How much does an employee cost in Spain? (includes calculator)

How much does an employee cost in Spain

How much does an employee cost in Spain? (includes calculator)

One of the main concerns for foreign businessman who intend to establish a company in Spain is how much does an employee cost in Spain, ie, what is the monthly amount of tax to be paid to the Social Security for each worker. At the end of this post you will find a cost of hiring an employee calculator.

Likewise, briefly understanding the operation of the Spanish labour contribution system to the Social Security can provide more security in the decision process of creating or expanding a business to Spain.

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Immigration into Spain (Entrepreneurship act)

Law on Support of the Entrepreneurship and its Internationalization

Common Features and requirements.

Features

  • The procedures are very agile: 10 days for visas and 20 days for authorizations
  • There is a single authorization for living and working in Spain
  • These authorizations are valid for the whole of Spain
  • The National Employment Situation will not be considered for the employees
  • The family (spouse and children under 18 or dependants in legal age or ascendants) and will be able to apply for their visas at the same time as the main applicant

Requirements

  • Not being in an illegal situation in Spain
  • Being 18 years old or older
  • Not having criminal records
  • Having a public or private health insurance from an entity authorized to operate in Spain
  • Having enough economic resources for you and the members of your family applying for residence in Spain to cover living personal expenses. (Monthly amounts: Applicant €2151,36 (2018) Relatives €537.84 (2018) for each relative. In case of executives and highly qualified professionals, this requirement will be proved by their working contract with a company, entity or R&D program

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Closing a limited company in Spain

INTRODUCTION

The process of closing a limited company in Spain consists of two phases. The first phase is called dissolution and the second liquidation. The objective of these two phases is the final closure of the company. It is important to understand that the beginning of the closure with the dissolution does not mean that the company is paralyzed, it simply enters a period (called the liquidation phase) in which the company has to dispose of the assets it has in order to proceed to the final closure. During this period, the company’s objective stops being that of obtaining profit and becomes the final closure.

 

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Company formation Spain

Steps to establish a Limited Company in Spain [2 of 2]

….. Read part 1

OTHER THINGS TO TAKE INTO ACCOUNT

If you do not have Spanish ID

Any person who wants to form a company must have a Spanish DNI. In case of being a foreigner and not having a DNI, it will be essential to obtain a foreigner identification number, the so-called NIE. It is important to bear in mind that the NIE is necessary for anyone who wants to be an administrator or partner of the company. In the case of which one of the partners is another company, it must obtain a Spanish Tax ID (NIF).

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Company formation Spain

Steps to establish a Limited Company in Spain [1 of 2]

Do you want to start your own business in Spain? Do you need to create a Limited Company for your business?

 

These are the steps to follow:

CHOOSE AND OBTAIN NAME OF THE COMPANY

The company we are going to create must have a unique name, a name that no other company has. To avoid that two companies have the same name, there is a registry, Central Mercantile Registry, in which all existing companies are listed and to which we must ask if the name we want is free.

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