Payroll and HR in Spain

Local Information

Local Time (LIVE):3:47 PM
Local Currency:$1 = €0.88
Business Language(s):Danish 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, FMP Global can help.

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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.

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

FMP’s Spanish Payroll and HR Solutions

Whether you’re looking for payroll and HR in Barcelona or Madrid, FMP Global 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

FMP Global 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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