cannot offer an individual more than two consecutive fixed-term contracts for the same role. Each contract can last a maximum of 12 months within a 30-month period. Once this threshold is reached, the employee automatically transitions to a permanent contract, ensuring job security.
These regulations strike a balance between granting companies flexibility in assessing new employees and safeguarding the rights and stability of the workforce. By understanding and adhering to these labor laws, employers can confidently navigate the Spanish labor market and foster a positive and enduring working environment.
The Spanish government meticulously regulates the employment process to safeguard workers’ rights. This system, based on a set of rules known as collective agreements, categorizes job roles and serves as a framework for employers and employees to negotiate employment terms and conditions. These agreements, addressing issues like job legality, working conditions, and duty fulfillment, are typically renewed on an annual basis.
Employers frequently utilize online job boards such as InfoJobs and LinkedIn to identify suitable candidates. InfoJobs primarily focuses on the European Union region, while LinkedIn is a global platform. Leveraging these platforms, including social media advertising, offers various advantages. Using multiple sources allows employers to tap into a diverse talent pool and increases the likelihood of finding the right candidates.
Nevertheless, managing human resources can be a complex and time-consuming endeavor, especially in a country like Spain, which has a highly regulated labor market. To mitigate potential risks, organizations should be well-versed in compliance obligations. Therefore, seeking professional guidance is highly recommended when navigating the Spanish employment landscape.
Marzuna offers comprehensive virtual HR administration services, ensuring adherence to Spanish regulations as your trusted Employer of Record. This allows you to focus on critical tasks such as expanding your company, running operations, and leading marketing activities while our experienced team manages every aspect of the process, from recruitment and onboarding to ongoing personnel management. Learn how our services can simplify your HR responsibilities and contribute to your organization’s growth. Discover more today.
In Spain, the duration of the probationary period is typically determined by the Collective Agreement applicable to a specific job profile. However, in cases where there is no Collective Agreement in place, specific regulations dictate the maximum length of the probation period.
For undergraduate and junior college specialists, the probation period cannot exceed 6 months. This timeframe allows employers to assess the performance and suitability of these entry-level employees.
For all other positions, the probationary period is limited to a maximum of 2 months. This shorter duration applies to employees with higher qualifications or experience.
It’s important to note that different types of contracts, such as permanent contracts, training contracts, and special employment contracts, may have their own designated probationary periods specified within their respective regulations.
By understanding and adhering to these guidelines, employers in Spain can effectively manage the probationary period for their employees. This provides an opportunity to assess their suitability for the role while ensuring compliance with legal requirements.
Resignation: Depending on the Collective Agreement, employees are required to give a minimum of two to three weeks’ notice.
Termination of Employment: The company is required to offer 15 days’ notice if a dismissal is being made because of financial, organisational, or operational problems. In such a situation, indemnity will be equal to 20 days of gross pay for each year of service. No warning or compensation is required in the event of a dismissal for disciplinary reasons. Firms typically owe 33 days of gross compensation for each year of service, with a ceiling of 24 months and no advance warning, for any other reasons.
Choosing to partner with an Employer Of Record (EOR) like Marzuna is the most prudent approach to navigate the intricacies of the Spanish labor market. You can streamline your entry into Spain and reap long-term cost benefits by leveraging our expertise. By utilizing our remote and virtual HR platform, you can save time, money, and administrative work, bypassing the need to establish a subsidiary on the Spanish mainland.
Outsourcing employment through an EOR in Spain offers two significant advantages: guaranteed compliance and the removal of legal obstacles. At Marzuna, our team of highly qualified experts ensures that your company consistently complies with the relevant Spanish regulations, allowing you to focus on your core business activities without the burden of complex legal requirements.
Collaborating with a proficient EOR also grants you access to employment contracts tailored to your specific needs. Whether you need to swiftly amend existing agreements or simply e-sign documents, we provide you with several additional benefits that facilitate a seamless hiring process.
By delegating your HR requirements to a reliable EOR, you can tap into their knowledge and resources and benefit from their experience in navigating the intricacies of the Spanish labor market. This strategic partnership enhances your ability to confidently and efficiently navigate the challenges of finding talent in Spain.
Discover the advantages of working with a dependable EOR and unlock new business opportunities in Spain. Learn how our specialized solutions can optimize your growth strategies and advance your business in the Spanish market. Contact us today to find out more.
| Golden Visa (or Investor Visa) | Foreign nationals without a permanent address who have invested a substantial sum of money in Spain may apply for this visa. The aforementioned investment may consist of
The aforementioned investment may be in Spanish public debt instruments worth €2 million.
|
| Entrepreneur Visa | This visa is intended for business people whose inventions Spain deems to be of particular economic interest. The company strategy, applicant profile, and possible financial gain from such innovation are all examined by the government. |
| Highly Qualified Visa | This visa is intended for highly qualified individuals who have been engaged by Spanish organisations in executive roles as managers or other technical specialists. Their annual pay should typically be greater than €50,000. |
| Visa For Temporary Residency and Research Work | This visa is intended exclusively for international visitors coming to Spain for R&D or those seeking to innovate in both public and commercial companies. |
| Intra-Company Transfer Visa | This visa is for international workers who have been transported to Spanish territory as part of a professional relationship or for training and who work for a multinational corporation with its headquarters in Spain. |
| Self-Employed Work Visa | Foreign nationals who want to start or buy a new business in Spain or who work as independent contractors or freelancers are eligible for this type of visa. Within one month after their arrival in Spain, these foreign nationals must apply for a residence permit. They can apply for permanent residency after five years in a row of holding the residence permit. |
| Frontier Worker’s Permit | This is a unique permit card given to workers or independent contractors who live on the border in a neighbouring state and commute there every day. This visa can be extended for a further three months to a year. |
| Seasonal Work Permit | This is a one-time-use-only visa that cannot be transferred. It is issued for transitory or seasonal activity in Spain. It is valid for nine months out of the year. |
| Cross-Border Work Permit | This authorization enables non-EU foreign workers to work for a Spanish employer’s customer or a Spanish subsidiary of a foreign company. It has a one-year expiration date and a one-year extension option. |
| Blue Card Work Permit | Only EU blue card holders who have resided in another EU nation for at least 18 months are eligible for this permission. These authorizations are often granted to highly qualified workers with documented higher education or those with at least five years of professional experience. The foreign national may then apply for permanent residency after having a blue card work permit for one year and two more renewals. A person with a Blue Card is permitted to: live and work in Spain; travel freely within the EU for up to 90 days on business; and. |
Spain’s work visa application process is drawn out and meticulous. As a result, recruiting domestic workers is preferred over hiring international workers. This is mostly a result of the Spanish government’s restrictive policies, which were implemented in an effort to combat the nation’s high unemployment rate. However, due to a global pandemic and their recent economic collapse, the government has progressively loosened its immigration regulations.
We offer a wide range of regional partners in Spain that can help with the administration of work and residency permits for visitors to the nation. All the necessary laws and requirements pertaining to local employment are taken care of by our company. You may assess the performance and operations of your remote staff on our virtual, completely automated HR platform from any location in the world.
| Work Permits | Explanation |
|---|---|
| Can we sponsor a Work Permit In Spain? | Yes |
| Processing Time | typically 4-6 months, however it might take up to 8 months. |
| Work Permit Process |
|
| Passport Submission | When making an application, a copy of the passport is given to the immigration office. |
| Work Permit Validity | Usually for a period of one year, with a possible extension of up to two years. |
| Work Permit Process For Different Countries | The procedure is comparable in the majority of nations. A work permit is not required for EU nationals |
| Change Of Sponsor Within Spain | If the holder has a new contract, the visa may be renewed. |
| Where Is The Application Processed? | At the Spanish Consulate of the country where the applicant resides. |
| Work Permit Restrictions | The foreign applicant must meet the following requirements in order to be granted a work permit:
In addition to this, the unemployment rate in Spain has a significant impact on choices. |
| When Can Employee Travel To Spain | The candidate is required to relocate to Spain within three months after acquiring their authorization. |
| What is The Cost of a Work Permit? | The average cost of a work permit for foreigners working in Spain ranges from €62 to €176. |
| Duration Of Work Permit Processing | 1 week – 4 months |
| Can Spouses Work On Dependent Visas? | Spouses have to apply jointly or individually for work permits. |
Businesses entering Spain may find it very challenging to navigate the complexities of the Spanish tax system. The largest challenges are complying with various income tax laws, social security, wages, VAT, and other matters pertaining to businesses and long-term operations.
There are two approaches to payroll and tax management in Spain. You have the option of putting together your own team or hiring a group of seasoned professionals that have a wide network of partners in the sector and can systematize your whole payroll management process.
| Title | Explanation |
|---|---|
| Remote Payroll | This payroll is applicable to non-resident businesses that have been working with an Employee Of Record or a Professional Employer Organization and have either local or international employees. |
| Local Payroll Administration | This payroll is for businesses that have a Spanish business registration but would want to outsource their payroll administration to a payroll service. In this case, the business is still the employee’s employer of record and is responsible for adhering to all applicable laws on compliance, immigration, health benefits, and taxes. |
| Internal Payroll | Large organisations that want to manage payroll for all domestic and international employees must use the internal payroll. However, before employing any personnel, such organisations must incorporate in Spain. |
| Title | Explanation |
|---|---|
| Corporate Income Tax | The current corporate income tax rate is 25%. |
| Payroll Tax | Currently, there is no payroll tax applicable in Spain. |
| Employers’ Social Security and Statutory Contributions | Spain has a 31.4% employer social security contribution rate. Additionally, they are subject to a variable premium for accidents that occur on company property. Additionally, self-employed individuals under the age of 50 who have made contributions to other social security systems for more than five years are given particular consideration under the state’s social security system. |
| WHT | The WHT is now 24% for non-EU citizens and 19% for citizens of EU/EEA areas. Dividends, interest, management fees, and royalties are all subject to this tax. |
| Reimbursements | Employees in Spain must provide their employers with receipts and expense reports in order to be reimbursed for their expenses. |
| Title | Explanation | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Tax Rate |
|
||||||||||||||
| Sales Tax | Spain currently has a 21% value-added tax (VAT) rate. It applies to individuals or businesses that provide taxable products and services within the nation. | ||||||||||||||
| Employees’ Social Security and Statutory Contributions | The present employees currently pay 6.35% of their salaries and earnings toward social security. However, if the conditions listed below are satisfied, certain individuals may be excluded from this contribution:
|
||||||||||||||
| Public Pension | Spain offers a compulsory state pension program as well as optional choices for businesses and people. | ||||||||||||||
| Medical Insurance | The social security program of Spain’s government provides coverage for medical insurance. Everyone who works and lives in the nation has access to its free public healthcare system. | ||||||||||||||
| Other Taxes | Spain also collects taxes on real estate, the building industry, and the erection and installation of projects. The rising value of urban land is likewise subject to tax. |
The law grants employees two statutory special bonuses each year. One bonus is paid in the month of December, while the other is paid in a month determined by a collective bargaining agreement, the company, and the employee representative.
The bonus amount is often determined through collective bargaining, although it cannot be less than the employee’s base monthly income. 12 prorated payments are another option for paying this.
The establishment of a corporate subsidiary in Spain involves eight critical stages. These steps include obtaining a tax identification number for foreign investors, registering with Spain’s Commercial Registry, opening a corporate bank account, notarizing business documents through a Spanish notary, completing Form D1-A, submitting the form to the Directorate-General for Trade and Investments, paying transfer tax and stamp duties, and finally registering the subsidiary with the relevant agencies, such as the social security and tax departments, while obtaining a tax identification number.
Before embarking on the process of setting up your business in Spain, it’s essential to consider several factors. Firstly, local companies with foreign owners and non-resident subsidiaries in Spain may be required by the Directorate-General for Trade and Investments (DGCI) to provide an annual report and any necessary information regarding the status of their foreign holdings. Secondly, different regions of Spain may have varying regulations, costs, and availability of human resources. Analyzing the specific location is critical to ensuring a successful setup. While Spanish is widely spoken, some regions may have their own local languages, such as Catalan, which may be more prevalent.
Leveraging the Marzuna Employer Of Record (EOR) service can significantly streamline the process of establishing a Spanish subsidiary. As your local partner, we possess a deep understanding of Spain’s complex employment laws and can ensure your subsidiary’s compliance with all relevant regulations. We can assist you with various tasks, including creating employment contracts for your staff and expediting the Commercial Registry registration process.
With our expertise and knowledge, you can easily navigate the intricacies of the Spanish business environment, allowing you to focus on your core business while ensuring compliance and a smooth setup for your subsidiary.
Contact us today to learn more about how our EOR solution can expedite and simplify the establishment of your company’s Spanish subsidiary.
