Australia’s regulatory landscape is known for its complexity and stringency, posing significant challenges for businesses. Navigating this environment requires not only a thorough understanding of the laws but also strategic foresight to anticipate and adapt to regulatory changes. In Australia, regulatory compliance spans across various sectors, each with its own set of rules and standards.… Read more »
As of 1 January 2025, wage theft in Australia is classified as a criminal offence. Employers must now navigate this new legal landscape to avoid severe penalties. Wage theft, including underpayment of wages and withholding entitlements, has been a persistent issue. The new legislation aims to ensure fair treatment of employees and holds employers accountable… Read more »
Announcement of Finalist Selection Polyglot Group is proud to announce that our CEO, Corinne Bot, has been selected as a finalist in this year’s French-Australian Excellence Awards 2024 in the Diversity, Inclusion & Gender Equality and High Impact Business & Leadership categories. Award Significance These awards are given for outstanding achievement by an enterprise led… Read more »
Celebrating Excellence in Munich: Double Recognition for Our Team Last week, Michelle, our Global Head of Payroll Services, had the pleasure of attending a special event in Munich. We’re excited to share that she brought back two incredible awards on behalf of our team. We received a Certificate of Achievement for Performance Excellence, highlighting our dedication… Read more »
What is diversity, and what does it really mean to the business world? To put things simply, diversity is “the condition of having or being composed of differing elements; especially the inclusion of different types of people (such as people of different races or cultures) in a group or organisation.” Businesses are beginning to… Read more »
As the festive season approaches, companies across Australia are eagerly preparing for their annual Christmas parties. These celebrations are a fantastic opportunity to recognise the year’s achievements and strengthen team bonds. However, without a clear understanding of internal company policies, these joyous occasions can sometimes take a dark turn. Consider the following scenarios: A company hosts… Read more »
A workplace code of conduct is a roadmap for behaviour, a tool for shaping culture, and a shield against legal issues. But how do you create a code that truly works? One that aligns with your company’s values, promotes a positive environment, and ensures compliance with laws and regulations? This is the challenge many business… Read more »
Each business is different from the next, from its size, goals and needs. But payroll is something that every business must manage and payroll outsourcing can prove to be highly beneficial. You see it time and time again – internal payroll teams scrambling to ‘cross the t’s’ and ‘dot the i’s’ throughout the business… Read more »
Spain is a country on Europe’s Iberian Peninsula, which includes 17 autonomous regions with diverse geography and cultures. Its territory also includes the Canary Islands off the coast of Africa and the Balearic Islands in the Mediterranean Sea.
Spain’s population is approximately 47.3 million people.
Spain ranks as the 14th largest economy with its national GDP valued at $1.715 trillion.
The business culture in Spain is generally characterised by a traditional and hierarchical structure, with clear divisions between management and workers. Relationship-building and integrity are highly valued in the Spanish business world, with the family unit serving as a central focus. The pace of business in Spain mirrors the energetic yet unhurried rhythm of daily life.
Public holidays play a significant role in shaping work schedules and fostering extended breaks for employees in Spain, contributing to the unique tapestry of Spanish business culture. These holidays, rooted in cultural and historical significance, often influence the pace and timing of business activities, highlighting the importance of considering the local calendar for effective planning and engagement in the Spanish professional landscape.
The economy of Spain is one of the largest in the world by purchasing power parity. The country is a member of the European Union, the Organisation for Economic Co-operation and Development, and the World Trade Organisation.
Also, the Spanish economy is the fifth-largest in Europe behind Germany, United Kingdom, Italy, and France. It is the fourth-largest in the Eurozone, based on nominal GDP.
Spain is part of the harmonised trade system of the EU. As such, imports and exports are covered by the EU Taxation and Customs Union.
Spain’s most valuable exports are cars, followed by refined petroleum oils, automotive parts or accessories, drugs and medicines, trucks, and olive oil.
Spain’s number one import product is crude oil, followed by imported cars, auto parts and accessories, medication mixes in dosage, petroleum gases, and refined petroleum oils.
Spain has been a member of the WTO since 1 January 1995, and a member of GATT since 29 August 1963. It is a Member State of the European Union. All EU Member States are WTO members, as is the EU (until 30 November 2009 known officially in the WTO as the European Communities for legal reasons).
Expanding to Spain? Here is a breakdown of the key things to keep in mind.
The Spanish market boasts huge potential for business opportunities. Setting up your business in Spain can be done through various methods, such as partnering with an Employer of Record or ETT (Empresa de Trabajo Temporal) to outsource employment, opening a representative office, setting up a branch, or establishing a subsidiary in Spain.
Curious to simplify setup and best understand Spain’s legislative frameworks around company registration? Click here for more information.
In Spain, the personal income tax is called the IRPF. It works following a dual system and is levied both at the national and municipal level. Therefore, Spanish income tax rates are different from one region to another.
The deadline to submit tax assessments can vary. Generally, taxes must be filed by the 20th of each month or by the 20th of each month following the end of a quarter. Late penalties and other fees may apply.
Non-resident companies are eligible for a special Tax Regime by the Spanish Government. To comply with Spanish regulations, all companies must register at the Tax Office (Agencia Tributaria) to get a Tax Identification Code. To learn more, click here.
Employment in Spain is highly regulated and very protective of employee rights. Temporary contracts are the most common. Indefinite or permanent contracts are quite rare and difficult to obtain in the current economic climate. Both have minimum employment terms and conditions that employers must observe.
There are 3 types of workers; general employees, executives, and self-employed who have their separate regulation and jurisdiction.
The probation period is not compulsory in Spain, but it could be required, depending on companies’ policy.
However, in Spain, as jobs are grouped into categories, each category can have its own set of regulations. To learn more, download our eBook here.
Everyone outside the EU/EEA states and Switzerland requires a work permit to work freely in Spain. The employer needs to request the work permit on the employee’s behalf; however, it might take up to 8 months to process. Once the work permit has been granted, the employee must apply for a residence Spanish visa.
After arriving in Spain, foreign workers must:
– Register in the corresponding Social Security scheme.
– Apply for a foreigner identity card (NIE).
For more information on this, continue reading here.
As with many European countries, the Tax Year runs on the calendar year, from the 1st of January to the 31st December.
The general rate of company tax is 25% and must be filed within 6 months and 25 days after the end of the accounting period.
Companies pay social security tax equal to 29.9% of the employee’s salary, up to a salary threshold of EUR 3,596.98. Moreover, employees are also liable to pay social security contributions.
The national sales tax on goods and services is known as the IVA, which is 21%.