EMPLOYER AND EMPLOYEE FOCUSED
Managing employees in Spain requires more than monthly salary calculations, it requires administrative coordination and careful attention to labour obligations.
We manage HR administration and payroll in Spain, with a practical team focused on the needs of international companies hiring, relocating or managing a local team in Spain.
Contact us for a free consultation to review your payroll setup, employment administration and HR compliance needs in Spain
EFFECTIVE SUPPORT AND PLANNING
We support employers with the full HR and payroll cycle in Spain. The work starts by understanding your team structure, hiring plans, salary arrangements and applicable collective agreement, so payroll is configured correctly from the beginning.
We handle employee onboarding, payroll calculations: payslips, Social Security contributions, IRPF withholdings, employment changes, absences, benefits and monthly reporting. We help you meet deadlines while keeping records clear and consistent.
Finally, we coordinate with management, labour advisors and public authorities where needed. Our team combines technical payroll accuracy with practical HR support, helping you manage employees.
EFFECTIVE SUPPORT AND PLANNING
We prepare the administrative onboarding of employees, including employment data, Social Security registration, tax information and payroll configuration. We make sure the employee is correctly registered before work starts and that the setup reflects the agreed employment conditions.
We calculate monthly payroll, salary adjustments, variable remuneration, benefits, absences, Social Security contributions and IRPF withholdings. We prepare payslips accurately and on time, giving both the employer and the employee a clear record of each payment.
We manage salary changes, working time adjustments, contract updates, leave, sick days, terminations and recurring HR documentation. We keep payroll records aligned with employment decisions, internal approvals and Spanish labour administration requirements.
We assist with recurring employer reporting, payroll summaries, employee certificates and communication with authorities, including maintaining the annual salary register required under Spanish equal pay regulations. Our English-speaking team provides ongoing support, answers practical questions and helps you maintain a compliant HR process in Spain.
FREQUENTLY aSKED QUESTION
In most cases, yes. To hire employees in Spain through the Spanish Social Security system, the company must first be registered as an employer with the Spanish Social Security authorities and have a valid employer registration number (CCC). This generally requires a legal presence in Spain — either a Spanish subsidiary or a branch. Operating without proper registration is illegal and exposes the company to significant fines. We advise on the right structure before the first hire and manage the full registration process.
Both the employer and the employee must be registered with the Spanish Social Security authorities before work begins. Affiliation must be completed prior to the employee’s first working day without exception — having someone working before all formalities are complete is illegal and can result in severe penalties, particularly in the event of a workplace accident. We manage the full onboarding registration process and coordinate all required interactions with the Social Security services and tax authorities.
Every company with employees in Spain must adhere to a collective workers agreement. The applicable agreement is determined primarily by the company’s economic activity and regulates core employment conditions including minimum salaries, working hours, leave entitlements, notice periods and severance. There is no opt-out — applying the wrong agreement or ignoring it entirely exposes the company to claims and labour inspections. We identify the applicable collective agreement at the start of the relationship and ensure payroll is configured accordingly.
IRPF is personal income tax withheld directly from each employee’s salary on a monthly basis and paid to the Spanish tax authorities by the employer. The withholding rate is calculated individually for each employee based on their personal situation, salary level and applicable deductions, which are collected via Modelo 145. The rate must be recalculated whenever personal circumstances change — a new child, a salary increase, a bonus payment — to ensure sufficient tax is being withheld throughout the year. We manage this automatically based on the information provided by clients and employees.
Resident directors and shareholders who effectively control or manage a Spanish company are required to register under the special self-employed regime (RETA) and pay contributions based on their expected net income for the year. Unlike employee contributions, these cannot be deducted as a company expense — they are a personal obligation paid privately. The contribution base can be adjusted up to six times per year through the Social Security website. We advise on the correct setup and can manage the periodic updates on your behalf.
When an employee’s contract ends, the company must submit the disaffiliation to Social Security within three calendar days of the termination date. The final payslip must include any outstanding salary, accrued holiday not taken, pro-rated bonuses and, where applicable, severance. Delays or errors in this process can result in penalties and claims. We manage the full offboarding process — from Social Security disaffiliation to final payslip calculation — and coordinate with the legal team where dismissal procedures require it.
Yes. We have a structured transition process for companies moving their payroll from an existing provider. This requires a complete handover of payroll documentation for the current fiscal year — including all payslips, Social Security cost summaries, liquidations, the current collective agreement and employee contracts. We review the existing setup, identify any compliance gaps and configure payroll correctly from the first month under our management. The transition is designed to be seamless for both employer and employees.
EFFECTIVENESS AND CONTINUOUS SUPPORT
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