It starts earlier than that: payroll tax in Spain is 36%. If you're a micro-company, you can probably get away with paying each employee cash, or via B2B payme

It starts earlier than that: payroll tax in Spain is 36%. If you're a micro-company, you can probably get away with paying each employee cash, or via B2B payments. Once you reach any reasonable scale, you have to formalise those contracts. This is a problem across the EU, apart from areas like the UK and Scandinavia which don't have payroll taxes (where interestingly tech seems to be flourishing).