Spain Outsourcing

Outsource to Spain: Hiring Software Engineers in Spain

Grow your technology team with confidence by tapping into Spain's thriving talent pool through Hyperion360. Our Global Staffing & Team Extension Services ensure seamless, efficient, and cost-effective international expansion and outsourcing.

Already found qualified software engineers or other talent to work with in Spain? Hyperion360 can be your Employer of Record (EOR) in Spain. Hyperion360 helps you pay your team members anywhere in the world. If we don't have a local entity in a particular country we have a vast network of payroll partners who can help allowing you to hire top talent almost anywhere in the world. Need help finding software engineers? Contact us.

The Hyperion360 Talent Score for Spain is determined by evaluating and averaging several key factors that influence the attractiveness and viability of hiring software engineers in the country. These factors are assessed on a scale from 1 to 10, where 10 represents the highest performance or most favorable conditions.

Hiring Software Engineers in Spain

Key Facts About Hiring Software Engineers in Spain

• Large Talent Pool: Spain boasts a significant talent pool of skilled software developers, with over 350,000 IT professionals as of 2023.
• Cost-Effective: Hiring software engineers in Spain is cost-effective compared to other Western European countries, offering great value for high-quality talent.
• Quality of Work: Spain has invested heavily in its IT sector, resulting in a strong base of skilled and reliable software developers.
• Time Zone: Spain’s Central European Time (CET) zone provides excellent overlap with both European and American working hours, facilitating real-time collaboration.
• Language: English proficiency among IT professionals in Spain is high, ensuring smooth communication.
• Ease of Doing Business: Spain is ranked 30th in ease of doing business, with a favorable environment for the tech sector.
• Innovative Tech Scene: Spain has a vibrant startup ecosystem and a strong presence in the tech industry, contributing significantly to global technological advancements.
• Software Market Revenue: The Spanish software market generated over €20 billion in revenue in 2023, reflecting its strong and growing IT sector.
• Number of IT Companies: Spain is home to around 12,000 IT companies, from innovative startups to established multinational firms.
• Internet Infrastructure: Spain boasts a well-developed internet infrastructure with a high penetration rate. Major cities like Madrid, Barcelona, and Valencia have robust broadband connectivity, supporting the needs of tech companies and remote work.
• Universities and Education: Spain’s top universities, such as Universidad Politécnica de Madrid, Universidad de Barcelona, and Universidad Politécnica de Catalunya, offer highly regarded computer science and engineering programs. These institutions are known for their rigorous curriculum, research output, and strong ties with the tech industry, producing graduates who are well-prepared for the demands of the global IT market.

Benefits of Hiring Software Engineers in Spain

• Exceptional Technical Proficiency: Spanish software engineers are known for their advanced technical knowledge and problem-solving abilities, proficient in languages such as Java, C#, JavaScript, and Python.
• Culture of Innovation and Creativity: Spain’s tech ecosystem thrives on innovation and creativity, fostering an environment where software engineers excel.
• Cost-Effective Talent: Hiring software engineers in Spain offers high returns on investment due to the skilled talent pool and strong technical education system.
• Flexible Hiring Options: With Hyperion360, companies can hire Spanish software engineers through various methods, including direct hiring or setting up a foreign entity in Spain with our legal partners’ assistance.
• Thriving Tech Scene: Spain’s vibrant tech ecosystem, rich with innovative startups and established tech firms, offers ample opportunities for collaboration and growth.

Benefits of Outsourcing to Spain

Spain stands as a major player in Europe’s tech industry, offering numerous advantages for businesses:

• A Robust Market: Spain’s diverse economy includes a strong tech sector, advanced manufacturing, and a growing service industry.
• Strategic Trade Access: Spain’s strategic location provides access to major European markets and beyond, enhancing its trade and business opportunities.
• Advanced Infrastructure: Spain boasts modern infrastructure, including efficient transportation systems and world-class telecommunications, facilitating smooth business operations.

Common Pitfalls of Hiring Software Engineers in Spain

While Spain offers many benefits, there are some challenges:

• High Demand for Talent: The demand for skilled engineers is high, leading to competition for top talent. Hyperion360’s extensive network and staffing solutions help you secure the best talent quickly and efficiently.
• Regulatory Environment: Navigating Spain’s regulatory landscape can be complex. Hyperion360 helps manage legal and compliance aspects to ensure smooth operations.
• Cultural Differences: Understanding and adapting to Spain’s business culture is crucial. Hyperion360 bridges cultural gaps, ensuring seamless interactions and successful collaborations.
• Intellectual Property Concerns: Protecting intellectual property is vital. Hyperion360 offers guidance and support to safeguard your business assets.
• Language Barriers: While many IT professionals speak English, regional language differences may still exist. Hyperion360 facilitates effective communication and integration with your team.

Hyperion360’s tailored solutions address these challenges, enabling you to successfully hire and manage software engineers in Spain with confidence and ease.

Business Etiquette in Spain

Understanding cultural nuances is vital for successful business interactions in Spain. Here’s a detailed guide to help you navigate these intricacies effectively:

Greetings

• Handshakes: Greet and leave colleagues with a firm handshake. This is customary for both men and women. When attending a meeting, address all colleagues individually when saying hello and goodbye.
• Cheek Kissing: It’s common to greet with a kiss on both cheeks, especially among women or between men and women.

Communication Style

• Expressive and Emotive: Spaniards often use an expressive and emotive communication style, speaking their minds freely and incorporating gestures during conversations.
• Directness: Spaniards value direct communication but also appreciate politeness and respect.

Timekeeping and Punctuality

• Punctuality: Punctuality is highly valued in business settings. Arrive on time for meetings as a sign of respect and professionalism.
• Networking: Building relationships through informal discussions and networking is common and important.

Value on Relationships

• Personal Connections: Building strong personal relationships is essential for successful business dealings. Trust and rapport are crucial.
• Hierarchical Structure: Business structures are often hierarchical. Respect for seniority and titles is important.

Business Meetings

• Small Talk: Meetings often start with informal conversation to build rapport.
• Networking Focus: Use meetings to strengthen relationships as well as discuss business matters.

By understanding and respecting these cultural nuances, you can foster better relationships and ensure successful business interactions in Spain. Hyperion360’s tailored solutions help you navigate these cultural intricacies with ease, enabling seamless integration and collaboration with your Spanish team.

Employment Agreements

In Spain, while not mandatory, written employment agreements are strongly recommended to outline key conditions clearly. Essential elements to include are:

• Remuneration: Specify salary and any additional compensation.
• Job Description: Outline roles, responsibilities, and expectations.
• Working Hours: Define standard working hours and any flexibility.
• Place of Work: Mention the primary workplace and any remote work possibilities.
• Probationary Period: State the duration and conditions of the probation.
• Contract Type: Indicate whether the contract is fixed-term or indefinite-term.
• Company Policies: Include relevant workplace policies and guidelines.
• Travel and Transfers: Detail the conditions and possibilities for travel or relocation.

Some terms are automatically recognized under Spanish law, such as:

• The minimum wage
• Annual leave entitlement and vacation bonus
• Social Security payment requirements
• Benefits provided by collective bargaining agreements

Probationary Periods in Spain

The maximum probationary period in Spain is six months. This allows employers to assess the suitability of the software engineer within a defined timeframe.

Spain Payroll Laws

Tax Due Date

Individual taxes in Spain are due by June 30, following the financial year from January 1 to December 31.

Payroll Cycle

The payroll cycle in Spain is generally monthly.

Working Hours

Standard working hours are typically eight hours per day and 40 hours per week.

Minimum Wage and Salaries

As of 2024, the minimum wage in Spain is €1,080 per month.

Bonus Payments

It is common for employers in Spain to provide annual bonuses, often equivalent to one or two months’ salary, though it is not mandated by law.

Overtime

Overtime work is compensated at a rate of 125% to 150% of the regular hourly wage, depending on the collective bargaining agreement.

Taxes and Social Security in Spain

Tax Thresholds in Spain

In Spain, individuals are considered tax residents if they stay in the country for more than 183 days in a calendar year. Tax residents are subject to tax on their worldwide income.

As of 2024, the Spanish income tax brackets are as follows:

• 0.00 EUR – 12,450.00 EUR annually: 19.00%
• 12,450.00 EUR – 20,200 EUR annually: 24.00%
• 20,201.00 EUR – 35,200 EUR annually: 30.00%
• 35,200.00 EUR – 60,000 EUR annually: 37.00%
• 60,000.00 EUR – 300,000.00 EUR annually: 45.00%
• 300,000.00 EUR and over annually: 47.00%

Tax Relief for Expats (Beckham Law)

The Beckham law provides a tax advantage to foreigners in Spain. Expats are eligible to pay a flat fee of 24% on the income they earn within Spain. The law applies to all employees who reside abroad but wish to work in Spain, allowing them to pay taxes as non-residents for the first 6 years of their stay. To qualify for the Beckham law tax relief, the worker should not reside in Spain for 5 years prior to obtaining the tax benefit. The expatriation or relocation for the purpose of obtaining tax benefits under the Beckham Law may occur either in the first year of application or in the previous year.

The application needs to be submitted within 6 months starting from the date of the inscription in the Social Security Administration as an employee for the Spanish company; a late register will result in an automatic denial. To Apply, the worker should submit Model 149 to the Spanish tax agency (“Hacienda”).

Corporate Tax Rate in Spain

As of 2024, the corporate tax rate in Spain is:

• General Corporate Income: 25%

Social Security Rates in Spain

In 2024, the social security rates for employees and employers are as follows:

Employer Payroll Contributions in Spain

Employers in Spain are responsible for several additional payroll contributions, which include:

• Social Security: 24.18% of the employee’s salary (includes pension and Intergenerational Equity Mechanism (MEI), minimum monthly base is 1,260 EUR and the maximum is 4,720.50 EUR)
• Unemployment: 5.50% of the employee’s salary
• Salary Guarantee Fund: 0.20% of the employee’s salary
• Professional Training: 0.60% of the employee’s salary
• Work Accident Insurance: 1.65% of the employee’s salary (rates may vary according to the specific insurance policy)
• Remote Working Allowance: 50 EUR per month (minimum), must be applied when home working 30% or more of the time
• Total Employment Cost: 32.05% + 50 EUR/Month

Employee Payroll Contributions in Spain

Employees in Spain also contribute to their social security as follows:

• Social Security: 4.82% of their salary (including Intergenerational Equity Mechanism (MEI), minimum monthly base is 1,260 EUR and the maximum is 4,720.50 EUR)
• Unemployment: 1.55% of their salary (minimum monthly base is 1,260 EUR and the maximum is 4,720.50 EUR)
• Professional Training: 0.10% of their salary (minimum monthly base is 1,260 EUR and the maximum is 4,720.50 EUR)
• Total Employee Cost: 6.45%

Health Insurance in Spain

Spain offers a comprehensive public healthcare system, the Sistema Nacional de Salud (SNS), which provides universal healthcare to all residents. However, many companies also offer additional private health insurance to access enhanced medical services and shorter wait times.

Pension in Spain

Spain’s pension system includes mandatory contributions from both employers and employees. Employers contribute 23.6% of the employee’s salary to the social security system.

Paid Time Off in Spain

Annual Paid Leave

Spanish labor law guarantees employees a minimum of 30 calendar days of paid annual leave.

Parental and Maternity Leave

• Maternity Leave: 16 weeks of paid leave, typically divided into six weeks post-birth and 10 weeks taken flexibly.
• Paternity Leave: Up to 16 weeks of paid leave.

Sick Leave

Employees are entitled to paid sick leave, with the length and pay rate depending on the collective bargaining agreement.

Regional and National Holidays

Spain observes several national holidays, including:

• New Year’s Day (January 1)
• Epiphany (January 6)
• Good Friday (variable)
• Labor Day (May 1)
• Assumption of Mary (August 15)
• National Day (October 12)
• All Saints’ Day (November 1)
• Constitution Day (December 6)
• Immaculate Conception (December 8)
• Christmas Day (December 25)

Employment Benefits in Spain

The Spanish Social Security Institute (INSS) administers Spain’s social security benefits, including pensions, healthcare, and unemployment benefits. Contributions are collected from both employers and employees.

Termination and Notice Period in Spain

Employers must provide notice of termination as follows:

• Notice Period: Generally between 15 days to two months, depending on the employee’s length of service and the collective bargaining agreement.

Upon termination without cause, the employer must provide severance pay based on the employee’s length of service and salary.

Understanding these aspects of employment benefits in Spain helps you navigate the complexities of hiring and managing staff. With Hyperion360, you can ensure compliance with local regulations while optimizing your global staffing strategy. Enhance your workforce with top Spanish talent today!

Work-from-Home Arrangements and Remote Work in Spain

In response to the growing trend of remote work, Spain has implemented regulations to support flexible working arrangements:

• Legal Framework: Spanish labor laws allow for remote work arrangements, provided that both the employer and employee agree to the terms. The Teleworking Law regulates remote work to ensure fair working conditions.
• Work Environment: Employers are responsible for ensuring that remote employees have a suitable work environment and necessary equipment.
• Health and Safety: Employers must ensure that remote workers adhere to health and safety standards, including ergonomics and regular breaks.
• Communication: Clear communication channels and regular check-ins are essential for remote work arrangements.

With Hyperion360 you don’t have to worry about compliance with local regulations for your Spanish team.

How Hyperion360 Can Help You Hire Software Engineers in Spain

Navigating the complexities of hiring and managing software engineers in Spain can be challenging, but Hyperion360 simplifies the process with our comprehensive global staffing services. When you partner with Hyperion360, you pay us directly, and we take on all the legal and compliance risks, managing every aspect of HR, benefits, payroll, and local taxes.

Our Services Include:

• Assuming Legal and Compliance Risk: Hyperion360 hires the software engineers directly, eliminating the legal risks of complying with Spanish law for your company.
• Managing HR Functions: We handle all HR-related tasks, from recruitment and onboarding to managing paid leave and termination, ensuring a smooth and efficient process.
• Administering Benefits: Hyperion360 oversees employee benefits, including health insurance, retirement plans, and other statutory benefits, ensuring your workforce is well-supported and highly engaged.
• Efficient Payroll Management: Our services include managing payroll cycles, payroll taxes, and bonus payments seamlessly. We handle all payroll processing, ensuring accuracy and timely payments for your software engineers.
• Handling Local Taxes: The monthly fee you pay us for software engineers is inclusive of local payroll taxes, benefits, legal, HR, accounting, etc. so you can focus on your core business operations.

Benefits of Partnering with Hyperion360:

• Access to Top Talent: Leverage our network to access a pool of highly skilled software engineers in Spain, ensuring you hire the best talent for your needs.
• Streamlined Processes: Our integrated approach simplifies the hiring and management process, reducing administrative burdens and allowing you to focus on strategic business goals.
• Cost-Effective Solutions: By managing HR, benefits, payroll, and compliance, we help you save time and resources, offering a cost-effective solution for expanding your team in Spain.
• Comprehensive Support: From recruitment to ongoing management, Hyperion360 provides full support to ensure your Spanish workforce is effectively managed and aligned with your business objectives.

With Hyperion360, you can confidently expand your tech team in Spain, leveraging our expertise to overcome common pitfalls and maximize the benefits of hiring skilled software engineers in this dynamic market.

Ready to hire software engineers in Spain? Contact us to learn more about how Hyperion360 can support your global staffing needs.

Ready to Hire Software Engineers in Spain?