HR and Payroll in Spain

Did you know that Spain has 14 public holidays each year, two of which vary depending on the local municipality? And that employees are normally entitled to 30 calendar days of paid holiday each year, except where a collective agreement or contract has been established?

If you are looking to establish a business or expand in Spain, it’s essential to be aware of the local and cultural work practices. One such example is the atypical Spanish work hours, usually from around 8.30am or 9am to around 1.30pm, and then from 4.30pm or 5pm to around 8pm.

When you are operating across borders and employing an international workforce, you need careful planning and scrutiny to ensure every single entity is both fully compliant with your global HR and payroll policies and procedures, and more importantly with local regulation requirements. Ignore this and you’ll risk fines and reputational damage - sometimes even criminal prosecution. Talk to our local experts to understand more of the facts before you start your business.

TMF Group Spain provides these HR and Payroll services to ensure you can fully focus on your core business, growth and selling your products:

Payroll Services

  • Preparation and provision of monthly payslips
  • Implementation and processing of the data of the employer and the employees into TMF´s payroll system
  • Collection, coordination and verification of all permanent employer/employee data
  • Collection and review of the monthly input data, including amendments of salary, overtime work per employee, sickness, vacation, one-time bonuses etc.
  • Upload of bank transfer instructions for net salaries, social security, wage tax, etc.
  • Retention, archiving and filing of all data related to the employer/employees and the underlying employment
  • Preparation of information for the quarterly/monthly and annual wage withholding tax returns;
  • Preparation of the annual withholding certificates for the company’s employees.

Human Resources (HR) Services

Set up of the company with the social security authorities:

  • Registration of the company with the social security authorities
  • Obtaining the official labour inspection book
  • Opening of an official work centre

Payroll administration for new staff, changes and terminations:

  • Drafting of labour (standard) contracts between the company and employees and the corresponding registration at the employment office
  • Registration of employees with the social security authorities
  • Drafting of amendments of the labour contract and corresponding registration of further changes to the employment office
  • Communications of changes to social security
  • Preparation of final salary settlement
  • Cancellation of the employee’s social security registration

Other HR Services:

  • Processing specific or additional payroll-related requests
  • Preparing payment overviews
  • Preparing monthly analysis of the gross and net wages, social premiums, wage tax etc., individual payroll slips, bookkeeping journal, etc.
  • Preparation and review of employment guidelines, in-house instructions, and organisation charts;
  • Secure maintenance of personal confidential information, and provision of employee training assistance (e.g. Human Resource staff and managers) in relevant areas.
  • Calculation, preparation and payment of travel expenses in close liaison with accounting

Our HR and payroll specialists can oversee the proper implementation of all procedures. We will also guide you when the involvement of additional specialists is required and remain your first point of contact.

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