Hiring in Spain

Spain’s skilled workforce and vibrant culture attract firms, but its labor laws can be complex. Omnipresent serves as your Employer of Record (EOR), managing compliance with TGSS rules without a local setup.

We handle payroll, taxes, and benefits like 22 days of vacation, so you can focus on teams in Madrid or Barcelona. Our platform provides a seamless approach to Spain’s dynamic employment landscape.

• Rapid onboarding in days.
• Contracts in EUR, fully handled.
• Expertise on local practices.
• Easy expansion with full coverage.

Employer costs include Common Contingencies, Social: Unemployment, and Mutual Accident Insurance. Use the OmniCalculator to estimate costs, or contact us for further information.

Income taxes

For income taxation in general, the taxation of a Spanish resident is generally determined using two brackets: a national set of income tax brackets, with rates ranging from 19 to 47%, for income in general that applies to all residents of Spain regardless of their specific location of residence in the country, and the one set of income tax brackets among numerous sets of jurisdictional income tax brackets that corresponds to their autonomous community or autonomous city of residence.

Employee Contributions

Employee Tax: 0.1% - 4.7%

A Spanish employee can work a maximum of 40 hours per week (9 hours maximum per day). It is not possible to contract out of these limits. Overtime is capped at 80 hours per year and this must be paid, at more than the usual pay rate. All Spanish employees must record their actual working hours daily and keep that log with the company.

Employees are entitled to partially paid sick leave (60 - 75%) for a maximum of 1 year, or in certain circumstances they may be eligible to apply for extended leave of up to 18 months. The employer makes the payments but will be reimbursed by Social Security Department.

Spanish maternity leave includes 16 weeks, all of which are paid. Fathers are entitled to the same leave as mothers.

Spanish employees under Omnipresent/our local partners receive 23 working days of annual leave. The minimum leave at law is actually 30 calendar days (approx. 22 working days).

Apart from gross misconduct, all other terminations require a minimum severance amount to be paid.

It is very difficult to legally terminate an employee other than for gross misconduct. 

A formal process must be followed, before a termination notice can be issued.