Employer of Record for local hiring in Spain

Hire employees in Spain with Nomad PEO Services

Hire employees in Spain

With Nomad Global Hire PEO / EOR services, you can easily hire employees in Spain, without having to set up your own entity. No risk and fully compliant with HR support included

What to know about Spain

Spain is a favorite destination for remote workers and digital Nomads

Employer Tax

Estimated at 32%

Currency

EUR, Euros

Available Employee Benefits

Medical insurance, Meal Vouchers

Employee Tax

Incremental up to 45%

Payroll Frequency

Monthly over 12 payments

Capital

Madrid

Population

Circa 47.5 Millions

Available Contracts

Fixed Term Contract, Indefinite/Permanent

Spain has long been a heaven for remote workers and Digital Nomads. If you plan on expanding your workforce in Spain or if your employees want to relocate there permanently, NOMAD can support your company by managing the local employment for your employees and making sure that you are fully compliant with local tax and labour laws. No Need to open your own entity with our Employer of Record Services in Spain

Payroll, Benefits & Tax in Spain

  • Average Salary in Spain is 27,000 EUR Gross per Year
  • Employer Tax in Spain is usually 31.42%
    • This includes Pension, Accident, Benefits, Unemployment, Disability, Social Security
  • Employee Tax in Spain is incremental up to 45%:
    • Tax is 19% until 12,450 Euros of income
    • Then 24% until 20,200 Euros of income
    • Then 30% until 35,200 Euros of income
    • Then 37% until 60,000 Euros of Income
    • Then 45% over 60,001 Euros
  • Overtime Payment in Spain is not mandatory if there is a prior agreement in place, up to 80 hours of overtime per year
  • Payroll Frequency in Spain is Monthly over 12 months
  • Permanent and temporary workers are entitled to the same benefits in Spain
  • Termination can only be done for a valid cause in Spain, see below
  • Notice period is a minimum of 15 days and severance must be paid
  • Maternity Leave in Spain is up to 16 paid weeks. A minimum of 6 weeks must be taken after the birth of the child. The Mother can take the rest across 2 periods of time. The Social Security will pay 100% of the salary during this leave period.
  • Paternity Leave in Spain is also 16 weeks with 6 weeks which must be taken following the birth of the child. During this period, 100% of the salary will be paid by the Social Security.
  • There is no Parental Leave in Spain
  • Sick Leave is covered for up to 365 days on the condition that the employee has contributed for the past 5 years. The employer will pay 60% of the salary during the first 15 days then it will be covered by the Social Security.
  • Statutory Leave in Spain is 23 days minimum per year but to be competitive employers should grant at least 25 days holiday per year
  • Bank holidays: there are 10 national days in 2023 in Spain but depending on the region of the location of the work, employees will get several added local public holidays.

The Spanish Labor Code is setting the framework for employment in Spain. This covers all individual and collective working relationships, Compensation and Benefits, Workers rights as well as Leave (Sick, Parental), employment Termination and Discrimination.

Onboarding and Termination in Spain

Hiring in Spain
  • Probation period are not mandatory under Spanish Labour Law
  • Probation period in Spain however can be of a maximum of 6 months or 180 days
  • You can hire through Fixed Term Contracts (although those are more closely regulated since April 2022), Indefinite / Permanent contract or BtoB contracts
  • Employment Contracts have to be drafted in Spanish but can also be in English (but then has to be both at the same time)
Termination in Spain
  • Termination is Spain is generally a complicated process and requires particular care. In order to be compliant, Termination can occur as such:
    • By mutual agreement
    • By resignation of the employee
    • By expiration of contract
    • By the employer on grounds of disciplinary dismissal, failure to perform in probation period, performance issues
  • The minimum notice period in Spain is 15 days although this can also depend on what is written in the contract
  • Severance payments in Spain are mandatory if the termination by the employer has been done for other than disciplinary reasons. Severance is calculated ont he basis of 20 days salary per year of service
  • So to dismiss an employee in Spain, please count at least 15 days notice and one month severance payment

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