Spain Payroll Guide

Q: How does payroll work in Spain?

Spain is split into 17 different regions, all slightly varying in legislation and tax requirements. This is handled under a CBA (Collective Bargaining Agreement) which is allocated upon commencement of employment. Most employees receive fourteen payments throughout a year with the additional two being received in July and December.

Q: What are the regulations around leave?

When an employee is sick for up to three days, there is no compensation for those missed days. Once that leave extends from four to fifteen days, the employer is then liable for 60% pay for each day. For any sick leave extending longer than that, Spanish Social Security will take over payments until the maximum leave period is reached (eighteen months).

Q: What about dismissing an employee?

Employment rights are very strict in Spain and we always suggest the use of a local lawyer. Generally, employees must be given at least fifteen days’ notice if they are dismissed on objective grounds. There is no notice required for employees dismissed for disciplinary reasons.

Hire employees in Spain

Currency

Euro (EUR)

Population

47,329,981

Capital

Madrid

Official language(s)

Spanish, Catalan, Basque, Galician

Date format

dd/mm/yyyy

Fiscal year

1 January - 31 December

Why use PeoplePay?

Guaranteed Compliance

Robust, compliant payroll and hiring supported by a dedicated Account Manager.

Local Expertise

Avoid international payroll and hiring pitfalls including language barriers, regulations and employment laws.

Lower Costs

Reduced administration, no need for an in-country team, and consolidated, outsourced payroll.

Spain Payroll

Get peace of mind with a streamlined, fully-managed payroll solution for 1+ employees.

Spain HR

Helping you hire compliantly, steering you through the local HR laws and regulations.

Spain Payments

Consolidated, one-wire transfers to cover your entire global workforce – at competitive rates.

Spain Payroll & HR Solutions

PeoplePay Global are here to assist with all your Payroll and HR requirements in Spain

In-Country Employment Contracts

Creation of locally-compliant Spanish employment agreements, ensuring you and your employees are protected in-country. Our experts in Spain will create your bespoke agreement.

Payroll Processing

With global knowledge and local proficiency, we provide a fully-managed payroll solution that handles all the complex tasks, leaving you to focus on your business.

Tax and Labor Law

Spain’s complex legislation can be daunting. Our in-country specialists are an extended member of your team, steering you safely through tax and labor law.

Regulatory Compliance

Our in-country professionals provide a wealth of experience and expertise in Payroll & HR compliance, ensuring your venture complies with ever-changing legislation.

Start-Up Implementation

We’ll ensure you’re operational promptly in accordance with local law, advising on the best route for your business, whether it’s via a legal entity or foreign registration.

Declarations and Audits

Our local specialists will manage and submit annual declarations on your behalf, guaranteeing accurate and prompt reporting to the authorities and also providing support for audits.

To discuss your individual needs get in touch today

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Frequently Asked Questions