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Spain

Let Lerio guide you through the maze of employment regulations in Spain effortlessly.

Hiring in Spain at a glance

Currency

€ / EUR

Working Hours

40 hours / week

Public Holidays

10 holidays / year

Payment Frequency allowed

Payment frequency is monthly.

Local Language

Spanish

Population

47M

Minimum Salary

€1132 / month

Tax Year

1st Jan – 31st Dec

Employment Tax

Employee Taxes
  • Social security: 4.82%, minimum monthly €1 260 and maximum €4 720.50
  • Unemployment insurance: 1.55%
  • Professional Training: 0.10% (minimum monthly €1 260 and maximum €4 720.50)
Employer Taxes
  • Social insurance: 24.18%, minimum monthly €1 260 and maximum is €720. 50
  • Unemployment: 5.50%
  • Salary Guarantee Fund: 0.20%
  • Professional Training: 0.60%
  • Workers compensation insurance: 1.65%
  • 50 EUR per month: Remote Working Allowance (minimum), must be applied when home working 30% or more of the time

Employer of Record
in Spain

Acting as the endorsed employer, an Employer of Record is tasked with ensuring compliance with all statutory requirements related to employment in Australia. This includes obligations such as payroll oversight, tax adherence, and the provision of employment agreements as outlined in labour laws.

Employer of
Record Process

  • Company
  • Finds their perfect hire and provides Lerio with all the information required to prepare an employment agreement. For Australia, that includes:

    • Full legal name of prospective employee
    • Employee contact details
    • Employee nationality and residency status
    • Proposed start date
    • Right to work status
    • Job title
    • Working hours
    • Job description and deliverables
    • Salary information
    • Benefit information
    • Intellectual property and confidentiality agreement
    • Terms of termination (e.g. notice period)
    • Probation period
    • EMployee bank details
    • All other company-specific requirements (e.g. non-compete, intellectual property clauses, etc.)

  • Lerio
  • Prepares the employment agreement and shares with the prospective employee for signing. Requests all additional documents such as identity documents, proof of right to work in Australia, tax information, etc

  • Employee
  • Signs employment agreement and submits required documents.

Umbrella Process

  • Employee
  • Now no longer a prospective employee but simply an official employee, who ensures to keep Lerio updated on any personal information changes.

  • Lerio
  • Onboards employee to payroll and benefit programs to get started ensuring that salaries are paid every month and benefits are administered. Tax contributions and benefit fees are paid and payslips are provided to the employee.

    Lerio provides an invoice and statement to the company for each month.

  • Company
  • Receives monthly invoice, reviews and processes. Provides information on whether anything has changed in their relationship with the employee, the employee’s role or the company that will have an effect on the upcoming payroll run.

Employee Benefits

  • Unemployment Insurance
  • Workplace Injury
  • Healthcare
  • Death benefits
  • Retirement

Non-mandatory
Employee Benefits

  • Private medical insurance
  • Childcare
  • Extended pension
  • Additional time off

Employee Rights

  • A safe and healthy work environment free from risk, both physically and psychologically
  • Protection from discrimination, harassment and bullying
  • Fair and just dismissal
  • Protection of personal information
  • Right to join a labour union

Leave

Paid time off

30 calendar days per year

Sick leave
  • 1 – 3 days unpaid
  • 4 – 20 days at 60% payment
  • 21 + = 75% at 75% payment, capped at €4 495.50 pm (up to 18 months)
  • Employer pays until 15 days and then social insurance pays
Maternity leave
  • 16 weeks or 18 for multiple births or if complications occurred
  • Mandatory 6 weeks after birth and remaining can be taken anytime until 1 year later
  • Paid by Social insurance – 100% but capped at €4 495.50 pm
  • 2 additional weeks for a child with a disability or from foster care/adoption.
Paternity leave

If 180 days worked in the last 7 years – 16 weeks. 6 days immediately post birth is mandatory. Remaining 10 days can be taken within the first year.
Social insurance pays 100%, capped at €4 495.50 pm.

Parental leave

Up to eight weeks until child turns 8 annually.

Workers are entitled to additional special leave (unless the Collective Bargaining Agreement outlines a different policy) for the following:

Care Leave

Employees are entitled to up to two years of unpaid leave to assist a seriously ill household or family member.

Family Nursing & Hospitalisation Leave

Employees are entitled to 5 days of paid leave to care for family members and second degree relatives with a serious illness, hospitalisation or surgery.

Bereavement Leave

Employees are entitled to 2 days of paid leave (4 days if travel is required) for the death of a family member.

Moving Leave

If an employee is moving to a new home, they are entitled to 1 day’s leave.

Marriage Leave

Employees are entitled to up to 15 days’ leave to get married.

Judicial Leave

Employees are entitled to paid leave to perform their public or personal obligations (in court) if necessary. A written notice is required.
Union Leave: When performing trade union or workers’ representative activities, employees can be granted additional leave, as established by law or collective agreement.

Notice Period

Minimum notice period is 15 days.

Probation

Optional but maxed at 180 days

What is a work permit in Spain?

Work permits are official documents from a country’s government that qualifies an individual to legally work and live in the country. However, this is a broad term and many countries require more than one official document and may use different terms to refer to these documents – and Spain is one of them. Essentially all terms are referencing documents that prove someone has been given the legal right to work and live in the country. 

In Spain, the “work permit” required to legally live and work there is referred to as a work residency visa and a work permit is an initial authorisation before applying for the work and residency visa. 

Who needs a work permit in Spain?

Spain requires everyone who is not a citizen or a permanent resident to go through a process of obtaining legal right to work, with certain exceptions: 

EU member state citizens: All EU citizens have the right to work in another EU member state. They may however need to register their presence in the country (if staying for three months or less) or register your residence (staying for longer than three months). Spain is an EU member state and therefore EU member state citizens don’t need to obtain any documents to prove their right to work and live in Spain. They are required to register their residence in Spain to receive a certificate of residence when staying for longer than three months. 

Iceland, Liechtenstein and Norway: As members of the EEA (European Economic Area), Iceland, Liechtenstein and Norway citizens have the same rights as any EU member state citizen to work and live in Spain. They are required to follow the same process as EU citizens as described above. 

Switzerland: Though not a part of the EU or the EEA, the EU has an agreement with the Swiss government that allows a mutual freedom of movement. This affords Swiss nationals the same rights as any EU citizen to work and live in Spain. They are required to follow the same process as EU citizens as described above. 

Therefore, anybody who is not a citizen of an EU member state, Iceland, Liechtenstein, Norway or Switzerland needs to go through the process to obtain a legal right to work. 

*UK citizens: Please see here to understand the rights of UK citizens who settled in Spain prior to Brexit.

How long does it take to get a work permit in Spain?

The work permit obtained by the employer from Spain’s Ministry of Labor can take up to eight weeks to process while the work visa obtained from the employee’s closest Spanish Embassy should take two to three weeks to process. 

Types of work visas in Spain

Residence and employment work visa (with or without exemption of work permit) 

The residence and employment work visa with or without work permit exemption is intended for skilled workers who want to live and work in Spain. Roles should usually be on the identified shortage list. If it is exempt from the work permit, the employer does not need to get work authorisation prior to extending an offer.

Eligibility

  • Offer of employment 
  • Experience and qualifications in a eligible field (science, healthcare, technology and others depending on the role)
  • Experience and qualifications in a senior or managerial role where there’s a skills shortage locally 
  • Proficiency in Portuguese, Spanish, English and/or French in line with the role requirements 

Highly-skilled workers residency visa

Eligibility

  • Offer of employment 
  • Remarkable skills in a specialised field 
  • Proficiency in Portuguese, Spanish, English and/or French in line with the role requirements

EU Blue Card

The EU blue card is a combined work and residency permit available to highly skilled individuals. It allows holders access to live and work in 25 out of the 27 EU member states (Denmark and Ireland not included). 

Eligibility 

  • Bachelors or higher degree, some states accept 5 years of relevant experience without a degree
  • Must be a salaried employee, not self-employed 
  • Annual salary must be at least 1.5 times the average national income of the state applying for 
  • Offer of employment 
  • Health insurance 

Country-specific requirements and application processes can be seen here.

Application process in Spain

Work authorisation and permit

With some visas, before an offer of employment can be extended, the employer must:

  • Request an authorisation of work from the Provincial Aliens Affairs Office 
  • The role must be on the Shortage Occupation List or have been advertised through the employment services portal for enough time to show that recruitment needed to extend outside of Spain
  • The work authorisation and a work permit will be authorised together

Apply for a visa 

This is done by the applicant

  • Start the application on the visa online portal by completing the required fields and uploading documents
  • Make an appointment to visit the local consulate or embassy. This can either be done through the online portal or by directly emailing or calling. 
  • Attend the appointment and submit documentation and biometric information
  • Applicant will be notified about the outcome 
  • If approved, visa can either be collected or be delivered

Apply for a Foreign Identity Card (Tarjeta de Identidad de Extranjer)

  • Employer has to register the employee on social security 
  • Make an appointment at the local policy station online and submit required documents
  • Go to the appointment
  • Pay the fees
  • Biometric information will be recorded
  • Return once notified that the card is ready for collection (about 45 days)

What documents are required to apply for a work permit in Spain?

Documents required for work authorisation and permit application

  • The employment contract
  • Company tax statements
  • Proof of having registered with Social Security
  • Proof that an EU/EEA/Swiss citizen could not have filled the position

Visa application

  • Completed National Visa Application form
  • Employment agreement from a Spanish company
  • Valid passport with at least one blank page
  • Photograph. Applicants must provide a recent, passport-size, colour photograph. 
  • Work permit (Autorización de Residencia y Trabajo por Cuenta Ajena) from the employer
  • Police clearance
  • Medical certificate. Confirmation from a doctor that no health conditions that are a threat to public health are a concern, such as H1N1 influenza, polio, or ebola.
  • Proof of accommodation
  • Proof of professional qualifications 
  • Resume

Apply for a Foreign Identity Card (Tarjeta de Identidad de Extranjer)

  • Application form 
  • Passport
  • Proof of payment 
  • Colour photo
  • Proof of address 
  • Confirmation of your residence visa and work permit