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 Rate||Wages Rate||Total|
|Social security: health||23.60%||4.70%||28.30%|
|Guarantee fund for employees||0.20%||–||0.20%|
|occupational accident||Variable (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.