Talent Wiki - Spain
Your quick guide on talent and labor compliance norms in Spain
Capital
Madrid
Currency
Euro (EUR)
Languages
Spanish
Payroll Frequency
Monthly
GDP per Capita
$31,781.08
Employer Tax
29.90%
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.
Local Universities
Spain holds the third position in Europe and the sixth position globally with a higher education population. Some of the top universities in Spain with world rank are:
Universidad de Barcelona
RANKING
Local: 1
World : 120
Universidad Complutense de Madrid
RANKING
Local: 2
World : 123
Universidad de Valencia
RANKING
Local: 3
World : 157
Universidad de Granada
RANKING
Local: 4
World : 159
Universidad Politécnica de Madrid
RANKING
Local: 5
World : 208
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 |
Talent Sourcing Tips
Top Local Job Boards:
Infojobs.net, Indeed Spain, LinkedIn, Trabajamos
Number of LinkedIn users:
16,410,000
Multiplier Recruitment Partner:
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, 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 2023
| Date | Holiday | Type |
| 6 Jan | Epiphany | National Holiday |
| 20 Mar | St. Josephs day | National Holiday |
| 6 Apr | Maundy Thursday | National Holiday |
| 7 Apr | Good Friday | National Holiday |
| 1 May | Labor day | National Holiday |
| 2 May | Madrid Regional day | National Holiday |
| 15 May | San Isidro | National Holiday |
| 15 Aug | Assumption of Mary | National Holiday |
| 12 Oct | Fiesta Nacional de Espana | National Holiday |
| 1 Nov | All Saints’ day | National Holiday |
| 9 Nov | Virgin of Almudena | National Holiday |
| 6 Dec | Constitution day | National Holiday |
| 8 Dec | Immaculate conception | National Holiday |
| 25 Dec | Christmas day | National Holiday |
Employee Leaves
| Type of Leave | Time Period | Mandatory |
| Annual Leave | 22 days (30 Calender 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 |
Payroll
Payroll Cycle
Employees are paid once a month in Spain.
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.
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
Taxes
Employer Payroll Tax
| Details | Contributions |
| Common contingencies | 23.60% |
| Unemployment | 5.50% |
| Salary Guarantee {Fondo de garantía salarial (FOGASA)} | 0.20% |
| Professional Training | 0.60% |
Employee Payroll Tax
| Details | Contributions |
| Common contingencies | 4.70% |
| Unemployment | 1.55% |
| Professional Training | 0.10% |
Employee Income Tax
| Annual Income of the Employee | Tax Rate |
| 0 – 12,450 | 19% |
| 12,450 – 20,200 | 24% |
| 20,201 – 35,200 | 30% |
| 35,201 – 60,000 | 37% |
| 60,000 – 300,000 | 45% |
| Above 300,000 | 47% |
VAT
VAT is 21% in Spain.
Offboarding & Termination
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.
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:
