Guide to living and working in Spain

Spain

 View the latest Jobs in Spain on Exposure Jobs

 

 

 

Country Overview

 

Population

45.1m

Unemployment Rate

9% (03/08)

Average annual unemployment rate 1995 – 2004

12.2%

GDP

€866bn / $1,351bn

GDP per head

€20,419 / $31,835

Capital

Madrid

Major language

Spanish (Castilian), Catalan

Life Expectancy (UN)

78 years (men)

84 years (women)

Monetary unit

1 euro = 100 cents

Internet domain

.es

International dialing code

+34

 

Spain's mixed capitalist economy supports a per capita GDP approaching that of the leading West European economies. Average GDP growth above 3% during 2003-07 was relatively strong in the context of a faltering European economy. The Socialist president, Zapatero, has made advances in carrying out key structural reforms, which need to be accelerated and progressed in order to sustain Spain's economic growth. Despite the economy's relative solid footing, there are still some significant risks which remain. These include: Spain's continued loss of competitiveness, the potential for a housing market collapse, the country's changing demographic profile and a decline in EU structural funds.

 

The Economy

 

 

Industries include: textiles and apparel (including footwear), food and beverages, metals and metal manufactures, chemicals, shipbuilding, automobiles, machine tools, tourism, clay and refractory products, pharmaceuticals, and medical equipment.

 

Pay

 

 

 


Human development Index

 

Ranking:  13th
Index value:  0.949

The Human Development Index combines statistics on GDP, adult literacy, average years of schooling and life expectancy to provide an indicator of human development. The HDI shown here gives the ranking of 24 countries among 177. See http://hdr.undp.org/en/ for more information.

 

Getting a job

Overview of the labour market:

The Spanish economy at the end of 2007 and the start of 2007 is showing worrying signs of stress, with growth slowing and a sudden increase in unemployment. Weakened domestic demand and the crisis in the construction and property sectors has the potential to cause significant problems if it worsens. 

In April 2008, 2.3 million people were registered as unemployed in public job centres, which is a significant increase during the previous 6 months. Breaking down the unemployment numbers by gender showed that 39.8% were men and 60.2% were women. Breakdown by economic sector showed: agriculture 3%, industry 13.9%, construction 11.7%, services 60.6% and no previous employment 10.8%.

One important explication for high levels of unemployment is the existence of a variety of jobs for which the number of applicants exceeds the number of posts on offer. These applicants also find access to employment difficult because of their low level of professional qualifications and their lack of experience required for the position. The biggest percentage of these types of jobs is found in the service sector. Low professional qualifications are not the only problem however; access to employment is also proving difficult for graduate jobseekers.

Applying for a job:

While some companies provide an application form, it is much more common to submit a CV and a covering letter. This may be done when replying to a job advertisement or when making a spontaneous application. Unless otherwise indicated, both the letter and the CV must be in Spanish and typed Use a single sheet of A4 paper. The structure is as follows:

Upper left hand: Sender’s name, surname, date of birth, address and telephone number. Below, also on the left, write the name of the company and the person to whom it is addressed. Below this, write the place and date of the letter. The job reference is written beneath.

Opening: use expressions such as ‘Muy Señor Mío’ or ‘Estimado Sr/Sra’:

Main text of the letter: You should explain why you are applying for the job and highlight the aspects of your CV that make you suitable for the position.

Signing off: use formal expressions such as: ‘En espera de sus noticias, le saluda atentamente’. Sign the letter and write your name and surname.

Curriculum Vitae:

It must be structured, clear, concise and written using a word processor. It is best to use no more than two A4 pages. It is not necessary to attach a photograph, although this may be useful for some positions. Only attach qualifications and certificates if requested, these may be brought to the interview. CV structure:

  • Personal Details: name, nationality, full address, telephone number, e-mail.
  • Training: Include academic and further training. You should normally include a separate paragraph with details of your knowledge of foreign languages and IT. For academic training, include the qualifications relating to the job you are applying for, mentioning the awarding body, place of study and date on which you obtained your qualification. 
  • Experience: this may be listed in chronological or reverse chronological order and also according to professional fields. Give the name of the company, job title, dates and the tasks performed. 
  • Further details: This is optional and used to provide any information which may prove relevant to the job, for example whether you have a driving licence, are free to travel, etc. References are not normally included although you could use the expression ‘se facilitaran referencias en caso de ser solicitadas’ [references will be provided if called for interview].

In Spain, selection processes are normally based on personal interviews and occasionally accompanied by psychometric and/or vocational tests. The interview may be held with a single interviewer or several interviewers at the same time, depending on the company and the position.

 

Conditions and rights

Employment law:

Spain has a relatively modern constitution and highly regulated labour market. The principal basis for all employment relationships is the Statute of Workers. At the age of 18 a Spanish worker may enter into a binding contract that gives him/her a wide range of protection including generous compensation for unfair dismissal.

Working hours:

Standard hours: normal working hours must average 40 hours per week maximum, calculated on an annual basis. The actual number of normal working hours may never exceed 9 per day unless a collective agreement or an agreement between the company and workers' representatives decides otherwise.

Overtime: is considered to be hours of work carried out over and above the maximum number of normal working hours. Workers may work a maximum of 80 hours overtime per year. Overtime may be paid or compensated for with equivalent paid rest time.

Holidays and leave: Holidays may be agreed individually or collectively and may not be less than 30 calendar days. Holidays cannot be replaced by financial compensation.

Paid leave: 

  • Marriage: 15 calendar days. 
  • Birth of a child or death, accident, serious illness or hospitalisation of a relation: 2 calendar days or 4 if required to travel. 
  • Moving house: 1 day.

Temporary invalidity: protects the situation of a worker who is unable to work and in need of medical assistance for any of the following reasons: a) common illness or work-related illness b) accident, whether work-related or not c) periods of observation for occupational diseases.

Maternity and paternity leave: maternity leave lasts sixteen uninterrupted weeks, which may be extended by two weeks for multiple births for each child from the second child onward. Irrespective of the obligatory 6 week post-birth leave, if both parents work, the mother may opt for the father to take a portion of the leave following the birth.

Extended leave of absence: Extended leave of absence means a situation where the employment contract is suspended at the employee’s request and may be: 

  • Compulsory: Appointment or election to public office or the performance of provincial or broader trade union duties. 
  • Voluntary: At least one year’s service in the company is required. The right to keep the job is not recognised, but priority is given when there is a vacancy. The duration is between 2-5 years. 
  • Extended leave of absence to care for members of the family: There is a maximum duration of three years to care for each child. Employees are also entitled to leave of absence of 1 year to care for a relation, who for reasons of age, accident or illness cannot look after themselves and do not perform paid work. 

Spain Public holidays: 1st January, 6th January, 19th March, Maundy Thursday, Good Friday, 1st May, 15th August, 12th October, 1st November, 6th December, 8th December and 25th December. In addition, each region (comunidad) has additional (and different) public holidays.

 

Contracts

Types of employment:

The minimum working age in Spain is 16, although permission from parents is required up to 18, unless the person is legally emancipated.

Indefinite contracts: The aim of this contract is to enter into a working relationship without establishing a time limit. Such contracts may be drawn up verbally or in writing for full or part-time agreements.

Contacts with a fixed duration (temporary) may be drawn up in the following circumstances: 

  • Contract for the performance of a specific task or service: These are agreed for carrying out a specific task, whose execution, though limited in time, is of uncertain duration at the outset. 
  • Contract for production contingences: The aim of this contract is to meet circumstantial requirements associated with the employment market, a back-log or excess of orders. This contract may not run for more than 6 months within a 12 month period. 
  • Temporary replacement contract: When it is necessary to replace a worker with the right to retain the position.

Training contracts are also for temporary periods:

Training contract: These may be drawn up with workers aged over 16 and under 21 who lack the qualifications required to draw up a work experience contract. This contract must run for at least 6 months but cannot be longer than 2 years. 

Work experience contract: The following requirements must be fulfilled in order to enter into this contract: a) The worker must possess one of the following qualifications: University or Vocational Training qualification, or equivalent. b) More than 4 years should not have elapsed since ending the corresponding studies, or 6 years if the contract is drawn up with a disabled worker. This contract must run for at least 6 months but cannot be longer than 2 years.

Home-work and part-time contract: The duration of this contract may be indefinite or fixed. In both cases, it will always be drawn up in writing, specifying the place where the services are provided and the duration of the working day.

Employment contracts:

The employment contract may be in writing or verbal, which is more unusual. Contracts in Spain are registered at the employment offices, which keep a copy of the contract or the notification (in the case of verbal contracts).

A probationary period may be required, although it is not compulsory. If required, it must be stated in writing and the maximum duration of the probationary period is 6 months for qualified technicians and 2 months for other workers. During the probationary period, the working relationship may be terminated by either of the parties for any reason.

When a working relationship exceeds four weeks and the contract has not been drawn up in writing, the employee must inform the worker of the essential points of the work contract within 2 months of the start date: 

  • Identity of the parties, address of the company and the workplace where the worker performs his duties. 
  • Date on which the working relationship starts, category or professional group of the job performed, duration of an ordinary working day and how this is spread out. 
  • Amount of initial basic salary and supplements to pay and also when paid (monthly, weekly, etc.). 
  • Number of holidays and, where applicable, how holiday dates are determined. 
  • Period of notice that the employer and employee must give, should the contract be terminated, or at least how this period must be worked out. 
  • The collective agreement applicable to the employment relationship, stating the specific features by which it can be identified.


 

Visas and work permits

Visas:

Spain is a signatory to the Schengen Treaty. The 15 Schengen countries are: Austria, Belgium, Denmark, Finland, France, Germany, Iceland, Italy, Greece, Luxembourg, Netherlands, Norway, Portugal, Spain and Sweden. With a Schengen visa, you may enter one country and travel freely throughout the Schengen zone.

Nationals of certain countries can visit Spain for up to three months without a visa but will need to be granted a work permit or visa to take up employment.

Passport Holders from the following countries do not need a visa to visit Spain for up to 90 days: Germany, Andorra, Argentina, Austria, Australia, Belgium, Bolivia, Brazil, Brunei, Bulgaria, Canada, Chile, Cyprus, Costa Rica, Croatia, Denmark, El Salvador, Slovakia, Slovenia, The United States, Estonia, Finland, France, Greece, Guatemala, Holland, Honduras, Hungary, Ireland, Iceland, Israel, Italy, Japan, Malaysia, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, Monaco, Nicaragua, Norway, New Zealand, Panama, Paraguay, Poland, Portugal, United Kingdom, Czech Republic, Republic Of Korea, Romania, San Marino, Sweden, Singapore, Switzerland, Sweden, Uruguay and Venezuela.

Nationals of countries not mentioned above will need a visa to visit Spain. To apply for visas please contact your nearest Embassy or Consulate of Spain.

Work permits:

EU nationals: Spain does not apply any restrictions on the access to its labour market by citizens of other EEA countries including citizens of ‘new’ EU member countries (Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia). Therefore, if you are an EU national you do not need a work permit to work in Spain, you can enter the country as a tourist and register with the Spanish national employment office to look for a job. You then have 90 days to find employment; you can obtain an extension after that date or leave Spain and re-enter for a further 90 days. Once you find a job, you will need your employment contract in order to apply for your residence permit.

Non-EU nationals: who wish to work in Spain must obtain a work permit. They must also obtain a visa before moving to work in Spain. Work permits must be applied for at the Foreigners' Office or to the provincial office of the Ministry of Labour, if you are already in Spain. If you are not in Spain, a work permit must be applied for at the Consular office of your home country. The provincial labour offices will decide whether the work permit will be issued or not.

 

Tax, social security and healthcare

Taxation system:

Taxation in Spain occurs at a national level and at a regional or municipal level. Spanish residents are taxed on their worldwide income (earned and unearned), capital gains from all sources and on their world wide assets. Spain operates a self-assessment regime. Married couples may choose to file tax returns jointly or separately. Spanish residents are subject to Spanish Personal Income Tax (‘IRPF’). Individuals and couples benefit from tax free allowances (Personal Allowances), which are increased in respect of dependent children and depend upon personal circumstances and total earnings.

There are no special tax provisions for foreign nationals moving to Spain. Expatriates living in Spain will be classified as Resident or Non-Resident. An individual is considered resident if:

  • They spend more than 183 days in Spanish territory in a calendar year or,
  • Their principal place of business is based in Spain or,
  • Their spouse and/or dependent children are habitually resident in Spanish territory.

Income generated from employment overseas are tax exempt up to a certain limit provided that the work is undertaken for a company non-resident in Spain and that a tax similar to the Spanish Personal Income Tax is applied in the territory where the work is undertaken. In addition, the territory must not be considered a ‘tax haven’ by the Spanish tax authorities.

Expatriates living in Spain who are classified as Non-Residents are liable to Spanish Non-Residents Tax, as opposed to Spanish Personal Income Tax charged to Residents. Non-Residents are only taxed on income and gains obtained or generated in a Spanish territory, compared to worldwide income and gains for Residents. Non-Residents may only file individual tax returns, unlike Residents who may file joint returns in respect of a married couple.

Income Tax Rates 2008:

Income Band (€)

State Tax (%)

Local Tax (%)

Total Tax (%)

0 – 17,707

15.66%

8.34%

24%

17,707 – 33,007

18.27%

9.73%

28%

33,007 – 53,407

24.14%

12.86%

37%

53,407+

27.13%

15.87%

43%

 

Social security system:

Two levels of protection are offered by the state:

  • Contributory scheme: covers people who live or legally reside in Spain, provided they are employed or self-employed within Spain. 
  • Non-contributory scheme: this Social Security system applies to all Spaniards resident within Spain; Latin Americans, Portuguese, Brazilians, Nationals of Andorra and the Philippines and nationals of other countries covered by treaties, bilateral agreements or conventions.

Anyone who is about to take up work must have a social security number. The Social Security General Treasury will allocate Social Security Numbers to all citizens to identify them in their relationships with the Treasury. A number will also be allocated to the beneficiaries of pensions and other System benefits. Employers must apply for membership of the Social Security System for their workers. Self-employed or employed workers are obliged to apply for membership.

Contributions: All workers must contribute to the Social Security System. The company will detract the contribution percentage payable from the worker’s gross salary and the deduction will be shown in the payslip.

Health system:

In Spain, medical and pharmaceutical services are provided through public hospitals (belonging to the Social Security) and also through private hospitals.

Public health - The Spanish state covers the health and pharmaceutical needs of all its citizens by means of the National Health Service, financed through Social Security contributions and managed by the Autonomous Communities through their Health Departments and Regional Health Services. More than 90% of the population use this system for their medical needs.

All employed and self-employed persons must join the Social Security system and pay monthly Social Security contributions. They are given a Social Security card which must be applied for in the Health Centre corresponding to their address. This entitles them to obtain free medical, pharmaceutical and hospital care but not dental care.

The system allows members of the public to choose their own GP. To consult a specialist, patients must be referred by their GP, except in urgent cases. Drugs are always prescribed by a doctor using an official prescription and the patient pays 40% of the price. Medicines usually cost less than in other countries, due to price capping by the government. EU citizens who are not in the Social Security System may obtain health care during temporary trips to Spain provided they have their European Health Card from their own country.

Private health – Approximately 15% of the population has taken out a form of private medical insurance to complement or as an alternative to the public health service. It is possible to take out such insurance with one of the many private medical companies or firms in Spain. These companies have their own clinics, surgeries and laboratories.

 

Lifestyle:

Following the introduction of democracy in the late 70s, Spain has developed into a highly decentralized society. Each of the nation’s regions is autonomous and a few are even working hard to break away from Madrid. This means that as an ex pat your experience of Spain can differ hugely, whether you are living, for example, in the business hub of Barcelona or the relaxed sunny south.  Healthcare, education, cuisine and even language can differ between regions. The country has benefited from considerable EU funding and continues to invest in an impressively modern infrastructure, including its AVE high speed train network, which soon will eclipse Japan and France to become the worlds fastest and biggest high speed train network.

Spaniards are amongst the most welcoming, open and friendly people in Europe, compensating for some of the frustrations of living in a Mediterranean country where bureaucracy can be challenging.