Spain Payroll Solutions

Contractors in Spain can be set up in 2 ways, Employed and Self Employed.

Contractors can be engaged in Spain as employees or self-employed in both cases all income is fully declared in country.

This is the most compliant type of engagement in country.

Self-employment may be possible for contractors when they are truly independent contractors who will typically provide services as an Autonomo. To qualify as a self-employed person, the typical criteria will be economic independence; freedom to determine his/her own activities, working hours and place of work; use their own equipment; hire assistants or arrange substitutes.

Tax year – The tax year is the calendar year for individuals

Immigration – Nationals of other EU/EEA and Switzerland must register their residence with the Spanish Immigration Service if their stay lasts more than three months.

Workr Fees – €575 per month plus €350 set up fee. This applied to both the employed and self-employed solutions

Employment Summary

Registration – Workr will arrange statutory insurance and registration of the employee with the various funds. We also
send a notification to the Tax Administration authorities about the engagement of the employee.

Contract – Open-ended contracts are the norm and a fixed-term contract can be used only if there is a justified reason for doing so.

Employers social security contributions are approximately 31.4% of the gross salary but with an income ceiling of
€4,070.10 per month.

Employees social security contributions are 6.35%

Tax – Income tax which is progressive and ranges from 19% to 45%

Benefits – Holidays: 30 days per year

Public holidays: 10 days

13th and 14th month payment are mandatory in Spain, but they can be pro rated over 12 payments.

Sick leave, the first 3 days is unpaid, then 60% of previous months pay.

Self-Employment Summary

Registration – Workr will register the contractor for tax, social security and VAT with the assistance of a fully qualified
local accountant.

Contract – Open-ended contracts are the norm and a fixed-term contract can be used only if there is a justified reason for doing so.

Social Security – The minimum contribution is €286 per month, However an incentive is in place under which only €60 per month is payable when you first register as Autonomo rising to €198 in months 12-18.

Tax – Income tax which is progressive and ranges from 19% to 45%

Benefits – Genuine business expenses associated with the production of income such as, telephone, computer,
professional literature, own tools, travel and the deduction for a second home may be allowed under certain conditions.

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