By Caitlyn Buchanan, 22nd March 2017
Spain is a nation of rich culture and traditions offering vast business opportunities for local and foreign investors. Although recession has caused Spain adversity in the past there are strong signs of economic recuperation. Starting in 2016 the level of unemployment decreased and now sits at 18.6%. This is both good Spain’s economy and foreign businesses; the local pool of workers is large enough to effectively hire a skilled workforce while staying cost effective. Foreign investors with outside capital are wisely starting to recognise the labour market in this desirable region and start up business in Spain.
National statistics for January 2017, reported around 23,000,000 people registered on the Spanish labour market. Specialists say, political circumstances in 2016 that left Spain without a government for over 300 days has pushed the nation to new heights in the fields of tourism, agriculture, IT, financial services, education and health.
With the 14th largest world economy, it should come as no surprise that investors are choosing Spain and companies are enlisting the local workforce. The Spanish labour market is filled with highly educated individuals with experience in a range of domains. It is estimated that 10% of the Spanish workforce are skilled workers in IT, research and development. Additionally, skilled people from around the world are seeking employment opportunities in Spain. Who wouldn’t be tempted by the beaches, tapas, Gaudi, historical significance and excellent football?
In an effort to attract more overseas investors, the Spanish government has successfully implemented significant reforms to education and public employment. There are many incentives now available to employers interested in hiring local Spanish workers. Employers can receive bonus reductions for hiring women, disabled people, and individuals over the age of 45.
•The Corporate Social Security contribution can be reduced if employers offer contracts to women with more than one year of unemployment.
•Employers who hire disabled workers on a permanent employment basis are entitled to a grant of up to €901 to make their workplace more accessible. There is also a deduction of €6,000 on Corporate Income Tax and to a wage subsidy of up to €3,907 per employee.
•Bonus rates are set depending on the profile and disability of the employee. Ranging from €4,500 to €5,100 per annum for a female employee and up to €5,700 and if the worker is over 45 years of age.
These schemes require that the employer retain the worker for at least 3 years.
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