3 Situations for Posting Staff to Spain Malik Atif

Fascinating in posting staff to Spain? As companies develop globally, understanding the authorized nuances of worldwide employment is essential to success. 

On this weblog, we are going to clarify the obligations that should be fulfilled within the context of the posting of staff. From the International Mobility division, we provide all the mandatory providers to make sure that the worldwide mobility of staff takes place safely and follows the relevant authorized laws.

On this sense, earlier than beginning, it is very important keep in mind that within the worldwide posting of a employee to Spain, it\’s essential to consider the Pentagon composed of 5 obligations: Immigration, Social Safety, Nationwide Labour, Worldwide Labour and Tax. As we are going to see, in some instances not all of them will come into play, however normally, it is going to be essential to cowl all 5 steps.

Key Factors About Posting Staff Overseas: The Pentagon composed of 5 obligations

  • Immigration: posted staff should have a particular work allow. The kind of allow will rely upon the time they are going to be in Spain and their nationality.
  • Social Safety: usually, posted staff stay inside their house nation’s Social Safety system. Nonetheless, particular documentation and agreements are vital to verify these preparations, such because the A1 certificates.
  • Nationwide Labour: posted staff should have their employment phrases and situations aligned with these mandated by Spanish labour legal guidelines, together with minimal wage, working hours, and well being and security requirements.
  • Worldwide Labour: corporations posting staff to Spain should register the task with Spanish authorities, offering particulars in regards to the period of the keep and the character of the work.
  • Tax: tax obligations of posted workers must be taken into consideration.

Understanding these elements is essential for companies to make sure compliance and shield the rights of their staff whereas benefiting from the flexibleness of worldwide postings.

By familiarizing your self with the authorized necessities and correct procedures for posting staff, your corporation can profit from its international workforce with out working afoul of native laws.

Case Examine 1

Case Background

Posting of a European Worker of a multinational vehicle firm from Germany to Spain.

This yr we had the next case: a German worker whose German firm wished to put up to a centre of labor in Spain for greater than 18 months.

Case Technique

Immigration:

When European workers are posted to Spain, it\’s important to adjust to the EU laws. On this sense, European staff get pleasure from free motion inside the European Union, besides, after they spend greater than three months in Spain they have to register right here and procure the European Union (EU) Certificates. On this sense, we moved the employee to Spain and obtained the mentioned EU certificates.

Social Safety:

Within the space of Social Safety, the staff should perceive the variations within the techniques between Germany and Spain. On this regard, there are two potentialities: that the German firm requests an A1 certificates for the German worker, making certain that social safety might be paid in Germany throughout the interval of posting; or that the worker is registered within the Spanish social safety system throughout the time he\’s posted in Spain.

In both case, the social safety obligation is unavoidable, whatever the interval of the task, as a result of the danger that the worker has an accident throughout the working day should be lined and it should be clarified which social safety authority covers it.

On this sense, because it was a brief posting, the German firm requested a protection certificates in order that the worker can be lined throughout the time he was in Spain.

Nationwide Labour:

When it comes to Nationwide Labour, workers should respect Spanish labour laws. This consists of work agreements, working hours and particular situations associated to the sector of exercise.

This requirement is imposed by the Spanish authorities to keep away from the danger of social dumping, which is a observe whereby employers use cheaper labour than is often obtainable at their place of manufacturing or sale, for instance by shifting manufacturing to a rustic or space with larger wages low or using low-paid migrant staff.

On this sense, we analyzed the corporate’s labour paperwork to ensure that they complied with the labour laws in Spain.

Worldwide Labour:

As we defined within the earlier publication, the posting of the employee should be communicated to the corresponding labour authority within the Autonomous Group by which the employee goes to render his providers. This communication should be made earlier than the posting takes place, since in any other case the posting firm could also be fined, both for not speaking the posting or for speaking it late.

Nonetheless, when the corporate offering providers estimates that the efficient period of the posting goes to be longer than twelve months, it should ship to the labour authority, earlier than the expiration of the indicated time period, a reasoned notification, which can prolong as much as a most of eighteen months the appliance of the working situations offered for within the Spanish labour laws.

On this sense, we communicated the task to the Spanish labour authority earlier than the posting of the German employee.

Tax:

From a Tax standpoint, it\’s essential to find out the tax residence of the staff and to use the tax treaties between Spain and Germany to keep away from double taxation. For the reason that worker would spend greater than 183 days in Spain, Spanish tax obligations would come into play when changing into a tax resident in Spain.

Moreover, we should analyze the danger of everlasting institution. Everlasting institution danger applies when an organization begins buying and selling inside the borders of a rustic and obtains earnings from that business exercise. When it comes to regulation enforcement, a rustic’s tax companies are the ultimate arbiter of everlasting institution.

On this sense, provided that the German employee was going to spend greater than 183 days in Spain, we gave him appropriate tax recommendation and lined his obligations in Spain.

Case End result: Success!

The results of this work was the next situation:

  • Earlier than coming to Spain, the corporate requested a protection certificates to keep up their Social Safety contributions in Germany.
  • Earlier than coming to Spain, we analyzed his contract to verify that the corporate met the minimal situations required by the labour authority in Spain.
  • Earlier than coming to Spain, we communicated his posting to the corresponding labour authority within the autonomous group by which he offered his providers (worldwide labour).
  • As soon as in Spain, we obtained an appointment to request his European certificates.
  • After having resided in Spain, as was going to spend greater than 183 days right here, we took corresponding steps required by the tax authority upon changing into a tax resident. Moreover, analyzed the danger of everlasting institution. 

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Case Examine 2

Case Background

Posting of a British Employee to Spain by a multinational firm within the audiovisual sector.

This yr we had the next case: an worker of British nationality whose British firm wished to switch to an organization in Spain for 2 months.

Case Technique

Immigration: 

For non-EU staff, the method of acquiring visas and work permits is essential. Relying on the character of the work, it might be vital to use for a brief work visa or residency. On this case, since it\’s a journey of lower than three months, you may come as a vacationer in case your work might be within the audiovisual sector.

In case of a visit of greater than three months, we should always apply for a visa. On this case, essentially the most applicable may very well be the intra-company switch, though we should analyze the {qualifications} of the employees to verify that they meet the necessities.

Social Safety:

British nationwide staff stay underneath the relevant EU social safety regime, so they have to apply for an A1 for the time they\’re posted. The choice is to register inside the social safety system in Spain.

On this case, the corporate requested the protection certificates.

Nationwide Labour:

Adaptation to Spanish labour laws is important. Employment contracts, working hours, trip days and different labour elements should be adjusted to native laws.

On this sense, we analyzed the corporate’s labour paperwork to ensure that they complied with the labour laws in Spain.

Worldwide Labour:

As we defined within the earlier publication, the employee’s posting should be communicated to the corresponding labour authority within the Autonomous Group the place the employee goes to render his/her providers, as this obligation to speak their posting additionally applies to British nationality staff, even in postings of two months. This notification should be made earlier than the posting takes place, since in any other case the posting firm could also be fined, both for not notifying the posting or for late notification.

On this sense, we communicated the task to the Spanish labour authority earlier than the posting of the British employee.

Tax:

Tax can be an important facet. The dedication of tax residency and the appliance of tax agreements between Spain and the UK are elementary to avoiding tax conflicts.

In each instances, specialised authorized recommendation is important to make sure compliance. Firms ought to concentrate on the authorized variations between their house international locations and Spain, making certain a profitable relocation.

Case End result: Success!

The results of this work was the next situation:

  • Earlier than coming to Spain, the British employee mentioned together with his firm whether or not they would request a protection certificates to keep up their Social Safety contributions within the UK or if, however, he can be registered within the Social Safety regime in Spain. Lastly, they determined to request the certificates of protection.
  • Earlier than coming to Spain, we should analyse if his contract meets the minimal situations required by the labour authority in Spain (Nationwide Labour).
  • Earlier than coming to Spain, we communicated his posting to the corresponding labour authority within the autonomous group by which he\’ll present his providers (Worldwide Labour).
  • As soon as in Spain, provided that he can include a vacationer visa and reside legally for as much as 90 days in a interval of 180 days, he got here with a vacationer visa.
  • After having resided in Spain, as he was not going to spend greater than 183 days right here, the obligations as a tax resident is not going to come into drive and there might be no danger of everlasting institution.

Case Examine 3

Case Background 

Posting Staff from the U.S. to Spain

This yr we had the next case: an worker of U.S. nationality working for a U.S. firm who wished to return to telework in Spain for 3 years.

Case Technique

Immigration:

For non-EU staff, the method of acquiring visas and work permits is essential. On this particular case, provided that the employee is of non-EU nationality and needs to return to Spain to telework, we may very well be within the case of a allow for Digital Nomads. We should analyze if he meets the necessities to have the ability to present the documentation to the Spanish authority and proceed to request the allow.

On this case, we utilized for a Digital Nomads Visa in Spain.

Social Safety:

U.S. staff ought to perceive the social safety implications. When making use of for a allow for teleworkers, it\’s necessary in case of workers to offer a certificates of protection when there\’s a bilateral settlement on social safety (between Spain and the U.S. there\’s) or, alternatively, that the American firm registers in Spain and registers the employee, however in that case the situation may change and turn into an intra-company switch. When the employee is self-employed, he/she solely must file an affidavit of registration with the RETA as soon as the allow is granted.

On this case, the corporate requested a certificates of protection.

Nationwide Labour:

Adaptation to Spanish labour laws is important. Employment contracts, working hours, trip days and different labour elements should be adjusted to native laws.

On this sense, we analyzed the corporate’s labour paperwork to ensure that they complied with the labour laws in Spain.

Worldwide Labour:

 On condition that the corporate of origin is in the USA (that\’s, outdoors the European Union), the duty to speak the posting to the labour authority in Spain wouldn\’t apply.

Tax:

Tax can be an important facet. The dedication of tax residency and the appliance of tax agreements between Spain and the USA are elementary to avoiding tax conflicts.

In each instances, specialised authorized recommendation is important to make sure compliance. Firms ought to concentrate on the authorized variations between their house international locations and Spain, making certain a profitable relocation.

Case End result: Success!

The results of this work was the next situation:

  • Earlier than coming to Spain, the American employee mentioned together with his firm whether or not they would request a protection certificates to keep up their Social Safety contributions within the US or if, however, he can be registered within the Social Safety regime in Spain. This doc is necessary and vital for the subsequent steps (request for a allow in Spain). Ultimately, the corporate requested the certificates of protection.
  • Earlier than coming to Spain, we analyzed if his contract met the minimal situations required by the labour authority in Spain (nationwide labour).
  • Earlier than coming to Spain, we didn\’t talk his posting to the corresponding labour authority within the autonomous group by which he\’ll present his providers (Worldwide Labour) as a result of it was not necessary.
  • As soon as in Spain, we submitted his utility for the corresponding allow whereas he was authorized in Spain, and the authority answered inside 20 enterprise days to present us a optimistic response. Additionally, we will apply to the Spanish consulate within the US earlier than coming to Spain.
  • After having resided in Spain, as he was going to spend greater than 183 days right here, we took the corresponding steps required by the tax authority upon changing into a tax resident.

Conclusion: How Lexidy’s International Mobility Crew Can Assist

When you’re contemplating posting staff to Spain or are navigating the complexities of the International Mobility of workers, Lexidy is right here to help you. 

In these advanced conditions by which obligations come up in international locations of origin and vacation spot and a number of guidelines apply in several authorized areas, it\’s important to have satisfactory recommendation and a agency that gives providers in an built-in and efficient method, with expertise within the sector, as is the case of our International Mobility division.

To study extra about our providers or to get began in your International Mobility journey, don’t hesitate to achieve out. You\’ll be able to contact Sandra Faura, our star of International Mobility at Lexidy, immediately at sandra.faura@lexidy.com. Alternatively, fill out the shape under, and certainly one of our authorized eagles might be in contact to tailor our providers to your particular wants.

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