Spain Employer of Record Services
Payroll & Tax in Spain
A beginners guide to understanding payroll in Spain
Employer of Record Spain
Download our full Spain Employment Guide
Find out all about employing in Spain
How we can help
Our fully-compliant payroll service in Spain ensures your employees are paid on time, every time
Whatever the territory or region, you need to attract and retain the best talent. But different countries and different cultures mean different employee expectations. Spain is no different.
Payroll is key for any business; paying the correct salary to your business’s employees is vital. Using Agility EOR means that your employees are paid on time, every time, when they are working in Spain.
Agility EOR offers the following payroll services in Spain:
- Salaries paid per month, in local currency
- Electronic payslips
- Statutory filing completed by us
- End of year reporting
what to expect
How does Payroll in
Spain work?
13 and 14th month Payments
There are payouts for months 13 and 14 in Spain. The employer may decide to divide the payments into 12 prorated instalments or make two additional payments in June and December. Payments are made at Agility EOR in 12 prorated instalments.
Bonuses
Bonuses are generally defined as discretionary, and therefore not required to be placed in the contract of employment.
National Minimum Wage
Employees must be paid at least the national minimum wage. Currently, the minimum wage in Spain is €7.82 per hour. If you’re a full-time employee working 40 hours a month, that’s €1,166.7 per month paid over 12 months.
Paying Staff
It is common in Spain to pay employees once per month, and Agility EOR make the payment on the last working day of every month. You can also agree whether overtime should be paid (this is not a requirement so long as they receive the national minimum wage rate).
Employee/Employer contributions
Social Security in Spain (INSS)
The INSS oversees Spain’s extensive social security system. In order to participate in the social security system, all workers in Spain must register. The employer pays both employee and employer contributions each month.
Health care, unemployment insurance, occupational injuries, pensions, incapacitation, and death are all covered. Social security contribution bases range from EUR 1,125.90 to EUR 4,139.40 each month (2022).
Along with an additional proportion to cover labour and workplace hazards, employer social security contributions equal 29.9% of the employers’ costs. This is referred to as a professional contingency rate, and it fluctuates based on the operations of the business.
Employee/Employer contributions
Tax Rates in Spain
Along with an additional proportion to cover labour and workplace hazards, employer social security contributions equal 30.4% of the employers’ costs. This is referred to as a professional contingency rate, and it fluctuates based on the operations of the business.
For indefinite contracts, additional deductions equal to 6.35% of the total monthly wage are made for employee contributions.
As a general rule, the following employer expenses are applicable when hiring people in Spain, subject to a monthly cap of Euros 4,495.50 (2023):
| Income per year | Tax Rate (%) |
|---|---|
| 0 to 12,450 EUR | 19% |
| 12,451 to 20,200 EUR | 24% |
| 20,201 to 35,200 EUR | 30% |
| 35,201 to 60,000 EUR | 37% |
| 60,000 + EUR | 45% |
Wondering if expanding
in Spain is right for you?
Read on or speak to a member of our team now
learn more
We are Spain EOR experts
We have extensive experience helping businesses expand their workforce in Spain. Take a look at our areas of expertise to find out more:
Learn more about how you can attract and retain staff in Spain with both statutory and enhanced employee benefits
Wondering what it’s like to work in Spain? We’ve got you covered in our extensive guide
Find out what’s included for Statutory Leave in Spain, including maternity leave, paternity leave & sick pay
Unsure what’s required when employing staff in Spain? Find out about Spanish Work Permits and Visas here
We deliver a fully managed EOR Service in Spain, including payroll, hr and legal compliance.
Without Agility EOR, our ability to move quickly and scale would be extremely limited. Superb work from A to Z.
Carol Oliveira
Learn more
Frequently Asked Questions
Payrolling the employees is a key part of the service offered by an employer of record company. The EOR will calculate and remit all taxes, social securities and similar payments, on behalf of both employer and employee. The client will be invoiced in advance by the EOR company, for the total cost of the payroll.
Yes. Our clients are free to dictate the structure of the employees’ remuneration including any bonuses or commissions they wish to offer. In some countries, there is a statutory requirement to provide “bonuses”, for example in the form of Christmas or holiday allowances.
Yes. Agility EOR will calculate what pay is due upon termination of an employee, factoring in such things as any untaken leave entitlements.
We find that most of our clients are in the Tech, IT, Finance and Professional Services industries. However, we have acquired the skills, knowledge and experience to help all industries across the globe.
As a private company, we’re not beholden to shareholders or asset-shredding Private Equity targets. We aim to build long-term relationships with our clients. At Agility EOR, our approach is that we never forget that our business is all about people. Our Employer of Record solutions are tailored to each requirement, not a one-size-fits-all tech platform. We do the right thing by our clients and by the laws of each country we operate in. And we believe in openness; if we don’t feel we can offer you the best solution for a specific territory, we’ll say so.
We pride ourselves on our personable-approach so once you enter your new employees details into our dedicated platform, we’ll arrange a call with you to go through the details of the employment contract where together we can review and amend to your requirements. We liaise directly with your employee to build a rapport and obtain the necessary information to hire them compliantly, and set them up ready for their first payroll.
We never stop delivering! Even if you’re employee has been onboarded and is happily working for you and being paid each month, we’re here to partner with you whenever you or your employees need us. Even your ex-employees may need our assistance for tax documents, proof of employment requests etc… Our service never stops!