Hire in Spain

Spain PEO &

Employer of Record

Hire & manage teams remotely in Spain without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Business Language

Spanish

Salary Currency

Euro

Payroll tax

29.90%

Payroll Cycle

Monthly

Time zone

UTC +1

Capital city

Madrid

Hire Employees in Spain

NNRoad provides employer of record (EOR)professional employment organization (PEO) services to ensure that your business in Spain complies with local labor laws and regulations. We process monthly payroll and act as the Employer of Record, taking on all local employer liabilities.

Hiring with NNRoad

Pay as you go

No set-up or overhead costs to global expansion.

One P.O.C.

One point of contact for all your EOR employees.

Compliance

Ensured compliant contracts and operations.

Fast Hiring

Start working with your remote employees in a week.

Foreigner Visas

NNRoad assists with overseas foreign hires visa needs.

Platform

Access your payroll reports on our portal.

Employer of Record in Spain

Employer of Record (EOR) services are for companies who do not have a legal entity in Spain, but who want to hire localy. Employment and full liability are outsourced to NNRoad.

01.

Candidate Selection

You interviews & select the candidates you want to hire in Spain.

02.

Employee Onboarding

We sign a local labor contract with your employees based in Spain.

03.

Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Spain.

04.

Payroll Reporting

See all payroll reports on our platform & focus on your business in Spain.

Recruiting process outsourcing – including but not limited to resume screening, shortlisting candidates, coordination for interviews, and assistance for salary negotiation.

Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).

On-boarding and off-boarding employees following labor law practice.

Complete payroll solution and benefit administration

Employee management – employee record retaining, time keeping, bonus and allowance management, expense and claims, and leave employee database management accordingly to the local law.

Mandatory insurance compliance (i.e. pension, labor and health insurance) according to the local labor laws.

Payment management (Invoicing customers/clients and vendor payments).

Work VISA application assistance, if needed.

Local individual income tax reporting.

Payroll & PEO in Spain

Professional Employment Organization (PEO) services are for companies who have a legal entity in Spain, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.

01.

Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Spain.

02.

Payroll Reporting

See all payroll reports on our platform & focus on your business in Spain.

Registering the necessary company and personnel information for payroll calculation in the payroll software and system

Monthly Payroll Processing

Year-End Adjustment and Annual Declaration

Taxes & Payroll in Spain

Employee Income Taxes:

Individual income tax rates in Spain are based on progressive tax brackets.

This progressive tax structure aims to distribute the tax burden fairly while ensuring that individuals with higher incomes contribute proportionately more to government revenues.

Tax Brackets

Tax brackets and rates for annual taxable income in Spain:

19%: €0 – 12450
24%: €12450-20200
30%: €202000-35200
37%: €35200-60000
45%: € 60,000 to 300,000
47%: € 300,000+

Sample Calculation

Yearly income = 140,000EUR
19% * €12,450 = €2,365.50
24% * €7,750 = €1,860
30% * €15,000 = €4,500
37% * €24,800 = €9,176
45% * €80,000 = €36,000
Adding up the taxes from each bracket:

2,365.50 + 1,860 + 4,500 + 9,176 + 36,000 = €53,901.50

The yearly income tax for an income of €140,000 in Spain is approximately €53,901.50.

Employer Costs in Spain

Social Security

Employees’ Social Security and Statutory Contributions in Spain involve a current contribution rate of 6.35% on salaries and wages. However, there are certain exemptions available provided specific requirements are met. Individuals may be exempted from this contribution if:

  • Their home country and Spain have a social security agreement allowing such exemption.
  • The individual has employment relationship with their home country employer, along with consistent payment of relevant social security contributions to the authorities in their home country.
  • The individual is residing in Spain for a limited period, typically less than five years.
  • Benefits & Insurance in Spain

    Pension Fund

    Spain implements a compulsory state pension system, ensuring all eligible individuals receive retirement benefits. Additionally, voluntary pension schemes are available for both companies and individuals seeking supplementary retirement savings options.

    Healthcare Insurance

    Medical insurance is provided through the state’s social security system, guaranteeing access to free state healthcare for all residents and employees.

    Working Hours in Spain

    Working Hours Per Week

    the standard full-time workweek in Spain is usually 40 hours, spread over five days, from Monday to Friday. Generally, employees work eight hours per day, with breaks included. It’s essential to note that there may be variations in working hours due to factors such as collective bargaining agreements, industry norms, or specific company policies. Additionally, Spain observes a siesta tradition in some regions, where a midday break is common, allowing workers to rest or take a meal break before resuming work in the afternoon. Overall, while the standard working hours are often set, flexibility and variations exist based on various factors and local customs.

    Overtime

  • Overtime work is compensated either through paid time off or monetary compensation, as specified in the employment contract or collective agreement.
  • Overtime hours worked on weekdays are typically compensated at a rate of 25% above the normal hourly wage for the first two hours and 50% for subsequent hours.
  • Overtime hours worked on Saturdays are compensated at a rate of 50% for the first four hours and 75% for subsequent hours.
  • Overtime hours worked on Sundays or public holidays are compensated at a rate of 75%.
  • Termination Laws in Spain

    Resigning employees are typically required to provide a minimum notice period of 2-3 weeks, which may vary depending on the terms outlined in the Collective Agreement.

    Severance

    In cases of termination due to budgetary, structural, or operational reasons, the indemnity awarded equals 20 days of gross salary for each year served.

    Notice Period

    The organization is required to provide a notice period of 15 days.

    Employment Contract in Spain

    Employment Contract

    Spain has streamlined and consolidated its array of employment contracts, resulting in four primary types. For hiring purposes, the most relevant contracts are:

  • Indefinite Contracts
  • Temporary Contracts
  • While other contract types, such as Training and Apprenticeship Contracts and Internship Contracts, exist, they may not be as commonly utilized in hiring practices within Spain.

    Probation Period

    In Spain, the probation period is outlined in the Collective Agreement corresponding to the specific job role. In the absence of such an agreement, certain guidelines apply:

  • For undergraduates and junior college specialists, the probation period is capped at 6 months.
  • For all other employees, it is limited to 2 months.
  • Note that distinct probationary periods may be established for permanent contracts, training agreements, and special employment arrangements.

    Types of Leaves in Spain

    Annual Leave

    Employees under Omnipresent or our local partners typically receive 23 working days of annual leave. However, it’s important to note that the minimum leave required by law is actually 30 calendar days, approximately equivalent to 22 working days.

    Sick Leave

    Employees are entitled to partially paid sick leave (60 – 75%) for a maximum of 1 year, or in certain circumstances they may be eligible to apply for extended leave of up to 18 months. The employer makes the payments but will be reimbursed by the Social Security Department.

    Maternity Leave

    Maternity leave spans a total of 16 weeks, during which all weeks are fully paid.

    Paternity Leave

    Fathers are entitled to an equivalent duration of leave as mothers, ensuring equal parental rights and responsibilities.

    Public Holidays in Spain

    Public Holidays

    Jan 1: New Year’s Day (Año Nuevo)
    Jan 6: Epiphany (Día de los Reyes Magos)
    Mar 28: Maundy Thursday (Jueves Santo)
    Mar 29: Good Friday (Viernes Santo)
    May 1: Labour Day (Día del trabajador)
    Aug 15: Assumption (Asunción)
    Oct 12: Fiesta Nacional de España (Fiesta Nacional de España)
    Nov 01: All Saints’ Day (Todos los Santos)
    Dec 06: Día de la Constitución Española (Día de la Constitución Española)
    Dec 08: Immaculate Conception (La inmaculada concepción)
    Dec 25: Christmas Day (Navidad)

    Resources

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