Payroll Outsourcing in Spain
Spain Payroll Services
No matter where you need it, our team of local experts at GlobalPEO will manage all of your foreign payroll operations. We get it; coordinating payroll is challenging enough on its own, and can become a logistical nightmare once multiple languages, rules, and regulations are involved.
We are proud to streamline the experience to guarantee compliance and simplify your global expansion into Spain.
Learn how Spain’s laws and regulations surrounding taxes will impact your hiring and payroll processes.
Depending on the size of your business and your specific needs, GlobalPEO offers a variety of payroll solutions to make sure you’re covered with full compliance, no matter what.
In order to set up payroll services in Spain, you will either need to set up a subsidiary of your own, or work with an International Payroll company like us here at GlobalPEO.
When setting up an employment contract in a foreign country, there are unique rules and regulations you must follow to ensure full compliance. Learn more about the specific terms that are required for all contracts in Spain.
Spain Payroll Outsourcing Benefits
Spain's Taxation Laws & Regulations
Employers in Spain are subject to the country’s progressive income tax rate that increases along with increases to the employee’s salary. Additionally, any income that is earned by non-residents is subject to withholding tax requirements.
Companies operating in Spain are required to pay a variety of taxes on both national and local levels, which include a branch profit tax, corporate income tax, capital tax transfer tax, and value-added tax (VAT), among others.
Payroll Options in Spain
Depending on the size of your company, you can choose between a two primary payroll options to find one that best fits your needs.
Option 1 – Set Up Your Own Subsidiary
Large companies will sometimes decide to handle their foreign employee payroll process on their own. In order to do this, you will be required to set up a subsidiary, register your business in Spain, and have a deep understanding of the country’s taxation, withholdings, benefits, and other local payroll conditions.
Option 2 – Work With an International PEO
When you work with GlobalPEO, our Payroll solutions make things easy by handling all of the administrative and HR duties with the employee. This frees up your business and foreign employees to focus all of your communications on the work itself.
How To Set Up Payroll In Spain
Before you can begin hiring foreign employees, you are legally required to either establish a subsidiary in Spain or work with an International PEO. If you elect to do this on your own, you will need to allocate significant time, funds and additional resources to run payroll with full compliance with Spain’s rules and regulations.
You will also need to set up a business bank account in Spain and process all transactions in Euros (EUR).
Entitlement & Termination Terms For Spain Payroll
Companies in Spain are required to abide by the country’s strict labor laws and regulations, which legally require employers to provide the employee with a detailed employment contract detailing salary, benefits, and termination requirements.
The average severance payment to employees terminated in Spain is 33 days worth of the employee’s salary.
Why Choose GlobalPEO?
Global expansion is a great step for your business – and now it’s easier than ever. Setting up your own entity in each country where you wish to operate can be expensive, complicated, and requires deep knowledge of the specific rules and regulations. Let GlobalPEO take care of everything. From International PEO & EOR, Global Payroll and International Recruiting we deliver our exceptional services at an affordable price.