skip to content

Employer’s social contributions and welfare costs in Spain

social contribution and taxes in SpainIn this article we will discuss the topic of social contributions and welfare costs in Spain.

In Spain as well as in France, you have to pay different organizations: the Social Security (dealing with all the health issues), unemployment insurance guarantee fund and professional training.

Here are the major social contributions rates.

The system for auto-entrepreneurs is different.

The column “Employer rate” level only applies for the limited companies in Spain.

 Employer RateWages RateTotal
Social security: health23.60%4.70%28.30%
Unemployment insurance5.50%1.55%7.05%
Guarantee fund for employees0.20%0.20%
Vocational training0.60%0.10%0.70%
occupational accidentVariable (between 0.90 and 7.30%)


You can see that the Spanish social contributions for both employees and employers are lower than those of other European members.  For example, in France a manager would pay between 35% and 45% instead of 30.60% in Spain. The difference is even more significant for employees. A manager would pay only 6.35% of social contributions for its employees whereas it would pay about 20% in France. The Spanish taxation system is then very advantageous for business starting up.

Find here

The content you need

to set up your business in Spain.

¿What did you think of this content?

0 0 votes
Article Rating

Your email address will not be published .

Required fields are marked with *


Inline Feedbacks
View all comments