Payroll Cycle
Minumum Wage
Overtime Pay
Visa Immigration

Talent Wiki - Spain

Your quick guide on talent and labor compliance norms in Spain
Talk to our experts
Capital
Madrid
Currency
Euro (EUR)
Languages
Spanish
Payroll Frequency
Monthly
GDP per Capita
$33,171
Employer Tax
29.90%

Supplementary Guide for Employment and Expansion in Spain

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 Autónoma de Madrid

RANKING

Spain : 1

World : 159

University of Barcelona

RANKING

Spain : 2

World : 166

Universitat Autònoma de Barcelona

RANKING

Spain : 3

World : 193

Complutense University of Madrid

RANKING

Spain : 4

World : 206

University of Navarra

RANKING

Spain : 5

World : 242

Salary Data

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

Job Title Salary Range (EUR) Salary Range (USD)
Financial Manager 5,240 5,719
General Manager 4,860 5,304
Information Technology Manager 4640 5,064
Sales Manager 4,600 5,020
Human Resources Manager 4,150 4,529
Financial Analyst 3,510 3,830
Project Manager 3,240 3,536

Talent Sourcing Tips

Top Local Job Boards:

Infojobs.net, Indeed Spain, LinkedIn, Trabajamos

Number of LinkedIn users:

15,510,000

Multiplier Recruitment Partner:

iXceed

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

Date Name Type
1 Jan New Year's Day National holiday
2 Jan Reconquest Day Provincial Holiday
6 Jan Epiphany National holiday
29 Jan St. Valero's Feast Provincial Holiday
14 Feb Valentine's Day Observance
28 Feb Day of Andalucía Autonomous Community Holiday
1 Mar Day of the Balearic Islands Autonomous Community Holiday
5 Mar Fifth of March Provincial Holiday
19 Mar San Jose Autonomous Community Holiday
14 Apr Maundy Thursday Autonomous Community Holiday
15 Apr Good Friday National holiday
18 Apr Easter Monday Autonomous Community Holiday
23 Apr Day of Aragón Autonomous Community Holiday
23 Apr Castile and León Day Autonomous Community Holiday
2 May Monday After The Labor Festival Autonomous Community Holiday
2 May Day of Madrid Autonomous Community Holiday
3 May Eid al-Fitr Autonomous Community Holiday
15 May Feast Day of St Isidore Municipal Holiday
17 May Galicia Literature Day Autonomous Community Holiday
30 May Day of the Canary Islands Autonomous Community Holiday
31 May Day of Castile-La Mancha Autonomous Community Holiday
6 Jun Whit Monday Autonomous Community Holiday
9 Jun Day of Murcia Autonomous Community Holiday
9 Jun Day of La Rioja Autonomous Community Holiday
16 Jun Corpus Christi Autonomous Community Holiday
24 Jun Saint John the Baptist Day Autonomous Community Holiday
10 Jul Eid al-Adha (Tentative Date) Autonomous Community Holiday
25 Jul Feast of Saint James the Apostle Autonomous Community Holiday
28 Jul Day of the Institutions Autonomous Community Holiday
5 Aug Feast of the White Virgin Provincial Holiday
5 Aug The Day of Our Lady of Africa Autonomous Community Holiday
14 Aug The Day of Cantabria Local observance
15 Aug Assumption of Mary National holiday
2 Sep Day of the Independent City of Ceuta Autonomous Community Holiday
6 Sep Elcano's Day Autonomous Community Holiday
8 Sep Virgin of the Plains Provincial Holiday
8 Sep Day of Asturias Autonomous Community Holiday
8 Sep Day of Extremadura Autonomous Community Holiday
8 Sep Virgin of the Victory Autonomous Community Holiday
15 Sep Nuestra Señora de la Bien Aparecida Autonomous Community Holiday
17 Sep Day of Melilla Autonomous Community Holiday
24 Sep Virgin of Mercy Provincial Holiday
9 Oct Day of the Valencian Community Autonomous Community Holiday
12 Oct Hispanic Day National holiday
1 Nov All Saint's Day Holiday National holiday
9 Nov La Almudena Municipal Holiday
3 Dec Day of Navarre Autonomous Community Holiday
6 Dec Constitution Day Holiday National holiday
8 Dec Immaculate Conception National holiday
26 Dec Day After Christmas Day Autonomous Community Holiday
26 Dec St Stephen's Day Autonomous Community Holiday

Payroll

Payroll Cycle

Employees are paid once a month in Spain.

Know More

Minimum Wage

Based on the national productivity and employment levels in Spain, the minimum wage is updated every year. The minimum wage is €1,125 in Spain, or €7.43.

Know More

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. Either a compensation or a rest day will be provided to the employee for overtime work which is to be mentioned in the agreement. However, if the agreement does not mention overtime pay, the employer must give 4 months of rest to the employee.

Know More

Health Examination Clause

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
Talk to our experts

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%
300,000 - above 47%

VAT: 

VAT is 21% in Spain.

Offboarding & Termination

Termination Process

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.

Notice Period

Notice Period: 15 days

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

Severance Pay

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; 

  • ~Long Term Visa: This visa is mainly for highly-skilled non-EU employees. The employer will request a work visa from the Ministry of Labour, Spain. The work permit process can extend to 8 months, and the employee has to apply physically at the home country’s Spain Embassy.
  • ~Short Term Visa: This visa is for seasonal workers who work for a period of time in Spain. The employer can request the work permit from the Ministry of Labour, Spain, on behalf of the employee. The employee has to show the suitable accommodation and travel allowances for this visa.
  • ~EU Blue Card: This visa is for individuals who have spent 3 years or more in Spain after completing higher education. The individual needs to submit an employment contract that mentions compensation of at least 50% more than the Spain Minimum Wage. EU Blue visa is valid for only a year and can be renewed if the criteria meet.
  • ~Au Pair Visas: This is a special visa for Individuals from Paris valid for one year. The individual needs to show documentation to support their expenses and accommodation and travel expenditures.
Know More
Streamline payroll and compliance for your international workforce
Get Started