In Spain, a valid employment contract must specify key elements such as the identity of the parties involved, job description, work location, start date, and salary. Although written contracts are not mandatory for every type of employment, it is highly recommended to avoid misunderstandings. Fixed-term contracts and those for non-EU employees must be in writing to comply with Spanish labor laws.
Employer of Record (EOR) Spain
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Globaine takes care of all compliance matters, including payroll, taxes, and legal obligations, while providing seamless hiring processes. Our platform ensures that every aspect of employee management in Spain is handled efficiently and in full compliance with local regulations.
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We draft bilingual contracts compliant with Spanish labor law.
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in Spain
A written contract is required for all fixed-term contracts, non-EU employees, and part-time workers. This contract must be finalized before the employee begins their job to prevent any legal complications.
Salaries should be stated in New Zealand dollars(NZD) and must specify whether the payment is weekly, fortnightly, or monthly. Clear terms regarding overtime and additional allowances should also be included.
Employment contracts in Spain must include any non-compete clauses and teleworking agreements when relevant. These clauses must detail the conditions under which the employee can or cannot work for competing firms after leaving the organization and specify the terms of remote work arrangements.
An Employer of Record (EOR) is a third-party organization that manages all legal and administrative responsibilities of employing staff on behalf of another company. This includes payroll, tax compliance, employment contracts, benefits administration, and adherence to local labor laws. An EOR allows businesses to hire employees in new countries without establishing a local entity, enabling faster and compliant global expansion.
An EOR in Spain simplifies compliance with the country’s labor regulations, minimizes administrative tasks, and helps businesses expand without needing to establish a local entity. EOR services ensure legal compliance in payroll, taxes, employee benefits, and contracts, enabling businesses to focus on growth in Spain’s competitive market.
in Spain
1. What are the key steps in employee onboarding in Spain?
New employees in Spain must obtain a tax identification number (NIF), a social security number, and establish a bank account in Spain. Completing these steps ensures compliance with payroll and tax regulations before starting work.
2. When should employees in Spain complete pre-hire medical checks in Spain?
A pre-hire medical examination is required for specific job roles in Spain, particularly in sectors that demand health-related compliance. The medical check should be completed before the employee’s first day to ensure fitness for the job.
3. What documents are required for onboarding in Spain?
Essential documents for onboarding in Spain include the NIF, social security number, employment contract, and any qualifications or certifications relevant to the job role. These documents are critical for ensuring legal employment and smooth payroll processing.
4. Why businesses in Spain need EOR services?
5. How does EOR in Spain different from other countries?
in Spain
Salaries in Spain are generally paid in 14 installments, with additional payments (13th and 14th salaries) typically distributed in June and December. This payment structure includes holiday and Christmas bonuses, aligning with common labor practices.
Employers in Spain must provide allowances for home office expenses, covering costs like internet and electricity. These allowances need to be specified in the employment contract to ensure they are compliant with Spanish tax regulations.
The 13th salary, known as the holiday allowance, is usually paid in June, while the 14th salary, the Christmas allowance, is paid in December. These additional payments are a legal requirement in Spain.
As of 2024, the minimum wage in Spain is €1,260 per month, which is typically paid in 14 installments. This ensures that employees receive financial security and is in compliance with national labor laws.
in Spain
1. What are the income tax rates in Spain?
Spain employs a progressive income tax system with rates ranging from 19% to 47%, depending on individual earnings. Higher earners in Spain fall into higher tax brackets, reflecting a progressive approach to taxation.
2. How does the tax system apply to non-residents in Spain?
Non-residents in Spain are subject to a flat income tax rate of 24% on income generated within Spain. This contrasts with residents, who pay taxes according to the progressive income tax scale based on total earnings.
3. When should tax returns be submitted in Spain?
Tax returns in Spain must typically be filed by the end of June for the previous fiscal year. Employers in Spain are responsible for withholding taxes from employee salaries throughout the year, ensuring timely submissions.
4. What social security contributions are required in Spain?
Employers in Spain are required to contribute approximately 29.9% of an employee’s gross salary to social security, while employees contribute 6.35%. These contributions support public healthcare, pensions, and unemployment benefits.
in Spain
Employees in Spain are entitled to a minimum of 30 calendar days of paid annual leave, accrued from the first year of employment. This is a legal requirement and can be increased through collective bargaining agreements.
Employees in Spain may begin utilizing their accrued leave after completing six months of employment. They typically accrue 2.5 days of leave per month, capping at 30 days per year.
Maternity leave in Spain lasts for 16 weeks, with at least 6 weeks taken before the expected birth date. Paternity leave in Spain is also 16 weeks, with 4 weeks mandatory immediately following the birth, while the remaining can be taken within the first year.
Spain has 14 mandatory public holidays, including national and regional holidays. Employers in Spain must provide these days off unless the employee is covered by specific collective agreements allowing for different arrangements.
in Spain
1. What benefits are mandatory in Spain?
Employers in Spain are required to provide a 13th salary (paid in December) and a 14th salary (paid in June) as mandatory benefits. Additionally, remote employees in Spain must receive a minimum of €7.55 per day for home office allowances, which should be included in the employment contract.
2. How is the home office allowance structured in Spain?
The home office allowance in Spain compensates employees for costs incurred while working remotely, such as internet and utilities. The minimum allowance of €7.55 is tax-exempt if specified in the employment contract.
3. When should meal allowances be provided in Spain?
Employers in Spain often provide meal allowances, which can reach up to €11.93 per working day. This allowance is typically tax-free and helps offset the cost of meals during work hours.
4. What additional benefits are common in Spain?
Many employers in Spain offer additional benefits such as private health insurance, transportation subsidies, and flexible work arrangements. While not legally mandated, these benefits are becoming standard to attract and retain top talent.
TERMINATIONS
in Spain
The notice period for terminating an employee in Spain varies based on tenure: 15 days for less than one year of service, 30 days for one to five years, and 45 days for more than five years. This allows employees time to find new employment.
Employees in Spain can be terminated without notice during the probationary period. For permanent contracts, dismissal must be based on justified reasons, such as serious misconduct or performance issues.
Severance payments in Spain are generally calculated based on the employee’s length of service. The standard formula is 33 days of salary for each year of service, capped at 24 months of salary.
FAQs
1. What is EOR in Spain?
An Employer of Record (EOR) in Spain is a service that allows businesses to hire employees without the need to establish a legal entity. The EOR manages payroll, tax compliance, employee benefits, and employment contracts while adhering to Spanish labor laws, enabling businesses to expand quickly and efficiently.
2. How GlobainePEO Makes Hiring in Spain Easy?
GlobainePEO provides seamless hiring solutions in Spain by managing compliance with labor laws, payroll processing, and employee benefits. Their EOR services enable businesses to onboard talent quickly, ensuring compliance with Spanish regulations without the need to establish a local presence.
3. What types of contracts are available for employees in Spain?
Globaine’s local experts ensure that all necessary documents are prepared in advance, and our streamlined digital processes allow for rapid onboarding without sacrificing compliance.
4. Are there any restrictions on dismissing employees in Spain?
Yes, dismissals in Spain must be justified under local labor laws. Employers must follow specific procedures to avoid legal repercussions. Globaine assists businesses in navigating these regulations.
6. How does Employer of Record work in Spain?
An EOR in Spain serves as the legal employer, managing all HR, payroll, and compliance functions. The EOR ensures adherence to Spain’s labor laws, including tax filings, social security contributions, and employee benefits, allowing businesses to expand their workforce efficiently.
