Payroll taxes
in Spain

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Spain

What is the average employer tax rate in Spain?

The corporate tax rate is 25%, but some companies may be liable for additional taxes depending on their specific situation. There are both national and municipal-level taxes that may be due.

What is the average employee tax rate in Spain?

In Spain, employees are taxed progressively. The tax rates as of 01 Jan 2021 on yearly income are:

0 – 12,450 → 19%
12,451 – 20,200 → 24%
20,201 – 35,200 → 30%
35,201 – 60,000 → 37%
60,000 and above → 45%

The average net tax rate for a single worker in 2021 was 21.1%.

Employer contributions in Spain

Employers must contribute towards social insurance schemes, and these contributions total roughly 30% of each employee’s salary, with an upper limit of slightly above €3,500.

Employee contributions in Spain

The average employee contribution to social security in Spain is 6.35% (as of Jan 2021). This can vary based on the type of employment contract.

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What is the average employer tax rate in Spain?

What is the average employee tax rate in Spain?

Employer contributions in Spain

Employee contributions in Spain

Hiring in Spain, Made Easy

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FAQs

What is the tax bureau of Spain called?

The Spanish tax bureau is called the “Agencia Estatal de Administración Tributaria“, or the AEAT. In English it can be called the Spanish Tax Administration Agency.

Is there an employer payroll tax contribution in Spain?

There is no employer payroll tax contribution in Spain.

There are other necessary contributions (and a 25% corporate tax rate), but payroll tax is not one of them.

How does the payroll tax system of Spain work?

Payroll tax in Spain is tax that comes out of the employee’s salary every month. The employer will withhold the correct amount on behalf of the employee.

Spain’s payroll tax system is progressive, ranging from 19% – 45% for individuals, depending on several factors including the employee’s annual income and in which region the employee resides.

There is a 25% corporate tax rate.

Employers must also pay into social security; the most typical contribution breakdown is 23.6% for employers and 4.7% for employees.

There is also a contribution to the unemployment fund in Spain. The unemployment contribution rate for employers is usually 5.5%; the rate for employees is 1.55%.

Employers must also pay into the Salary Guarantee Fund (Fondo de Garantía Salarial, FOGASA) at a rate of 0.2%.

Finally, employers also pay into a vocational training contribution at a rate of 0.6%. The rate for employees is 0.1%.

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"As a seed-stage, London-based startup, we were initially hesitant to expand internationally due to the administrative workload involved. Horizons took the headache out of the process, allowing us to hire a team of software engineers in Germany."

Gabor SzedlakCo-founder & COO at MindLabs (UK)

"I truly appreciated the thoroughness and the professionalism of Horizons personnel while we hired internationally with them. They were knowledgable on all subject matters pertaining to international employment."

Gary PaskyVP Software Development, PICS ITech (USA)

"On deciding to begin commercial activities in Asia Pacific, we needed a provider to handle the employment and remuneration of our workforce. With Horizons the result was fast, efficient, and fit-for-purpose. We recommend Horizons as an EOR provider.”

Chris MorrellManaging Director, Schaeffler Group (Germany)

"The collaboration with the Horizons team is excellent. Both our local employee as well as our HQ in Germany are more than pleased with the support provided and the simplicity of the service. We can highly recommend the Horizons solution to anyone."

Christoph EngelbertCo-Founder & CTO, Clevabit (Germany)

"We needed an EOR that could provide expert support for payroll in APAC. We are pleased with Horizons’ expertise and the fact that they are flexible, responsive, and easily accessible from Belgium. They were able to provide services within the short timeline we required."

Katia FlamandHuman Resources, Devian Chemicals (Belgium)

Payroll taxes
in Spain

Start hiring in Spain

What is the average employer tax rate in Spain?

What is the average employee tax rate in Spain?

Employer contributions in Spain

Employee contributions in Spain

Hiring in Spain, Made Easy

FAQs

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

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Payroll taxesin Spain

Start hiring in Spain

What is the average employer tax rate in Spain?

What is the average employee tax rate in Spain?

Employer contributions in Spain

Employee contributions in Spain

Hiring in Spain, Made Easy

FAQs

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

180+

100+

24x5

130+

180+

100+

24x5

130+

What to expect when you connect with Horizons

Payroll taxes
in Spain