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Expand your global workforce in Spain

Your guide to the employment landscape, working customs and local labor laws in

Capital

Madrid

Currency

Euro (EUR)

Languages

Spanish

GDP per Capita

$31,781.08

Employer Tax

29.90%

Payroll Frequency

Monthly

Talent overview

Spain is known for its amazing culture, delicious food, and mesmerizing scenarios. Tourism in Spain progressed the economy, the country had 82.8M visitors generating 89.8 EUR billion in international receipts. According to the Institute of  Economic Studies, Spain also holds the fourth-ranking for the highest number of engineers and scientists in the European Union (EU). Major industries that progress the economy in Spain are; Tourism, Agriculture, manufacturing, and energy industries.

Major economic hubs:

Madrid, Barcelona, Bilbao, Las Palmas

Skills in demand:

Business Development Manager, Human Resources Manager, IT Manager.

Top local universities in Spain

Uni2 45

Universidad de Barcelona

RANKING

Local: 1

World : 120

Uni2 Spain

Universidad Complutense de Madrid

RANKING

Local: 2

World : 123

Uni3 Spain

Universidad de Valencia

RANKING

Local: 3

World : 157

Uni4 Spain

Universidad de Granada

RANKING

Local: 4

World : 159

Uni5 Spain

Universidad Politécnica de Madrid

RANKING

Local: 5

World : 208

Top Local Job Boards:

Infojobs.net, Indeed Spain, LinkedIn, Trabajamos

Number of LinkedIn users:

16,410,000

Multiplier Recruitment Partner:

 iXceed

Where to find talent

Top Local Job Boards:

Number of LinkedIn users:

Top Recruitment Agencies:

Salary Data

The table below mentions some jobs with the average salary in Spain.

Job Title Average Monthly Salary (EUR) Average Monthly Salary(USD)
Financial Manager 5,240 5,631.24
General Manager 4,860 5,222.87
Information Technology Manager 4640 4,986.45
Sales Manager 4,600 4,943.46
Human Resources Manager 4,150 4,459.86
Financial Analyst 3,510 3,772.07
Project Manager 3,440 3,696.85

Employ in Spain

Employing in Spain

When onboarding an individual from Spain, employers have to know about the employment laws, benefits, social security, deductions, and employment processes. The below section contains all the information that is necessary for an employer.

Employee Contract

According to Spain Labor Legislation, Job Employment contracts are mandatory for both temporary and permanent employment, and that the employer has to provide one for the employee.

The employer has to mention all the details below if the employment contract is more than four weeks.

  • Employment Identification.
  • Commencement date and end of the project date for temporary employment.
  • Service place/location.
  • Compensation, Base Salary, and Benefits to the employee.
  • Details of working hours, leaves, and notice period.

Public and Provincial Holidays

Date Name Type
January 1 New Year’s Day National Holiday
January 6 Epiphany National Holiday
April 18 Good Friday National Holiday
May 1 Labor Day / May Day National Holiday
August 15 Assumption of Mary National Holiday
October 13 Hispanic Day observed National Holiday
November 1 All Saints’ Day National Holiday
December 6 Constitution Day National Holiday
December 8 Immaculate Conception National Holiday
December 25 Christmas Day National Holiday

Local Holidays

Date Name Localities
February 28 Day of Andalucía AN
March 1 Day of the Balearic Islands IB
March 19 San Jose MU, VC
March 31 Eid al-Fitr ML
April 17 Maundy Thursday All except CT, VC
April 21 Easter Monday PV, CT, LO, NA, VC
April 23 Castile and León Day CL
April 23 Day of Aragón AR
May 2 Day of Madrid M
May 17 Galicia Literature Day GA
May 30 Day of the Canary Islands CN
May 31 Day of Castile-La Mancha CM
June 6 Eid al-Adha CE, ML
June 9 Day of Murcia MU
June 9 Day of La Rioja LO
June 19 Corpus Christi CM
June 24 Saint John the Baptist Day CT, VC
July 25 Feast of Saint James the Apostle PV, GA, NA, M
July 28 Day of the Institutions S
August 5 The Day of Our Lady of Africa CE
September 8 Day of Asturias O
September 8 Day of Extremadura EX
September 11 National Day of Catalonia CT
September 15 Nuestra Señora de la Bien Aparecida S
October 9 Day of the Valencian Community VC
December 3 Day of Navarre NA
December 26 St Stephen’s Day IB, CT

Employee Leaves

Type of Leave Time Period Mandatory
Annual Leave 22 days (30 calendar days) Yes
Sick Leave There is no specific day for sick leave, although the employer pays from day 4 to day 20 Yes
Maternity Leave 16 weeks Yes

 

Leave Compliance

Payroll in Spain

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Payroll cycle

Employees are paid once a month in Spain.

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Minimum wage

The minimum wage in Spain is the following for different employees;

Read more

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Overtime pay

The overtime pay should not exceed over 80 hours in a year, as stated by Spain’s Labor law. Overtime hours are only acceptable if the employee agrees to work based on an acceptable collective agreement.

Read more

How taxes work

Employer Payroll Tax

Type of Pension  Contribution
Social Insurance Pensions 23.6%
Force Majeure Overtime 12%
Voluntary Overtime 23.6%

Employee Payroll Tax

Type of Pension Contribution
Social Insurance Pensions 4.7%
Force Majeure Overtime 2%
Voluntary Overtime 4.7%

Employee Income Tax

The national income tax rates are as follows:

Annual Income (Euros) Income Tax Rate
0 to 12,450 9.5%
12,450 to 20,200 12%
20,200 to 35,200 15%
35,200 to 60,000 18.5%
60,000 to 300,000 22.5%
Above 300,000 24.5%

The Personal Income Tax Law specifies nationwide income tax withholding rates of Spanish residents’ employment income(withholding rates may differ for Basque Country and Navarre residents).

Annual Income (Euros) Withholding Tax Rate
0 to 12,450 19%
12,450 to 20,200 24%
20,200 to 35,200 30%
35,200 to 60,000 37%
Above 60,000 45%
Above 300,000 47%

VAT

VAT is 21% in Spain.

Bonus

13th Month Pay

The employer has to provide the 13th month and 14th-month pay, one in July and another in December. Employment Contracts and Collective Agreements should have all the 13th and 14th-month compensation details.

Employee Benefits

As stated by the Spain Statutory Laws, the employer has to provide the employee with the below-mentioned benefits;

  • Social Security
  • Sick and Disability Leave
  • Healthcare Insurances
  • Pension Benefits

Employee offboarding

For the termination of an employee, employers in Spain can provide fair reasons. However, if an employee is employed for more than six months and there is dismissal from the employer, it has to be “Socially Justified” by the following points.

  • Termination of employment for disciplinary reasons without notice.
  • Termination with notice for ordinary causes.

Generally, the notice period in Spain is 2 weeks. However, the notice period depends on the reason for termination of the employment.

When the employer terminates the employee without notice, the employer has to provide severance pay for the duration of the notice period. However, if there is a disciplinary dismissal (based on a punishable offence), the employee will not be provided with any severance pay from the employer.

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Visa and
immigration

In Spain, if the employee belongs to a European Union (EU), they will not require any visa for 3 months. Employees who are not from the EU will require visas for different categories. Based on the length of the employment, a visa in Spain is classified into four main categories:

Read more

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