EOR Service in Spain

Hire, Onboard and Pay Employees in Spain Quickly and Efficiently

Hiring in Spain at a glance

CURRENCY
Euro (EUR)
working hours
40 hours per week
public/bank holidays
14 public holidays
capital
Madrid
language
Spanish
date format
DD/MM/YYYY
remote workers
1.2M
tax year
Jan 1 - Dec31
minimum hourly salary
No minimum wage
CURRENCY
Euro (EUR)
working hours
40 hours per week
public/bank holidays
14 public holidays
capital
Madrid
language
Spanish
date format
DD/MM/YYYY
tax year
Jan 1 - Dec31
payroll frequency
Monthly
GDP
$1,397.51 billion USD

Employer of Record in Spain

An Employer of Record (EOR) in Spain helps you hire talent without the complexities of registering a business and handling local labor laws in Spain. Spain, despite facing economic challenges over the past decade, has displayed remarkable growth. It is noteworthy for its top-tier infrastructure and its position as a leader within the European Union in terms of global exports. When contemplating Spain as a potential test market, an EOR can prove to be an invaluable partner.

Why use Spain EOR?

A Spain EOR like Gloroots helps recruit staff and expand into Spain without the need to establish a formal company. Collaborating with a PEO/EOR in Spain offers numerous advantages that go beyond expediting your company's growth


For example, setting up a subsidiary or branch office in Spain can be less than ideal for staff recruitment as it can set businesses back by several thousand dollars. This can strain your hiring budgets and affect the way you can hire and retain talent in competitive labor markets.


Secondly, labor laws in Spain have some unique aspects that are different from majority countries. For example, Spain's severance payment structure is quite specific. For example, for unfair dismissals, employees are typically entitled to 33 days of salary per year of service (for contracts post February 12, 2012) with a maximum of 24 monthly payments. Moreover, labor unions and labor representation are fairly influential. In many companies, workers are entitled to elect representatives (either union representatives or workers' committees. These representatives play a crucial role in labor relations within the company.


Employers hiring in Spain must be aware of these laws and stay compliant with these laws. This is where EORs can help. A Spain EOR can help generate legal contracts, oversee recruitment, and handle a variety of HR-related tasks and alleviates the burden on your internal team.


While new hires and headquarters teams focus on achieving business objectives, the Gloroots manages all human resource activities, benefits, payroll, and tax-related responsibilities.


EOR Costs in Spain

EOR/ PEO services in Spain can be billed using two methods: a fixed yearly fee per employee or a calculated fee based on the company's annual payroll. The first option generally falls within a specific range, while the second option is a percentage of the total payroll.

Gloroots provides an equally competitive platform in Spain at an attractive rate. Our pricing guarantees that your company and its employees receive the necessary HR support for optimal performance.

Key Metrics For Foreign Employers

Spain ranks among the top 30 countries in INSEAD’s Global Talent Competitiveness Report. The country’s skilled talent pool and low labor costs present are lucrative for foreign employers hiring from the country.

The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from Spain.

Factors Global Ranking Interpretation
Rule of law 35 Indicates effectiveness of law enforcement
Labour-employer cooperation 58 Indicates positive labor-employee relationships
Reading Maths, and Science 26 Indicates average scores in OECD's survey of 15-year old students
University Ranking 24 Indicates average QS rankings
Labour productivity per employee 26 Indicates total output by the total labor input used to produce that output
Ease of finding skilled employees 37 Indicates findability of skilled talent
Workforce with tertiary education 21 Indicates % of workforce with PG degrees
Digital Skills 29 Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2022

Through the Gloroots’ Recrew platform, you can discover amazing talent in Spain.

Why work in Spain ?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Grow your team in Spain

Risks of misclassification

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Employing in Spain

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Income Tax

Annual Income (MYR) Income Tax Rate
0.00 EUR – 12,450.00 EUR 19.00%
12,450.00 EUR – 20,200 EUR 24.00%
20,201.00 EUR – 35,200 EUR 30.00%
35,200.00 EUR – 60,000 EUR 37.00%
60,000.00 EUR – 300,000.00 EUR 45.00%
300,000.00 EUR and over 47.00%

Social Security contribution

Employer Payroll Contributions:

Contribution Type Rate Range Description
Social Insurance 24.10% Includes pension, with a minimum monthly base of 1,166.70 EUR and a maximum of 4,495.50 EUR.
Unemployment 5.50% -
Salary Guarantee Fund 0.20% -
Professional Training 0.60%
Work Accident Insurance 1.65% Rates may vary according to the specific insurance policy.
Remote Working Allowance 50 EUR per month Minimum, applicable when remote working constitutes 30% or more of the time.
Total Employment Cost 32.50% + 50 EUR/Month The overall employment cost, including all components.

Employee Payroll Contributions:

Contribution Type Rate Range Description
Social Insurance 4.80% The lowest monthly income subject to taxation is 1,166.70 EUR, while the highest taxable monthly salary stands at 4,495.50 EUR.
Unemployment 1.55% The lowest monthly income subject to taxation is 1,166.70 EUR, whereas the highest taxable monthly salary amounts to 4,495.50 EUR.
Professional Training 0.10% The minimum monthly salary that can be taxed is 1,166.70 EUR, and the maximum taxable monthly income is 4,495.50 EUR.
Total Employee Cost 6.45% -

Separation

Termination Process

The way termination is handled depends on the specific Employment Agreement and Collective Agreement in effect, as well as the type of contract and the cause for ending the employment.

Notice Period

In Spain, typical notice periods are established at 15 days, and if notice is not provided, employers can compensate with a payment in lieu of notice.

Severance Pay

Severance pay is applicable when an employer terminates an employment agreement without providing notice. In such cases, the severance pay equals the amount the employee would have earned if they had been given notice.

Employers have the option to terminate an employment contract in two ways: by giving a notice period or by immediately terminating the contract and providing compensation in lieu of notice. It's also possible to use a combination of both methods, where a notice period is served initially, followed by compensation for the remaining notice period.

The compensation in lieu of notice is calculated based on the employee's annual salary at the time of termination, including statutory and contractual benefits. Additionally, when an employer terminates a contract, they must adhere to the following legal requirements:

1. The employer must provide written notice to the employee, specifying the reasons for dismissal.

2. The employer must offer compensation equal to 20 days' salary per year of service, payable upon delivering the written notice, up to a maximum of 12 months' salary.

3. The employee must be given a notice period of thirty days for contract termination, starting from the moment of official notification to the employee.

If the dismissal is deemed unfair, the employer must provide compensation equal to 45 days' pay per year of service (if employed before 12th February 2012, and 33 days after this date), with a maximum limit of 42 months' salary.

Probation Periods

Probation or trial periods are typically established through collective agreements. Nonetheless, it's a common practice in Spain to have a probation period of two months, which can be extended to six months for graduate technicians or employees with seniority.


Start Hiring in Spain today

Hiring employees in Spain may seem intricate due to the multitude of regulations and requirements that need to be navigated. Understanding employment laws, ensuring accurate compensation to employees, adhering to fairness and data protection rules, and more can add layers of complexity to the hiring process.

However, there's some positive news – Gloroots is here to simplify it all for you. Our comprehensive solutions provide a convenient and streamlined way to manage every aspect of hiring in Spain. Our team of experts is well-versed in international hiring practices and can help you navigate payment and labor regulations seamlessly. We handle everything from crafting employment agreements to ensuring timely payments and administering benefits, allowing you to focus on selecting the best candidates.

With Gloroots by your side, you can trust that global hiring in Spain will be made straightforward and hassle-free.

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