Hiring and payroll in Spain

Introduction

Spain is a Southwestern European country with a population of about 47 million. As the fourth-most populous country in the European Union, Spain is a developed country with an advanced economy that commands a GDP of over one trillion dollars.

After the United Kingdom and Germany, Spain is the third most popular destination for European tech talent. According to Digital Talent Report, the demand for tech talent in Barcelona — a city in Spain, increased by more than 40% in one year.

As home to several major global tech organizations, Spain is a hotbed for talent supply. Global organizations find it an attractive destination to hire a remote team and build a formidable international remote organization.

This article highlights everything you need to know about hiring a remote team and managing payroll in Spain.

Hiring employees in Spain

Madrid, Barcelona, Sevilla, Valencia, and other cities in Spain are thriving tech scenes with several blooming startups and an influx of tech talent. One of the key drivers to the tech growth in these cities is the abundance of homegrown tech talent. According to ElConfidential, there are over 300,000 tech talent in Spain. Due to the strength of Spain’s tech talent pool, organizations seek to hire remote teams from Spain.

How to hire employees in Spain

Organizations planning to hire a remote team in Spain are best suited for searching popular job portals such as Infojobs, Infoempleo, Trabajos, Monster, Tecnoempleo, and many more. Also, LinkedIn is a valuable resource for placing job ads in Spain.

Hiring with an Employer of Record in Spain

An Employer of Record is a third-party platform that enables global organizations to hire employees and contractors, onboard talent, manage an organization’s payroll and ensure compliance with country-specific employment laws and tax regulations.

The Employer of Record in Spain helps companies carry out employment-related activities in compliance with Spain’s employment laws. Also, The Employer of Record in Spain enables global organizations to hire a remote team, onboard talent, manage payroll and ensure compliance with Spain’s laws without setting up subsidiaries.

Payroll in Spain

Organizations with plans to manage payroll in Spain have an obligation to comply with the country’s employment and payroll laws.

Complying with Spain’s payroll laws is essential. However, organizations in Spain have to do everything they can to simplify the process of managing payroll in Spain in compliance with the country’s laws. In that light, Spain has two efficient ways to manage payroll.

Establishing subsidiaries to manage payroll in Spain

Establishing a subsidiary or partnering with a local entity is one of the efficient ways to hire and pay employees in Spain. With an established and registered subsidiary, an organization has the full rights to carry out all employment-related activities, including managing payroll in Spain.

Partnering with an Employer of Record in Spain

An Employer of Record platform provides organizations with all they need and require to carry out business activities in Spain. By acting as the legal employer on behalf of the organization, they can hire and manage payroll for employees in Spain.

The Employer of Record offers a simpler alternative to establishing a subsidiary in Spain, as subsidiary creation can be challenging, time-consuming and resource-intensive

The Cost of Hiring an Employee in Spain

Organizations planning to hire a remote team in Spain must take note of the cost and resources it will require. Like every business pursuit, understanding the financial requirements is key to managing growth expectations and helps in efficient planning and structure of the organization.

Therefore, the cost required to hire an employee in Spain involves the following.

• The subsidiary establishment expenses and cost of running the business
• Acquisition of a legal team
• The employment and payroll platform costs
• Job boards ad placement costs
• Interviews and background checks expenses

Organizations planning to hire a remote team in Spain can do so at a cost-effective price by partnering with an Employer of Record platform like Skuad. Skuad is a global employment and payroll platform that handles the entire employment lifecycle of organizations in Spain by managing all employment-related activities and ensuring compliance with Spain’s employment laws.

Conclusion

An Employer of Record offers the best solution for organizations planning to hire a remote team or manage payroll in Spain. While expanding into a new country is challenging, an Employer of Record platform enables organizations to hire contractors and full-time employees, onboard talent, manage payroll, and ensure all employment-related activities comply with Spanish employment laws.

Employer of Record platforms like Skuad ensures that organizations can build globally distributed teams quickly and without hassles. To know more about Skuad, book a demo today.