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Workforce Payments Guide Spain

Last updated: Dec 07, 2023

Employer Taxes
32.05% + 50 EUR/Month
Employee Costs
Central Bank
Bank of Spain
Payroll Frequency
Fiscal Year
1 January- 31 December
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3rd Party Payments

The Statutory filing payment method is SEPA/ IBAN
The monthly filing deadline: End of the following month
The Annual filing Deadline: The December tax report”

Payments Coverage

Papaya Global fully support payments in Spain.

Funding currencies include AED,AUD,CAD, CHF, kr DKK, EUR, GBP, HKD, NZD, SEK, SGD, USD. The payout currency is EUR with payments made on the same day.

Payroll Frequency



IBAN Example Spain


IBAN in print ES72 3190 5719 4354 2935 6772
Country Code ES
Digit Code 72
Bank Code 3190
Branch Code 5719
National check digit 43
Bank Account Number 5429356772


Know Your Customer refers to the policies and regulations that require certain businesses to have a clear picture of who their customer is.

In Spain, KYC requirements are set forth in Law 10/2010. This is a Spanish law that aims to prevent money laundering and terrorist financing. The law requires financial institutions to collect and verify customer identification, including national identity documents, passports, or other government-issued IDs.

The law also establishes the obligation of financial institutions to report suspicious transactions to the relevant authorities. The law has been updated over the years to comply with international standards and directives, such as Directive 2005/60/EC of the European

Parliament and Council of 26 October 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing. The process of KYC in Spain involves the following steps:

  1. Customer Identification: The financial institution must collect and verify the customer’s identification documents.
  2. Risk Assessment: The financial institution must assess the risk associated with the customer and the transaction.
  3. Customer Due Diligence: The financial institution must conduct due diligence on the customer to ensure that they are not involved in any illegal activities.
  4. Monitoring: The financial institution must monitor the customer’s transactions to detect any suspicious activity.”

Banking Regulations

Banking regulations in Spain are governed by the Bank of Spain, which is responsible for supervising and regulating financial institutions. In terms of cross-border workforce payments Spain is part of the Single Euro Payments Area (SEPA), which aims to make cross-border payments within the European Union as easy and efficient as domestic payments.

SEPA has established common instruments, standards, procedures, and infrastructures to ensure that all transactions (domestic and cross-border) offer the same conditions of ease, efficiency, and security. The SEPA Credit Transfer and SEPA Direct Debit are two payment instruments that have been developed to facilitate cross-border payments within the European Union.

In addition to SEPA, there are other country-specific banking laws and regulations that impact cross-border workforce payments in Spain. For example, Regulation EC 924/2009 (amended by Regulation 260/2012) establishes equality in the fees charged for domestic and equivalent cross-border payments in euro, except cheques. Regulation EC 260/2012 establishes deadlines for migration to the SEPA instruments by setting a series of technical and business requirements for credit transfers and direct debits.

International Banks

The following banks are active in Spain:

  • JPMorgan Chase Bank National Association
  • The Bank of New York Mellon
  • Brickell Bank
  • Wells Fargo Bank,
  • NA Deutsche Bank
  • HSBC
  • Barclays Bank
  • BNP Paribas
  • Credit Suisse
  • ING Bank
  • Bank of America
  • Citibank

Local Major Banks

  • Banco Santander
  • BBVA
  • Caixabank
  • Banco Sabadell
  • Unicaja
  • Bankinter
  • Abanca
  • Kutxabank
  • Ibercaja Banco

B2C Payment Tools

There are several B2C payment tools available in Spain. According to, some of the most popular payment methods in Spain include:

  • Credit and Debit Cards
  • Digital Wallets
  • Cash
  • Bank Transfers
  • SEPA Direct Debits
  • Buy Now, Pay Later (BNPL)

Credit and debit cards are the most commonly used payment methods in Spain, accounting for around 53% of online transactions.

Digital wallets, such as PayPal, Apple Pay, Google Pay, and Amazon Pay, have also gained popularity in recent years, holding nearly 30% of the online payment market share.

Bank transfers are another top payment method in Spain, accounting for around 16% of online payments.

Opening Bank Account

To open a company bank account in Spain, the following documents are needed:

  • Articles of Association and Certificate of Incorporation for your company
  • Your NIE number and numero de identificacion de extranjeros (certificate)
  • Proof of address
  • A valid passport

Please note that all documents will need to be translated into Spanish before they can be accepted. This will require the assistance of an official translator known as a traductor jurado, and the documents must be authenticated with an Apostille stamp.

The actual process of signing up and opening a bank account in Spain can take just a few minutes. However, the time required before its operational can take between 1-5 working days. This will depend on a number of factors, including whether there are any issues with the documentation, if the owner must obtain a non-resident certificate (which takes about 2 weeks) etc.


Cryptocurrencies are not officially legalized in Spain.  They are unregulated with cryptocurrencies not considered financial instruments under Spanish law. Despite this cryptocurrencies have emerged as a viable currency in Spain.

The Technology Acceptance Model (TAM), a robust analytical framework, was used to investigate cryptocurrency’s use in Spain. The performance expectancy for a given cryptocurrency was found to be the most important factor for its success. Spanish citizens and residents are able to freely send and accept crypto payments, they can own cryptocurrencies, trade on exchanges, and invest in them.

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