Spain is a popular holiday and tourism destination, possesses masses of culture and has a diverse economy, which means it should not be too difficult to convince employees to take up a job there. But be warned, the Spanish economy is in a bit of a lull at the moment.
One of the major problems affecting Spanish firms is that the level of available skills in the country is relatively narrow. Unemployment in the country currently stands at about 17.2%, the second highest in western Europe behind Greece, which equates to just under four million people looking for work.
But many employers report that they are unable to find the staff they need to fill vacancies. In fact, one major trans-European head-hunter told us that it gave up looking after an exhaustive, yet unsuccessful two-month search. Another major recruitment consultancy also attested that Spanish companies would struggle to fill almost two millions positions before 2020.
Sandalio Gomez, emeritus professor at the IESE Business School in Madrid, warned that a failure to equip sufficient numbers of workers with the skills required by modern companies was actually holding back the economy.
“The skills shortage is a drag on productivity, delays investment and strains a pension system dependent on new workers with good salaries to pay for an ageing population,” he explained. “The workforce does not have the qualifications the market needs, which is a real problem.”.
The upshot of this situation is that many employers are being forced to bring in talent from elsewhere. Sectors with skills shortages The biotech sector is one of the Spanish economy’s key markets. More than 3,000 Spanish companies are involved in biotech research and development alone and industry’s global exports amount to a staggering US$98 billion. But the country is struggling to find qualified and experienced science, technology, engineering and mathematics specialists.
The situation is similar in the pharmaceutical market, although unlike the expanding biotech sector, it is expected to continue contracting until around 2020.
The tourism space, on the other hand, is a major earner for the Spanish economy and, in fact, the country generates more money from visitors than any other European state. The wine industry is also buoyant in southern regions such as Catalonia and La Rioja.
Despite Spain having only one independent car manufacturer left in the form of SEAT, meanwhile, it is the second largest automobile exporter in Europe. Its other car manufacturers have been taken over by the likes of Germany’s Volkswagen (VW), which still continues to have subsidiaries in the country.
But the industry is expected to expand over the coming years as major producers such as Daimler and VW pump enormous amounts of money into it due to Spain’s relatively flexible labour laws and the close proximity of a number of local suppliers.
Employment rules
When it comes to working in Spain, there are a few things for employers to bear in mind. Staff will require some knowledge of the Spanish language, even if they are to be placed in predominantly English-speaking roles.
European Union (EU) nationals require no special permit to work in the country, although workers from outside of the EU do. But they will all need to obtain a ‘Numero De Identificacion de Extranjeros’ (NIE, which is pronounced near) number. All Spanish citizens have a national identity number (DNI) and the NIE is the foreigners’ equivalent. As such, it is indispensable and there is very little you can to do without one.
Secondly, if employees are scheduled to work in Spain for longer than 90 days, they will need to sign the foreigners’ register. This involves a separate registration process to that involved in securing tax residency. The two processes should not be confused if workers are to avoid either a major fine or prison sentence.
Late nights
Although Spain is known for its siestas, they are largely a thing of the past. Originally put in place to give agricultural workers a rest from the sun during the hottest part of the day, they are now largely defunct in urban areas, not least because most people work too far away from home to make them feasible.
One consideration worth bearing in mind though is that things tend to happen later at night in Spain than you might be used to. For example, football matches can kick off as late as 9.30-10pm, which may result in a late night.
This situation also transfers into the world of employment as working hours are often later here than elsewhere, partly due to longer lunch periods. However, the concept of the ‘working lunch’ does not really exist in the country.
Taxation
Spain is an attractive country for ex-pats to live and work, but understanding taxation matters can be challenging for those not used to it, particularly if they do not speak the language. The country has signed up to the Common Reporting Standard, which means that it automatically exchanges information about people working on its shores with other governments around the world.
This means that the implications of any failure to comply with local legislation will pursue employees back to their country of residence. As a result, it may make sense to take the advice of a local tax specialist to ensure the organisation, and its staff, stay on the right side of the law.
Michelle Reilly has almost 20 years of experience in contractor management and is acknowledged as a leading global expert in the field. In 2009, she joined CXC to set-up its global Europe, Middle East and Africa business, and last year led a management buyout of the recruitment agency side of the organisation. Michelle is now chief executive of 6CATS International, which provides compliant contractor management solutions.
Spain is a popular holiday and tourism destination, possesses masses of culture and has a diverse economy, which means it should not be too difficult to convince employees to take up a job there. But be warned, the Spanish economy is in a bit of a lull at the moment.
One of the major problems affecting Spanish firms is that the level of available skills in the country is relatively narrow. Unemployment in the country currently stands at about 17.2%, the second highest in western Europe behind Greece, which equates to just under four million people looking for work.
But many employers report that they are unable to find the staff they need to fill vacancies. In fact, one major trans-European head-hunter told us that it gave up looking after an exhaustive, yet unsuccessful two-month search. Another major recruitment consultancy also attested that Spanish companies would struggle to fill almost two millions positions before 2020.
Sandalio Gomez, emeritus professor at the IESE Business School in Madrid, warned that a failure to equip sufficient numbers of workers with the skills required by modern companies was actually holding back the economy.
“The skills shortage is a drag on productivity, delays investment and strains a pension system dependent on new workers with good salaries to pay for an ageing population,” he explained. “The workforce does not have the qualifications the market needs, which is a real problem.”.
The upshot of this situation is that many employers are being forced to bring in talent from elsewhere. Sectors with skills shortages The biotech sector is one of the Spanish economy’s key markets. More than 3,000 Spanish companies are involved in biotech research and development alone and industry’s global exports amount to a staggering US$98 billion. But the country is struggling to find qualified and experienced science, technology, engineering and mathematics specialists.
The situation is similar in the pharmaceutical market, although unlike the expanding biotech sector, it is expected to continue contracting until around 2020.
The tourism space, on the other hand, is a major earner for the Spanish economy and, in fact, the country generates more money from visitors than any other European state. The wine industry is also buoyant in southern regions such as Catalonia and La Rioja.
Despite Spain having only one independent car manufacturer left in the form of SEAT, meanwhile, it is the second largest automobile exporter in Europe. Its other car manufacturers have been taken over by the likes of Germany’s Volkswagen (VW), which still continues to have subsidiaries in the country.
But the industry is expected to expand over the coming years as major producers such as Daimler and VW pump enormous amounts of money into it due to Spain’s relatively flexible labour laws and the close proximity of a number of local suppliers.
Employment rules
When it comes to working in Spain, there are a few things for employers to bear in mind. Staff will require some knowledge of the Spanish language, even if they are to be placed in predominantly English-speaking roles.
European Union (EU) nationals require no special permit to work in the country, although workers from outside of the EU do. But they will all need to obtain a ‘Numero De Identificacion de Extranjeros’ (NIE, which is pronounced near) number. All Spanish citizens have a national identity number (DNI) and the NIE is the foreigners’ equivalent. As such, it is indispensable and there is very little you can to do without one.
Secondly, if employees are scheduled to work in Spain for longer than 90 days, they will need to sign the foreigners’ register. This involves a separate registration process to that involved in securing tax residency. The two processes should not be confused if workers are to avoid either a major fine or prison sentence.
Late nights
Although Spain is known for its siestas, they are largely a thing of the past. Originally put in place to give agricultural workers a rest from the sun during the hottest part of the day, they are now largely defunct in urban areas, not least because most people work too far away from home to make them feasible.
One consideration worth bearing in mind though is that things tend to happen later at night in Spain than you might be used to. For example, football matches can kick off as late as 9.30-10pm, which may result in a late night.
This situation also transfers into the world of employment as working hours are often later here than elsewhere, partly due to longer lunch periods. However, the concept of the ‘working lunch’ does not really exist in the country.
Taxation
Spain is an attractive country for ex-pats to live and work, but understanding taxation matters can be challenging for those not used to it, particularly if they do not speak the language. The country has signed up to the Common Reporting Standard, which means that it automatically exchanges information about people working on its shores with other governments around the world.
This means that the implications of any failure to comply with local legislation will pursue employees back to their country of residence. As a result, it may make sense to take the advice of a local tax specialist to ensure the organisation, and its staff, stay on the right side of the law.
Michelle Reilly has almost 20 years of experience in contractor management and is acknowledged as a leading global expert in the field. In 2009, she joined CXC to set-up its global Europe, Middle East and Africa business, and last year led a management buyout of the recruitment agency side of the organisation. Michelle is now chief executive of 6CATS International, which provides compliant contractor management solutions.
