Employ Candidates Compliantly in Spain

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  1. Overview: Spain
  2. Global HR Compliance
  3. Global PEO and Payroll
  4. Work Permit for Hiring Expats via PEO
  5. Expand without a company set up
  6. Contractor vs. Employee: Which Is Better?
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Global PEO and Payroll in Spain

What is a Global PEO?

A global PEO, or Global ProfessionalEmployment Organization, is a company that contracts with other businesses to provide human resources services. These include payroll and benefits administration, tax reporting, workers’ compensation insurance, unemployment insurance claims management, employee screening, legal and regulatory compliance assistance, HR consulting, immigration services, and other financial services. Businesses can focus on their core competencies and goals by outsourcing these time-consuming and complex tasks to a global PEO.

You’ve come to the right place if you’re looking to compliantly and quickly hire, manage, and pay employees across multiple jurisdictions via a trusted global employment partner.  We offer a comprehensive portfolio of global employment services in 190 countries. This makes Acumen International Global PEO (Professional Employer Organization) incredibly agile and able to adapt quickly to your talent acquisition needs in Spain.

The global PEO talent engagement model can help you scale up or down according to your business’s changing requirements – minimizing your global employment risk in Spain. When you partner with Acumen International, you can delegate HR responsibilities like payroll, benefits and tax administration, background checks, immigration services, and more. Our Global PEO and Payroll in Spain helps you facilitate talent management – we take care of everything so you can focus on running your business. 

15 Burdens a Global PEO Can Relieve for Your In-House HR Department in Spain

  1. Global payroll administration
  2. Employee benefits administration
  3. Drafting compliant employment contracts to adhere to local labor and tax regulations in 190 countries, including Spain.
  4. 100 %compliant onboarding 
  5. Employee screening and background checks
  6. Workforce compensation administration
  7. Compliance assistance
  8. Guidance on best practices of voluntary benefits provisioning
  9. Immigration and relocation support for your ex-pat workforce, such as visa sponsorship and securing work permits
  10. Enhanced institutional knowledge.
  11. IP right protection
  12. Legal support for all global employment and HR functions.

What Services Can a Global PEO Provide in Span?

Acumen International is a global PEO that provides international employment services to companies with employees working in multiple countries, including Spain. We offer our clients a comprehensive service portfolio that includes the following.

  1. A single point of contact for all your cross-border payroll administration. A specialized Professional Employer Organization (PEO) administers a local payroll in Spain, which gives employees the confidence they will receive statutory employment benefits and protections. Local payroll management is one of the most challenging aspects of running any business, so it’s crucial to work with an experienced PEO having expertise in global payroll.
  2. A global Professional Employment Organization (PEO) ensures that the employment contract meets local labor law requirements. A PEO also works with employers to help them understand and comply with employment laws in different countries. A PEO also provides resources and training to employees on their rights and responsibilities under the contract.
  3. Acumen global Professional Employment Organization (PEO) provides immigration support, including business visa sponsorship and work permits for employees from other countries. This makes it possible for these workers to come to Spain and legally work there for a set period.
  4. A Global Employment Organization(GEO) guides clients on employment law matters such as employment contract drafting, notice, severance, termination, and statutory benefits.
  5. Global Employment Organization(PEO) provides communication and coordination between the client company and employees through regional account managers, allowing for a more efficient and effective working relationship between all parties involved.
  6. A Global Employment Organization (GEO) helps create global pay strategies and structures that are fair and competitive. They consider many factors when setting pay levels, such as internal business needs and market rates. They also examine how local taxes and regulations can impact those rates to create a cohesive global model.
  7. A Global Employment Organization (GEO) can help align HR programs with global function and business needs.
  8. Acumen International PEO is also able to help companies who are working in transition in Spain. When your company goes through an acquisition, merger, or close down, you may have employees who require assistance during this time of transition — and with the express purpose of providing professional employment or outplacement opportunities. Acumen International can compliantly hire your employees — anywhere in the world!

9 Benefits of Using Global PEO Services in Spain

  1. Global employment management centralization. Maximized control. Minimized risk 
  2. A Global PEO facilitates quick talent deployment and provides access to various employee benefits solutions to attract and retain your global talent
  3. Eliminating and mitigating certain employment-related risks, including non-compliance and employee misclassification, through the shared responsibility and co-employment arrangement in Spain.
  4. Scalable technology and infrastructure provided via the global PEO relationship
  5. Reduced and stable global employment management-related cost
  6. A global PEO can facilitate risk-free, quick, and easy market entry by acting as your local legal entity, helping you to avoid the cost and time associated with incorporating in 190 countries, including Spain.
  7. A global PEO and Payroll in Spain allows you to make your global expansion 100% compliant and secure by keeping track and adhering to all local laws and regulations
  8. A global PEO and Payroll in Spain help you remain agile and scale up or down in your selected foreign markets according to your business needs.
  9. A global PEO and Payroll in Spain facilitates global employment consistency and HR compliance in Spain.

Global Payroll Management & Compliance in Spain

Managing employees in different countries can be a complex and challenging task. Employees may need to be registered and taxed differently in each country, and there may be other laws that need to be followed. This can make it very hard to keep track of everything and ensure everything is done correctly.

When it comes to payroll, there are many different regulations that you must follow to avoid penalties or litigation. Each country has its laws and regulations, but some standards apply internationally. You must know and adhere to tax deadlines, withholding and reporting laws, and regulations requiring employee tax slip signatures. If you fail to adhere to these payroll compliance rules, you could face severe penalties that could negatively impact your business.

Global payroll management is a complex process that requires careful consideration of various factors. Payroll specialists must consider local regulations and taxation requirements, which can be time-consuming and difficult to navigate in Spain. However, by addressing some key challenges and partnering with a Global PEO, organizations can ensure compliant, accurate, and timely payments.

  Co-Employment Client
Employment risks mitigation 50% 50%
Tax compliance & payroll processing
Involvement 35% 65%
Incorporation costs
Coverage client’s home country only client’s home country only
  International Payroll Client
Employment risks mitigation
Tax compliance & payroll processing
Incorporation costs own foreign entity required
Effort 20% 80%
Coverage multinational multinational
  Our Global PEO&Payroll Client
Employment risks mitigation
Tax compliance & payroll processing
Incorporation costs no need for own entities
Effort 90% 10%
Coverage 190 countries 190 countries

 

Global Payroll Calculator: Accurate Global Employment Cost Estimation

When hiring employees and contractors across the globe, you may not be choosing the most cost-effective and business-friendly country.

  • Do you know which country is the most cost-effective place to hire employees? 
  • What are the costs of entity establishment and legal representation?
  • What are the payroll costs and management fees?
  • What are your ongoing annual tax compliance costs?
  • Are you fully aware of banking implications?
  • Did you know that labor laws and hidden costs could make your company less efficient when choosing a country to run your business? 
  • Did you know that there could be a more cost-effective country to hire employees in and save up to 50%?
  • How to hire international teams without setting up a local entity?

This is because countries have different labor laws, compliance, and tax regulations. What if, instead of limiting your company’s international expansion by cutting through the jungle of local regulatory compliance, tax, labor, and immigration requirements, you could have all the information of 190 countries at your fingertips?

Acumen International offers the Global Payroll Calculator to help businesses understand the compliance requirements for conducting business in a new country. Acumen’s research team tracks developments in 190 countries around the globe. It provides up-to-date data on local regulations related to tax, payroll regulations, benefits, hiring practices, compliance requirements, and other labor-related factors that impact an employer’s bottom line. This valuable information makes the Global Payroll Calculator an invaluable tool for businesses looking to expand internationally.

Global Payroll Calculator helps companies reduce labor costs by providing up-to-date information on hiring, compensation, and tax requirements. It is also an ideal tool for quickly locating employees in any country.

Global Payroll and Taxation in Spain

Employment Taxes

Resident & Non-resident Employment Tax

The Spanish system for direct taxation of individuals is mainly comprised of two personal income taxes:

  • Spanish personal income tax (PIT), for individuals who are resident in Spain for tax purposes, and
  • Spanish non-residents’ income tax (NRIT) for individuals who are not resident in Spain for tax purposes and who obtain income in Spain. Therefore, persons who obtain income in Spain are liable to pay Spanish PIT or Spanish NRIT.

Residents in Spain are generally subject to PIT on their worldwide income, regardless of where it is generated, which is taxed, following statutory reductions, at progressive rates. Non-residents are subject to NRIT only on their Spanish-source income. There are two types of taxable income for Spanish PIT purposes: general taxable income and savings taxable income.

Savings Taxable Income 

  • Dividends and other income generated from holding interests in companies
  • Interest and other income generated from transferring the taxpayer’s capital to third parties.

As an exception, when capital transferred to a related company exceeds three times the latter’s equity, the interest corresponding to excess is taxed as general taxable income.

  • Income generated from capitalization transactions and life and disability income insurance
  • Capital gains generated from transfers of assets.

General Taxable Income

  • All income that is not savings taxable income
  • Capital gains not generated from transfers of assets (such as lottery prizes)
  • Income allocations, attributions, or imputations, as established by law
  • Interest and other income generated from transferring the taxpayer’s own capital to a related company when the capital exceeds three times the latter’s equity and for the part corresponding to the excess.

Regarding NRIT, income not obtained through a permanent establishment (PE) is taxed on each individual total or partial accrual of income subject to tax. This means that losses cannot be offset against gains. Taxable income for non-residents without a PE is generally the gross income stipulated in Spanish PIT law, and no reductions are applicable.

Non-taxable Payments

Travel expenses as a consequence of an employee (and family) relocation, including removal fees and the services of a relocation company, are not taxable. Public transport; any public transport cost for which tickets or receipts are presented to the employer are not taxable.

Payroll Cycle in Spain

The payment of salary must be made timely. Typically salaries are paid on the last day of the month or the first day of the following month. Employees are entitled to a monthly salary above the minimum wage. Additionally, they are also entitled to two additional mandatory monthly salaries per year, one at the end of July and the other at the end of December.

Non-payroll Taxes in Spain

Spanish VAT is payable on supplies of goods and services carried out in Spanish VAT territory and on imports/intra-EU purchases of goods and services. There are three rates of VAT for different types of goods and services.

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Acumen International PEO Benefits in Spain  

  1. 100 % compliant, quick, easy market entry. Acumen Global PEO is your local legal entity, helping you reduce the cost and time associated with incorporating.
  2. Immediate global employment service coverage in 190 countries
  3. Both a single point of contact and a dedicated account manager for your project for all target countries.
  4. Compliant and secure global employment operations. We help you adhere to all local laws and regulations in 190 countries
  5. A single contract for all in-country services (employment, immigration, legal, etc.)
  6. A single PEO provider assumes full responsibility for your international employees in multiple countries
  7. Payments are made within the UK or to the UK bank company account
  8. Fully compliant with standardized procedures and reporting systems
  9. You can delegate to Acumen Global PEO all HR responsibilities Payroll & benefits administration, background checks, and HR helpdesk
  10. Standard payroll breakdowns for all target countries
  11. As soon as we receive your request for a project in any country, we will send you a payroll breakdown and offer within 2 working hours
  12. Full 100% fee money-back guarantee for the employee or contractor payment delays.
  13. Tailored and 100% compliant employment contract drafts
  14. With Acumen in your corner, you can quickly and efficiently onboard and compensate your employees without risk of legal repercussions
  15. Acumen Global PEO protects your company’s Intellectual Property rights.

A Global PEO Can Help You Replace Multiple Employment Service Providers in Spain

If you’re looking to streamline your company’s operations and get a handle on global workforce management, partnering with a professional employer organization (PEO) can be a great solution. PEOs can provide a full suite of services to help you replace the following numerous vendors.

  1. Payroll Company
  2. Employee Benefit Broker
  3. HR Consultants
  4. Background Checks Vendors
  5. IP Attorney
  6. Tax Advisor
  7. Translation service
  8. Legal Advisor
  9. Immigration Advisor
  10. HR compliance advisor.
Disclaimer: Any of the above information is subject to changes imposed by Spanish laws. To get the latest updates on taxation in Spain and in 190 countries worldwide, contact Acumen’s team of global employment experts.
 
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