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Expand your global workforce in Spain

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

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, 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 2024

  • January 1: New Year’s Day (National Holiday)
  • January 6: Three Kings (National Holiday)
  • March 29: Good Friday (National Holiday)
  • May 1: Labour Day (National Holiday)
  • August 15: Assumption of the Virgin (National Holiday)
  • October 12: National Day of Spain (National Holiday)
  • November 1: All Saints’ Day (National Holiday)
  • December 6: Spanish Constitution Day (National Holiday)
  • December 8: Immaculate Conception(National Holiday)
  • December 25: Nativity of the Lord (National Holiday)

Additional public holidays may apply based on a regional level.

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

 

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

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.

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

Expand into
150+ countries

Expand globally and hire talent in 150+ countries without having to set up an entity. Use Multiplier's Employer of Record to manage the complete employee experience while having the flexibility to enter new markets.

Expand into150+ countries