SPAIN
List of countries
HR Services for Spain
Many entrepreneurs and business owners have started to view Spain as an appealing expansion destination.
When you take a look at the benefits of operating in Spain, it is easy to see why so many companies are choosing to go this route.
Spain is viewed as a gateway to two important markets: the European Union and Latin America. The EU’s single market system gives you the opportunity to capitalize on the free movement of talent, products, services, and capital.
If Spain is your first expansion into the EU, then it will be your first point of access to over 450 million consumers in the EU marketplace. You will have the opportunity to establish yourself in this business landscape to reach far more customers and build partnerships with businesses that were never accessible to you before.
In addition, Spain has deep cultural, historical, and language connections with Latin America, which provides a pathway to expansion in the LATAM market, as well. That’s another 650 million consumers.
ALL YOU NEED TO KNOW ABOUT
HR OUTSOURCING IN SPAIN
SPANISH EMPLOYMENT
REGULATIONS TO KNOW
THE BENEFITS OF
EXPANSION IN SPAIN
THE CHALLENGES OF
EXPANSION IN SPAIN
FAQ for Spain
All you need to know about outsourcing
your HR in Spain with EHRS
Comprehensive HR Management
Europe HR Solutions offers end-to-end HR services in Spain, managing payroll, recruitment, compliance, and employee relations to simplify operations for your business.
Compliance with Spanish Labor Laws
Spain’s labor laws are highly regulated and employee-focused. Our HR services ensure full compliance with national and EU regulations, protecting your business from legal risks.
Cost-Effective HR Solutions
Outsourcing HR in Spain helps reduce overhead costs, freeing resources to focus on strategic growth while we handle the complexities of HR management.
Spain employment regulations to know
Employment Contracts
In Spain, written employment contracts are required and must outline key details, including job roles, salary, and terms of employment. Temporary contracts are strictly regulated.
Working Hours & Overtime
The standard workweek in Spain is 40 hours. Overtime is limited to 80 hours per year and must be compensated with additional pay or time off. Collective agreements may further regulate working hours.
Employee Benefits
Mandatory benefits in Spain include 30 days of paid annual leave, 14 public holidays, and contributions to social security for healthcare, pensions, and unemployment.
The benefits of expansion in Spain
Large and Diverse Market
Spain offers a robust market with diverse industries such as tourism, manufacturing, and technology, making it an attractive destination for business expansion.
Skilled Workforce
Spain provides access to a well-educated workforce, with strong skills in engineering, IT, and creative industries, and a growing pool of English-speaking professionals.
Strategic Location
Located at the crossroads of Europe, Africa, and Latin America, Spain offers excellent logistics and trade opportunities, making it a gateway to multiple markets.
The challenges of expansion in Spain
Complex Labor Laws
Spain’s labor laws are extensive, with stringent rules on contracts, terminations, and employee protections, requiring thorough knowledge to navigate effectively.
High Social Security Costs
Employers in Spain must make significant contributions to social security programs, which can increase overall labor costs.
Bureaucracy
Setting up and managing a business in Spain involves navigating administrative processes, including tax registrations and compliance with regional regulations, which can be time-consuming without local expertise.
Most Asked Questions
About Spain
Why do I need a written employment contract in Spain? Aren’t verbal agreements valid?
While verbal agreements can be valid under Spanish law, written contracts are required for most employment relationships, especially temporary ones. Without one, disputes can lead to fines and legal challenges.
Why It’s Risk-Free: We draft clear, compliant contracts that protect your business and ensure clarity for both parties.
Do I really need to track working hours in Spain? Isn’t flexibility more practical?
Employers in Spain are legally required to track working hours to comply with the standard 40-hour workweek and overtime limits. Accurate tracking prevents disputes and ensures compliance.
Why It’s Risk-Free: We help you implement reliable systems for tracking working hours, balancing compliance with flexibility for your workforce.
How much annual leave do I need to provide? Isn’t the statutory minimum enough?
Employees in Spain are entitled to at least 30 calendar days of annual leave. Offering only the statutory minimum might harm retention and employee satisfaction.
Why It’s Risk-Free: We design leave policies that comply with regulations while remaining competitive to attract and retain top talent.
Parental leave in Spain seems long. How can I maintain productivity while employees are on leave?
Terminations must comply with Spanish labor laws, requiring valid reasons, notice periods, and severance payments. Non-compliance can lead to legal claims and financial penalties.
Why It’s Risk-Free: We guide you through lawful termination processes, ensuring compliance and minimizing risks.
Are collective bargaining agreements (CBAs) mandatory in Spain? Can’t I create my own policies?
CBAs are industry-specific and automatically apply to businesses within their scope. They regulate wages, benefits, and working conditions. Ignoring applicable CBAs can lead to disputes.
Why It’s Risk-Free: We determine whether CBAs apply to your business and ensure your policies align with Spanish labor standards
How do payroll taxes work in Spain? What happens if I make a mistake?
Employers must deduct income tax (IRPF) and social security contributions. Errors can result in fines and audits by Spanish authorities.
Why It’s Risk-Free: We manage payroll compliance, ensuring accurate deductions and timely filings to keep your business on track.
Do I need to focus on health and safety in Spain? Isn’t this just common sense?
Employers are required to comply with Spanish health and safety regulations, including conducting regular risk assessments and implementing preventive measures.
Why It’s Risk-Free: We conduct risk assessments and develop safety policies, keeping your workplace compliant and employees safe.
Is compliance worth the cost? Won’t it just increase my overheads?
The cost of non-compliance—fines, legal disputes, and employee turnover—far outweighs the investment in getting things right. Compliance also builds trust and stability.
Why It’s Risk-Free: We streamline compliance processes, saving you time and money while ensuring your business operates smoothly and legally.
Are probation periods necessary? Can’t I just terminate employees who don’t perform?
Probation periods in Spain, typically up to 6 months for permanent contracts, allow for easier termination. Without one, employees gain full protection under labor laws, making dismissals more complex.
Why It’s Risk-Free: We structure probation periods that align with Spanish labor law, giving you flexibility while reducing risks.
Is overtime pay mandatory? Can’t I just offer extra leave instead?
Overtime must be compensated with a 25%-75% premium or equivalent time off, as specified in employment contracts or collective agreements (CBAs). Mismanaging overtime can lead to disputes.
Why It’s Risk-Free: We design overtime policies that meet Spanish labor laws and avoid costly misunderstandings.
Do I need to pay employees during sick leave? Isn’t this handled by social security?
Employers must pay sick leave for the first 15 days: 60% of the employee’s base salary from days 4 to 15. After that, social security covers the cost, but employers manage the administration.
Why It’s Risk-Free: We handle sick leave filings and processes, ensuring compliance and reducing your administrative workload.
Termination laws in Spain sound restrictive. What if I need to reduce staff quickly?”
Terminations must comply with Spanish labor laws, requiring valid reasons, notice periods, and severance payments. Non-compliance can lead to legal claims and financial penalties.
Why It’s Risk-Free: We guide you through lawful termination processes, ensuring compliance and minimizing risks
Are pensions mandatory in Spain? Isn’t salary enough to retain employees?
Employers contribute to Spain’s social security system, which includes pensions. Additional private pensions can enhance your benefits package and improve employee retention.
Why It’s Risk-Free: We ensure pension contributions are compliant and help design packages to attract and retain talent.
Can I hire non-EU workers in Spain? Isn’t the process too complicated?
Employers must deduct income tax (IRPF) and social security contributions. Errors can result in fines and audits by Spanish authorities.
Why It’s Risk-Free: We manage payroll compliance, ensuring accurate deductions and timely filings to keep your business on track.
What happens if I fail a compliance audit in Spain? Could it disrupt my operations?
Non-compliance can lead to fines, reputational damage, or operational restrictions. Labor inspections often focus on contracts, payroll, and health and safety measures.
Why It’s Risk-Free: We proactively review your HR policies and practices, ensuring compliance and audit readiness.