Corporate Immigration 2024

Last Updated June 25, 2024

Spain

Law and Practice

Author



Bojorge & Associates Law Firm is an international corporate and immigration law firm located in Valencia, Spain. The firm specialises in finding the right legal solution for each client’s unique circumstances. Bojorge & Associates is a highly independent firm that provides guidance on official developments, potential problems and current trends in Spain. It respects different cultures and provides guidance on local culture, both idiosyncratically and historically.

The economic affairs section of the Presidency of the Spanish government carries out studies on the shortcomings of and possible improvements to the immigration policy. 

The Ministry of Immigration’s priority is to have an inclusive society; its aim is to promote programmes and projects that help the social, cultural and labour environment. It also seeks to guarantee equal treatment and non-discrimination. 

Upcoming changes to the immigration policy include eliminating the golden real estate visa and giving more importance to innovation and development with an emphasis on the creation, production and design of the energy and chip market. The Recovery, Transformation and Resilience Plan contains a housing rehabilitation and urban regeneration plan to help citizens to obtain their first home. 

The Spanish government has realised that Spain does not produce, it only designs, and this is the path it is going to develop as a strategic sector. 

At EU level, Directive (EU) 2024/1233 on a single application procedure for a single permit for third-country nationals to reside and work in the territory of a member state and on a common set of rights for third-country workers legally residing in a member state,, aims to simplify admission procedures for these persons. 

This Directive will apply to third-country nationals who: 

  • apply for residence in a member state for the purpose of work; or
  • have been admitted to a member state for purposes other than work and are authorised to work and hold a residence permit. 

This Directive does not apply to third-country nationals who are their family members. 

The member states shall bring into force the necessary laws, regulations and administrative provisions by 21 May 2026. In addition, the member states may decide on the volumes of admission. 

Options for employment visas include visas for highly qualified workers or workers who have the necessary skills to fill positions that are difficult to fill in Spain. 

Unsponsored work visas are available for: 

  • international teleworkers and their families; 
  • entrepreneurs and their family members; 
  • investors in financial assets, public debt, shares, investment funds, bank deposits in Spanish financial institutions; and
  • investors in a business project in Spain without a minimum amount of capital ‒ what will be assessed is the creation of jobs, the socio-economic impact in the area and contribution to scientific and technological innovation.

Visitors cannot work in Spain without a work permit. Even business visas do not allow visitors to work; they are restricted to the activities listed in their visa for travel to Spain. 

The business visa does not allow the visitors to work as teleworkers and this is a mistake that many companies make. A visa for teleworking is allowed under certain conditions, but it is not a business visa. Visitors need a visa and work permit if they wish to work in Spain. Family members are allowed to accompany them at the same time or later. 

Teleworking is fully recognised by the granting of a fast-track work and residence visa. 

The Telework Visa is aimed at nationals of third countries who travel to Spain to work or carry out remote work for companies located outside Spain, using the use of a computer, telematics and telecommunication systems. 

Family members of teleworkers may apply for a residence permit to join or accompany them. 

Workers are not allowed to move to a branch of the employing company in Spain. Such transfer is considered to be an intra-company transfer of a worker and is not remote work. 

There is no prerequisite language requirement in Spain. 

The official language is Castilian Spanish, but it is not a requirement for the foreign applicant to speak or understand it. 

The applicant must have private medical insurance or be registered with the Social Security in Spain. In some cases, they will be asked to provide a COVID-19 vaccination certificate. 

Public insurance (Social Security) or private insurance must be taken out with an insurance company authorised to operate in Spain without co-payment. 

See 1.2 Upcoming Policy Changes regarding Directive (EU) 2024/1233 on a single application procedure for a single permit for third-country nationals to reside and work in the territory of a member state and on a common set of rights for third-country workers legally residing in a member state.

Generally speaking, an employment-based visa is not limited to one type of employer. 

The first application and grant of a work permit is not limited to a specific employer. 

However, when renewing the work permit, the employee is required to renew it with the same employer. If the employee changes employer at the time of renewal, the immigration office will cancel the first work permit and the employee has to apply for a new work permit with the employer they are changing to. 

There are two types of procedure: 

  • the fast-track procedure; and
  • the normal procedure. 

If the work or residence permit falls within the categories of highly qualified employee, investors, entrepreneurs, teleworkers, etc, then the time is reduced to 20 days if all the necessary documents have been collected and submitted to the immigration office; if the applicant needs a visa to enter Spain, the time for granting the visa is ten days as at the day after submission of the documents to the Consulate or Embassy. 

On the contrary, if the work or residence permit is a normal application, the immigration office has a maximum period of three months to grant the authorisation. The applicant must collect the visa from the Consular Office within one month as of the day after the applicant is notified of the decision. 

The travel restrictions depend on the nationality of the applicant employed.  

It is only possible to reduce or avoid waiting the ten or 30 days to obtain a visa from the Spanish Consulate or Embassy if the applicant, whether an employee, investor, entrepreneur, teleworker, etc, does not need a visa to enter Spain. 

There is an official list of countries that can enter Spain without a visa. 

The steps to take once an individual is in Spain are as follows: 

  • review whether the work permit is for more than six months;
  • obtain the residence and work permit from the authorities by paying a fee; 
  • check that the passport has an expiry date of more than six months; 
  • register with the Spanish social security authorities; 
  • present valid medical insurance; 
  • present a letter of approval from the immigration office; 
  • have photos taken for the residence permit for both the applicant and their family members; 
  • if the applicant comes with their family, also check the above for their family members; and
  • collect the residence card and present it when asked to do so.

The fees are paid to the Spanish administration: to the Spanish Consulate or Embassy, to the foreigners’ office, to the foreigners’ police service on the first application.  

When renewing, the applicant only pays the fee to the foreigners’ office and to the foreigners’ police service. 

The amount in euros varies.

Normally, all the visa costs are paid by the employer in advance. 

The employee can include this as a bonus in addition to their salary. 

There are cases where the employer does not want to do this and despite having recruited and offered the employee the job, the employee is told to obtain their own employment permit for themselves and their family. 

In this situation, the employee can decide whether to pay for the whole procedure themselves or have it deducted from their salary and bonus. 

Enforcement action will be taken in two cases: 

  • the applicant lacks the necessary social security or private insurance documents for Spain; or
  • the company has the employee or the investor working without having obtained the work permit, regardless of the country of origin of the employee. 

The requirement to register with the social security system in Spain can only be substituted if the applicant’s or employee’s country of origin has a social security agreement with Spain and that country provides a document stating that they are temporarily covered in Spain. 

In the case of teleworkers, if the applicant’s company has a branch in Spain, a telework visa is not necessary. The applicant would need a work permit because it is considered a transfer between companies (Intra-Company Transfer) and must meet the specific requirements of this permit. 

Many companies in Spain do not help an employee to obtain a work permit. These companies require employees to obtain it on their own, pay for it themselves and, if they do not obtain it, the employer removes them from their workforce and does not recognise its offer of employment.  

However, this is a mistake. 

The employer, whether in Spain or abroad, is obliged to hire the foreign employee in accordance with the immigration law on foreigners in Spain and to maintain its offer of employment to the worker who obtained the job by helping them to obtain their work permit and even those of their family members. 

If the employing company does not help the applicant to obtain the work permit, this could be considered discrimination or the illegal hiring of workers leading to a labour inspection and a social security inspection. Ultimately, this could result in fines, imprisonment and a ban on hiring foreign workers. 

Foreigner workers have the same rights and obligations as a Spanish citizen. 

A foreigner must not have entered Spain illegally and must make the necessary arrangements with the company or the employer in advance. 

If there is a Spaniard who is registered with the Spanish employment office and meets the requirements to fill a vacancy, the Spaniard can take the job offer from the foreigner and be hired by the Spanish company ‒ the foreigner would not have any right to be hired. This depends on the company that is in Spain and that has published the vacancy with the employment office. 

This limitation does not exist in the case of highly qualified workers, researchers, investors, international teleworkers and entrepreneurs (golden visa cases). The company is not obliged to hire a Spanish employee and can hire a person of their choosing. 

All family members who are financially dependent on the employee, investor, researcher and entrepreneur are recognised. 

Employees, entrepreneurs, researchers, investors, international teleworkers can be single, married, cohabiting or in a same-sex partnership. 

Children of married or unmarried parents, adopted parents or legal guardians of such minors can be included as dependants. 

In reality, there are not many limits; what is assessed is whether the applicant can support their family ‒ either ascendants or descendants ‒ by themself with their salary or savings without making them a burden for Spain. 

Parents of the applicants are also dependants.

Residence permit holders such as dependent family members of highly qualified employees, researchers, employees transferred to Spanish companies, international teleworkers and investors are allowed to work in any sector and city of the national territory. 

Possible restrictions or limitations will come from the job offer they find and whether they have the necessary studies or skills. 

Bojorge & Associates Law Firm

Navarro Cabanes, 6, First Floor
Valencia 46018
Spain

+34961059311

marlabojorge@visalawspain.com www.visalawspain.com
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Trends and Developments


Authors



Labormatters Abogados is one of the most recognised firms specialising in employment law in Spain. Such recognition stems from the firm’s clients, the complexity and success of the matters the firm leads and the prestige of the firm’s lawyers. Among the types of work carried out at Labormatters Abogados, the advice and leadership of collective matters, such as the negotiation of restructuring operations or projects for the reorganisation of working conditions, stand out. Labormatters specialises in the legal defence of clients before the social jurisdiction, with a high specialisation in the defence of trials and appeals before the Audiencia Nacional and the Supreme Court. The firm formulates legal opinions on matters of magnitude and impact requested by its clients, offering innovative solutions based on the study of each of the cases consulted. Labormatters Abogados offers its services through its offices located in Madrid, Valencia and Seville.

The Increasing Importance of Labour Law Advice in Companies

The starting point: strengthening labour and social security law as a legal discipline after the COVID-19 pandemic

Certainly, Spanish society has learned many and varied lessons from the COVID-19 pandemic. Practically all of these lessons have been learned after considerable personal and professional efforts in sectors as diverse and important as, for example, health, education, security, transport and food. And this has been at both national and international levels.

Such exceptional circumstance has also been reflected in the legal sphere. However, contrary to what might initially have been thought, the pandemic has not affected the very different legal disciplines in the same way. Conversely, as is well known to all, the bulk of the numerous measures adopted by the different national legislations has fallen almost exclusively on labour and social security law and, more specifically, on the thousands of women and men who, at great personal and professional cost, have had to deal with the emergency regulations issued for this purpose in the last four years.

This having been the case, there can be no doubt that this specific legal discipline has more than come of age. And not only that, labour and social security law has been extraordinarily strengthened, positioning itself on its own merits among the legal specialities of greatest social and economic importance today. In fact, this branch of knowledge is, nowadays, a legal practice that is essential for the smooth running of companies.

The importance of labour law discipline in post-pandemic business counselling

An obvious consequence of the above is the growing importance of the labour law discipline in advising companies. Gone are the days when labour and social security law was relegated to the background by reference to other apparently more important specialities in the field of business, such as commercial law or civil law.

In fact, nowadays it is absolutely inadvisable (not to say foolhardy) to start or develop any business initiative outside this specific branch of legal knowledge; all this, moreover, irrespective of factors such as, for example, the sector of activity in which the company is engaged and/or its organisation or size. From many different perspectives (especially from the regulatory and jurisprudential points of view), the evolution of labour law is unparalleled and unrestrained, which is leading to the appearance of new and very important legal challenges that legal operators must face and on the successful overcoming of which will depend, to a large extent, the proper running of the business for which the advice is provided.

Thus, the intrinsic importance of this already well-established legal discipline requires companies to have the best possible legal-labour consultancy services – advice which, together with other traditional skills, must nowadays be characterised by the following two key aspects:

  • its necessarily transversal nature; and
  • the need for permanent updating.

Main characteristics of corporate legal-labour counselling in the post-pandemic era

Even without leaving the specific field of labour relations and public social protection, the first of the aspects that must necessarily characterise today’s labour law consultancy for companies is the formation of increasingly numerous and cross-cutting teams. Indeed, the very diverse legal challenges facing Spanish and Spanish-law-concerned companies in this area are also numerous and cross-cutting. It is no coincidence that matters as diverse as, for example, access to employment, employment contracts, reconciliation of work and family life, collective bargaining, corporate restructuring, the digitalisation of labour relations and social security, require continuous and recurring attention in the day-to-day work of companies. Attention that also refers to matters that are not specifically labour-related (eg, data protection, insolvency law, diversity and equality, environmental protection, and so on).

However, in addition to its necessarily cross-cutting nature, labour law advice must also be characterised by the need for permanent (practically daily) updating on the part of legal operators and, in particular, law firms and law offices. Moreover, such is the current regulatory and jurisprudential disorder (national and supranational) that without the help of the most excellent specialised advisers, companies would not be able to take full account of the many different legal obligations that are currently incumbent on them in the specific scenario of labour relations. In fact, it is virtually impossible for industrial relations teams in companies to keep up to date with the many different legal provisions (national and international; statutory and regulatory) and/or case law that have a daily impact in the field of labour relations.

Hence, together with the need for transversality, it can be argued that the increasingly excessive production of regulations and jurisprudence is currently one of the main challenges facing legal operators.

The current legislative trend: the progressive abandonment of emergency legislation as a prerequisite for the configuration of a new model of labour relations

Undoubtedly, both characteristics of labour law advice were put to the test in the exceptional context of COVID-19. In fact, the emergency legislation that characterised that period in its early years constituted an extraordinary stressor to test the greater or lesser professional excellence of those operating in the field of labour relations. Unfortunately, and contrary to what would initially have been desirable given the extraordinary effort made up to then, this stressor element has been maintained over time until practically the end of the last legislature. All of which has meant an undeniable physical and emotional strain for many of those legal operators.

All in all, the current legislative trend seems to be the progressive abandonment of emergency legislation, in general, and of the Royal Decree Law, in particular, as the main tool of the pseudo-legislative activity carried out until the middle of last year by the Spanish government. This not only means returning to the Spanish Cortes Generales the leading role that they undoubtedly deserve in this respect, but also allows legal interpreters to know in advance the main legislative projects launched in Spain in the field of labour relations.

It is precisely in this new context of legislative stability that the configuration of a new model of labour relations for the 21st century is expected. The social and economic model in which these relations are developed today is totally different from the scenarios that existed in 1980 (the year in which the first Workers’ Statute was approved in Spain). In this sense, in the present decade a profound revision of the very different labour law institutions must be carried out, starting even with such classic topics as the very definition of the concept of the working person. In fact, this task has already begun within the framework of social dialogue, with the different social agents (trade unions, employers and government) currently working on the so-called Statute of the 21st Century.

The most relevant legislative projects underway

Apart from this general objective, several bills are already in the parliamentary pipeline (eg, Draft Law amending the Workers’ Statute for the transposition of Directive (EU) 2019/1152 of 20 June 2019 on transparent and predictable working conditions, Draft Law on Families or Draft Law on Sustainable Mobility). Alongside these, new projects have recently been announced by the Spanish government through its Annual Regulatory Plan (2024) (for example, the Law regulating the Youth Guarantee System, the Integral Law for the promotion of the social economy and the Law regulating business representation in the field of small and medium-sized enterprises).

Without wishing to be exhaustive, given the limited space available, the two legislative projects considered to be of greatest relevance in the field of labour relations are described below.

  • Amendment of the Workers’ Statute on reduced working hours and leave to complete the transposition of Directive (EU) 2019/1158 of 20 June 2019. Specifically, three objectives would be pursued with this project.
    1. Reduce the current maximum legal working week of 40 hours to 37.5 hours per week by 2025, without any reduction in pay. Progressively, during 2024, the proposed reduction would reach 38.5 hours per week. Although initially designed to promote the reconciliation of each worker’s personal and family life, there is no doubt that such a measure will have a major impact on companies with very limited human resources management margins (especially small and medium-sized enterprises).
    2. Strengthen the time recording instruments with the use of new technologies to ensure compliance with the working day in all companies, while adapting the sanctioning regime to guarantee strict compliance with the existing regulations in this respect. As announced by the Ministry of Labour and Social Security, at the heart of this proposal lies the government’s interest in greater telematic control of the different time records (of working hours, part-time work and overtime) – control that would be carried out by telematically connecting these records with the Labour and Social Security Inspectorate (Inspección de Trabajo y Seguridad Social).
    3. Complete the transposition of Directive (EU) 2019/1158 of the European Parliament and of the Council of 20 June 2019 on reconciling family and working life for parents and carers. The transposition of this Directive is already well advanced in Spain and this proposal refers to the paid or unpaid nature of the parental leave of up to eight weeks that workers can request when caring for a child under eight years of age.
  • Amendment of the Workers’ Statute on dismissal. Specifically, this draft would seek to establish new guarantees for workers in the event of dismissal, complying with the European Social Charter, reinforcing causality in cases of termination of the employment relationship and eliminating the automatic dismissal of people with a supervening disability – this is in response to the new dogmatic debates that the Spanish social order is already facing.

Main points of interest in the judicial field

Without prejudice to the success of these or other legislative projects that are yet to come in view of the delicate balance of power in the current Spanish political landscape, there is no doubt that for any legal operator the main point of interest in the Spanish judicial sphere necessarily involves the urgent renewal of the General Council of the Judiciary. This is by no means alien to the social jurisdiction. And the fact is that, apart from many other vacancies in this judicial order, the current composition of the Social Division of the Supreme Court (the main interpretative body in the field of ordinary law) is in a worrying situation. In fact, out of a maximum of up to 13 members, the Chamber is currently made up of only seven judges, a circumstance which has a clear qualitative and quantitative impact on the peaceful development of labour relations.

Apart from this institutional situation, there is no doubt that the main debate currently taking place in the Spanish labour courts concerns whether or not the Spanish system of statutory severance pay for dismissal is in line with the provisions of the revised European Social Charter. And, more specifically, whether or not it is possible to request complementary financial compensation to repair or compensate possible damages of a very diverse nature suffered by the worker whose employment contract has been terminated, in addition to the legally established compensation.

Certainly, as has already been said, this is a matter that seems intended to be dealt with specifically by parliament. However, until such a problematic issue has been resolved, the judicial casuistry will be in place, to the serious detriment of the principle of legal certainty, with reference to the very numerous contractual terminations carried out by companies. Moreover, bearing in mind that the European Committee of Social Rights has already expressly ruled on the matter, the judicial debate has now shifted to the greater or lesser value to be given to the decisions of this body (the main interpreter of the revised European Social Charter) in application or not of the constitutionally required judgment of conventionality.

The increasing importance of equality and diversity in highly digitalised industrial relations

Regardless of the final destination of the different legislative projects that have been set in motion and/or the jurisprudential doctrine that Spanish courts of social jurisdiction may decide to issue in relation to each conflictive case, there is no doubt about the increasing importance of equality and diversity in the field of highly digitalised labour relations. It is no coincidence that the current volume of regulations on equality, diversity and work-life balance is enormous, and is also characterised by the great technical difficulty of implementation which, in addition to the constant updating of regulations and case law, requires the design and co-ordination of very different strategies at the highest corporate, national and international levels. In fact, in 2024, we can already speak of the birth of a new legal discipline in the field of labour relations and human resources: equality, diversity and work-life balance.

Precisely for this reason, it is both essential and obligatory for companies to have a team specialised in this area, capable of knowing each and every one of the new obligations that are constantly being introduced in the different regulations, as well as with the capacity to design policies that enable not only compliance with the law but also the promotion of equality and diversity in the workplace as a tool for employer branding and/or attracting and retaining talent. As an example of the extraordinary practical importance acquired by this matter, note how the regulations of Spain consider not only conduct, acts or criteria that violate the right to equality, but also inaction or neglect of duties in this regard, to be a violation of the right to equality.

It is, therefore, highly advisable to adopt cross-cutting measures to ensure a proactive attitude on the part of companies by adopting protocols against discriminatory harassment or codes of good practice in many different areas. This is particularly true in the area of increasingly digitalised labour relations, which require companies to be more attentive and careful with regard to the labour rights at stake (essentially, privacy and dignity of workers).

On the burden of increased regulatory requirements on companies: labour compliance

Finally, the authors would not like to end this commentary without making a brief reference to the increasing need for companies to have an adequate labour compliance policy.

Certainly, from a strictly judicial point of view, the need for the highest level of labour law advice is obvious. In fact, when companies have a legal problem in this area, they usually make every effort to seek the best possible advice. Strangely enough, however, this is not always the case with regard to the increasing number of labour law requirements imposed on companies. So it is only when they receive the corresponding administrative sanction from the competent labour authorities that many companies then consider seeking the services of a truly specialised labour law adviser.

If, in addition to the above considerations, there is one thing that should characterise excellent labour law advice, it is that it should not only be reactive (on the occasion of the various legal matters that companies may have to deal with ad casum), but also, and especially, preventive (on the occasion of the ever-increasing regulatory demands on companies). This is precisely where labour compliance is becoming increasingly important. This is basically because the demand for regulatory compliance in companies is nowadays absolutely overwhelming, and the time for those who have not paid due attention to this circumstance has passed.

As an example of the above, suffice it to say that in addition to the existing regulatory requirements (time and attendance register, salary register, equality plan, digitalisation protocols, protocols against harassment at work, application of preventive regulations, balanced presence of men and women on boards of directors, etc), new requirements (sustainable mobility to work plan, LGTBI protocol, and others) are expected to be added.

Conclusion

What has been indicated so far leads inexorably to a change in the type of advice and management of labour relations in Spain. Whereas until now the legal sector has played an almost exclusively reactive role (providing legal representation in the event of legal disputes that arise), the new legal operator must be able to offer strategic legal-labour advice on the basis of the new policies and codes that permeate the current labour relations scenario. In short, the labour law practitioner of the 21st century must be able to anticipate problems, be permanently updated in an increasingly transversal discipline and possess an excellent technical mastery capable of outperforming artificial intelligence in the design of strategies and policies aligned with the business objectives of the companies he or she advises.

Labormatters Abogados

Calle Lagasca 16
28001 Madrid
Spain

+34 913 535 030

+34 911 038 036

info@labormatters.com www.labormatters.com
Author Business Card

Law and Practice

Author



Bojorge & Associates Law Firm is an international corporate and immigration law firm located in Valencia, Spain. The firm specialises in finding the right legal solution for each client’s unique circumstances. Bojorge & Associates is a highly independent firm that provides guidance on official developments, potential problems and current trends in Spain. It respects different cultures and provides guidance on local culture, both idiosyncratically and historically.

Trends and Developments

Authors



Labormatters Abogados is one of the most recognised firms specialising in employment law in Spain. Such recognition stems from the firm’s clients, the complexity and success of the matters the firm leads and the prestige of the firm’s lawyers. Among the types of work carried out at Labormatters Abogados, the advice and leadership of collective matters, such as the negotiation of restructuring operations or projects for the reorganisation of working conditions, stand out. Labormatters specialises in the legal defence of clients before the social jurisdiction, with a high specialisation in the defence of trials and appeals before the Audiencia Nacional and the Supreme Court. The firm formulates legal opinions on matters of magnitude and impact requested by its clients, offering innovative solutions based on the study of each of the cases consulted. Labormatters Abogados offers its services through its offices located in Madrid, Valencia and Seville.

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