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If you are interested in hiring a remote team in Spain, or even just individual remote employees in Spain, then you have come to the right place!
Rivermate is an Employer of Record (EOR) that offers Spain payroll solutions. As a Spain payroll provider, we will cover everything from salary, benefits, employer-to-employee contributions, and especially payroll compliance in Spain. We are confident Rivermate’s payroll solutions Spain will help you grow as a business—because now, you won’t have to worry about your payroll solutions Spain. We take care of everything payroll!
With Rivermate, you can run Spain payroll services in just one click—regardless of currency, benefits, insurance, and your local labor laws. Everything is automated. Our priority is for you to focus on your company’s strategy and growth.
Our Rivermate Global Payroll services are made especially for startups and scaleups. We know that startups try to be extra prudent when it comes to choosing a payroll provider, so it is our mission at Rivermate to be your most reliable and cheapest payroll provider option. So if you’re looking for global payroll providers for small businesses, look no further and book a call with us now!
Once you've determined the best Spain payroll option for your company, you'll need to collect some information from employees in order to add them to your payroll. Begin by acquiring their personal identification number, tax deduction card, and emergency contact information. When an employee begins working and provides you with their tax deduction card, they become a part of the social security system and are eligible for benefits.
Companies in Spain are subject to a variety of taxes, including corporate income tax, branch profit tax, and value-added tax, at both the national and municipal levels (VAT). The rate of corporate income tax is 25%, and the rate of VAT is 21%. Capital tax, transfer tax, real property tax, and other local government taxes must also be paid by businesses.
Spain has a progressive income tax system, which means that the rate rises as an employee's salary rises. Non-residents' income is subject to withholding tax (WHT) requirements as well. You'll need to keep an eye out for these laws that could affect non-residents on your team, ranging from 19% in dividends and interest to 24% in royalties.
Companies that wish to expand their operations globally have four different payroll options in Spain. These payroll options are:
1. Internal Payroll. This payroll option is applicable for already established companies in Spain. It includes devoting an entire Human Resources staff to running the company's payroll procedures.
2. Remote Payroll. Smaller firms may lack the capacity to handle their own payroll, but they may add their workers to the parent company's payroll. This action, on the other hand, requires considerable thinking. You must guarantee that you follow the rules and laws of each nation.
Working with a local outsourcing firm is one method to retain money in the local economy, but you'll still need to study all of the local rules and regulations, since you'll be held responsible.
3. Spain payroll outsourcing: Outsourcing your payroll to an Employer of Record in Spain, such as Rivermate, is another alternative for Andorra payroll outsourcing. We can manage all aspects of your payroll, including compliance. Send us a note and we'll get back to you as soon as possible!
It is the obligation of the employer to ensure that all payroll-related transactions are properly documented and recorded. All salaries and compensation payments must adhere to the local minimum wage as well as other applicable laws and regulations.
Rivermate's payroll services in Spain can assist you in staying in compliance with the country's ever-changing payroll rules. We provide an all-inclusive solution that covers everything from compliance and reporting to salary payments.)
Companies that have a business presence in Spain have different ways of managing payroll. However, most of the options you have for running payroll in Spain are either expensive or require establishing a subsidiary in Spain. The cheapest, most efficient, and most reliable payroll processing system in Spain is by outsourcing payroll to Employers of Record (EOR) in Spain. Rivermate is one of those Employers of Record.
At Rivermate, we offer you the most efficient, most compliant, and cheapest HR and Payroll Management services in Spain. We do this by taking care of your payroll-related needs, such as keeping track of your employees’ financial records, including incentives, gross and net salary, and payslips, all the while staying compliant with the labor laws in Spain. Because we do your online payroll management for you, you can have absolute focus on your business’ strategy and growth.
Rivermate is all about growth through collaboration and we achieve this by offering the most reliable yet cheapest services for managing payroll for small businesses in Spain.
The employer's and employee's rights and obligations in connection with the termination of the employment relationship primarily depend on the form of termination and the provisions of the individual or collective agreement. Employment contracts may be terminated mutually, at the end of the contract period (if it is a fixed-term temporary contract), by the employee, or by the employer for objective, economic, or disciplinary grounds. Individual and collective bargaining agreements may stipulate the circumstances under which an employment relationship will cease.
Fixed-term contracts terminate when the parties agree on an expiration date or when the service is completed. Employees are entitled to compensation of 12 days' wages per year worked at the end of a fixed-term contract. If the temporary contract is longer than one year in duration, the party canceling the contract must give at least 15 days notice.
Employees can end their employment relationship by quitting, either freely or involuntarily, or by abandoning their job, or by being fired for cause. When an employee is let go for cause, he or she is entitled to compensation equal to 33 days of salary for each year of service plus "finiquito."
Employers may remove an employee for any of the objective grounds specified in the Workers' Statute, including employee incompetence, failure to adapt, collective dismissal, or absences from work. Employers must present an employee with a termination letter that details the reason for the employee's dismissal and the date of the employee's final day of employment. Employees are entitled to 15 days' notice and compensation, often known as indemnification. Compensation is 20 days' salary each year of service, up to a maximum of 12 months, at the moment notice is given. Employers may also grant compensation in place of notice.
Employers have the authority to discipline an employee up to and including dismissal for a variety of reasons, including repeated unexcused absences, disobedience, physical or verbal abuse directed at the employer or a coworker, or sexual harassment. The dismissal must occur within 60 days of the employer being aware of the conduct and within six months of the incident. In this case, no remuneration is required, and the employee is not entitled to notice of termination. However, if the employee is a union member, the employer is required to notify the union.
For full-time workers, the monthly minimum salary is 950.00 EUR, or 7.04 EUR per hour.
In Spain, working hours are generally determined by individual or collective bargaining, but cannot exceed 40 hours per week on average over a year. In the absence of an agreement specifying how irregular work hours will be scheduled, the employer may allocate a maximum of 10% of working hours throughout the year. Working hours are generally limited to nine hours per day, unless otherwise agreed upon collectively or individually.
Social security taxes are used to finance health insurance. An employer may offer supplemental health insurance to an employee as a perk. Most executives seek additional health and life insurance, and a small firm may provide a stipend in place of obtaining insurance.
Employees are given 15 days (including weekends) to marry, 2 days to mourn the loss of a family member, and 1 day to relocate.