Additional Changes to Permits in Spain.

July 20, 2011— A royal decree that took effect on June 30 has brought more stringent requirements for employers of intracompany transferees and new restrictions on work permits for foreign nationals directly hired by employers in Spain, but has also introduced expanded eligibility for expedited immigration processing and a new immigration category for researchers and highly skilled workers. Fines and other sanctions for noncompliance with Spanish immigration law were also increased.

Labor Market Test for Intracompany Transferees
Employers are now required to conduct a test of the local labor market before they can receive foreign intracompany transferees, unless the transfer is between companies belonging to the same group and having common ownership, and the employer can certify and document that a foreign transferee has specific knowledge that is available only to senior employees and is essential to the offered position.

Expanded Access to Fast-Track Immigration Processing
Under the new decree, more employers may benefit from expedited immigration processing, through Spain’s Large Business Unit (Unidad de Grandes Empresas), now that eligibility requirements for the Unit have been eased. Membership in the Large Business Unit provides an exemption from labor market tests, expedited work permit processing of approximately one month, and visa processing in approximately ten days. In addition, a dependent residence permit application can be submitted simultaneously with that of the principal applicant, and dependent spouses can apply for a work permit without a labor market test.

Implementation of the EU Blue Card
The decree also introduced a new employment category for researchers and highly skilled employees that is Spain’s version of the European Union Blue Card. Although the new category requires a labor market test, it offers expedited adjudication and other processing advantages. Work permits under the program are processed in roughly 45 days. Foreign beneficiaries who require a work visa to enter Spain for employment are eligible for expedited visa processing in roughly 15 days. Applicants holding a residence permit from another EU country are exempt from the work visa requirement.

New Requirements for Direct-Hire Work Permits
Work permits for foreign nationals hired directly by an employer in Spain are now subject to new limits and compliance responsibilities.

Direct-hire work permits are valid for employment in a single job title and one specified Spanish province. Employers are now obligated to inform immigration authorities about any changes related to a work permit application after submission. If a work permit holder is ultimately not hired after entering the country or is prematurely terminated, the employer must follow specific notification procedures that will give the foreign national an opportunity to seek other employment before having to depart.

Job contracts for work permit holders must use an official template provided by the Spanish labor authorities. Foreign nationals must provide the job contract to the consular post when applying for a visa. Before the foreign national starts work, the job contract must be registered with the Spanish labor authorities (INEM).

In addition, work permit holders now have three months to register with the Spanish social security system and one month beyond that time to apply for a residence card. Previously, work permit holders were required to register with social security and apply for a residence card within one month of entry.

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