Countries
Pay in Spain
Pay employees in Spain
Administrating timely, accurate and compliant payroll in Spain requires a deep understanding of local tax, reporting, employment and compensation requirements. With our payroll solutions, you can count on in-country expertise and support to help ensure your workers in Spain are paid correctly, compliantly and on time - every time.
Taxes, employee compensation and benefits
Our local experts provide up-to-date guidance on the specific tax legislation, compensation requirements and benefits expectations for processing payroll in Spain.
- Corporate, income and regional taxes
- Social taxes, including pensions, healthcare and unemployment
- Compensation for holidays, vacation and various types of leave
- Other withholdings and employer contributions
We administer payroll in various ways:
- EOR, our employer of record solution that allows you to employ and pay international workers even if you don’t have a local entity
- Global Pay, our local payroll solution for your operations in a specific country
Taxes for payroll in Spain
Income tax
The current corporate income tax rate in Spain is 25%.
Generally, employee income tax in Spain is assessed on a progressive scale, with rates ranging from 19% to 45% depending on annual income and the autonomous region where the taxpayer resides.
Current tax brackets* for both state and federal rates are:
- €0 – €12,450: 19%
- €12,451 – €20,200: 24%
- €20,201 – €35,200: 30%
- €35,201 – €60,000: 37%
- €60,001 – €300,000: 45%
- More than €300,000: 47%
*Tax brackets vary for Basque Country and Navarre.
Employers are required to withhold income tax and pay the tax office on behalf of their employees. Payment for withheld amounts are due by the 20th of each month. Employers must also complete Form 111: IRPF Withholdings at Source and submit it to the Ministry of the Treasury.
Social Security
Social Security covers pension, work-related accidents, maternity leave and illnesses. Separate Social contributions are made to fund unemployment, the Salary Guarantee Fund and vocational training. Social Security contributions are divided between the employee and employer.
Employees are divided into three groups, which determine their social security contributions. The general contribution rate is 23.6% for employers and 4.7% for employees.
Unemployment
Generally, the unemployment contribution rate for employers is 5.5% and the rate for employees is 1.55%.
Salary Guarantee Fund
Employers, not employees, are liable for a 0.2% contribution rate to the Salary Guarantee Fund (Fondo de Garantía Salarial, FOGASA).
Vocational Training
The vocational training contribution rate for employers is 0.6% and the rate for employees is 0.1%.
Updated: 25.09.2023
Employee compensation and benefits in Spain
In Spain, employment contracts are ruled by collective bargaining agreements, known as the convenio colectivo. These agreements regulate labor standards by job type like, legal salary range, working hours and vacation days, and they have a big impact on the structure of payroll in Spain.
When processing Spanish payroll, you’ll need to consider the following employment regulations:
Partner with Safeguard Global for your payroll in Spain
Hundreds of organizations depend on our global payroll experts to ensure their payroll processing is accurate and compliant with local tax and employment requirements.
We support payroll in Spain in various ways: through our employer of record solution, as a local payroll provider for your Spanish operations, and as part of a managed provider solution for your global organization.
As an employer of record in Spain, we handle payroll for your Spanish workers, ensuring accuracy and compliance, while you manage their day-to-day contributions.
As a local provider of payroll in Spain, we can help your Spanish operations:
- Comply with Spanish labor laws and regulations
- Deduct the appropriate tax and Social Security withholdings
- Ensure your employees in Spain are paid accurately and on time
As a global payroll provider, we offer streamlined processing across countries, currencies, languages and time zones— to help companies gain global visibility to pay data and make smarter workforce decisions.
Whether you need payroll support in Spain through an employer of record, a local provider or as part of a comprehensive global payroll system, contact us to let our experts find the right solution for you.
Disclaimer
The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.