In Spain, the following must be adhered to under strict local legislation:

• Corporate Income Tax Return
• Collective Bargaining Agreements
• Health & Safety Compliance
• VAT Returns
• Withholding Tax Returns

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.

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).

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.