Payroll Obligations for New Spanish Companies
Company SetupEverything you need to know about payroll in Spain: contracts, Social Security, and monthly obligations.
By Raquel ChicaHiring employees in Spain triggers a comprehensive set of payroll and employment obligations. Spanish labour law is highly protective of workers, and compliance requirements are strictly enforced.
Employer Registration with Social Security
Before hiring any employee, you must register as an employer with the Spanish Social Security system using Model TA.6.
Employment Contracts
All employment relationships must be documented in a written contract. Spanish law recognizes various contract types including indefinite and temporary contracts.
Social Security Contributions
Both employers and employees contribute to Social Security. Total employer cost is approximately 30-35% on top of gross salary.
Income Tax Withholding (IRPF)
Employers must withhold personal income tax from employee salaries and remit it to the Tax Agency.
Monthly and Periodic Obligations
- Monthly: Social Security contributions due by last day of following month
- Quarterly: Form 111 for IRPF withholdings
- Annual: Form 190 summary of withholdings
Ready to hire in Spain? Contact our labour team to discuss payroll setup.