Payroll and HR in Spain

Local Information

Local Time (LIVE):	3:01 AM
Local Currency:	$1 = €0.82
Business Language(s):	Spanish and English
Tax Year Dates:	1st January – 31st December

With its highly developed economy, (the 5th largest in the EU and one of the fastest growing in the eurozone), financially, Spain is an attractive location to expand your business to. Not only this, English is a generally accepted business language, making negotiations and meetings a breeze. Despite it seemingly being the perfect location for expansion, there are a few things to consider before taking the plunge. Complex and differing tax rates across the 17 different regions can cause a bit of a payroll headache, as well as understanding Spanish legislation and making sure your business’s payroll and HR remains compliant. Luckily, IRIS FMP can help.

Details correct at time of publication. You should not rely on these details without first seeking professional international advice.

Employer Must-Dos

In Spain, the following reports must be submitted to strict deadlines:

VAT Returns
Recapitulative statement (if applicable)
Intrastat statement (if applicable)
Corporate income tax return
Withholding tax returns

Payroll in Spain

What tax considerations are there?

In Spain, taxes are divided between regional governments, i.e. each of the 17 regions decide their own varying tax rates and liabilities. This means that Spanish income tax (renta general and renta del ahorro), wealth tax, capital gains tax and any other taxes are different across the country. Spanish employees must make social security contributions and corporate income tax is imposed at 30% for businesses.

HR in Spain

What are the regular working hours in Spain?

Typically, in Spain, the regular working hours span from 9.00 to 13.30 and then 17.00 – 20.00, adding up to a 40 hour week. Siestas (3 hour afternoon breaks) are still a major part of working life in Spain, particularly in rural areas. However, it is worth noting they are declining in city based businesses.

Termination

When it comes to termination in Spain, employees’ rights are some of the most protected in the EU. Employees must be given at least 15 days notice if they are dismissed on objective grounds. If employees are dismissed due to disciplinary reasons, employers do not need to give notice.

Find out more about living and working in Spain.

HR and Payroll in Madrid

With a population of around seven million, Madrid is the largest city in Spain and the third-largest in the EU. Its infrastructure and diverse, skilled population make it an attractive city for business. Madrid is known as a telecommunications hub, however other businesses in various sectors are also known to thrive. These include finance, media, insurance, and technology.

The city has excellent transport links across Spain and the rest of Europe, making it an ideal location for international companies’ offices. It’s a lively, cosmopolitan city in which many well-educated young students and professionals come to settle.

HR and Payroll in Barcelona

Barcelona has long been a centre of tourism and trade, boasting fantastic food, fascinating architecture, and a varied cultural scene. Known as the southern gateway to Europe, historically Barcelona has been favoured for its strategic position, allowing the city to prosper economically.

When it comes to support for start-ups and business owners, the City of Barcelona offers the services of a Business Support Office. Here, advice can be obtained regarding a range of business matters, from financing and licensing to finding the right talent.

Looking for more information?

If you want to find out more about international payroll and the implications and considerations that come along with it, download our free guide to international payroll today.

Download Our Guide

IRIS FMP’s Spanish Payroll and HR Solutions

Whether you’re looking for payroll and HR in Barcelona or Madrid, IRIS FMP can help. Our in-country teams are the specialists you need to take away the headache of international payroll and HR, leaving you to focus on your core business objectives. Our solutions include but are not restricted to:

Spanish Employment Contracts
Payroll Processing
Handling of social charges
Handling of payments (salaries & social charges)
Annual declarations (lodging, apprenticeship & training taxes for concerned companies)
Relations with social bodies
Regulatory Compliance

Tax and Labour Law Consulting
Assisting in payroll audit (or payroll department audit)
Handling of confidential payroll
Assistance in company restructuring plan
Assistance in implementation of procedures
Assistance with start-up (in link with lawyers)

Stay Compliant - Payroll and HR Services in Spain

IRIS FMP are the international partner you’ve been searching for. Speak to us today to find out more about our wealth of experience in Spanish payroll, HR and employment law.

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